Key Takeaways

  • Equitable relief is a court-ordered remedy used when money damages are inadequate, requiring a party to act or refrain from acting.
  • Common forms include specific performance, injunctions, declaratory relief, rescission, reformation, and equitable estoppel.
  • Courts consider factors such as fairness, clean hands, and the uniqueness of the subject matter (e.g., real estate or rare goods).
  • Equitable relief can be temporary (e.g., preliminary injunctions) or permanent, depending on the circumstances.
  • While equitable remedies offer flexibility, they are discretionary and not automatically granted.

Equitable Relief Meaning: Equitable relief generally doesn't involve money. Instead, it's a ruling whereby a court orders one party to refrain from participating in one activity and orders them to perform a new action for the sake of the other party. Two examples of equitable relief are injunctions and restraining orders.

What Is Equitable Relief?

Equitable relief arises when monetary relief is inadequate and there is no other legal recourse, both parties must come to a general understanding. Since the word "equity" means "fairness," the aim of equitable relief is to determine a fair solution for both parties.

Most people know about compensatory relief because these types of civil cases are commonly discussed. In a compensatory relief case, one party usually sues another in the hopes of being awarded a monetary prize.

In lieu of having one party pay the other monetary damages in an equitable relief case, one party is ordered to do something or to stop one type of activity.

When Courts Grant Equitable Relief

Courts generally turn to equitable relief when monetary damages cannot fully address harm. For example, if a party breaches a contract involving unique property, such as a historic home or rare artwork, money alone cannot replace the lost opportunity. Judges weigh fairness, the availability of alternative remedies, and whether the requesting party acted in good faith. Because equitable relief is discretionary, the court may deny it if granting the remedy would create disproportionate hardship for the other party.

How Many Types of Equitable Relief Are There?

There are a few types of equitable relief, including:

  • Specific Performance
  • Injunction
  • Declaratory Relief
  • Equitable Estoppel
  • Rescission
  • Reformation

In general, law practitioners are referring to cases involving specific performance and injunctions.

Temporary vs. Permanent Equitable Remedies

Equitable relief can be classified not only by type but also by duration:

  • Temporary or preliminary remedies (such as a temporary restraining order) are granted early in litigation to prevent immediate harm until the court reaches a final decision.
  • Permanent remedies (such as permanent injunctions or rescission) are issued at the end of a case after a full hearing on the merits.

This distinction highlights the court’s ability to act quickly when necessary to preserve fairness while still retaining flexibility for final judgments.

What Is Specific Performance?

Specific performance means that a person is required to complete a certain action, based on what is stated in a contract between the plaintiff and defendant. These forms of relief are usually rejected by courts if personal service contracts are at issue.

Specific performance is applied in cases that meet two criteria. First, a monetary reward would be inadequate. Secondly, one aspect of the contract must present a unique circumstance.

What Is an Injunction?

An injunction forces one party to perform an act or to refrain from doing something. Injunctions may be enforced over a specific period of time or be perpetually enforced. If the person affected by the injunction fails to comply, they may have to pay fines or serve time in jail.

Types of Injunctions

Injunctions come in several forms, each tailored to different circumstances:

  • Temporary Restraining Order (TRO): Short-term, often issued without notice, to prevent immediate harm.
  • Preliminary Injunction: Issued before trial to preserve the status quo until the case is resolved.
  • Permanent Injunction: Granted after a trial, requiring or prohibiting specific conduct indefinitely.

Courts evaluate the likelihood of success, the potential for irreparable harm, and the balance of hardships before issuing an injunction.

What Is Declaratory Relief?

When declaratory relief is invoked, both sides in a civil court proceeding asked the court to make a specific ruling. In such a case, the court is to outline the type of rights and responsibilities each party has with respect to one another.

Declaratory relief is best applied in cases that involve land rights. Specifically, two parties might be fighting over one piece of property. Thus, a court ruling will determine who has a right to use the land.

Practical Uses of Declaratory Relief

Declaratory relief is particularly useful when parties seek legal certainty without waiting for further conflict to escalate. Businesses often request a declaratory judgment to confirm intellectual property rights or clarify contractual obligations before launching a product or entering into a deal. By outlining each party’s rights and obligations, declaratory relief prevents disputes from turning into costly litigation.

What Is Equitable Estoppel?

Equitable Estoppel is invoked when the person making a claim is found to have acted in bad faith or tries to tie up the case. According to the "clean hands" principle (or the "unclean hands" doctrine, however you look at it), the person who seeks equitable relief will be scrutinized. Then, if the court discovers that the petitioner caused the incident between himself and the defendant, the court will not reward equitable relief in that case.

What Is Rescission?

Most of the time, equitable relief comes into play in cases involving a breach of contract. In those cases, the just will order for the rescission of the contract. That means the court has voided the contract.

Rescission will be granted under these circumstances:

  • Fraud was committed.
  • A mistake was made in the drafting or signing of the document.
  • The person who signed the contract did so under duress.
  • The contract makers failed to make considerations for the signee.

When the court rescinds a contract, everything (all goods, property, and money) that was transferred during the duration of the contract will be returned to their original owners. Basically, everyone starts over, with respect to the contract; it's as if the contract was never signed in the first place.

Limits and Alternatives to Rescission

While rescission unwinds a contract, courts will not grant it if monetary compensation is sufficient or if unwinding the agreement would harm innocent third parties. In some cases, rather than voiding the contract entirely, the court may order partial rescission—canceling only the provisions affected by fraud, mistake, or duress.

What Is Reformation?

Finally, reformation, which is related to rescission, allows the contract in question to be rewritten to reflect the wishes of both parties. Reformation usually comes into play when there was fraud or both parties made a mistake with the contract. In those cases, the court will compel both parties to abide by the terms of the contract as it was originally drafted if the court finds that both parties breached that contract.

Reformation vs. Rectification

Reformation (sometimes called rectification in other jurisdictions) allows a court to rewrite contract terms to reflect the parties’ true intent. This remedy is typically used when drafting errors or mutual mistakes created terms that neither party intended. Unlike rescission, which cancels the agreement, reformation preserves the contract but ensures it accurately reflects the original bargain.

Frequently Asked Questions

  1. When do courts prefer equitable relief over money damages?
    Courts prefer equitable relief when monetary damages cannot make the injured party whole, such as cases involving unique property or ongoing harm.
  2. What’s the difference between legal and equitable remedies?
    Legal remedies involve monetary compensation, while equitable remedies require specific actions or restraint, focusing on fairness rather than money.
  3. Can equitable relief be granted temporarily?
    Yes. Courts may issue temporary restraining orders or preliminary injunctions to prevent harm until a case is fully resolved.
  4. Is equitable relief guaranteed if damages are inadequate?
    No. Equitable relief is discretionary; courts weigh fairness, hardship, and the requesting party’s conduct before granting it.
  5. Can contracts limit the availability of equitable relief?
    Parties sometimes include clauses restricting remedies, but courts retain ultimate discretion and may still grant equitable relief if justice requires.

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