Also known as: equitable · equity jurisdiction · equitable principles
Written by attorneys · grounded in primary & secondary sources — see below
A procedural designation for actions or remedies pursued before a court exercising equitable jurisdiction rather than at common law. The label signals that the claim seeks relief unavailable at law, such as specific performance, injunction, or reformation, and that the court may apply flexible standards of fairness.
Idina Iverson signed a binding contract to buy a warehouse from Ironwood Capital. Before the closing date a fire destroyed the building. Under equitable conversion Ironwood still holds legal title only as trustee, so Idina bears the risk of loss and must pay the full purchase price at closing.
GrainCo and farmer Lopez agreed in writing to a fixed price for the season's corn. An unprecedented drought sharply increased Lopez's irrigation costs. The parties exchanged emails raising the price per bushel. Because the change was fair and equitable in light of circumstances neither side anticipated, the modification binds both parties even without fresh consideration.
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Island Manufacturing leased residential apartments to tenants under a lease contemplating residential use. After the lease began the landlord failed to maintain heat and plumbing. Tenants may affirm the lease and obtain equitable relief including rent abatement and damages rather than terminating the tenancy.
A settlor created a trust leaving an outright remainder to a disabled beneficiary. After the settlor's death, changed medical costs threatened to exhaust the trust. Because circumstances were unanticipated, a court may modify the dispositive terms to create a special-needs trust that preserves assets while still advancing the settlor's purpose.
A trustee holds legal title to real property under an installment land contract. The beneficiary possesses only an equitable interest. That interest still qualifies as property that may be the subject of ownership under the Uniform Trust Code definition.
Two defendants were jointly liable for a personal-injury judgment. One paid the entire award. That defendant may obtain contribution only for the amount paid in excess of its own equitable share. No defendant can be forced to contribute beyond that share.
A party proceeds in equity when the requested relief, such as specific performance or an injunction, is unavailable through a legal remedy like money damages. Courts sitting in equity apply flexible standards of fairness and may consider factors that a court at law would not weigh.
Supporting sources
Yes. Once a binding contract forms, equity treats the buyer as owner of the land. In most jurisdictions the risk of loss therefore shifts to the buyer at contract formation even though legal title remains with the seller until closing.
Yes. When unanticipated circumstances arise, a court may modify either administrative or dispositive provisions if doing so will further the settlor's purposes. The modification must be consistent with the trust's overall intent.
Yes. Under modern doctrine a modification of an executory contract is binding if it is fair and equitable in view of circumstances the parties did not anticipate when they contracted.
…it. The activities which establish its “presence” subject it alike to taxation by the state and to suit to recover the tax. Equitable Life Society v. Pennsylvania , 238 U. S. 143, 146; cf. International Harvester Co. v. Department of Taxation , 322 U. S. 435, 442, et seq. ; Hoopeston Canning Co. v. Cullen, supra ,…