Written by attorneys · grounded in primary & secondary sources — see below
A demand for relief founded on equitable principles when legal remedies such as damages are inadequate or when fairness requires remedies like injunction or accounting.
Sources & Authorities· 9 primary sources
Select any source to read its text and confirm it supports the definition.
Statutes
Uniform Acts
How it applies
Common Examples
6
Cohabitant Seeks Share of Business
Christopher Collins and Chloe Chen lived together for five years while Chloe managed the books and invested her savings in renovations to Christopher's auto repair shop. After they separated Christopher sold the shop and kept all proceeds. Chloe filed suit asserting an equitable claim based on her contributions to the relationship.
Partner Challenges Self-Dealing Deal
Catherine Carter and Cecilia Cabrera formed a partnership that purchased equipment from a company Catherine secretly controlled. Cecilia sued alleging breach of loyalty. Catherine raised the defense that the transaction was fair to the partnership.
Camila Cervantes sued her corporation for breach of fiduciary duty and requested an injunction barring a proposed merger. The corporation moved to strike the equitable claim arguing prior administrative findings would bind the court.
Parklane Hosiery Co. v. Shore439 U.S. 322, 334 (1979)
Creditor Demands Jury on Fraud Claim
Continental Bank sued a debtor alleging fraudulent conveyance and sought both damages and an equitable accounting. The debtor demanded a jury trial on all issues arguing the legal claim controlled sequencing.
Granfinanciera, S.A. v. Nordberg492 U.S. 33, 42 (1989)
Minority Shareholder Pursues Rescission
Canyon Construction's minority owners discovered undisclosed side deals after a cash-out merger and filed an action for rescissory damages based on breach of fiduciary duty alongside their appraisal proceeding.
Citadel Security sued a competitor for antitrust violations seeking treble damages and an injunction against exclusive licensing. The defendant moved to try the equitable claim first to avoid jury findings on common issues.
Beacon Theatres, Inc. v. Westover359 U.S. 500 (1959)
Common questions
Frequently Asked
3
When does an equitable claim based on contributions to a cohabitation relationship accrue?+
The claim accrues on termination of cohabitation and remains subject to equitable defenses such as laches.
Supporting sources
Does fairness of a transaction serve as a defense to an equitable claim arising from a partner's self-dealing?+
Yes. Fairness to the partnership defeats both the statutory claim and any comparable claim in equity or at common law.
Supporting sources
May a plaintiff pursue an equitable claim without first exhausting legal remedies such as damages?+
Yes. A court evaluates the adequacy of damages prospectively and may consider injunctive relief without requiring the plaintiff to have first sought and been denied damages.
Supporting sources
439 U.S. 322 (1979)Civil Procedure
…Beacon Theatres and Dairy Queen recognize that there might be situations in which the Court could proceed to resolve the equitable claim first even though the results might be dispositive of the issues involved in the legal claim." Id. , at 339. Thus the Court in Katchen v. Landy recognized that an equitable…