ELS

CH1: EQUITY AND TRUST

Equity refers to a set of legal principles and remedies that are designed to supplement the
common law, providing fairness and justice in cases where the strict application of common
law rules might lead to an unjust outcome.

HISTORY:

The Court of Chancery became the primary court for handling matters of equity, and it
operated separately from the common law courts.

1535
STATUTE OF USE: Before the law, someone could give land to another person to use, but the
original owner still had to pay taxes on it. The law said that if someone gave land to another
person to use, the person using the land would become the legal owner and would have to
pay the taxes.

Earl of Oxford Case:

1. Background:
- Henry VIII gave land to Lord Audley, who left it to Magdalene College in his will.
- Magdalene College sold the land, eventually acquired by the Earl of Oxford.

2. Legal Dispute:
- Magdalene College challenged the Earl's title based on a statute prohibiting the sale of
college lands.
- Magdalene College had initially transferred the land to Queen Elizabeth, bypassing the
statute.

3. Conflict Between Common Law and Equity:

- Chief Justice Coke and Lord Chancellor Edgerton disagreed. Coke wanted to limit the
Chancellor's powers.
- The Earl alleged a fraudulent judgment, and the Chancellor issued an injunction based on
an unfair advantage.

4. Stalemate and Resolution:

- Both legal systems reached an impasse, leading to Attorney-General Bacon's involvement.
- The Attorney-General upheld the Chancellor's injunction, stating equity would prevail in
conflicts.

5. Political Impact on Equity:

- Equity's authority was tied to the King's prerogative, making it vulnerable during political
changes like Charles I's overthrow.
- The 1690 attempt to reverse the case did not pass, preserving equity's influence.

6. Legacy and Codification:

 - The Judicature Act 1873-1875 enshrined equity's preeminence, codifying its rules and
ensuring both common law and equity could be heard in the same courts.

7. Distinct Features of Equity and Common Law:

- Equitable doctrines influenced common law, but they remained conceptually distinct.
- Examples show the limitations and differences between equity and common law.

1689
Equity in Law is the same that the Spirit is in Religion, what everyone pleases to make it,
sometimes they go according to Conscience, sometimes according to Law, sometimes
according to the Rule of Court. -John Selden

s.25(11) of the Supreme Court of Judicature Act 1873 codified the decision of Earls of
Oxford case by providing that ‘in the event of conflict between the rules of law and equity,
the rules of equity shall prevail’.

DEFINATIONS OF EQUITY:

1 Aristotle’s ‘Ethics’ – “For Equity, though superior to justice, is still just … justice and
equity coincide, and although both are good, equity is superior. What causes the
difficulty is the fact that equity is just, but not what is legally just: it is rectification of
legal justice”.

2 Earl’s of Oxford’s Case – ‘The office of the Chancellor is to correct men’s consciences
for frauds, breach of trusts, wrongs and oppression… and to soften and mollify the
extremity of the law’.