Equitable Defenses

1
Equitable Defenses

• Laches Bars only equitable Claims!
• Estoppel Bars legal or equitable claims or even
  positions!
• Unclean Hands The dentists revenge!
• Unconscionability Cant sue!
• Exclamation Points Are fun!

2
Laches

• Equitys Statute of Limitation

3
Sleeping on Rights, by Itself, Does Not
Constitute Laches

• To bar plaintiff from equitable relief by
  laches, the defendant must prove both
  (1)________________ and (2) _____________________.
  
• One without the other is not enough.
• Laches is an affirmative defense that must be
  plead.
• If an equitable claim (say, spec perf) is barred
  by laches, legal claims ________ barred?

4
(1) Time

• No bright line rules about length of time.
• Laches arose when equity courts were not bound by
  SoL.
• But, SoLs have an impact

5
The Impact of SoLs

• If equitable claim is brought within SoL of
  analogous legal claim, strong presumption laches
  does not apply.
• So, usually, if the legal claim is not barred,
  the equitable is not.
• But it could be that only equitable claims are
  barred.
• E.g., breach of K may be available but spec perf
  not.
• If equitable claim is filed outside SoL on
  analogous legal claim, then burden shifts to
  plaintiff to establish equitable claim is not
  barred by laches.
• So an equitable claim might be available even
  where legal claims are not.
• E.g., spec perf may be available when money
  damages are not.

6
(2) Prejudice

• Two kinds of prejudice can be relied on by
  defendant (130)
• (a) _________ prejudice
• E.g._____________________________________________
  _________________________________________________
• (b) _________ prejudice
• E.g._____________________________________________
  _________________________________________________

7
Problem (132)

• Facts

• What should happen?

8
Estoppel

• There are about 987 kinds of estoppel
• Collateral estoppel
• Estoppel in pais
• Equitable estoppel
• Promissory estoppel
• Yadda yadda estoppel
• Each varies.

• Defensively, estops the plaintiff from asserting
  a claim (equitable or legal) or taking a
  position.
• E.g., defendant says spec perf is barred by
  estoppel.
• Offensively, estops the defendant from asserting
  a defense (equitable or legal) or taking a
  position
• E.g., plaintiff says defendant is estopped from
  asserting statute of frauds.

9
Estoppel Elements (138)

• (1) Party to be estopped must __________________
  
• (2) Party to be estopped must __________ his
  conduct will be ____________ or act so that the
  other party has a ________ _________ he so
  intended
• (3) Party asserting estoppel must be
  ______________ and
• (4) Party asserting estoppel must
  __________________.
• And, if the government is the defendant, a
  plaintiff must show _________________ and
  ______________ outweighs the public interest in
  not having the government estopped.
• Why?

10
Beacom (138)

• Facts?

• Government estopped?
• What if it hadnt been the government?

11
Unclean Hands
12
Unclean Hands

• Historical origins
• What must the party asserting unclean hands
  prove?
• Are proof of delay, prejudice, or fraud required?
• A party who establishes the claimant has unclean
  hands only bars assertion of equitable claims

• Does this mean that Saddam Hussein can never get
  equitable relief for any claim at any time?
• Suppose Saddam Hussein had agreed, while living
  in that spider hole, to buy a house from Carson.
  Could Carson avoid specifically performing
  because Saddam is a tyrant and, after all, was
  living in a hole in the ground and so had pretty
  filthy hands?

13
Senter (GA) (142)

• Facts?
• What was the dentists claim?
• What would that get him?

• Why was the dentists motive relevant to his
  claim?
• Does the dentist have unclean hands?
• If so, whats his number so we can all avoid
  using him.

14
Oliver (146)

• Facts?
• How serious must the plaintiffs misconduct be?
• Was it serious here?

• How close does the relationship between the
  misconduct and the claim have to be?
• Was it close enough here? Why?

15
Unconscionability (141)

• Only applies to _________ actions.
• Bars enforcement or money damages when
  _____________.
• Does there have to be fraud by the party seeking
  performance?
• Can a plaintiff sue for damages where a defendant
  has foisted an unconscionable contract on it?
  (Hint, think waaay back.)

16
Wentz (150)

• Is this contract carrying a good joke too far?
  
• What factors should you look for in assessing
  unconscionability?

• Facts?
• What was the K?
• What happened to KP?
• Do you think Campbells was buying carrots at 90
  on the open market that it should have paid only
  30 for?
• Who sued who, and what was the claim?
• What was Campbells argument for inadequacy (why
  isnt it KP MP damages??)
• What did the trial court hold?
• Why does this court affirm?

17
Star Credit (153)

• Facts?
• Is unconscionability being used to defeat a legal
  or equitable claim?
• What time is unconscionability measured?

• Has the defendant been amply compensated?
• What is a possible consequence of this case on
  the ability of poor people to buy products?

18
Unconscionability-Shield Only

• Jeff sells a vase to Emily for 50,000, but it
  has a FMV of 100. Assume no fraud.
• Can Emily sue Jeff for 49,900 in damages?
• If Jeff sues Emily for the unpaid balance of
  45,000, what defense can Emily raise?