Legal Definitions - do equity

The legal principle of "do equity" means that a person who asks a court for a fair, non-monetary solution (known as an equitable remedy) must also be willing to act fairly towards the other party in the dispute. It embodies the idea that justice requires balance: if you seek fairness from the court, you must also demonstrate a readiness to be fair yourself. This doesn't mean abandoning your own legal rights, but rather being prepared to make reasonable concessions or fulfill your own obligations to achieve an overall just and balanced outcome for all involved.

Here are some examples illustrating this principle:

• Scenario: Specific Performance in a Contract Dispute

  Imagine a situation where a buyer, Sarah, entered into a contract to purchase a unique antique car from a seller, Mark. Before the sale was finalized, Mark received a much higher offer and tried to back out of the deal. Sarah wants the court to order Mark to complete the sale as originally agreed (an equitable remedy called specific performance), rather than just receiving monetary damages.

  How "Do Equity" Applies: If Sarah herself had delayed in making a required deposit or had failed to meet another minor contractual obligation, the court might require her to "do equity." This could involve compensating Mark for any legitimate costs he incurred due to her delay, even as the court compels him to sell the car to her. By requiring Sarah to address her own minor breach, the court ensures a fair resolution for both parties.

• Scenario: Resolving a Property Easement Dispute

  Consider two neighbors, Mr. Henderson and Ms. Chen. For years, Ms. Chen has been using a path across a corner of Mr. Henderson's property to access her garage, believing it was a shared easement. Mr. Henderson now wants the court to issue an injunction, an equitable remedy, to prevent Ms. Chen from using his property, claiming it's trespassing.

  How "Do Equity" Applies: If Mr. Henderson had been aware of Ms. Chen's consistent use of the path for a long time without objection, and Ms. Chen had invested her own money in maintaining or improving that path, the court might require Mr. Henderson to "do equity." This could mean allowing Ms. Chen a reasonable period to establish an alternative access route, or perhaps even compensating her for her investment in the path, rather than immediately stopping her use, especially if his prior inaction contributed to her reliance on the path. He seeks an equitable remedy (injunction), so he must also be prepared to act equitably.

• Scenario: Partnership Dissolution and Asset Division

  Two business partners, David and Emily, decide to dissolve their company. David discovers that Emily had been using some of the company's resources for personal projects without proper reimbursement. David seeks an equitable accounting and division of the partnership assets, an equitable remedy, to ensure he receives his fair share and is compensated for Emily's misuse of resources.

  How "Do Equity" Applies: If, during the partnership, David himself had occasionally used company funds for minor personal expenses without immediate repayment, the court might require him to "do equity." This would involve him repaying his own outstanding personal expenses to the company, even as the court addresses Emily's more significant misuse of resources. The court aims for a comprehensive and fair settlement that considers the conduct of both parties.