Legal Definitions - equitable

The term equitable refers to something that is fair, just, and impartial. In a legal context, it often relates to a system of law known as "equity," which developed historically to provide remedies and outcomes based on fairness when traditional, rigid legal rules (often called "common law") might lead to an unjust result.

Courts applying equitable principles aim to achieve justice by considering the specific circumstances of a case, rather than strictly adhering to technical legal rules. This often involves providing remedies that go beyond simply awarding money, such as ordering someone to do something or stop doing something, to ensure a just and fair resolution.

Here are some examples illustrating the concept of "equitable":

• Equitable Distribution in Divorce: When a married couple divorces, a court might divide their assets not necessarily in a strict 50/50 split, but in an equitable manner. For instance, if one spouse significantly sacrificed their career to raise children and manage the household, allowing the other spouse to build substantial wealth, a court might award the stay-at-home spouse a larger share of the assets. This is because, while their financial contributions might have been less direct, their non-monetary contributions were crucial to the family's overall success, and a truly fair outcome requires acknowledging that.

  This illustrates equitable because the court prioritizes fairness and justice based on the unique contributions and circumstances of each spouse, rather than a rigid mathematical division.

• Issuing an Injunction: Imagine a construction company begins work that causes excessive noise and vibration, severely disrupting a nearby hospital's operations and patient recovery. Instead of just allowing the hospital to sue for money damages after the harm has occurred, a court might issue an equitable injunction. This is a court order compelling the construction company to immediately cease the disruptive activities or implement specific noise-reduction measures. The goal is to prevent ongoing harm and achieve a just resolution that money alone cannot provide.

  This demonstrates equitable because the court provides a non-monetary remedy (an order to stop or change behavior) to prevent ongoing injustice and ensure a fair environment for the hospital and its patients.

• Equitable Estoppel: A small business owner wants to expand their shop and discusses their plans with the landlord, who orally assures them that they can use an adjacent vacant lot for outdoor seating for the next five years. Relying on this assurance, the business owner invests a significant amount of money in renovating the shop and purchasing outdoor furniture. A few months later, the landlord tries to prevent them from using the lot. A court might apply equitable estoppel, preventing the landlord from going back on their word, even if there wasn't a formal written agreement. It would be unfair and unjust for the landlord to revoke their permission after the business owner incurred substantial costs based on that promise.

  This example shows equitable because the court intervenes to prevent an unfair outcome, holding a party accountable for their representations when another party has reasonably relied on them to their detriment, even in the absence of a strict legal contract.