Legal Definitions - equitable relief

Equitable relief refers to a type of court-ordered remedy where, instead of simply awarding money to compensate for a loss, the court requires a party to either perform a specific action or stop performing a specific action. This kind of relief is granted when monetary compensation alone would not adequately resolve the injustice, prevent further harm, or when the subject of the dispute is unique and cannot be replaced by money.

Here are some examples illustrating equitable relief:

• Scenario: Preventing a Harmful Action

  A small, independent software company discovers that a former employee, who signed a non-compete agreement, has started a competing business and is actively using the company's proprietary client list to solicit customers. The former employee's actions could severely damage the original company's market share and future profitability.

  How it illustrates equitable relief: The software company could seek an injunction from the court. An injunction is a common form of equitable relief where the court orders the former employee to immediately stop using the client list and cease competing for a specified period. While monetary damages for lost business might be difficult to calculate accurately and might not fully prevent ongoing harm, compelling the former employee to stop the harmful activity directly addresses the injustice and protects the company's interests.

• Scenario: Enforcing a Unique Contract

  A collector contracts to purchase a rare, antique manuscript from a private seller for a significant sum. The manuscript is one-of-a-kind and holds immense historical value. Before the sale is finalized, the seller receives a much higher offer from another buyer and attempts to cancel the original agreement.

  How it illustrates equitable relief: The original collector could seek an order for specific performance. Since the manuscript is unique and irreplaceable, simply receiving their money back (monetary damages) would not allow the collector to acquire the specific item they contracted for. The court would compel the seller to complete the original sale as agreed, ensuring the collector receives the unique item rather than just financial compensation.

• Scenario: Correcting a Fundamental Mistake in a Contract

  A couple purchases a plot of land with the understanding, based on the seller's representations and the initial survey provided, that it includes a specific scenic easement granting access to a nearby lake. After the sale, they discover the easement was mistakenly omitted from the final deed and the seller does not actually own the rights to grant it.

  How it illustrates equitable relief: The couple might seek rescission of the contract. Rescission is an equitable remedy that aims to undo the contract entirely, returning both parties to their original positions before the agreement was made. Simply receiving monetary damages might not address the fundamental issue that they bought the property under a false premise regarding a crucial feature. The court could order the sale to be undone, requiring the seller to refund the purchase money and the buyers to return the property, effectively correcting the injustice by reversing the transaction.