Also known as: equitable remedies · equitable relief
Written by attorneys · grounded in primary & secondary sources — see below
A nonmonetary judicial remedy such as an injunction or specific performance granted when monetary damages cannot adequately redress the injury. The remedy operates by compelling or forbidding conduct to prevent irreparable harm or to enforce obligations where substitutionary relief falls short.
Edward Everett, a director of Everest Holdings, learns of a valuable real-estate parcel and immediately presents the opportunity to the board. Qualified directors disclaim the corporation's interest following the required procedures. A shareholder later sues claiming the director usurped a corporate opportunity. Because the disclosure and disclaimer occurred before any obligation arose, the court refuses to entertain any claim for equitable relief.
Eugene Ellsworth pays off the entire mortgage on property owned by Esme Ellington after the primary lender refuses further forbearance. A junior lienholder exists on the same parcel. The court imposes subrogation by operation of law, transferring the senior mortgage to Ellsworth so that he may enforce it against the property and avoid an unearned windfall to the junior interest.
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Elliot Edmonds, a citizen of State A, sues a State B corporation in federal court under diversity jurisdiction seeking rescission of a contract for fraud. State A law would permit rescission, but the federal court must still determine whether the requested relief falls within the traditional scope of equity historically administered by the English Court of Chancery.
Edgar Evers alleges that federal agents violated his Fourth Amendment rights during a warrantless search. He seeks damages and an injunction barring further surveillance. The court recognizes an implied cause of action for damages while noting that equitable relief remains available under traditional equity principles to prevent ongoing violations.
Empire Logistics owns land zoned for industrial use. The village enacts a new ordinance restricting the property to residential development, sharply reducing its market value. Empire seeks an injunction against enforcement of the ordinance on the ground that the restriction constitutes a present and irreparable injury even before any specific application occurs.
Ewan Eckhart leases an apartment from Elemental Properties. The unit lacks functioning heat and contains multiple housing-code violations. Eckhart withholds rent and sues for an order compelling the landlord to make repairs. The court grants injunctive relief because monetary damages would not adequately restore the tenant to the bargained-for habitable premises.
A court grants an equitable remedy when monetary damages cannot adequately compensate the plaintiff because the subject matter is unique, a suitable substitute cannot be procured, or damages would be difficult to prove with reasonable certainty. The plaintiff must also show that the balance of equities favors the requested relief and that no public-policy bar exists.
Supporting sources
No. A valid liquidated-damages clause does not preclude specific performance or an injunction if those remedies would otherwise be appropriate. The clause merely supplies an alternative measure of damages. It does not constitute an agreement to accept payment in lieu of performance.
Legal remedies consist of money damages. Equitable remedies consist of specific performance or injunctions and are available only when damages are inadequate and the balance of equities favors relief. Modern procedure merges the two systems, but the substantive prerequisites for equitable relief remain.
Yes. A right to an equitable remedy such as specific performance or an injunction is a claim under the Bankruptcy Code if the debtor's breach gives rise to a right to payment under applicable nonbankruptcy law.
Supporting sources
…specific complaints, some of them, or even many of them, may be found to be clearly arbitrary and unreasonable. But where the equitable remedy of injunction is sought, as it is here, not upon the ground of a present infringement or denial of a specific right, or of a particular injury in process of actual execution, but upon the…