Keith Mack
The conflict between common law and equity has a long history, with the two systems of law developing alongside each other in England. Common law, with its emphasis on judicial decisions and precedent, was the dominant system for centuries. However, the emergence of equity as a rival system in the 15th century challenged the primacy of common law. Equity, developed in the Court of Chancery, aimed to provide legal remedies in cases where common law was seen as inflexible and unable to deliver fair resolutions. The two systems had different functions and approaches to justice, and their concurrent existence led to conflicts and tensions, with litigants exploiting the differences by seeking favourable rulings in one system or the other. The famous Earl of Oxford's case in 1615 highlighted the clash between the two systems and resulted in a ruling by King James I that in conflicts between common law and equity, equity would prevail. This set a precedent for future cases and marked a significant step towards the eventual fusion of the two systems through the Judicature Acts in the 1870s.
| Characteristics | Values |
|---|---|
| Conflict resolution | In the event of conflict between common law and equity, equity prevails |
| Earliest examples | The Earl of Oxford's case in 1615 |
| Cause of conflict | Clash of personalities between Lord Chancellor Ellesmere and Chief Justice of the King's Bench, Sir Edward Coke |
| Resolution | The matter was referred to the Attorney General, Sir Francis Bacon, who upheld the use of equitable injunction |
| Legal backing | Section 49 of the Supreme Court Act 1981, Judicature Acts of the 1870s, Judicature Act 1873-1875 |
| Current examples | Supreme Court Act 1970 (NSW) |
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What You'll Learn
The Earl of Oxford's case
The 17th Earl of Oxford, Edward de Vere, had allegedly owned the land in question, but upon his death in 1604, it was passed to his minor son, Henry. Henry and another tenant, Thomas Wood, brought a case in the Court of Chancery, as they believed they had a rightful claim to the land. However, Gooch and Smith, who also had an interest in the land, refused to answer the bill and appear in court, stating that the case was void. The Chancery Court then committed them to Fleet Prison for contempt of court.
The Lord Chancellor, Lord Ellesmere LC, issued a common injunction out of the Court of Chancery, prohibiting the enforcement of the common law order. This injunction allowed the Earl of Oxford and his tenants to quietly enjoy the land, meaning the statute did not void the initial transaction. This injunction was upheld by the Attorney General, acting on the authority of King James I, who concluded that equity would prevail in any conflict between common law and equity. The King's decree stressed that the legal position for chancery (equity) is to address voids in the common law, ensuring that subjects receive equal and indifferent justice.
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Jurisdictional shopping
Forum shopping, also known as jurisdiction shopping, is a strategic behaviour employed by plaintiffs to increase their chances of winning a case. It involves taking advantage of the heterogeneity of legal systems by choosing the court or jurisdiction that best suits their interests. This phenomenon is particularly common in international civil procedural law, where plaintiffs can seek justice in courts outside their 'natural' jurisdictions to gain procedural or substantive advantages.
In the context of the conflict between common law and equity, forum shopping can refer to litigants exploiting the differences between these two legal systems to their benefit. Common law and equity are separate but concurrent bodies of law in common law jurisdictions. Equity was developed in the English Court of Chancery to address the inflexibility of common law and provide legal remedies in cases where common law could not fairly resolve disputes.
The Judicature Acts of the 1870s in England, and 1972 in New South Wales, ended the institutional separation between common law and equity courts, allowing both systems to be administered in the same courts. However, this fusion of administration did not blend the actual bodies of law. As a result, litigants could engage in forum shopping by seeking equitable injunctions to prohibit the enforcement of common law court orders.
For example, in the Earl of Oxford's Case of 1615, a stalemate between the two jurisdictions occurred. The matter was referred to the Attorney General, Sir Francis Bacon, who, by the authority of King James I, upheld the use of the equitable injunction and concluded that equity would prevail in conflicts with common law. This case demonstrated the susceptibility of equity to political upheaval and its dependence on the King's prerogative during the 17th century.
In modern times, forum shopping can still be observed in various contexts. For instance, a plaintiff suing a large corporate defendant might choose to sue in a state court rather than a federal court, believing that a local jury will be more sympathetic to their argument. Plaintiffs may also deliberately structure their claims to prevent out-of-state defendants from removing the case to federal court. Forum shopping is not limited to national jurisdictions, as international civil procedural law allows claimants to choose the preferred court for transnational disputes.
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The role of the King
The King, James I, played a crucial role in ending the stalemate between the two courts. In the Earl of Oxford's case of 1615, the matter was referred to the Attorney General, Sir Francis Bacon, who acted under the authority of the King. The Attorney General upheld the use of the equitable injunction and concluded that in any conflict between common law and equity, equity would prevail. This established the principle that equity would take precedence over common law in cases of conflict.
The King's role in this process demonstrated the importance of royal authority in the administration of justice. The Chancellor, as the King's most senior official and the "keeper of the King's conscience," exercised jurisdiction through the Court of Chancery. The Court of Chancery, also known as the Court of Equity, had the flexibility to use discretion and administer justice based on the particular circumstances of each case.
The King's involvement in the Earl of Oxford's case set a precedent for resolving conflicts between common law and equity. The Judicature Acts of the 1870s further consolidated the fusion of the two bodies of law, establishing one Supreme Court of Judicature with the authority to administer both common law and equity. This reform ensured that the two systems would no longer work separately, reducing the potential for conflict and providing a more unified approach to justice.
In summary, the King's role in resolving the conflict between common law and equity was significant. Through the authority of the King, the principle of equity's precedence was established, and the foundation was laid for the eventual fusion of the two legal systems. The King's delegation of duties to the Chancellor and the subsequent reforms contributed to a more equitable and adaptable system of justice.
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The Judicature Acts
One of the key aspects of the Judicature Acts was the amalgamation of the courts. The Acts established a single Supreme Court of Judicature, which replaced the Court of Chancery and the common law courts. This Supreme Court consisted of two main parts: the High Court of Justice and the Court of Appeal. The High Court was further divided into five specialist divisions, including the Chancery Division, the Common Law Division (also known as the Queen's Bench Division), and divisions for Probate, Divorce, and Admiralty. The Court of Appeal was responsible for hearing appeals from all five divisions of the High Court.
While the Judicature Acts brought about important changes, they did not fuse the substantive laws of common law and equity. Instead, they focused on the procedural aspects, allowing the same court to apply either common law or equity rules, depending on the substantial justice required in each case. This procedural fusion marked a significant step towards ensuring fair dealings and building a system of precedents to guide future decisions.
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The fusion of law and equity
The conflict between common law and equity has a long history, with the former emphasising the importance of judicial decisions, while the latter operates under a distinct set of rules and principles. The Court of Chancery, where equity was administered, had the flexibility to adapt to unique cases and deliver justice. This flexibility led to "jurisdiction shopping", where litigants would seek an equitable injunction to prevent the enforcement of a common law court order. The Judicature Acts of the 1870s ended the institutional separation of common law and equity, allowing both to be administered by the same courts.
The Judicature Acts established a single Supreme Court of Judicature, consisting of a High Court of Justice and a Court of Appeal. This new court system allowed for uniform procedures and administration, enabling both common law and equity to be heard in the same courts. The Acts also emphasised that in the event of a conflict between the two, equity would prevail. This principle was upheld by King James I in the Earl of Oxford's Case of 1615, which demonstrated the fragile nature of equity during that period.
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Frequently asked questions
Common law and equity are two separate systems of courts and jurisdictions. Common law emphasises the importance of judicial decisions and precedent, while equity is a discretionary system that allows the use of flexible and adaptable principles to achieve justice and fairness. The two systems came into conflict in the 15th century when equity became well-established and was seen as a rival system to common law.
The conflict was caused by the establishment of the Court of Chancery, which had jurisdiction over cases that did not fall within the scope of common law. The Chancellor was not bound by precedent or strict legal rules, which allowed for more discretionary decision-making.
The conflict between common law and equity created a situation where there were two separate systems of courts and jurisdictions, which led to difficulties and inconsistencies in legal proceedings. The Judicature Acts of the 1870s in England and the Supreme Court Act of 1970 in New South Wales were introduced to resolve these issues and establish one Supreme Court to administer both common law and equity.
In the event of a conflict between common law and equity, it is generally accepted that equity should prevail. This was established in the Earl of Oxford's case in 1615 and upheld by King James I, who ruled in favour of the Chancellor. Section 49 of the Supreme Court Act 1981 in England and Wales also states that in cases of conflict, the rules of equity shall prevail.
