Equitable relief: Overview, definition and example
What is equitable relief?
Equitable relief is a type of remedy a court can grant in a legal dispute that isn’t about money but about fairness. Instead of awarding damages (money), equitable relief requires one party to take specific actions—or stop certain actions—to resolve the issue. It’s often used when monetary compensation alone won’t fix the problem.
Common types of equitable relief include injunctions (orders to stop doing something) and specific performance (orders to fulfill a contract). These remedies are designed to make things fair and ensure justice when money can’t make up for the harm caused.
Why is equitable relief important?
Equitable relief is important because it provides a way to address situations where financial damages aren’t enough to resolve a dispute. For example, if a business breaches a contract to sell a rare or unique item, monetary compensation might not be adequate since the buyer can’t just purchase a replacement. In such cases, equitable relief ensures the injured party gets what they were originally promised.
This type of relief is particularly relevant in business disputes, intellectual property cases, and agreements involving unique goods or services. It gives courts flexibility to craft solutions that fit the specific circumstances and ensure fairness.
Understanding equitable relief through an example
Imagine a supplier agrees to provide custom equipment to a manufacturer, but later refuses to deliver it despite the contract. If the manufacturer can’t find a replacement elsewhere, they might seek equitable relief in the form of specific performance. A court could order the supplier to fulfill the contract and deliver the equipment instead of simply awarding damages.
Another example involves a former employee violating a non-compete agreement by working for a direct competitor. The employer might seek an injunction to stop the employee from continuing this work, rather than just suing for monetary damages, since the harm is ongoing and could affect the business long-term.
An example of an equitable relief clause
Here’s how an equitable relief clause might look in a contract:
“In the event of a breach or threatened breach of this Agreement, the non-breaching party shall be entitled to seek equitable relief, including but not limited to injunctive relief or specific performance, in addition to any other remedies available under law.”
Conclusion
Equitable relief provides a fair and flexible solution for resolving disputes where money alone won’t fix the problem. It ensures that actions can be taken to uphold contracts, protect rights, or stop harmful behavior.
By understanding equitable relief and including it in contracts, businesses can protect their interests and have the tools to address unique challenges effectively. It’s a practical way to ensure fairness in situations where standard remedies fall short.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.