History of Equity | Equity & Trusts

Summary

This video script delves into the historical roots of equity, explaining its development from the principles of fairness and justice to a system balancing fairness with legal certainty. It highlights the role of the Lord Chancellor in shaping equity, the rivalry between common law and equity, and the eventual fusion of these jurisdictions under the Supreme Court of Judicature Act 1873. The script sets the stage for further exploration of equity's principles and its modern applications in legal practice.

Takeaways

• 📚 Equity is a set of principles developed over centuries to address the limitations of common law, ensuring fairness in individual cases where the law may be rigid.
• 🧐 Equity is not a separate part of law but a moral virtue that moderates and reforms the law, assisting where it is defective or weak.
• 👑 The concept of equity is rooted in the idea of conscience, with the Lord Chancellor acting as the 'keeper of the King's conscience' in earlier times.
• 📜 Historically, individuals could petition the king directly for justice if they felt common law decisions were unfair, leading to the creation of the Lord Chancellor's role.
• 🏛 The Lord Chancellor's role evolved from considering petitions to the king to hearing cases in person, becoming a key figure in the development of equity law.
• 🚫 Equity was seen as discretionary and variable, with outcomes depending on the Lord Chancellor's personal sense of right and wrong, which was criticized for inconsistency.
• 🔗 Equity and common law had a long-standing rivalry, with each side viewing the other's interventions as encroachments on their jurisdiction.
• 🤝 The Judicature Acts of the 19th century aimed to resolve the conflict between equity and common law by amalgamating the courts into the Supreme Court of Judicature, with equity prevailing in conflicts.
• 📈 Equity has transitioned from a discretionary system to one based on precedent, becoming more structured and predictable over time.
• 📝 The fusion of equity and common law jurisdictions has led to a more integrated legal system, though the intellectual separation of principles remains.
• 📚 The video script promises further exploration of the current approaches to equity, the concept of conscionability, and the substantive aspects of equity and trusts in upcoming videos.

Q & A

What is the primary purpose of equity in the legal system?

Equity serves to balance the need for certainty in rule-making with the need to achieve fair results in individual circumstances. It mitigates the rigors of the common law by considering the conscience of the individual defendant in any particular case.

How is equity described in the Earl of Oxford case?

In the Earl of Oxford case, equity is described as the cause for Chancery because men's actions are so diverse and infinite that it is impossible to make a general law that may aptly meet with every particular act.

What does Dudley and Dudley say about equity in relation to the law?

Dudley and Dudley state that equity is not a part of the law but our moral virtue which qualifies, moderates, and reforms the rigor, hardness, and edges of the law and assists the law where it is defective or weak.

What is the historical origin of equity?

Equity draws on principles of fairness, justice, morality, and ethics, with the principle of conscionable 'ti underlying all these principles. It originated as a means to address the harshness of the common law and adapt to new societal and economic developments.

How did the role of the Lord Chancellor evolve in relation to equity?

The Lord Chancellor, an ancient office of state, was originally responsible for hearing petitions addressed to the king. Over time, the Chancellor began to hear cases in person and dispense justice based on conscience and natural justice, eventually becoming the keeper of the Great Seal and exercising royal authority on behalf of the king.

What is an injunction in the context of equity?

An injunction is a form of relief introduced in the sixteenth century by the Court of Chancery. It was granted against the unconscionable enforcement of a common law judgment, with the threat of imprisonment for breach of the injunction itself.

How did the rivalry between the Chancery and common law courts manifest historically?

The rivalry manifested in the form of tension and conflict over jurisdiction, with common law courts opposing the Chancery's use of injunctions to interfere with their rulings. This was addressed in cases like Heath and Wrightly, where the common law courts complained about equity's interference.

What was the significance of the Supreme Court of Judicature Act 1873?

The Supreme Court of Judicature Act 1873 amalgamated the common law and equity jurisdictions into the Supreme Court of Judicature, which administered both law and equity. This act placed the Court of Chancery within the same court but with its own division, leading to a more unified legal system.

How did the concept of equity change over time to become more structured?

Equity evolved from being a discretionary jurisdiction to one with established rules based on precedent, similar to the common law. This development occurred during the 18th and 19th centuries, leading to a more predictable and consistent application of equity.

What is the current status of equity in relation to common law according to the Supreme Court of Judicature Act 1873?

According to Section 25, Subsection 11 of the Supreme Court of Judicature Act 1873, in cases where there is a conflict or variance between the rules of equity and the rules of common law with reference to the same matter, the rules of equity shall prevail.

Why was there a need for the Judicature Acts and what did they achieve?

The Judicature Acts were needed to address issues such as the slow pace of the Chancery court and the need for a more unified legal system. They achieved this by merging the separate jurisdictions of common law and equity into the Supreme Court of Judicature, allowing for a more efficient and coherent administration of justice.

How did the Court of Chancery initially provide relief to individuals?

The Court of Chancery initially provided relief by considering petitions addressed to the king, particularly in cases where the common law court's decision was perceived as unfair or unjust. The Lord Chancellor would then dispense justice based on conscience and natural justice, remedying the defects of the common law.