Gavin Howe
The common law and equity are two separate legal systems with distinct rules and principles. Common law, which originated in England, is a rigid system that follows strict procedural rules and precedent. On the other hand, equity, which also developed in England, is more flexible and focuses on fairness and justice in cases where common law falls short. The two systems often come into conflict, with litigants strategically choosing between the two jurisdictions to seek a more favourable outcome. Historically, the resolution of these conflicts has varied, with some cases upholding the precedence of equity over common law, while others have resulted in the fusion of the two systems through judicial reforms.
| Characteristics | Values |
|---|---|
| The legal basis for the conflict | Common law and equity are two separate bodies of law with their own rules and principles. |
| The role of the courts | Common law is administered by the central royal courts, while equity is administered by the Court of Chancery. |
| The nature of remedies | Common law remedies are rigid and based on precedent, while equity provides flexible remedies to ensure fairness. |
| The jurisdiction | Litigants can go "jurisdiction shopping" and seek equitable injunctions to override common law orders. |
| The historical development | Equity emerged to address the deficiencies of common law and became well-established by the 15th century. |
| The resolution of conflicts | In cases of conflict, equity prevails over common law, as established by legal precedents and reforms. |
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What You'll Learn
The Earl of Oxford Case
The Earl of Oxford's Case (1615) is a foundational case in the common law world, demonstrating the conflict between common law and equity. The case centred around a dispute over a parcel of land in London, which had been gifted by King Henry to Lord Audley as a reward. Lord Audley then left the land to Magdalene College, Cambridge, which sold it to Queen Elizabeth I in 1574. The Queen then sold the land to Benedict Spinola in 1575, who in turn sold it to Edward de Vere, the Earl of Oxford.
Magdalene College challenged the Earl of Oxford's title to the land, citing a statute that prohibited the sale of college lands. The College argued that the original sale to Queen Elizabeth I was made with the intention of circumventing this statute. This dispute set the two pillars of the English legal system—common law and equity—on a confrontational path.
The Court of Common Law ordered the payment of a debt to Magdalene College, as they believed that while the debt had been paid, the deed giving rise to the obligation had not been cancelled. The Court of Equity, on the other hand, was prepared to grant an order preventing this and ratifying the deed, upholding the Earl of Oxford's title to the land. The conflict between the two jurisdictions resulted in a stalemate, and the matter was referred to the Attorney General, Sir Francis Bacon.
Acting on the authority of King James I, Bacon upheld the use of the common injunction issued by the Lord Chancellor, concluding that in any conflict between common law and equity, equity would prevail. This case demonstrated the fragile position of equity in the 17th century, as its authority was dependent on the King's prerogative. The Earl of Oxford's Case is considered a cornerstone of equity in the modern English legal system, influencing the development of both common law and equity.
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The role of the Lord Chancellor
Historically, the Lord Chancellor's jurisdiction was exercised through the Court of Chancery, where equity law developed as a separate body of law from common law. The Chancellor was not bound by strict legal precedents or rules, allowing for discretionary decision-making to achieve justice and fairness in individual cases. This discretionary power was a source of conflict with the common law courts, as seen in the Earl of Oxford's case in 1615, where a clash between Lord Chancellor Ellesmere and Chief Justice Sir Edward Coke highlighted the tensions between the two legal systems.
The Lord Chancellor, through the Court of Chancery, had the authority to issue injunctions and use equitable remedies to correct or prevent the enforcement of common law judgments that were deemed unjust or unconscionable. In the Earl of Oxford's case, the Lord Chancellor issued an injunction based on the concept of unconscionable advantage, protecting the rights of the Earl of Oxford against the common law judgment.
The Lord Chancellor's duties extend beyond conflict resolution between common law and equity. They are responsible for promoting and maintaining the rule of law within the UK's constitutional system. The Lord Chancellor plays a crucial role in ensuring good governance, protecting citizens' rights, and upholding the principles of constitutional democracy. The position of Lord Chancellor holds significant influence and has been subject to reforms to ensure its integrity, including the appointment of legally trained individuals to the role.
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The Judicature Acts
The Acts led to the creation of a single Supreme Court of Judicature, which was empowered to administer both common law and equity. This procedural fusion of the two legal systems ended their institutional separation, although the bodies of law themselves remained distinct. The Supreme Court's five divisions were:
- Queen's (or King's) Bench
- Chancery Division
- Common Pleas Division
- Exchequer Division
- Probate, Divorce, and Admiralty Division
The Acts brought about significant procedural changes, such as relaxing the rules around pleadings and reducing the reliance on jury trials, particularly in the Chancery Division. They also addressed the matter of "abandonment of an action," which involves the discontinuance of proceedings in the High Court when a plaintiff believes they will not succeed in a civil action. Overall, the Judicature Acts were a pivotal step towards modernising the court system in England and Wales, streamlining processes and enhancing the efficiency of justice delivery.
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Equity's pre-eminence
The concept of equity in law has its roots in antiquity, with the writings of Aristotle and Roman law. In the English legal system, equity was developed in the Court of Chancery, with the purpose of providing remedies in cases where the common law was too inflexible to deliver fair resolutions.
Equity was seen as a rival system to common law, with the Chancellor's jurisdiction exercised through the Court of Chancery. The Chancellor was not bound by precedent or strict legal rules, allowing for discretion in administering justice. The Court of Chancery's increasing popularity led to conflict with the common law courts.
The Earl of Oxford's Case is a notable example of the conflict between common law and equity. In this case, the court of common law ordered the payment of a debt that had already been paid, while the court of equity granted an order preventing this and ratifying the deed. The conflict was resolved by the Attorney-General, Sir Francis Bacon, who upheld the use of the common injunction issued by the Lord Chancellor, prioritising equity.
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The conflict resolution
Common law and equity have historically been separate systems of law, with equity developing as a response to the perceived inflexibility of common law. Equity, developed in the English Court of Chancery, aimed to provide legal remedies where common law fell short or was inadequate. The Chancellor, through the Court of Chancery, was not bound by precedent or strict legal rules, allowing for discretion in the administration of justice. This flexibility and focus on fairness set the two systems on a collision course, with the Court of Chancery's increasing popularity leading to conflict with the common law courts.
The resolution to these conflicts has been addressed through various means, including the involvement of higher authorities and the enactment of legislation. In the Earl of Oxford's Case, the conflict between common law and equity was referred to the Attorney-General, Sir Francis Bacon, who upheld the use of the common injunction issued by the Lord Chancellor. This case demonstrated the susceptibility of equity to political upheaval, as its authority was derived from the King's prerogative.
To address the conflicts between the two systems, the Judicature Acts of the 1870s were enacted, fusing the procedural aspects of common law and equity. The Supreme Court was empowered to administer both rules, allowing for uniform procedures and court administration. This fusion, however, did not blend the substantive laws of the two systems. The Judicature Acts, particularly the 1873-1875 Act, also enshrined the pre-eminence of equitable rules in cases of jurisdictional conflict between common law and equity.
In certain jurisdictions, such as New South Wales, reforms have been introduced to empower the courts to grant relief in either equity or common law. For example, the Supreme Court Act 1970 (NSW) and subsequent reforms emphasised that equity would prevail in conflicts with common law.
Overall, the resolution of conflicts between common law and equity involves recognising the distinct purposes and remedies offered by each system. Equity provides remedies where common law falls short or is inadequate, focusing on fairness and flexibility. The resolution lies in allowing equity to supplement and enhance the remedies available under common law, ensuring a more comprehensive and just legal system.
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Frequently asked questions
Common law is a system of law that was historically developed and administered in central royal courts. Equity, on the other hand, is a separate body of law that was developed in the English Court of Chancery to provide more flexible remedies in cases where common law was deemed insufficient or unfair.
In the event of a conflict between common law and equity, equity will generally prevail. This is because equity is designed to provide a remedy when common law fails to deliver a fair outcome. The Judicature Acts of the 1870s in England and Wales, and the Supreme Court Act 1970 in New South Wales, Australia, empowered courts to grant relief in either common law or equity, resolving conflicts between the two.
In the Earl of Oxford's Case, the court of common law ordered the payment of a debt that had already been paid, without cancelling the deed that gave rise to the obligation. The court of equity granted an order preventing this and ratifying the deed, demonstrating its role in correcting the inflexibilities of common law.
Conflicts between common law and equity arise due to their inherent differences. Common law operates under strict procedural rules and doctrines, whereas equity is more flexible and discretionary, focusing on fairness and justice in individual cases. The increasing popularity of equity led to tensions with common law courts, as litigants could seek equitable injunctions to prohibit the enforcement of common law judgments.
