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CA Bar Review - Remedies
General review for CA Remedies
21
Law
Professional
01/22/2012

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Cards

Term

CA Remedies

 

Categories and Theory

Definition

Three general categories of remedies

1. Remedies at law (damages)

2. Restitution

3. Equitable remedies

 

Should be considered in this order

However, a liability theory supporting that remedy must first be established before the applicable remedy can be considered

The particular liability theory is a major factor in determining the appropriate remedy

Term

CA Remedies

 

Damates in Tort Cases

Definition

 

Purpose of damages in tort cases is generally compensation

 

Standard measure of damages for conversion is the market value of the proeprty at the time of conversion

 

Personal injury, whether intentional or negligent, are usually compensated by money damages for economic and non-economic losses

 

Wrongful death - economic and non-economic damages; state specific

1. Loss of support by the decedent

2. Loss of services provided by the decedent

3. Funeral and burial expenses

 

Term

CA Remedies

 

Damages in Breach of Contact Cases

Definition

 

 

1. Liquidated damages - specifically provided for by contract and subject to both certainty and reasonableness requirements

a. Existence of the clause does not prevent the court from granting specific performance where otherwise appropriate, unless the parties stipulated in the contract liquidated is only remedy

2. General damages - arise naturally from a breach where there is a valid contract that does not othrewise provude for remedies in teh event of breach

3. Consequential damages - those contemplated by the parties at the time of contract formation, must be foreseeable and certain

4. Incidental damages - subset of consequential damages recognized by the UCC and recoverable if reasonably foreseeable

- for an aggreived seller reasonable charges incurred in transporting, storing, caring for, or reselling goods

- for an aggreibevd buyer, reasonable charges incurred in inspecting, receiving, transporting, and storing rightfully rejected goods

 

 

Term

CA Remedies

 

Damages in Breach of Contract Cases: Involving Sale of Real Estate

Definition

Buyer may have the equitable remedy of specific performance or the restitutionary remedy of rescission

 

Sellers are less likely than purchasers to be awarded specific performance or rescission of a contract for the sale of real property

Term

CA Remedies

 

Restitutionary Damages: Remedial Purpose and Form

Definition

Restitutionary remedy seeks to prevent the injust enrichment by returning benefits unjustly conferred

 

Focus is amount of the benefit unjustly obtained, rather than harm suffered

 

Types are both legal and equitable

- Replevin and ejectment are specific remedies requiring return of property

- Others provide a monetary substitute

Term

CA Remedies

 

Restitutionary Damages:Restitutionary Remedies in Tort Cases

 

Replevin

Definition

An action taken at law for the recovery of specific chattels wrongfully taken or detained

 

Permits the plaintiff to recover immediate possession of the property

 

Damages suffered from the deprivation may also be recovered

 

Only personal property, not real property

Term

CA Remedies

 

Restitutionary Damages:Restitutionary Remedies in Tort Cases

 

Constuctive Trust

Definition

Fraud rectifying involuntary trusts created by operation of law to prevent unjust enrichment

Seekss to retake from a wrongdoer title to the property due to misappropriation such as fraud, mistake, undue influence, breach

 

Requirements

1. Defendant holds legal title to specific property that rightfully belongs to the claimant

2. A confidential or fiduciary duty between the P and D was breached by the D; and

3. The retention of the property by D would result in unjust enrichment

Term

CA Remedies

 

Restitutionary Damages:Restitutionary Remedies in Tort Cases

 

Equitable Lien

Definition

A lien is a charge against property that makes the property stand as security for debts or obligations

Equitable lien is a restitutionary remedy imposed to avoid unjust enrichment


Created by either

1. Written contract

2. Court's order in equity, usually in cases of fraud, mistake, or material misrepresentation

It is not required that the claimant establish a lack of damages to obtain an equitable lien

Equitable lien differs from constructive trust in that in the trust, you get the res, but in the lien, you get a security interest

Term

CA Remedies

 

Restitutionary Damages:Restitutionary Remedies in Contract Cases

 

Quasi Contract

Definition

Quasi contacts are implied in law and are a form of legal restitutionary remedy designed to prevent unjust enrichment


Parties have not entered into a contract but the court imposes an obligation on the part of the D to repay the P "for goods sold or delivered" or "for work and labor permitted" or "for money had and received"


Most common examples:

1. Payment made by mistake

2. Fraud, misrepresentation, oppression, unlawful conduct

3. Providing emergency medical services to D

Term

CA Remedies

 

Restitutionary Damages:Restitutionary Remedies in Contract Cases

 

Rescission

Definition

Under certain circumstances equity will rescind a contract and render it void and simultaneously order restitution to restore the parties to the position threy were in before the contract was formed

Term

CA Remedies

 

Restitutionary Damages:Restitutionary Remedies in Contract Cases

 

Misrepresentation: Generally, Innocent, Fraudulent

Definition

Usually rescission questions are around misrepresentation or mistake

Innocent misrepresentation is not actionable in tort

- P needs to show the misrepresentation was material and reasonable reliance - if so, rescission is proper

Fraudulent misrepresentation occurs when D knowingly makes a false representation that is relied upon to the P's detriment

- An actionable tort for which money damages are appropriate

- Rescission available as alternate remedy

Term

CA Remedies

 

Restitutionary Damages:Restitutionary Remedies in Contract Cases

 

Mistake

Definition

Rescission for Mutual Mistake: mistake must go to the very essence of the contract - contract voidable

 

Rescission for Unilateral Mistake: courts are reluctant to grant rescission for unitlateral mistake

- rescission may be granted if the mistake is basic and the mistaken party will suffer extreme hardship or the other party knew of the claimant's mistake and proceeded

Term

CA Remedies

 

Equitable Remedies: Equitable Remedies in Tort Cases

 

Injunctions

Definition

Prohibitory Injunction: Court order directed to a person or entity usually to refrain from doing a particular act

 

Mandatory Injunction: court order to do a particular act

- Requests for mandatory injunction are subject to heightened scrutiny, requiring a showing that the facts and law clearly favor the moving party

Term

CA Remedies

 

 

 

Equitable Remedies: Equitable Remedies in Tort Cases

 

Temporary Restraining Orders and Preliminary Injunctions

Definition

Preliminary injunction: may not be granted without notice to the other party, but moving party may seek immediate relief through a TRO

 

TRO may be granted without formal notice and hearing if irreperable injury will result

Criteria to obtain a TRO

1. Likely to succeed on the merits

2. Complaint shows P is entitled to relief demanded

3. Denial of relief would produce waster or great irreperable injury

4. Public interest and balance of hardships favors grant

Term

CA Remedies

 

 

 

Equitable Remedies: Equitable Remedies in Contract Cases

 

Specific Performance

Definition

Mandatory injunction ordering the party to perform its contractual obligations

May be a judgement for possession of specific property if

Specific Performance of a contract requires the following prerequisites:

1. Contract is enforceable

2. All conditions precedent have been satisfied

3. Contract terms are sufficiently definite to be enforced by the court

Types of contracts for specific performance:

1. Land sale contracts: a buyer bears the risk of loss from destruction of the premises after the execution of the contract, thus a seller may specifically enforce the contract despite destroyed premises by flood or fire

2. Contracts for the sale of goods: where goods are unique including instances where cover or other UCC remedies are unavailable

Term

CA Remedies

 

 

 

Equitable Remedies: Equitable Remedies in Contract Cases

 

Reformation

Definition

Reformation or "contact revision" is an equitable remedy where a court modifies or alters a written instrument to make it conform to the actual intent of the parties

 

Grounds:

1. Fraud

2. Mutual mistake

3. Unilateral mistake

Term

CA Remedies

 

 

 

 

 

 

 

Equitable Remedies: Equitable Remedies in Contract Cases

 

Defenses or Limitations to Reformation

Definition

Statute of Frauds may be a valid defense in reformation if the written agreement fails to comply with the technical requirements

 

The harshness of this rule is rectified by the doctrine of part performance which will allow reformation if the P substantially performed her part of the contract

Term

CA Remedies

 

 

 

 

 

 

 

Equitable Remedies: Equitable Remedies in Contract Cases

 

Quiet Title

Definition

Allows a claimant to resolve uncertainty or remove clouds of title of real property in a variety of situations, such as where title is claimed by adverse possession or under a gift, will or trust

 

Basic requirement of the action at common law is that the P be in actual posession of the property

- Differs from an action at law for ejectment which is available where the D is in possession of the land by the P has superior title and a right to immediate possession

Term

CA Remedies

 

 

 

 

 

 

 

Equitable Defenses: Unclean Hands

 

Definition

A court will not award equitable relief to a party that has engaged in improper or unfair conduct in teh course of the same transaction for which that party seeks the intervention of equity

 

The inequitable conduct must have a close connection to the matter in controversy

Term

CA Remedies

 

 

 

 

 

 

 

Equitable Defenses: Laches

Definition

Equitable remedy may be barred by the doctrine of laches if:

1. The moving party has waited an unreasonable length of time in asserting its claim; and

2. the non-moving party suffered prejudice as a result of the moving party's unreasonable delay

 

Statutes of limitation are generally applicable and equity follows law in this respect

When a pleading discloses that hte state statute of limitation has run, the P bears the burden of pleading facts that would negate laches or toll the statute

- P must show exceptional circumstances prevented earlier action

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