Kara Sears
Common law and equity are two distinct legal systems that developed in England and have influenced the legal systems of many other countries, particularly those following English legal tradition, such as the United States, Canada, Australia, and New Zealand. Common law establishes general rules that provide certainty and predictability through established precedents, while equity acts as a check and balance on common law, offering flexibility and fairness to achieve justice in cases where a rigid application of common law would result in unfair outcomes. Equity provides remedies such as injunctions, specific performance, and rescission, which are often applied in situations not adequately addressed by common law or statutory law. The Judicature Acts of the 1870s in England fused the administration of common law and equity into a unified court system, allowing judges to apply both sets of principles and choose the most appropriate remedy based on the specific circumstances of each case.
| Characteristics | Values |
|---|---|
| Nature | Equity is a set of remedies and associated procedures involved with civil law. |
| History | By the 15th century, equity was seen as a rival system of common law. |
| Jurisdiction | The Chancellor's jurisdiction was exercised through the Court of Chancery. |
| Legal Precedents | Common law relies on precedents, while equity allows for judicial discretion. |
| Flexibility | Common law provides stability, while equity offers flexibility to achieve justice. |
| Fairness | Equity is guided by principles of fairness, justice, and conscience. |
| Function | Common law establishes general rules, while equitable rights act as a check and balance. |
| Conflict | In case of conflict between common law and equity, equity prevails. |
| Legal Systems | Common law and equity developed in England and have influenced many other countries. |
| Unification | The Judicature Acts of the 1870s unified the courts of equity and common law into one system. |
| Legal Remedies | Common law remedies are typically monetary damages, while equitable remedies include injunctions, specific performance, and rescission. |
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What You'll Learn
The role of the Chancellor and the Court of Chancery
The Court of Chancery was a court of equity in England and Wales that followed a set of flexible rules to avoid the slow pace of change and possible harshness of the common law. The Chancellor's jurisdiction was exercised through the Court of Chancery. The Chancellor was not bound by precedent or strict legal rules as the common law courts were, and consequently, was able to use discretion to administer justice to a particular case. The Court of Chancery was led by the Lord Chancellor, who applied principles of fairness and justice, providing remedies that were more flexible than those available under common law.
The Court of Chancery was initially a royal administrative body, headed by the Lord Chancellor and a group of twelve Masters in Chancery. They began taking on legal cases to clear the backlog of petitions cluttering up the king's council meetings. This change from administration to legal work was gradual at first, but by the early seventeenth century, the court had become an entirely judicial body. Chancery was increasingly staffed by professional lawyers, which coincided with a huge increase in cases. The Court of Chancery played a role in the development of the English language: the quantity of paperwork created by Chancery helped set the spelling and grammar rules of an evolving language, as well as the visual appearance of English letters.
The Court of Chancery had jurisdiction over all matters of equity, including trusts, land law, the estates of lunatics and the guardianship of infants. Its initial role differed somewhat: as an extension of the Lord Chancellor's role as Keeper of the King's Conscience, the court was an administrative body primarily concerned with conscientious law. The Court of Chancery had a far greater remit than the common-law courts (whose decisions it had the jurisdiction to overrule for much of its existence) and was far more flexible. The Court of Chancery could apply a far wider range of remedies than common law courts, such as specific performance and injunctions, and had some power to grant damages in special circumstances.
The Court of Chancery was abolished in the 1870s, and its jurisdiction over equity cases was merged into a new High Court of Justice that to this day oversees all types of legal matters. The Chancellor is no longer a judge, but instead supervises the court system of the United Kingdom, in which the Master of the Rolls is still a senior English judge.
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The relationship between common law and equity
Common law and equity are two legal systems that developed in England and have influenced the legal systems of many other countries, particularly those following English legal traditions such as the United States, Canada, Australia, and New Zealand.
In the early medieval period, the Court of Chancery, led by the Lord Chancellor, developed as a rival system to the common law courts. The Chancellor was not bound by precedent or strict legal rules, allowing for discretionary treatment of the needs of individual cases. This flexibility was criticised for lacking fixed rules and varying greatly from Chancellor to Chancellor. However, supporters argued that equity mitigated the rigidity of common law by focusing on substance rather than form.
By the 15th century, the popularity of the Court of Chancery led to conflicts with the common law courts. To address these conflicts, the Judicature Acts of the 1870s in England fused the administration of common law and equity into a unified court system, allowing all courts to apply both sets of principles. This integration ensured that the legal system could provide a comprehensive range of remedies, with judges empowered to select the most appropriate remedy based on the specific circumstances of each case.
Despite the merger, some have argued that common law and equity remain distinct streams, running alongside each other rather than mingling. This view highlights the complementary nature of the two systems, with common law providing a structured framework and equity introducing flexibility to address the nuances of individual cases.
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The differences in remedies offered by each
Common law and equitable rights serve two different functions. Common law establishes general rules that provide certainty, while equitable rights act as a check and balance on common law. Common law relies on precedent, also known as stare decisis, which requires courts to follow previous judicial decisions when the facts of a case are similar, thus ensuring consistency and predictability in the law. 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, is guided by principles of fairness, justice, and conscience. It provides remedies in situations where precedent or statutory law might not apply or be equitable. Equity offers solutions such as injunctions, specific performance, and rescission, which address the needs of justice more comprehensively. For example, in the case of a breach of contract, a court might order specific performance, whereby the victim of the breach could compel the exact performance promised if damages would be a poor substitute, as in contracts to sell land and unique chattels.
The procedures in a court of equity are much more flexible than those in a court of common law. Equity allows for judicial discretion to adapt legal principles to new and unique situations. This combination of common law and equity helps maintain a balance between consistency in the application of the law and the ability to address the nuances of individual cases.
In summary, common law and equity represent two complementary streams of legal principles and remedies that have evolved to address the limitations of each other. Common law provides a structured and predictable framework based on precedents, while equity introduces flexibility and fairness through discretionary remedies.
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The evolution of equity in the US
Equity, under common law, refers to a set of legal principles that supplement and sometimes override strict common law rules in order to achieve a fair result. The concept of equity originated in England and was developed by the Court of Chancery, which had the power to grant remedies such as injunctions and specific performance to provide relief to litigants when common law remedies were inadequate.
The evolution of equity in the United States can be traced back to the adoption of the English legal system in the colonial period. The early American legal system, like its English counterpart, recognized the distinction between law and equity and maintained separate courts for each. The system of equity was adopted to provide a more flexible approach to legal disputes and to ensure that justice was served, even when the strict application of common law rules might lead to unfair outcomes.
One of the key features of equity is its focus on providing remedies that are tailored to the specific circumstances of each case. While common law courts typically offer monetary damages as a remedy, equity courts have the power to grant injunctions, which are orders requiring a person to take or refrain from taking a certain action. For example, an injunction could be used to stop a neighbor from playing loud music late at night, or to require a business to remove a hazardous substance from a property.
Another important principle of equity is the doctrine of clean hands, which states that a party seeking equitable relief must act in good faith and come to court with clean hands. This means that the party must not have engaged in any unjust, unfair, or dishonest behavior in relation to the matter at hand. If a party is found to have unclean hands, the court may deny their request for equitable relief.
Over time, the distinction between law and equity in the United States began to blur, with many states merging their law and equity courts into a single system. This merger, which took place in the late 19th and early 20th centuries, was intended to simplify the legal system and ensure that litigants could obtain complete relief in a single proceeding. Today, while a few states still maintain separate courts of law and equity, most have unified their court systems, with judges capable of administering both law and equity.
Despite the merger of law and equity, the principles of equity continue to play a crucial role in the US legal system. Injunctions and other equitable remedies are still commonly used, and the clean hands doctrine remains an important consideration in equitable cases. Additionally, the concept of equity has influenced the development of other areas of law, such as trusts and estates, where equitable principles are often applied to ensure that the intentions of the parties are carried out.
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The impact of equity on other countries
Common law and equity are two legal systems that developed in England and have significantly impacted the legal systems of many other countries, especially those following the English legal tradition, such as the United States, Canada, Australia, and New Zealand.
The influence of English common law and equity can be seen in the legal systems of several countries. For example, in the United States, the split between courts of "law" and "equity" (or Chancery) propagated to many colonies, and some states like Delaware, Mississippi, South Carolina, and Tennessee continue to have separate Courts of Law and Chancery. After the US courts merged law and equity, American law courts adopted the more flexible procedures of equity courts.
In Canada, the Supreme Court of Canada has affirmed equitable ideas of unconscionability to control very unfair contracts and the concept of good faith, which shares similarities with equity.
India, another country with a strong common law tradition, traditionally followed the common law doctrine of equity even after gaining independence in 1947. However, in 1963, the Specific Relief Act was passed, codifying most equitable concepts into statutory rights and reducing the discretionary role of the courts in granting equitable remedies. Nevertheless, Indian courts continue to exercise their inherent powers under specific sections of the Code of Civil Procedure and the Constitution, allowing them to pass orders to ensure complete justice.
Equity has also influenced the legal systems of Australia, New Zealand, and Singapore, which are closely allied to English law.
In summary, the impact of equity on other countries has been significant, particularly among those with legal systems rooted in the English tradition. The fusion of common law and equity principles has enhanced the flexibility and fairness of legal systems worldwide, allowing judges to provide the most appropriate remedies based on the specific circumstances of each case.
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Frequently asked questions
Equity law is a set of legal principles that allow courts to use discretion and apply justice in accordance with natural law. It supplements the strict rules of common law and is guided by principles of fairness, justice, and conscience.
An example of equity law is the enforcement of trusts. In this case, a person who has been given title to property to manage it for another is required to fulfill their fiduciary obligations.
Common law provides a structured and predictable framework based on precedents, while equity introduces flexibility and fairness through discretionary remedies. Common law relies heavily on precedents, while equity is not bound by them and allows for judicial discretion to adapt legal principles to new and unique situations.
In the Earl of Oxford's Case, the court of common law ordered the payment of a debt that had already been paid. The court of equity was prepared to grant an order preventing this and ratifying the deed.
