The Volokh Conspiracy
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Devillier v. Texas--and the Declaratory Judgment Is Not Equitable
I am listening to the oral argument in Devillier v. Texas, and one attorney just said the declaratory judgment is an equitable remedy. It is not. Here is a note from the manuscript for the next edition of Ames, Chafee, and Re on Remedies:
Note on Equity and the Declaratory Judgment
Modern declaratory judgment acts have largely, but not entirely, superseded a variety of equitable remedies that were once quite important in solving procedural difficulties and providing effective protection for rights. Among these were quia timet ("because he fears") relief, bills of peace, cancellation of documents, and decrees quieting title to property. In their original forms, these remedies all relied on the power of equity courts to issue in personam orders. Indeed, equity decrees are typically coercive: the court orders the defendant to do or not to do some act. This is one application of the maxim that equity acts in personam.
Even so, the ultimate goal of some equity proceedings is a declaration of the plaintiff's rights vis-à-vis the defendant. Actions to rescind or reform a contract are examples. A request for an injunction may also have as its primary motive a declaration of rights between the parties. For example, in Huntworth v. Tanner, 87 Wash. 670 (1915), the plaintiff sued to restrain a threatened arrest and prosecution for violation of a penal statute, but the real relief at stake was a declaration that the plaintiff's activities did not violate the law. Such injunctions are often called "anti-suit injunctions": the plaintiff sues for an injunction to protect herself against a suit the defendant might bring in the future. Thus, a plaintiff would seek what was in effect a declaration, but using one of the traditional equitable forms of relief, because equity had no freestanding power to give declaratory judgments.
There are similarities between these equitable remedies and the modern declaratory judgment. For example, like an "anti-suit injunction," the declaratory judgment can be seen as an "anti-suit" remedy. But there are even more differences. The declaratory judgment was created by statute, rather than being developed from equity. A plaintiff seeking a declaratory judgment does not have to meet basic equitable requirements, such as showing there is no adequate remedy at law. A declaratory judgment is not an in personam order, and it is not directly enforceable by contempt. Moreover, in some jurisdictions, a declaratory judgment action can be given by a jury. See generally Samuel L. Bray, The System of Equitable Remedies, 63 U.C.L.A. L. Rev. 530, 561–562 (2016); cf. Aetna Life Insurance Co. v. Haworth, 300 U.S. 227, 241 (1937) (upholding the federal Declaratory Judgment Act, and noting that "as it is not essential to the exercise of the judicial power that an injunction be sought, allegations that irreparable injury is threatened are not required").
Perhaps it is best to see the declaratory judgment not as an equitable remedy, but as a legal prerogative writ, like mandamus or habeas. Because it lacks a traditional common law basis, the declaratory judgment had to be adopted by statute. Cf. Sir J.H. Baker, An Introduction to English Legal History 161 (5th ed. 2019).
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One major similarity to equity is that the remedy is discretionary: “any court of the United States, upon the filing of an appropriate pleading, may declare the rights and other legal relations of any interested party seeking such declaration, whether or not further relief is or could be sought.” 28 USC 2201.
Wilton v. Seven Falls Co., 515 U.S. 277, 282, 286 (1995)
All of this - both the declaratory relief and the injunctions - will never not be weird to me. My people have just one simple rule (apologies for the translation):
http://www.dutchcivillaw.com/legislation/dcctitle331111.htm#296
Yes, freedom isn't for everyone. And not having it often does make thngs simpler.
How did you get from what I wrote to that???
American conservatives tend to think that only American systems lead to “freedom” despite overwhelming evidence to the contrary.
I think there was some legislative history of the Declaratory Judgment Act that whether the cause of action arose in law or in equity depended on the underlying claim. So, for instance, a declaration that a contract had been breached would be a legal claim; a declaration that someone was unjustly enriched would be an equitable claim.
This whole legal vs. equity stuff is outdated, artificial and stupid. If it wasn’t for our insistence on traveling back to 1791 for the Seventh Amendment it wouldn’t matter at all.
No, there are other legal differences. Most prominently, is that equity is a matter of well-informed discretion, but law is a matter of right.
In theory perhaps but not in practice.
A judge is bound by precedent in deciding unjust enrichment (equitable) as much as in deciding breach of contract (at law).
No, you are wrong.
To obtain a permanent injunction:
"According to well-established principles of equity, a plaintiff seeking a permanent injunction must satisfy a four-factor test before a court may grant such relief. A plaintiff must demonstrate: (1) that it has suffered an irreparable injury; (2) that remedies available at law, such as monetary damages, are inadequate to compensate for that injury; (3) that, considering the balance of hardships between the plaintiff and defendant, a remedy in equity is warranted; and (4) that the public interest would not be disserved by a permanent injunction. See, e.g., Weinberger v. Romero&nbhyph;Barcelo, 456 U. S. 305, 311–313 (1982); Amoco Production Co. v. Gambell, 480 U. S. 531, 542 (1987). The decision to grant or deny permanent injunctive relief is an act of equitable discretion by the district court, reviewable on appeal for abuse of discretion."
eBay Inc. v. MercExchange, L. L. C., 547 U.S. 388 (2006)
This assumes success on the merits. To obtain a preliminary injunction, one must show a likelihood of success on the merits.
All of these equitable factors have no relevance to an action at law. If one prevails on a legal claim, the court has no choice but to enter judgment and allow me to collect on it.
These factors can make a real difference in cases.
For another example, in equity, if you delay in bringing suit and the other side is prejudiced, laches may bar your claim.
In an action at law, so long as the statute of limitations has not passed, laches does not apply. Petrella v. Metro-Goldwyn-Mayer, Inc., 572 U.S. 663 (2014)
Petrella is interesting, because it involved a copyright claim, as to which one may collect both damages and obtain an injunction. The Court held laches cannot bar the former, but might affect the latter.
This most recent comment is a bit unclear, but I don't think captcrisis is denying that there are difference between how legal and equitable claims are treated (obviously, if there weren't, that would mean there actually wasn't a distinction any more!). Rather, I take his point to be that the ways they're handled differently aren't particualrly sensible, and that the differences wouldn't endure if we had the freedom to change it.
Yes thanks
I should add that as an IP lawyer, I see the distinction often, because many IP cases seek both legal and equitable remedies.
One remedy available for trademark, copyright and design patent infringement is disgorgement of profits. There was a debate for some time whether one was entitled to a jury on that, but the consensus now is that it is equitable, and no jury trial is required. So if you are only seeking profits plus an injunction, not jury.
I think you're probably right as a descriptive matter that without the Seventh Amendment we probably wouldn't recognize the distinction at all. (I realize state courts don't have to anyway, but to the extent they do, I think the federal example is the main thing locking in the inertia.) I think the likely result would be the virtual or total disapperance of civil juries; whether that's a good thing or not is left as an exercise for the reader.
There's also a bunch of defenses such as laches and unclean hands that only apply to equitable claims
"I think the federal example is the main thing locking in the inertia."
I'm not sure if this is correct. States have their own massive bodies of law on the subject, their own jury trial guarantees, and other circumstances where the distinction matters, like having a court of claims for legal claims against the state. I don't think they'd just drop the distinction quickly or at all just because the federal system did unless there was a massive push for comprehensive reform at all levels.
Obviously we'll never know for sure, and I'm certainly not saying that if we repealed the Seventh Amendment today and abolished federal equity tomorrow, we'd see it gone in the states by next week. But I do think in a world where the distinction wasn't constitutionally protected at the founding, the distinction would have less significance today than the civil law relics in Louisiana.
In English law the distinction between common law and equity still matters, pretty much as noted by other commenters here. But they don't tend to dwell on the fact that something is equity very much. Sure, an injunction is subject to a requirement of clean hands, and don't even get me started on an equitable trust, but all of that can simply be discussed under the familiar format of "if you want the court to do X, you need to satisfy conditions A, B, and C."
I don’t think the replies so far address Captcrisis’ criticisms.
Yes, various differences between legal and equitable claims and remedies continue to exist. But why should they? Except where we really have to, and that my only be when construing the 7th Amendment, why shouldn’t Congress pass a law abolishing the distinction for federal courts and say that except in very limited circumstances, the two will be treated the same?
What value does society get out of the distinction? In what way does it earn its keep? What benefit does it provide and how in the world does it justify the cost of making the legal system more complex and harder for everybody?
The fact that not one attempt to answer the question so far has even considered the concept of what VALUE the distinction provides is pretty good evidence that nobody is thinking of it.
Why shouldn’t Management, the People, give these useless pencil-pushers and their stupid overly complex theories the boot, fire the lot, and let them pencil-push and devise and argue about whatever complex theories and intellectually challenging distinctions they want, on somebody else’s dime? Why not replace them all with people focused on what value their concepts can provide to society?
After all, rote memory of every street and landmark previously needed to pass an exam for taxi licensure still occasionally comes in handy. GPS occassionally fails. But with the advent of GPS the cost is no longer worth the benefit.
Why shouldn’t experts in the law/equity distinction be left to learn another way to earn a living in the same manner as experts in countless other technologies rendered useless by changing circumstances?
Well, there are certainly reasons not to treat equitable claims as legal (how does a jury craft an injunction?) and as you note the Seventh Amendment prevents us from treating legal claims as equitable in most if not all respects. So I think that's the main explanation, as noted above. (Again, I await others' input as to whether or not that's a good thing.)
If Congress or a state legislature simply abolished the law/equity distinction in their courts, I don't think it would get us very far in simplifying things and courts would still have the same issues and look to the same sources and theories for answering questions. If someone says they are entitled to an injunction and another party says no because damages will suffice the court is likely going to look towards historical practice and theory for an answer. The legislature could maybe do an entire re-write of the remedies and be very clear about what remedies apply to what claims, what the standards are, when a jury is allowed, but I don't think that's likely unless someone wants to go full Llewellyn and create a Uniform Act.
The main value is that equity is much more flexible and gives the Court more discretion to tailor the relief to the facts of the case. You want that for an injunction, where there are competing interests, and sometimes even public interests.
Sounds like an interesting casebook, but practitioners have little use for casebooks. Can you recommend any treatises?
I am going to second this comment. Also a shoutout to Bored Lawyer- I appreciate his comments on equity in this thread, but have nothing to add.
Dobbs on Remedies has been somewhat useful.
I discovered Dobbs on Remedies as a summer associate some long time ago.
I was researching an issue, and (without divulging the details) Dobbs helped me understand an issue that I used for a memorandum that was later turned into a winning argument used by the BigFirm to win on the remedies issue of a Very Important Case.
So I'd definitely second that recommendation. Although I'm not sure if the blurb, "It's good enough for summer associates!" is quite the ringing endorsement.
A good treatise lets you wrap your head around a topic.
When I was first practicing, I often found Wright and Miller very helpful to understand procedural issues. An hour researching a topic made you an instant expert on it.
For trademark law, McCarthy on Trademarks and Unfair Competition is the gold standard. Ditto Nimmer on Copyright.
Bored Lawyer, wow. Now I want to learn more about equity. Thanks for that. Loki13 really said it well, I really appreciated the discussion. Especially the comment about disgorgement.
That is a large part of why I come here, to understand how the law works 'in the trenches' from the people doing it.
Start with the article in Wikipedia:
https://en.wikipedia.org/wiki/Equity_(law)
Thank you! 🙂