Unclean Hands - Relation To Equitable Remedies

Relation To Equitable Remedies

Equitable remedies are generally remedies other than the payment of damages. This would include such remedies as obtaining an injunction, or requiring specific performance of a contract. Before the development of the courts of equity in England, such remedies were unavailable in the common law courts. Such remedies were developed in the equity courts as the payment of damages was often not a sufficient remedy for a plaintiff in certain circumstances. For example, if a landowner polluted the land of the neighbor, the common law tort of nuisance would only allow the innocent party to recover damages. Common law had no remedy that would force the defendant to stop the pollution. Equity courts developed such a remedy, the injunction, that provided an ongoing bar to the activity that caused the damage.

Equity courts realized that such extraordinary remedies were only justified in extraordinary cases, and would generally not grant such a remedy where damages were sufficient to make the plaintiff whole. For example, if a car dealership broke a contract of sale and refused to deliver a particular car, which now could only be obtained for $10,000 more than what the plaintiff was willing to pay, the courts would merely award the plaintiff $10,000 (in addition to the original amount paid, if it had already been paid). It would not force the dealer to obtain exactly the same car and sell it to the plaintiff. However, if the subject matter of the sale were a particular work of art, the court would order specific performance and require the sale of the art work.

However, equity courts also realized that these extraordinary remedies were subject to abuse. For example, if a doctor had signed a non-compete clause with a clinic, the non-compete clause might prevent the doctor from earning a living if he left the clinic's employment. As such, the court will generally only grant these remedies on the strictest terms. If there is any indication that the plaintiff seeking the remedy had acted in bad faith, either prior to the commencement of the litigation or afterwards, the court will generally not grant the remedy. For example, if the doctor left the clinic because it was involved in insurance fraud, a court would most likely refuse to enforce the non-compete agreement by issuing an injunction, although it might allow the clinic to recover damages if they did lose business to the doctor.