Keith Mack
Common law and equity are two distinct legal systems that have evolved to complement each other and address each other's limitations. They differ in their historical origins, principles, and remedies. Common law evolved from the customs and judicial decisions of the royal courts in medieval England, while equity originated in the English Court of Chancery to address the limitations and rigidity of common law. Common law relies on precedents and provides remedies through monetary damages, whereas equity is guided by principles of fairness, justice, and conscience, and offers a wider range of remedies beyond monetary compensation, such as injunctions, specific performance, and rescission. Equity allows judges more discretion in applying its principles and tailoring remedies to the unique circumstances of each case.
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What You'll Learn
Historical origins
The common law system originated in England during the medieval period. It evolved from the customs and judicial decisions of the royal courts, which were used to resolve disputes. As judges made decisions in individual cases, they created precedents that were followed in subsequent cases, leading to a body of law that was common throughout the realm. Common law primarily provides remedies through monetary damages and is known for its rigidity and formality. It is based on the principle of stare decisis, which means that previous judicial decisions with similar facts must be followed to ensure consistency and predictability in the law.
Equity, on the other hand, originated in the English Court of Chancery, also known as the High Court of Chancery, and was administered by the Lord Chancellor or the Chancellor, the King's most senior official and the "keeper of the King's conscience". Equity developed as a response to the limitations and rigidity of common law. Disappointed litigants began petitioning the King when they were unsatisfied with the remedies provided by the common law courts, and the King delegated these petitions to the Chancellor. The Chancery Court applied principles of fairness and justice, offering more flexible remedies such as injunctions, specific performance, and rescission. Equity was influenced by the Chancellor's training in theology and canon law, resulting in a new kind of law purportedly driven by conscience.
By the 15th century, equity had become well-established and was seen as a rival system to common law. The Chancellor's jurisdiction was exercised through the Court of Chancery, and he was not bound by precedent or strict legal rules, allowing him to use his discretion to administer justice in individual cases. This discretionary nature of equity allowed for an individualized approach, where judges could consider the unique circumstances and specific needs of each case. The increasing popularity of the Court of Chancery led to conflicts with the common law courts, and eventually, to the unification of the two systems.
The Judicature Acts of the 1870s in England, specifically the years 1873 to 1875, merged the administration of law and equity into a unified court system. This integration allowed all courts to apply both common law and equitable principles, providing a wider range of remedies. While the two systems now operate within a unified framework, they continue to balance each other, striving to provide fair and just rulings in legal disputes.
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Principles and maxims
Equity and common law are two distinct legal systems that coexist in many jurisdictions, including the United States, the United Kingdom, Canada, Australia, England, Wales, and New Zealand. They have different historical origins, principles, and remedies.
Equity is guided by principles of fairness, justice, and conscience. It fills the gaps in common law by providing remedies where common law fails to act or provide a suitable remedy. Equity's maxims include:
- "Equity will not suffer a wrong without a remedy"
- "He who comes to equity must come with clean hands"
- "Equity regards as done that which ought to be done"
- "Equity follows the law"
- "He who seeks equity must do equity"
- "Those who come to equity must come with clean hands"
Equity allows judges considerable discretion in applying its principles and granting remedies. This discretion enables judges to fashion appropriate relief based on the specific facts and equities of each case. Equity recognises the unique circumstances of each case and allows judges to tailor their response to the specific needs and interests of the parties involved.
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Remedies
The remedies available in common law and equity are one of the key distinguishing features of the two legal systems. Common law remedies are typically monetary damages awarded to compensate for losses suffered due to a breach of contract, tort, or other wrongs. Equity, on the other hand, offers a wider range of remedies beyond monetary compensation, including injunctions, specific performance, rescission, rectification, and declaratory judgments.
Equity provides remedies where common law provides none or provides a more suitable remedy than common law. For example, in the case of AG v Blake, the House of Lords allowed the equitable remedy of an account of profits for a claim for breach of contract, where the common law remedy of damages would have been inadequate.
Equity also allows judges considerable discretion in applying its principles and granting remedies. This discretion enables judges to fashion appropriate relief based on the specific facts and equities of each case, promoting fairness and justice. For instance, a breach of contract case might be addressed through monetary damages (common law) or specific performance (equity), depending on what is deemed just and fair.
Equity's discretionary nature is guided by a set of maxims and principles that promote fairness and justice, such as "equity will not suffer a wrong without a remedy", "he who comes to equity must come with clean hands", and "equity regards as done that which ought to be done". These maxims provide general guidelines for judges to exercise their discretion and adapt legal principles to new and unique situations.
In summary, while common law provides a structured and predictable framework based on precedents, equity introduces flexibility and fairness through its range of discretionary remedies. The two systems often overlap and complement each other, providing a comprehensive range of remedies within the modern unified judicial system.
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Rigidity vs flexibility
The common law system, which originated in medieval England, is known for its rigidity and formality. It is based on precedent, or stare decisis, where previous judicial decisions are followed in similar cases, ensuring consistency and predictability. This system evolved from the customs and decisions of royal courts, which were used to resolve disputes and create precedents that were then applied across the realm. Common law primarily provides remedies through monetary damages.
In contrast, equity is a separate legal system that developed alongside common law to address its limitations and rigidity. It originated in the English Court of Chancery, also known as the King's Court of Chancery, to handle cases that common law courts could not adequately address. Equity is rooted in the concepts of fairness, justice, and conscience, and it allows for more flexibility in the application of legal principles. Equity recognises the unique circumstances of each case and enables judges to consider the specific needs and interests of the parties involved, tailoring the relief accordingly.
While common law relies heavily on precedents, equity allows for judicial discretion to adapt legal principles to new and unique situations. Equity provides a range of remedies beyond monetary compensation, such as injunctions, specific performance, rescission, and declaratory judgments. These remedies aim to provide specific relief that is tailored to the circumstances of each case. Equity also focuses on preventing future harm, not just remedying past harm.
The two systems, common law and equity, complement each other and have evolved to address each other's limitations. Common law provides a structured and predictable framework, while equity introduces the flexibility needed to achieve justice in cases where a rigid application of common law would result in unfair outcomes.
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Equity's role
Equity was developed in the English Court of Chancery, also known as the King's Court of Chancery, which handled cases that common law courts could not adequately address. The early chancellors were influenced by their training in theology and canon law, and the Roman concept of 'aequitas', which influenced the development of the English concept of equity. By the 14th century, the Chancery was operating as a court, providing remedies where the strict procedures of the common law worked injustice or provided no remedy to deserving plaintiffs.
Equity offers a range of remedies beyond monetary compensation, such as injunctions, specific performance, rescission, and declaratory judgments. These remedies are tailored to the unique circumstances of each case and promote fairness and justice. Equity also recognises the concept of trust, which is not found in common law.
In summary, equity's role is to work alongside the common law and provide different solutions to problems. It fills in the gaps where the common law falls short, providing a more flexible and fair approach to ensure justice is served.
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Frequently asked questions
Equity law originated in medieval England as a response to the limitations and rigidity of the common law system. It developed from the Court of Chancery, which handled cases that common law courts couldn't adequately address.
Equity law is rooted in the concept of fairness and justice. It provides a wider range of remedies beyond monetary compensation, such as injunctions, specific performance, and rescission. Equity also allows judges considerable discretion in applying its principles and tailoring remedies to the specific circumstances of each case.
Common law evolved from the customs and judicial decisions of royal courts, creating precedents that were followed in subsequent cases. It primarily provides remedies through monetary damages and is known for its rigidity. On the other hand, equity law developed as a separate legal system to address the limitations of common law, offering flexibility and fairness. Equity law recognises the unique circumstances of each case and allows judges to consider the specific needs and interests of the parties involved.
Yes, equity and common law are two distinct legal systems that often coexist and influence each other. While they have different historical origins and principles, they can intersect in certain cases. For example, in a breach of contract case, a judge might apply either common law remedies (monetary damages) or equity remedies (specific performance) depending on what is deemed just and fair.
