Equitable Remedies in Canada

Spring 2008 Equitable Remedies (Sheppard) 1
HISTORY OF EQUITY + EQUITABLE MAXIMS

EQUITY WILL NOT SUFFER A WRONG TO BE WITHOUT A REMEDY
The role of equit ! is to supplement the "ommon la# and to pro$ide remedies #here the "ommon la#
remedies are inadequate or non%e&istent! the 'ourt of Equit #as the 'ourt of 'ons"ien"e
(mpossible to ma)e a la# that is uni$ersall apt* there is al#as bound to be a "ase #here the rule results in
fairness! these are the "ases #here the 'ourt of Equit pro$ides a remed+
18,8 re"eption of -. la# in /' (Law and Equity 0"t)* 1812! 3usion of la# 4 equit! merged into the 5igh
'ourt of 6usti"e (also merged all together at the same time! admiralt7 probate7 matrimonial)* "ame to /' $ia
Law and Equity Act passed in 1818
Section 44 of the Law and Equity Act "odifies the prin"iple of the Earl of Oxford (1!!" #a$%! &f r'l%$ of
%('&)* a+d la, #o+fl&#)- %('&)* .r%/a&l$
BASI0 1RO1OSITIONS
(1" "ommon la# is a "omplete sstem* equit is supplementar* equit follo#s the la#! equit presupposes and
builds upon the '9* a"ts on the premise that legal rule is "orre"t7 but should not appl in the parti"ular "ase
(2" (f la# and equit "onfli"t7 equit pre$ails! es that is so but our rule is not the #hole truth
(3" equit :urisdi"tion! inadequa" of legal remed ("an onl get an equitable remed #here the legal remed is
inadequate)
(!" "han"er is a "ourt of "ons"ien"e
(4" equitable remedies are dis"retionar (#hereas legal remedies are as of right)! "an tailor and fine tune remedies
to enhan"e fairness
COMMON LAW EQUITY
All Canadian courts Court of inherent jurisdiction only (not PC or Tax Court
ie statutory Courts unless provided for in their statue
like in the Federal Court Act)
Order decree
Rules of general application Specific and Personal Rules ased on the particular
facts and applicale only in that specific case against
that specific person (in personam)
Relief after a !rong Allo!s relief quia timet "ecause he fears#
Can seek e$uitale relief (injunctions) to prevent a
!rong or to stop the continuation of a !rong
Relief as of right %iscretionary relief
%a&ages only 'njunctions
T'()*
te&porary decree
interlocutory (until trial)
interi& injunction(for specified ti&e) OR
final decree (per&anent + perpetual
injunction)
,AT-R)* &andatory (do so&ething). Prohiitory
(do not do so&ething)
Specific perfor&ance
)$uitale da&ages or expropriation doctrine
(da&ages in lieu of other e$uitale relief) created
y the Chancery Amendment Act (Lord Cairns
Act)/010
)nforceale y execution (creditor2s re&edies 3 sei4ure
and sale5 etc6)
)nforceale y civil or cri&inal conte&pt
proceedings as e$uity acts in personam
An e$uitale decree is enforced against the
conscience 3 so until party apologies to the court.
until they "purge their conte&pt#
There are so&e defences only applicale in e$uity
EQUITABLE MAXIMS
U$% )5%$% )o $'..or) 6* .o$&)&o+ o+ ALL QUESTIONS
Equity suffers no wrong to be without a
remey
%ual &eaning* !ill not allo! a !rong to not e
re&edied5 ut if there is no !rong there is no role for
e$uity
Equity a!ts in personam )$uity &ake personal orders against individuals
Equity a!ts s"e!ifi!a##y does not create universally applicale rules like the
co&&on la! 3 &akes decrees applicale in the specific
situation
Equity im"utes an intent to fu#fi## an ob#igation
Equity regars that as one that whi!h ought
to ha$e been one
e$uity creates e$uitale interests in property even
efore the re&edies are granted (ie specific
perfor&ance !ould e retroactive to the ti&e of the
contracting for sale)
Equa#ity is equity
Equity fo##ows the #aw 't recogni4es5 respects and oeys the la! (s% & L&E
Act)5 ut says !e can do etter
'e or she who !omes to equity must o equity (ust do !hat the court orders ecause e$uitale
re&edies are al!ays discretionary5 !hereas legal
re&edies are as of right
'n order to do justice et!een parties5 a court acting
in its e$uity jurisdiction !ill &ake ter&s and
conditions to atte&pt to alance the situation
et!een parties
This &axi& is evident in the Law and Equity Act 3 s6
78(9)* if one asks for an interlocutory injunction (pre:
trial5 te&porary) 3 an order &ay e &ade either
unconditionally or on ter&s and conditions the court
thinks just (often undertaking as to da&ages)
'e or she who !omes to equity must !ome
with !#ean hans
The court !ill not endorse une$uitale conduct on
the part of a P !ho has acted in an i&proper &anner
This is a ground for refusing e$uitale relief
(although can still get C; re&edies)
This is an e$uitale defence only* clean hands does
not apply to legal re&edies
Equity ais the $igi#ant (not those who
s#umber on their rights)
"in e$uity you need clean hands and fast feet#*
you &ust pursue your e$uitale relief in a diligent5
ti&ely &anner
delay5 laches is defence !#arify when one that
se!tion
Where the equities are equa# the #aw wi##
"re$ai#
the judge &ust !eigh "the alance of convenience# and
!here the parties are e$ual the holder of the legal
holder of right prevails
Where the equities are equa# the first in time
"re$ai#s
Equity regars the substan!e an intent* not
the form
!hereas C; looks to for&5 the intent of the parties is
key in e$uity 3 a court !ill look ehind for& to purpose
Equity wi## not a##ow a statute to be mae an
instrument of frau
the court of e$uity !ill not allo! a statute to effect an
unjust result
MacDonald case the Bankruptcy Act 3 the fraud is
the har&ful outco&e to the kids as a result of the
operation of the statute
Equity wi## not a!t in $ain % &ust so&eho! e !ithin jurisdiction of the court
&aking the e$uitale decree (Penn v. Lord
Baltimore)

Re MacDonald (1782 O+)9 H909"
FA0TS
al"oholi" ban)rupt la#er did not #ant to dis"harge his ban)rupt" for misguided fear of bad publi"it so he
paid up less 1; of agreed amount7 but remained an undis"harged ban)rupt #hen he died shortl thereafter+ 5e
had life insuran"e7 but had not designated a benefi"iar7 so the legal result #as that pro"eeds #ent into his
estate7 #here "reditors "ould a""ess it (per Bankruptcy Act designated life insuran"e is not e&igible)
famil argues that he #as onl 1; short of dis"harge and not in the best mental state and that it #ould be
unfair for them not to get the insuran"e mone in the "ir"umstan"es
ISSUE
Should the insuran"e mone should go to his "reditors (sin"e te"hni"all he #as an undis"harged ban)rupt) or
to his sur$i$ing dependents<
HELD : REASONING
the legal result that the insuran"e pro"eeds #ould be distributed amongst "reditors #as unfair = this is ho#
equit operates! it "orre"ts in:usti"es flo#ing from the '9 or from statutor la#
RATIO
%('&)* #a+ o/%rr&d% la, &f )5% l%;al r%$'l) (fro6 0L or $)a)')or* la," ,o'ld <% '+fa&r : &+%('&)a<l%
Spring 2008 Equitable Remedies (Sheppard) >
THE INTRODU0TION OF EQUITY INTO BRITISH 0OLUMBIA
18,8 re"eption of -. la# in /' (Law and Equity 0"t)* 1812! 3usion of la# 4 equit! merged into the 5igh
'ourt of 6usti"e* "ame to /' $ia Law and Equity Act passed in 1818
Law & Equity Act, $$9 1- 2- !=1>- 31- 32- !!
1 A..l&#a)&o+ of A#)
The rules of la# ena"ted and de"lared b this 0"t are part of the la# of /ritish 'olumbia and must be
applied in all "ourts in /ritish 'olumbia+
2 A..l&#a)&o+ of E+;l&$5 la, &+ Br&)&$5 0ol'6<&a
/ritish la# as of ?o$ 8 18,8 inherited if not inappli"able due to lo"al "ir"umstan"es and "an be
modified b legislation in /'
! E('&)a<l% r%l&%f for .la&+)&ff
'ourt must gi$e relief that #ould ha$e been gi$en in equit before 0pril 28 1818
4 E('&)a<l% r%l&%f for d%f%+da+)
'ourt must gi$e relief that #ould ha$e been gi$en in equit before 0pril 28 1818
8 ?'d&#&al +o)&#% of %('&)a<l% %$)a)%$
"ourt and e$er :udge must re"ogni@e and ta)e noti"e of all equitable estates7 titles7 rights7 duties7
liabilities
@ No r%$)ra&+) <* .ro5&<&)&o+ or &+A'+#)&o+
(1" 0 "ause or pro"eeding pending in the "ourt must not be restrained b prohibition or in:un"tion 7
but e$er matter of equit on #hi"h an in:un"tion against the prose"ution of that "ause or
pro"eeding might ha$e been obtained before 0pril 287 1818 + + + ma be relied on b #a of
defen"e+
this abolishes the old "ommon in:un"tion (from Earl of A&fordBs "ase = so no# :udges in the
/'S' "ourt do not issue in:un"tions against ea"h other)
/'S' :udges "an issue anti%suit in:un"tions against lo#er "ourt7 or other :urisdi"tions
instead of old "ommon in:un"tion7 to stop a pro"eeding it is done b#a of defen"e (plead an
equitable defen"e)7 or + + + as) for a sta .%r @(2" for parties and @(3" for "ertain non
7 ?'d&#&al +o)&#% of l%;al a+d $)a)')or* r&;5)$- #la&6$ a+d l&a<&l&)&%$
+ + + "ourt and e$er :udge of it must re"ogni@e and gi$e effe"t to all legal "laims and demands and all
estates7 titles7 rights7 duties7 obligations and liabilities e&isting b the "ommon la# or b an "ustom
or "reated b an statute7 in the same manner as the #ould ha$e been re"ogni@ed and gi$en effe"t to
in the "ourt if this 0"t had not been ena"ted+
1> A/o&da+#% of 6'l)&.l&#&)* of .ro#%%d&+;$ + + +
+ + + the "ourt must grant7 either absolutel or on reasonable "onditions that to it seem :ust7 all remedies
that an of the parties ma appear to be entitled to in respe"t of an legal or equitable "laim properl
brought for#ard b them in the "ause or matter so that7 as far as possible7 all matters in "ontro$ers
bet#een the parties ma be "ompletel and finall determined and all multipli"it of legal
pro"eedings "on"erning an of those matters ma be a$oided+
31 S)&.'la)&o+$ +o) of %$$%+#%
Stipulations in "ontra"ts7 as to time or other#ise7 that are not deemed to be or to ha$e be"ome of the
essen"e of the "ontra"ts a""ording to the rules of equit7 must re"ei$e the same "onstru"tion and
effe"t as the #ould re"ei$e in equit+
$%% United Scientific Holdings v. Burnley
Spring 2008 Equitable Remedies (Sheppard) ,
!! If r'l%$ of %('&)* a+d la, #o+fl&#)- %('&)* .r%/a&l$
Cedigree! Earl of Oxford (1D>>) "ase
/asi" idea! there is no "onfli"t bet#een '9 and equit7 be"ause equit does not ma)e general rules it ma)es a
spe"ifi" indi$idual parti"ular de"ree
'ontemplates that equit and "ommon la# are still t#o streams of la#
United Scientific Holdings (1788 UBHL" usion of law and equity! not fro"en and separate# $ut %ingling
FA0TS
Cart sought relief against the stri"t enfor"ement of a "ontra"tual "lause stipulating that time is of the essen"e
for pament
ISSUE
Eoes the "ourt ha$e :urisdi"tion to grant equitable relief against a "ontra"tual stipulation<
HELD : REASONING
Equitable relief granted! the time is of the essen"e "lause at "ommon la# mean that if pament is late the
"ontra"t is terminated7 equit looC%d <%*o+d for6 )o )5% $'<$)a+#% of )5% #o+)ra#) to see if time reall is of
the essen"e and found that late pament #ould not ne"essaril result in termination (L&E Act $9 31)
old idea that "ommon la# and equit are t#o streams #hi"h run side b side and do not mingle their #aters is
out of date and there is no reason to maintain the antiquated distin"tion bet#een "ommon la# and equit
RATIO
3usion of '9 and equit
the -. Supre%e &ourt of 'udicature Act 1812 fused the sstems of equit and "ommon la#! D)5% ,a)%r$ of
)5% #o+fl'%+) $)r%a6$ of la, a+d %('&)* 5a/% $'r%l* 6&+;l%d +o,E
"on"ept! Eiplo") 9+6+ re:e"ts the old idea that the t#o streams #ere fro@en and separate! be mindful of origins
in la# and equit but must allo# la# and equit to "ontinue to gro# and "hange+
5AFEGER The are still separate do"trines and :ust be"ause the "hange and shift7 this does not mean that
the distin"tions bet#een them ha$e been erased and are no longer rele$ant+
NOTES
L&E Act 31 S)&.'la)&o+$ +o) of %$$%+#% Stipulations in "ontra"ts7 as to time or other#ise7 that are
not deemed to be or to ha$e be"ome of the essen"e of the "ontra"ts a""ording to the rules of equit7
must re"ei$e the same "onstru"tion and effe"t as the #ould re"ei$e in equit+
adopted in 'anada in &anson
Canson Ente!ises (1771 S00" S&& adopts U( HL)s approac* to fusion+ equity is not rigid and can $orrow
fro% t*e co%%on law
FA0TS
la#er brea"hed fidu"iar dut to "lient b failing to dis"lose that a third part #as ma)ing a se"ret profit in
the CBs pur"hase of land* engineering problem led to the building "ollapsing* 'anson sued la#er to re"o$er
the se"ret profit 0?E damages
ISSUE
There is no legal remed be"ause the enfor"ement of trusts and fidu"iar obligations are matters for a "ourt of
equit! "ompensation for brea"h of su"h obligations is an equitable remed
Henerall7 #here there is a brea"h of a fidu"iar dut7 the fidu"iar is stri"tl liable for all losses to the
benefi"iar thereafter = but do "ommon la# prin"iples of (foreseeabilit and remoteness) appl to equitable
"ompensation<
HELD : REASONING : RATIO
5o#e$er7 (t #ould be #holl inappropriate to interpret equitable do"trines so te"hni"all as to displa"e '9
rules that a"hie$e substantial :usti"e in areas of "ommon "on"ern7 thereb leading to harsh and inequitable
results+
E('&)* #a++o) <% r&;&dl* a..l&%d F &)$ do#)r&+% 6'$) <% a))'+%d )o d&ff%r%+) #&r#'6$)a+#%$
Equit and '9 flo# side b side b do not mingle #aters
There are t#o separate sstems7 but #hen it "omes to monetar relief = equitable or damages = there should
be "onsisten"! '9 prin"iples "an appl to redu"e damages if it #ould "reate the equitable result+
Spring 2008 Equitable Remedies (Sheppard) D
Cad"uy Schwe!!es (1777 S00" , new re%edy of -equita$le co%pensation. created
FA0TS
0fter being fired b Iotts ('adbur)7 3E( began to ma)e 'lamato :ui"e itself* 'adbur sued for brea"h of
"onfiden"e re stealing7 modifing and selling the re"ipe
HELD : REASONING
0n in:un"tion #ould ha$e been to harsh a it #ould ha$e put 3E( out of business % balan"ing
RATIO
0r%a)%$ +%, r%6%d* of %('&)a<l% #o6.%+$a)&o+7 #hi"h is not tied to another equitable remed (ie su"h as
damages in lieu of spe"ifi" performan"e)
Equit is "apable of gro#th and de$elopment7 it is not set it stone ! authorit to a#ard finan"ial "ompensation
for brea"h of "onfiden"e is inherent in the e&er"ise of equitable :urisdi"tion and does not depend on the
ni"eties of the Lord &airns Act or its su""essors (#hi"h "reated equitable damages in 18D8) + + + the "ourt has
ample :urisdi"tion to fashion appropriate relief out of the full gambit of a$ailable remedies7 in"luding
appropriate finan"ial "ompensation
Sheppard sas S'' referred to '9 and equit as distin"t (rather than totall fused) but said the are "apable
of gro#th to meet ne# "ir"umstan"es7 and ea"h "an transform the other
NOTES
?ote! the point of equitable damages is to "ompensate for the harm that too) pla"e before the in:un"tion or
spe"ifi" performan"e+ So7 it "an be a#ard in addition to an in:un"tion or spe"ifi" performan"e+
#o Swing (2>> S00" = equity as distinct approac* $ased on discretion
FA0TS
Cro S#ing #anted itBs Ahio in:un"tion and "ontempt order against Elta enfor"ed b the A? "ourts after Elta
"ontinued to sell is RidentB golf "lubs #hi"h infringed Cro S#ingsB Trident "opright
ISSUE
'an 'anadian "ourts re"ogni@e the equitable de"rees of foreign "ourts<
HELD : REASONING
Arder #as not RJE be"ause found not to be suffi"ientl pre"ise* ho#e$er7 re"ogni@ed that su"h orders ma
be RJE b 'anadian "ourts if suffi"ientl pre"ise
/e"ause equitable orders require :udi"ial super$isions the impre"ision rationale is highlighted in this "ase!
su"h an order requires the 'anadian "ourt to super$ise7 so must be $er "lear about #hat it has to do
RATIO
Equitable remedies are primaril distinguished from '9 remedies b the fa"t that all equitable remedies are
a#arded at the :udgeBs dis"retion! there are no stri"t rules7 :ust guidelines
NOTES
0gain7 the idea that there are still t#o streams administered together7 but not totall fused
0ONTINUING DISTIN0TIONS BETWEEN LAW G EQUITY
Equity acts in !esona$
0s long as the E is phsi"all in the :urisdi"tion of the "ourt7 the "ourt "an ma)e equitable de"rees #ith
respe"t to the EBs propert anyw*ere in the #orld be"ause the de"ree is enfor"eable against the person $ia
"ontempt pro"eedings = this is the "ourt of "ons"ien"e
E&amples of equitable de"rees #hi"h ha$e e&tra%:urisdi"tional effe"ts! /areva in:un"tions* anti%suit
in:un"tions
#enn %& Lod 'alti$oe (184> UB 059 D&/9" equity acts in persona% 0 1 %ust $e in t*e 2urisdiction
FA0TS
/oth Cenn and 9ord /altimore had been granted land in the -S7 but disagreed as to boundaries* both agreed
to arbitration7 then /altimore ba")ed out* Cenn brought a"tion in -. for spe"ifi" performan"e = to ha$e
/altimore submit to the arbitration
ISSUE
'ould the -. 'ourt ma)e an equitable de"ree #ith respe"t to land in the -S<
HELD : REASONING
Ee"ree of spe"ifi" performan"e issued against /altimore
/altimore #as in -.7 so it does not matter #here the sub:e"t matter of the dispute is lo"ated! equit a"ts in
persona% so as long as the E is #ithin the :urisdi"tion issuing the de"ree there is :urisdi"tion
The -. "ourt "ould not de"ide the boundar dispute7 as that #ould be a"ting in re% rather than in persona%
RATIO
E('&)* ,&ll +o) a#) &+ /a&+! if a E is #ithin the :urisdi"tion7 it #ill not be in $ain e$en if the propert in
dispute is not be"ause equit a"ts in persona% and the degree "an therefore be enfor"ed
Equitable de"rees are in persona% de"rees! the ar% %+for#%a<l% a;a&+$) )5% .%r$o+
NOTES
(f the E has left the :urisdi"tion but has left propert behind7 an equitable order "an also be enfor"ed b a ,r&)
of $%('%$)ra)&o+7 #hi"h is a sei@ure of the EBs assets in the :urisdi"tion to "oer"e obedien"e to the de"ree! the
assets "annot be sold7 but an in"ome from the assets #hile sequestered "an be )ept = this is :ust to "oer"e
obedien"e7 not to "olle"t damages (ie #rit of sei@ure and sale in "ommon la# "reditors remedies)
(est & #atnes )*n%eness+ (177 UB 059 D&/9" equity $inds conscience
FA0TS
0n English pur"haser and $endor "ontra"ted to bu land in S"otland+ The pur"haser did not #ant to go
through #ith the deal* the $endor applied to the English "ourt for spe"ifi" performan"e+
ISSUE
'an an English de"ree be enfor"ed against the pur"haser if the land is in S"otland<
HELD : REASONING
Kes7 degree of spe"ifi" performan"e issued
RATIO
There is high authorit for the e&isten"e of the :urisdi"tion to ma)e a de"ree of spe"ifi" performan"e for the
sale of foreign land! the inabilit of the "ourt to enfor"e the de"ree in re% is no reason for refusing a C
equitable relief
Equit a"ts in persona% and binds the EBs "ons"ien"e
Law & Equity Act, $$9 38 a+d 3@
38 H%$)&+; ord%r$
(1" Fhere the "ourt has authorit to order e&e"ution of a deedL"on$ean"eL"ontra"tLet"+7 the "ourt ma7 b
order7 $est the propert in the person and in the manner and for the estates as #ould be done b that
MinstrumentN if it #ere e&e"uted+
(2" 0n order under subs+ (1) has the same effe"t as if the legal or other estateLinterest had a"tuall been
"on$eed+
Equity egads that as done that which ought to ha%e "een done
3@ Ex%#')&o+ of &+$)r'6%+)$ <* ord%r of #o'r)I
(1" (f an person negle"tsLrefuses to "ompl #ith an order dire"ting them to e&e"ute a "on$ean"e et"7 the
"ourt ma7 on termsL"onditions as ma be :ust7 order that the MinstrumentN must be e&e"uted+
Enfoce$ent of Canadian ,udg$ents and Decees Act )-../+
Cro$ides for the full faith and "redit re"ognition and enfor"ement of :udgments and de"rees from other
'anadian "ourts (not administrati$e tribunals)
W5a) )*.%$ of d%#r%%$ #a+ <% %+for#%d &+ B0J
Ee"rees for spe"ifi" performan"e $9 1
Ee"rees for in:un"tions $9 1
(nterlo"utor in:un"tions $9 2(1"
Ex parte interim in:un"tions $9 (!"(<"
Ho, ar% )5%* %+for#%dJ
$9 2(1" allo#s registration for purposes of enfor"ement of 'anadian 6udgments and Ee"rees #hether
final or not (2(2) orders to pa mone must be final)
$9 ! %ff%#) of r%;&$)ra)&o+! the de"ree ma be enfor"ed in /' as if it #ere an order of or entered in
/'S'
A+* %x#%.)&o+$ of +o)%J
$9 4(2" equitable do"trines of dela #ill appl to "onsideration of enfor"ement of equitable de"rees
(2"(#"(&&&" if an order limiting L staing the equitable relief is made in originating :urisdi"tion7 part
"an appl to /'S' to re"onsider its RJE order
#o Swing (2>> S00" = equity as distinct approac* $ased on discretion
FA0TS
Cro S#ing #anted itBs Ahio in:un"tion and "ontempt order against Elta enfor"ed b the A? "ourts after Elta
"ontinued to sell is RidentB golf "lubs #hi"h infringed Cro S#ingsB Trident "opright
ISSUE
'an 'anadian "ourts re"ogni@e the equitable de"rees of foreign "ourts<
HELD : REASONING
Arder #as not RJE be"ause found not to be suffi"ientl pre"ise* ho#e$er7 re"ogni@ed that su"h orders ma
be RJE b 'anadian "ourts if suffi"ientl pre"ise
/e"ause equitable orders require :udi"ial super$isions the impre"ision rationale is highlighted in this "ase!
su"h an order requires the 'anadian "ourt to super$ise7 so must be $er "lear about #hat it has to do
RATIO
For%&;+ %('&)a<l% d%#r%%$ 6a* <% %+for#%d (&+ .r&+#&.l%" &f I
(1" )5% )%r6$ ar% #%r)a&+ a+d .r%#&$%
(2" &) &$ +o) a ('a$&=#r&6&+al : .%+al ord%r
(2) &) &$ a f&+al ord%r ('anadian interlo"utor orders "an be enfor"ed in /' under Enforce%ent of &anadian
'udg%ents and 1ecrees Act (200D))
(>) d&$#r%)&o+ar* #o+$&d%ra)&o+$ (la"hes7 et")
ad$an"es the idea of fusion ! 'ourt sas an equitable de"ree is li)e a '9 monetar :udgment in that it "an be
enfor"ed in a foreign :urisdi"tion
0ERTAIN EQUITABLE DEFEN0ES
WHY SHOULD THE IN?UN0TION BE DENIEDJJ
applies onl to equitable "laims
Equitable defen"es (li)e equitable remedies) are d&$#r%)&o+ar* no stri"t rules7 :udges are go$erned b the
general equitable prin"iples! )5% #o'r) looC$ a) ,5a) ,o'ld <% A'$) a+d #o+$&d%r$ )5% #o+d'#) of )5%
a..l&#a+)$
E('&)a<l% r%6%d&%$ r%('&r% %('&)a<l% #o+d'#) o+ )5% .ar) of )5% #la&6a+) = "lean hands
(1" LA0HES- DELAY- A0QUIES0EN0E
G%+%ral R'l% = equity aids the %igilant, not the indolent
O+#% a,ar% of DK$ #o+d'#) &$ /&ola)&+; )5%&r r&;5)$- 1 6'$) a#) .ro6.)l* &f $5% ,a+)$ )o $%%C a+
&+A'+#)&o+
d%la* d%f%a)$ %('&)*! e$en #here an a"tion is not statute barred7 a "ourt has equitable :urisdi"tion to
refuse relief on the basis of an unreasonable dela in the a"tion being brought or pro"eeded upon (B0
Li$itations Act $9 2)
HOWEHER %('&)* ,&ll +o) EXTEND a $)a)')or* l&6&)a)&o+ .%r&odI equitable defen"es onl operate
#ithin the statutor limitation period
D%la* /9 La#5%$ /9 A#('&%$#%+#%
D%la* is a lapse of time O stand alone fa"tor7 and an element of la"hes and a"quies"en"e
La#5%$ is dela 4 pre:udi"ial effe"t of dela on E
A#('&%$#%+#% is dela 4 #ai$erLestoppel of C so that E thin)s C #ai$ed "laim
DELAY F la.$% &+ )&6% alo+%
Some equitable remedies "an be is affe"ted b the lapse of time alone (e.g. must sho# urgen" to get an
ex parte interim in:un"tion7 interlo"utor in:un"tion7 or mandator interlo"utor in:un"tion)
LA0HES = d%la* + .r%A'd&#&al %ff%#) of d%la* o+ D
W5%+ do%$ la#5%$ +o) a..l*J
(1) "annot defend against a .'r%l* l%;al "laim or remed (ie an a"tion in debt) it is an equitable defen"e
against equitable "laims
(2) "annot defend against a $)a)')or* $#5%6% (ie "annot "laim la"hes in a ta& a"tion)
(2) "annot defend against the 0ro,+ &+ &)$ .'<l&# #a.a#&)* or as part of a statutor s"heme7 but can
appl to the 'ro#n #hen it a"ts in a pri$ate "apa"it (ie as a part to pri$ate "ontra"ts)
(>) "annot defend if the D 5a$ '+#l%a+ 5a+d$
El%6%+)$ of La#5%$
D%la* + .r%A'd&#&al #5a+;% &+ #&r#'6$)a+#%$I 9a"hes is an equitable defen"e #hi"h ma be raised
if there is a pre:udi"ial "hange of "ir"umstan"es for the E or a 2
rd
part as a result of the dela of the C
(#itnesses dead7 spent mone et"+) (Lindsay)
T5% #o'r) 6'$) %xa6&+%
(1" LENGTH OF THE DELAY AND
The effe"t of the dela is more important than the duration (Lindsay)
L%+;)5 of d%la* &$ NOT d%)%r6&+a)&/% (Canada 0ust+I 0o'r) 6'$) %xa6&+%I
(&" Eegree of "hange #hi"h has o""urred
(&&" 5o# far the ha$e affe"ted the parties
(&&&" Fhere lies the balan"e of :usti"eLin:usti"e
(2" NATURE OF THE A0TS DONE DURING THE INTERHAL AND
(i) d%;r%% of d&l&;%+#% #hi"h might reasonabl be required of a C
as #ith legal remedies7 the limitation period for equitable remedies ma be postponed b
the prin"iple of reasonable dis"o$erabilit (M %& H)
not ha$ing )no#ledge of the damage L right L parties ma be a good e&planation for dela
in bringing a"tion (M %& H)
(&&" d%;r%% of #5a+;% &+ #&r#'6$)a+#%$
#hi"h has o""urred as a result of the dela (#hether the balan"e of (in):usti"e is in fa$our
of granting or #ithholding the remed)
(3" USE ITS DIS0RETINARY ?URISID0TION
9a"hes is dis"retionar (not rule%based) and must be assessed on equitable prin"iples
thus7 it is inherentl un"ertain and fle&ible ('lundon"
,5%)5%r or +o) )5% d%f%+#% of la#5%$ ,&ll <% ;ra+)%d d%.%+d$ o+ )5% fa#)$ of %a#5 #a$%
T5%r% &$ $'#5 a )5&+; a$ .ar)&al la#5%$ F )5% d%f%+#% #a+ <% f&+%=)'+%d )o $'&) )5%
#&r#'6$)a+#%$ ('lundon"
d%6o+$)ra)%$ )5% d&$#r%)&o+ar* +a)'r% of )5%$% d%f%+#%$I #a+ <% )a&lor%d )o )5%
#&r#'6$)a+#%$ <%#a'$% )5%* ar% +o) '+&/%r$al r'l%$ ('lundon"
I+ d%f%+#% of #la&6 for a##o'+)&+; = ,a%is
Eela "an be a strong defen"e in a "laim for a""ounting of profits = parti"ularl if the
plaintiff has not ris)ed anthing in the business but left the ris) up to the defendant

La#5%$ G%+%rall*
Lindsay #etoleu$ (1@8! 10" 1 )%$) for la#5%$
RATIO
9a"hes is an equitable defen"e #hi"h ma be raised if there is a pre:udi"ial "hange of "ir"umstan"es for the E
or a 2
rd
part as a result of the dela of the C
9a"hes is dis"retionar (not rule%based) and must be assessed on equitable prin"iples
The effe"t of the dela is more important than the duration
T5% #o'r) 6'$) %xa6&+% )5% (1" l%+;)5 of )5% d%la* a+d )5% (2" +a)'r% of )5% a#)$ do+% d'r&+; )5%
&+)%r/al
Elange (1@8@ UB" 1 d%;r%% of d&l&;%+#% a+d #5a+;%
RATIO
Fhether or not to grant the equitable defen"e of la"hes is dis"retionar7 thus7 it is inherentl un"ertain
?'d;% $5o'ld #o+$&d%rI (1" d%;r%% of d&l&;%+#% #hi"h might reasonabl be required of a C and (2" d%;r%% of
#5a+;% &+ #&r#'6$)a+#%$ #hi"h has o""urred as a result of the dela (#hether the balan"e of (in):usti"e is in
fa$our of granting or #ithholding the remed)
L%+;)5 of D%la*
Canada 0ust (17@ S00" lengt* of delay not deter%inative
FA0TS
0 >2 ear dela in bringing an a"tion to re"o$er shareholder mone (and an equit%based remed of interest
therefrom of ,P L ear be"ause of fidu"iar relationship) misappropriated b dire"tor #as non statute barred7
nor did it in$o)e la"hes
REASONING
There #ere no e&tenuating "ir"umstan"es to bar the e
RATIO
L%+;)5 of d%la* &$ NOT d%)%r6&+a)&/% I 0o'r) 6'$) %xa6&+%I
19 T5% +a)'r% of )5% a#)$ do+% &+ )5% &+)%r/al
29 D%;r%% of #5a+;% ,5&#5 5a$ o##'rr%d
39 Ho, far )5%* 5a/% aff%#)%d )5% .ar)&%$
!9 W5%r% l&%$ )5% <ala+#% of A'$)&#%:&+A'$)&#%
Re ,a%is (174@ 059 D&/9" accounting of profits
FA0TS
Testator left his "onfe"tionarLtoba""o business and lease equall to 2 daughters7 but onl 1 daughter ran the
shop+ The other onl #or)ed o""asionall7 but did not ma)e an "laim until 10 ears later #hen she "laimed
a half%interest and a""ounting of profits+ E "on"eded there #as a "onstru"ti$e trust7 but argued it #as barred
b la"hes7 a"quies"en"e7 and dela
ISSUE
Eoes dela bar the plaintiffBs "laims for (1) rent or (2) a""ounting of profits<
HELD : REASONING
must a""ount for rent7 but not for profits! #hile the a"tion did progress it did so at the pa"e of a snail
RE?T "ourt #as not as)ed to gi$e a dis"retionar remed7 it #as as)ed to enfor"e the right of the C as a
benefi"iar under a "onstru"ti$e trust
0''A-?T(?H 3AR CRA3(TS a business or trade requires time7 effort7 and ris)7 so a person ha$ing an
ad$erse "laim in equit on the ground of a "onstru"ti$e trust should pursue the "laim promptl7 and not
merel in #ords = she should sho# herself in good time #illing to parti"ipate in possible loss as #ell as
profit7 not pla a game in #hi"h she alone ris)s nothing
RATIO
,5%)5%r or +o) )5% d%f%+#% of la#5%$ ,&ll <% ;ra+)%d d%.%+d$ o+ )5% fa#)$ of %a#5 #a$%
d%la* &$ r%l%/a+) ,5%+ )5% #o'r) &$ a$C%d )o %x%r#&$% a d&$#r%)&o+ar* r%6%d* (ie in:un"tion7 spe"ifi"
performan"e)
D%la* #a+ <% a $)ro+; d%f%+#% &+ a #la&6 for a##o'+)&+; of .rof&)$ F .ar)&#'larl* &f )5% .la&+)&ff 5a$ +o)
r&$C%d a+*)5&+; &+ )5% <'$&+%$$ <') l%f) )5% r&$C '. )o )5% d%f%+da+)
B+o,l%d;% of )5% 1ar)&%$
M)2+ %& M)H+ (1772 S00" 3 knowledge of parties 4reasona$le discovera$ility5
FA0TS
0 28%ear old #oman sued for tort (assault) and brea"h of fidu"iar dut against her father for in"est that
o""urred #hen she #as a "hild+ She onl reali@ed the damage #hen she entered se&ual abuse therap at age
28+ The father argued that the a"tion for tort #as barred b the statute of limitations7 and the a"tion for brea"h
of fidu"iar dut #as barred b la"hes+
ISSUE
(s the legal or equitable "laim barred b the amount of time that has passed7 regardless of CBs ageL)no#ledge
#hen the #rong o""urred<
HELD : REASONING
'laims #ere not barred
9EH09! e$en if the statutor limitation period applied7 the "ourt "ould e&tend it on the basis of
dis"o$erabilit! the running of the limitation period is postponed b )5% .r&+#&.l% of r%a$o+a<l%
d&$#o/%ra<&l&)*
EQ-(T0/9E (n"est is a brea"h of the fidu"iar dut of a parent to refrain from phsi"all in:uring oneBs
"hild = the plaintiff is entitled to equitable "ompensation
Fhile the defen"e of la"hes is a$ailable in equitable "laims7 here it is not gi$en be"ause the daughter had a
good e&planation for failing to bring the "laim sooner7 and nothing in her "ondu"t indi"ated that she
a"quies"ed
RATIO
B+o,l%d;% of )5% .ar)&%$ 6a* <% a ;ood %x.la+a)&o+ for la#5%$:d%la* &+ <r&+;&+; a#)&o+9
T5% .r&+#&.l% of r%a$o+a<l% d&$#o/%ra<&l&)* #a+ o.%ra)%
E('&)* A&d$ )5% H&;&la+)- No) )5% I+dol%+)
'lundon (178> S00" , partial lac*es! tailoring to specific circu%stances
FA0TS
Cartnership to sear"h for a sun)en treasure ship+ Ane partner (E) de"ided to sear"h for the treasure on his
o#n in 18D, and sent noti"e terminating his asso"iation #ith the partnership+
Ather partners "onsidered the partnership agreement still in effe"t7 but too) not legal a"tion until 18DD #hen
E found the treasure+
The sued for an a""ounting of their share of the profits (based on the fidu"iar dut o#ed b one partner to
the others)+
ISSUE
Fas there la"hes< (s there su"h thing as partial la"hes<
HELD : REASONING
a#arded onl 2,P to the partners = a small amount be"ause of their la"hes
the other partnerBs a"tions do not establish abandonmentLa"quies"en"e! the "ontinued to di$e* "ould not
"ompel E to perform under the agreement (#ould ha$e required personal ser$i"es)* E "ondu"ted himself #ith
se"re"
RATIO
T5%r% &$ $'#5 a )5&+; a$ .ar)&al la#5%$ F )5% d%f%+#% #a+ <% f&+%=)'+%d )o $'&) )5% #&r#'6$)a+#%$
d%6o+$)ra)%$ )5% d&$#r%)&o+ar* +a)'r% of )5%$% d%f%+#%$I #a+ <% )a&lor%d )o )5% #&r#'6$)a+#%$ <%#a'$%
)5%* ar% +o) '+&/%r$al r'l%$
3o%a Scotia %& Halifa4 (177 NS0A" 3 lac*es is only a defence in equity
FA0TS
Cro$in"ial statute imposed liabilit on a muni"ipalit for "ertain mental patients after the Superintended
requested their remo$al to muni"ipal institutions+
Iuni"ipalit refused to ta)e responsibilit for a "ertain patient = dispute lasted 2 ears+ The Cro$in"e sued
the muni"ipalit for the amount e&pended in up)eep of the patient in the Cro$in"ial 5ospital7 the muni"ipalit
raised the defen"e of la"hes+
ISSUE
"an la"hes appl to a purel '9 a"tion< 'an la"hes run against the "ro#n<
HELD : REASONING
no7 la"hes does not appl
Eefen"e of la"hes #as not a$ailable to the 'it be"ause it fa"ed a "laim in statutor debt (legal "laim7 not
equitable)
RATIO
W5%r% l%;al r&;5)$ alo+% ar% #la&6%d- 6%r% la#5%$:d%la* &$ +o) %+o';5I )5% %('&)a<l% d%f%+#% of la#5%$
#a+ o+l* <% o..o$%d )o a+ %('&)a<l% #la&6
nullu$ te$!us occuit Regi % la"hes do not run against the 'ro#n in its publi" "apa"it (but #ill run in a
pri$ate "ontra"t #ith the 'ro#n or #here the 'ro#n a"quires rights b #a of assignment)
Cad"uy Schwe!!es (1777 S00", partial lac*es+ in2unction %ay not $e appropriate
FA0TS
'adbur sued o$er the se"ret re"ipe for IottBs 'lamato :ui"e+ 3/( started mar)eting their produ"t in 18827
but 'adbur did not sue until 1881 be"ause their la#er had ad$ised that the had no legal remed (be"ause
3/( did not use the se"ret formula)+
(n 18817 the "onsulted a ne# la#er #ho suggested see)ing a remed in equit for brea"h of "onfiden"e+
HELD : REASONING
Cartial la"hes a#arded! 1 ear profit #as granted to 'adbur (pament of ; #as a#arded rather than the
in:un"tion to stop manufa"turing)
The four ear lapse in bringing the equitable "laim #as be"ause 'adburBs la#ers did not gi$e them proper
ad$i"e
RATIO
A;a&+= )a&lor&+; )o #&r#'6$)a+#%$L <ala+#&+; .r%A'd&#%$ a+d %ff%#)$ of )5% d%la*L )5% <&; %('&)a<l%
.r&+#&.l%$ a) ,orC
A0QUIES0EN0E : 1RO1RIETARY ESTO11EL
M dela 4 #ai$erLestoppel of C so that E thin)s C #ai$ed "laim
d%f%+#% )o "oth legal & equita"le clai$s- a #a'$% of a#)&o+ &+ &)$%lf
0"quies"en"e ! #hen someone stands b and does nothing #hile the )no# a #rong is bring done to them!
attempting to enfor"e a right #here there as been a"quies"en"e is equi$alent to %('&)a<l% fra'd
(un"ons"ionable beha$iour)
nothing in the Li%itations Act interferes #ith a rule in equit that refuses relief on grounds of a"quies"en"e of
the appli"ant ((eywey5u$)
Equitable remedies require equitable "ondu"t on the part of the "laimant
T5% o/%rall Q for a#('&%$#%+#% is &f a .ar)* 5a$ <* 5%r #o+d'#) do+% )5a) ,5&#5 6&;5) fa&rl* <%
r%;ard%d a$ %('&/al%+) )o ,a&/%r a+d $'#5 #o+d'#) r%$'l)$ &+ #&r#'6$)a+#%$ )5a) 6aC% .ro$%#')&o+ of
)5% a#)&o+ '+r%a$o+a<l% ((eway5u$)
TEST
A#('&%$#%+#% ,5&#5 ,&ll d%.r&/% a .%r$o+ of 5%r l%;al r&;5)$ 6'$) a6o'+) )o %('&)a<l% fra'd- a+d 5a$
FIHE REQUIREMENTS
(1) 1 6'$) 5a/% 6ad% a 6&$)aC% a$ )o 5%r l%;al r&;5)$ (e+g+ #here the propert line is7 a""ess road et")
(2" 1 6'$) 5a/% %x.%+d%d $o6% 6o+%* or 6'$) 5a/% do+% $o6% a#) o+ )5% fa&)5 of 5%r 6&$)aC%+ <%l&%f
(3" D- )5% .o$$%$$or of )5% l%;al r&;5)- 6'$) C+o, of )5% %x&$)%+#% of 5%r r&;5) ,5&#5 &$ &+#o+$&$)%+) ,&)5
)5% r&;5) #la&6%d <* )5% 1
(!" D 6'$) C+o, of 1K$ 6&$)aC%+ <%l&%f of 5%r r&;5)$
(,) D 6'$) 5a/% %+#o'ra;%d )5% 1 &+ 5%r %x.%+d&)'r% of 6o+%* or o)5%r a#)$- %&)5%r d&r%#)l* OR <*
a<$)a&+&+; fro6 a$$%r)&+; 5%r l%;al r&;5)
THEN D &$ %$)o..%d fro6 6aC&+; #la&6 of )5a) l%;al r&;5)9
#o!ety6
proprietar estoppel pre$ents an o#ner from raising her legal right to title to pre$ent another from "laiming an
interest in her propert #here there has been a"quies"en"e
proprietar estoppel is more than a defen"e! it "reates an equitable interest in the propert
0ethewey! re"ogni@ed that e$en in /'Bs TorrenBs land title sstem7 an interest in propert "an arise b $irtue
of ho# the o#ner and "laimant beha$e #ith regard to that propert
'an defeat an entire "laim
0ethway7Edge (2>>3 B00A" 3 test for proprietary estoppel
FA0TS
Ran"h allo#ed the Eistri"t to maintain #ater fa"ilities on their land for >0 ears* dispute arose and Ran"h
refused future a""ess* Eistri"t applied for a de"laration that it had aquired an easement b a"quies"en"e or
proprietar estoppel
ISSUE
Eid the Eistri"tBs e&pe"tation of permanent a""ess "reate an easement b #a of a"quies"en"eLproprietar
estoppel<
HELD : REASONING
Kes7 an easement had been "reated in equit
The Ran"h7 b its #ords and "ondu"t led the Eistri"t to belie$e the Ran"h #ould not rel on its stri"t legal
rights7 and this "reated an equitable interest in fa$our of the Eistri"t
(t #ould be inequitable for the Ran"h to den the Eistri"t a""ess to its fa"ilities on the Ran"h land = it #ould
amount to equitable fraud
RATIO
Croprietar estoppel is not :ust a defen"e7 it "reates an equitable interest in the propert
'lear a""eptan"e of the do"trine of proprietar estoppel in /' la#
Spring 2008 Equitable Remedies (Sheppard) 1>
A#('&%$#%+#% ,5&#5 ,&ll d%.r&/% a .%r$o+ of 5%r l%;al r&;5)$ 6'$) a6o'+) )o %('&)a<l% fra'd- a+d 5a$
FIHE REQUIREMENTS
(1) 1 6'$) 5a/% 6ad% a 6&$)aC% a$ )o 5%r l%;al r&;5)$ (e+g+ #here the propert line is7 a""ess road et")
(2" 1 6'$) 5a/% %x.%+d%d $o6% 6o+%* or 6'$) 5a/% do+% $o6% a#) o+ )5% fa&)5 of 5%r 6&$)aC%+ <%l&%f
(3" D- )5% .o$$%$$or of )5% l%;al r&;5)- 6'$) C+o, of )5% %x&$)%+#% of 5%r r&;5) ,5&#5 &$ &+#o+$&$)%+) ,&)5
)5% r&;5) #la&6%d <* )5% 1
(!" D 6'$) C+o, of 1K$ 6&$)aC%+ <%l&%f of 5%r r&;5)$
(,) D 6'$) 5a/% %+#o'ra;%d )5% 1 &+ 5%r %x.%+d&)'r% of 6o+%* or o)5%r a#)$- %&)5%r d&r%#)l* OR <*
a<$)a&+&+; fro6 a$$%r)&+; 5%r l%;al r&;5)
R Then E is estopped from ma)ing "laim of legal right+ C #ould be allo#ed to en"roa"h of EBs propert+
(eway5u$ (2>>2 S00" 3 delay# knowledge# pre2udice to 6
rd
parties
FA0TS
(n the 18
th
"entur7 a go$ernment sur$eor #as sent to settle a territorial boundar dispute bet#een 2 (ndian
bands+ /oth bands #ere unhapp #ith the out"ome7 but did not bring a"tion for brea"h of fidu"iar dut
against the go$ernment until 2000+ The go$ernment raised the defen"e of la"hes+
ISSUE
(s the /andBs "laim for brea"h of fidu"iar dut barred b la"hes<
HELD : REASONING
"laim is barred b la"hes be"ause! pre:udi"ial effe"ts on third parties (inhabitants built houses7 roads7 et")*
"ondu"t equi$alent to #ai$er (e$iden"ed b representations7 failure to assert rights in "ir"umstan"es that
required assertion)* poli" reasons supported the finding (band members died7 do"uments destroed7 et")
RATIO
e$en if not statute barred7 equitable remedies "an be barred b equitable defen"es
Equitable remedies require equitable "ondu"t on the part of the "laimant
TEST for a#('&%$#%+#%I (1" ,5%r% a .ar)* 5a$- <* 5&$ #o+d'#)- do+% )5a) ,5&#5 6&;5) fa&rl* <%
r%;ard%d a$ %('&/al%+) )o a ,a&/%rL (2" $'#5 #o+d'#) r%$'l)$ &+ #&r#'6$)a+#%$ )5a) 6aC% .ro$%#')&o+ of
)5% a#)&o+ '+r%a$o+a<l%
Spring 2008 Equitable Remedies (Sheppard) 1,
0LEAN HANDS
7 8ne who co$es into Equity $ust co$e with clean hands
7 He who see5s equity $ust do equity
No<od* &$ %x.%#)%d )o 5a/% l&/%d a <la6%l%$$ l&f%- BUT )5% a..l&#a+) 6'$) 5a/% a #l%ar #o+$#&%+#% &+
)5% .ar)&#'lar )ra+$a#)&o+:l&)&;a)&o+ <%for% )5% #o'r)
0s distin"t from legal remedies7 in equit r%6%d&%$ ar% d&$#r%)&o+ar* and one "onsideration in the e&er"ise
of that dis"retion is the #o+d'#) of )5% .%r$o+ a..l*&+; for %('&)a<l% r%l&%f
The respondent "an point out to the "ourt inequitable "ondu"t of the appli"ant (does not ha$e to be illegal7 :ust
unethi"al7 inequitable7 or someho# offensi$e to the "ourt of equit)
0o+d'#) 6'$) <% r%l%/a+) )o )5% )ra+$a#)&o+ or l&)&;a)&o+! this prin"iples does not require that a person
lead a blameless life7 o+l* &+%('&)a<l% #o+d'#) r%la)&+; )o &$$'% &+ d&$.')% &$ r%l%/a+) (0insley"
U+#l%a+ 5a+d$ &$ a #o6.l%)% d%f%+#% ?o su"h thing as partial un"lean hands (unli)e la"hes) (0insley"
I+A'+#)&o+ ,&ll <% r%f'$%d &f (1" right being asserted b C has been obtained unla#fullL (2" the C is guilt of
equitable fraud in dealings #ith E or 2
rd
part #ith respe"t to matter in disputeL (3" #here the in:un"tion
#ould further a de"eption b the C on the E or 2
rd
part
City of 0oonto %& #olai (1782 S00" 3 pu$lic interest! suspension of decree
FA0TS
Irs+ Colai had man "on$i"tions L fines for renting illegal suites7 but she "ontinued to flout the la#* on this
basis the 'it argued the legal remed #as inadequate and equit must inter$ene and issue an in:un"tion7 a
brea"h of #hi"h #ould trigger "ontempt pro"eedings and she "ould be imprisoned
Irs+ Colai argued that the 'it had un"lean hands as its enfor"ement of the housing bla#s in question #as
dis"riminator and biased! there #ere tons of other people brea)ing the same bla# and not being prose"uted7
and there #as e$en a list of people #ho #ould not be prose"uted for ha$ing these illegal suites
HELD : REASONING
T6 agreed that the 'it had un"lean hands and refused the equitable relief (in:un"tion) on that basis
'itBs spe"ial deferred list #as se"reti$e7 open to politi"al abuse7 tainted #ith politi"al fa$ouritism
5e #ho see)s equit must "ome #ith "lean hands! to grant the in:un"tion #ould be to san"tion the
'itBs inequitable pra"ti"e
5e #ho see)s equit must do equit! #ould grant in:un"tion if the 'it s"raps the list
'0 o$erturned T6! the "it "annot prose"ute e$erone7 and it is in the publi" interest to sele"ti$el enfor"e
be"ause of general deterren"e* Irs+ ColaiBs hands #ere less "lean than the 'it and the "ourt #ill not assist a
#rongdoer* in:un"tion granted7 but suspended for a ear #hile appeal
Equit is "on"erned #ith the "onsequen"es of its de"isions7 and attempt to be fair to all parties
-n"lean hands do"trine should not appl #here the result #ould be to den a "laim in #hi"h the publi"
has a dire"t and substantial interest = muni"ipalit is a"ting in the publi" interest7 has prose"utorial
dis"retion
M&$#o+d'#) 6'$) r%la)% d&r%#)l* )o )5% )ra+$a#)&o+ &+ d&$.')%- a+d +o) )5% ;%+%ral #o+d'#):6oral$ of
)5% .ar)* $%%C&+; r%l&%fI 'it had not beha$ed uns"rupulousl in Irs+ ColaiBs transa"tion
3urther7 Irs+ Colai "annot atta"h the 'it for un"lean hands = her hands #ere dirtier7 she had flouted the
bla# for ears 0o'r) ,&ll +o) a$$&$) a ,ro+;do%r
5o#e$er7 the in:un"tion is suspended for 1 ear be"ause an immediate in:un"tion #ill impose hardship on
tenants (he #ho see)s equit must do equit)
S'' agreed #ith '0* upholds the in:un"tion! (1) the un"lean hands do"trine does not appl #here the
publi" has an interest in see)ing equitable relief granted7 and (2) 'it did not ha$e un"lean hands (#hile Irs+
Colai had flouted the bla# for ears)
RATIO
DU+#l%a+ 5a+d$E do#)r&+% do%$ +o) a..l* ,5%r% )5% .'<l&# 5a$ a+ &+)%r%$) &+ $%%C&+; )5% %('&)a<l% r%l&%f
0a++o) #la&6 )5% d%f%+#% of '+#l%a+ 5a+d$ ,5%r% *o' *o'r$%lf 5a/% '+#l%a+ 5a+d$ ()5% 0o'r) ,&ll +o)
a$$&$) a ,ro+;do%r"
Spring 2008 Equitable Remedies (Sheppard) 1D
0o'r) 5a$ d&$#r%)&o+ )o $'$.%+d a+ %('&)a<l% r%6%d* &f &) ,o'ld o)5%r,&$% &6.o$% 5ard$5&. o+ )5&rd
.ar)&%$9
M&$#o+d'#) 6'$) r%la)% d&r%#)l* )o )5% )ra+$a#)&o+ &+ d&$.')%- a+d +o) )5% ;%+%ral #o+d'#):6oral$ of )5%
.ar)* $%%C&+; r%l&%f
0insley (177! UBHL" 3 %isconduct %ust relate to equita$le relief clai%ed
FA0TS
Carties operated a lodging house in Fales+ The "ommitted #elfare fraud b transferring o#nership of the
propert solel to C splitting the #elfare mone+ The had a falling out7 and C started a"tion for possession
(legal o#nership of the #hole house)+ E "laimed C held S the house in trust for her+
ISSUE
Eo un"lean hands pre$ent I from getting equitable relief<
HELD : REASONING
?o7 a half interest in the house is granted
The un"lean hands defen"e does not arise be"ause C "ould establish her entitlement #ithout raising the illegal
"ondu"t (the rule in Bow%akers)! C "ould establish a resulting trust b sho#ing that she "ontributed to the
pur"hase pri"e and that there #as a "ommon understanding
RATIO
6&$#o+d'#) ,5&#5 6aC%$ o+%K$ 5a+d$ '+#l%a+ 6'$) 5a/% a d&r%#) r%la)&o+$5&. )o )5% %('&)a<l% r%l&%f
#la&6%d
E('&)* $5o'ld +o) a..l* &)$ d&$#r%)&o+ <a$%d o+ ,%&;5&+; )5% .'<l&# #o+$#&%+#%
NOTES
Subsequent "ourts ha$e refused to follo# this "ase! "annot blindl appl rules = must be dis"retion based on
the a"tual fa"ts
IN?UN0TIONS
G%+%ral H&$)or*
(n:un"tions are e&"lusi$e to the 'ourt of Equit7 and be"ause of their dis"retionar7 equitable nature7 the are
e&"eptionall fle&ible and "an be tailored to the pre"ise "ir"umstan"es
(1" 0a+ <% &$$'%d )o %+for#% (a" a l%;al r&;5) (<" a+ %('&)a<l% r&;5) or (#" )5% ad6&+&$)ra)&o+ of A'$)&#%
(B&7EU)
(2" If a l%;al r%6%d* &$ '+a/a&la<l% or &+ad%('a)% (diffi"ult to quantif7 spe"ulati$e7 nominal $alue7 no abilit
to pa) OR )5%r% &$ .ro$.%#) of &rr%.ara<l% 5ar6 (harm #hi"h "annot be "ompensated $ia a legal remed)
AND )5% ord%r ,&ll +o) <% f')&l% or &6.o$$&<l% )o #o6.l* ,&)5 (if person in :urisdi"tion o)a if propert
not % #enn)
(3" T5%r% ar% +o r%a$o+$ for )5% A'd;% )o %x%r#&$% 5%r d&$#r%)&o+ )o ,&)55old (ie equitable defen"es! un"lean
hands7 la"hes7 a"quies"en"e7 dela7 impossibilit or futilit)
(!" T5% <ala+#% of (&+"#o+/%+&%+#% $'..or)$ ord%r&+; )5% &+A'+#)&o+ (#eighing the "onsequen"es! balan"ing
the relati$e irreparable harm to C7 E7 and 2
rd
parties* loo)s at the publi" interest in granting or refusing the
in:un"tion7 and "an issue it #ith terms and "onditions (#olai) = often underta)ing as to damages)
(4" 1ar)&%$ (&+#l'd&+; )5&rd .ar)&%$" ar% <o'+d fro6 )5% )&6% of +o)&#% (must ser$e7 but bound at mere noti"e)
(" 0o6.l&a+#% &$ r%('&r%d %/%+ &f )5% ord%r &$ %/%+)'all* fo'+d &+/al&dI &) &$ +o d%f%+#% )o ar;'% )5%
&+A'+#)&o+ $5o'ld +o) 5a/% <%%+ ;ra+)%dI ou must obe a "ourt order #hile it is in effe"t
(8" E+for#%6%+) /&a #o+)%6.) .ro#%%d&+;$ ,5&#5 r%$'l) &+ f&+% or Aa&lI %('&)* a#)$ in !esona$ (#enn) ("i$il
"ontempt is brought b the other part* "riminal attempt is a prose"ution #hi"h requires %ens rea)
TERMINOLOGY
I+A'+#)&o+ an order granted b a "ourt of "ompetent :urisdi"tion #hi"h instru"ts a person to do or to not do a
parti"ular thing7 and #hi"h is granted for the purpose of maintaining the status quo as of the time of appli"ation
(n:un"tion in /' is a temporar order '+)&l A'd;6%+) or f'r)5%r ord%r = 9ulf *slands 3a%igation
Ia be granted at an time up to :udgment after trial7 or e$en after trial pursuant to 'CSC Rule 4:);+
'omes into effe"t as soon as the other part has ?AT('E of it (must ser$e7 but bound at mere noti"e)
I+)%rlo#')or* &+A'+#)&o+! an in:un"tion #hi"h preser$e the status quo until the "ase "an be tried (ie is in effe"t in
the period prior to :udgment
I+)%r&6 &+A'+#)&o+ usuall ex parte* refrains the E until a spe"ified date
E4 !ate &+A'+#)&o+ an interim in:un"tion ordered after onl hearing from the appli"ant and no noti"e of the
hearing gi$en to other part* ho#e$er7 the other part ma appl to "ourt to dis"harge or $ar the in:un"tion
granted ex parte7 but must obe the order #hile it is in effe"t from the moment of noti"e of the in:un"tion
?URISDI0TION TO GRANT IN?UN0TIONS
TFA basis for :urisdi"tion to grant an interlo"utor or interim in:un"tion!
(1" )5% &+5%r%+) A'r&$d&#)&o+ of )5% 0o'r) of E('&)* AND
(2" Law and Equity Act, $9 37
37(1" #ithin the inherent :urisdi"tion of the "ourt to ma)e an in:un"tion #hi"h appears to be :ust or
"on$enient
37(2" ma be granted un"onditionall or on terms and "onditions the "ourt thin)s :ust
5ere is an e&pression of the d&$#r%)&o+ar* +a)'r% of the in:un"tion! "an be spe"ifi"all tailored
-suall granted on an underta)ing as to damages (B0S0 R'l% !4(")
37(3" if it thin)s it :ust7 the 'ourt "an issue an in:un"tion to pre$ent threatened L apprehended #aste or
trespass #hether or not the person against #hom the order is made is in possession of or "laims a
right to do the a"t to be restrained and #hether or not the estates "laimed are legal or equitabel
1ro#%d'r%I 'CSC Rules 44< 4:< and :=
R'l% !! F I+)%rlo#')or* A..l&#a)&o+
(1" as) for an in:un"tion in "hambers as an interlo"utor appli"ation (unless during trial 42(1")
(4" unless other#ise pro$ided (ie ex parte) must ser$e ea"h part and ea"h non%part #ho ma be affe"ted b the
order #ith ?oti"e of Iotion and supporting affida$its
(" other parties L people ser$ed per sub (,) "an file and ser$e a response
(8" and then file and ser$e their supporting affida$its
(7" unless e$erone "onsents7 or the "ourt orders7 no other affida$its "an then be deli$ered+
R'l% 41 Aff&da/&)$
(1" must file it if ou #ant to use it on our appli"ation
(1>" "an onl state #hat dependent #ould be permitted to state in viva voice e$iden"e e&"ept on an
appli"ation for an interlo"utor order the deponent ma ma)e statements of as to their information
and belief if the state the sour"e of that information
(11" #ith lea$e of the "ourt an affida$it "an be used in e$iden"e not#ithstanding irregularit in form
(12" "an use an affida$it that #as "reated before the pro"eeding #as "ommen"ed
R'l% !4 I+A'+#)&o+$
(1" broad s"ope! "an as for an in:un"tion e$en if not sought as part of the final remed
(2" ma appl for an in:un"tion $efore "ommen"ing the a"tion7 but an underta)ing to "ommen"e is required
(3" e4 !ate on an appli"ation made #ithout noti"e the "ourt ma grant an interim in:un"tion
(!" an in:un"tion is made b order of the "ourt (not b #rit of in:un"tion)! order ta)es effe"t immediatel upon
noti"e
(" '+d%r)aC&+; a$ )o da6a;%$ '+l%$$ )5% #o'r) o)5%r,&$% ord%r$! automati"all in"luded unless spe"iall
e&"used (Mac'lo) (to pa damages for loss o""urring from operation of the in:un"tion if later sho#n
in:un"tion should not ha$e been granted)
(8" "an get an in:un"tion after :udgment to restrain the other part from repeating L "ontinuing the bad a"t
established b the :udgment or another bad a"t of the same )ind (ie if that part is appealing)
R'l% 42 05a6<%r$
(1" interlo"utor appli"ations are heard in "hambers unless made in the "ourse of a trial
(12" on ex parte appli"ation the "ourt ma (a" dismiss (<" ad:ourn or (#" dire"t an order be ser$ed7 if it thin)s
noti"e ought to ha$e been gi$en
(1291" 0llo#s for ex parte appli"ations in situations of urgen"
(1292" (f an order is made #ithout noti"e b reason of urgen"7 a "op of the order and do"uments filed in
support of it must be ser$ed on the person affe"ted
(1293" O+ a..l&#a)&o+ of )5% .%r$o+ aff%#)%d- )5% #o'r) 6a* /ar* or $%) a$&d% )5% ord%r
E> #AR0E INTERIM IN?UN0TIONS
Ex parte interim in:un"tion! onl one part is heard = so urgent that noti"e is not gi$en to the other part
Equit allo#s a remed to pre$ent a #rong from happening at all = quia ti%et (pre$entati$e remed)
R%('&r%6%+)$I
19 Ur;%+#*
29 F'll a+d fra+C d&$#lo$'r%I be"ause there is onl one part before the "ourt = not ad$ersarial
39 U+d%r)aC&+; a$ )o a+* da6a;%$ r%$'l)&+; F (B0S0 R'l% !4("* La, G E('&)* A#)- $9 37(2""
Solemn promise to the "ourt to pa an damages that the "ourt ma assess if it turns out that the
in:un"tion should ne$er ha$e been granted = financial *urdle
-nusual be"ause ordinaril a part is entitled to attempt to get a remed #ithout an "ost
/-T the "ourt has dis"retion not to require an underta)ing (e.g. Michael Mullin = /and la")ed funds)
'an attempt to ha$e the in:un"tion set aside or $aried R'l% 42(1293"
Cart goes ba") to the same "ourt (not a higher "ourt) to appeal the in:un"tion b letting the
"ourt hear the other side
'an be before the same :udge that heard the original appli"ation7 or a different :udge of the
same "ourt
8equire%ents 9 7rounds for setting aside ex parte interi% in2unction
Seafaes (1747 B0S0"
Fhere the appli"ation is ex parte# the "ourt must e&er"ise the utmost "are and7 if gi$e7 the other part ma
appl to ha$e it dis"harged or $aried
TWO REQUIREMENTS for a+ e4 !ate &+)%r&6 &+A'+#)&o+I
(1" 'r;%+#* = urgen" is a general requirement for an in:un"tion7 for an ex parte in:un"tion must sho# great
or e&traordinar urgen" (R'l% 42(1291")
(2" f'll a+d fra+C d&$#lo$'r% appli"ant must pro$ide all rele$ant fa"ts and portra both sides fairl7
"ondu"ting themsel$es #ith the utmost good faith
9 9 9 AND '+d%r)aC&+; a$ )o da6a;%$ (R'l% !4("" '+l%$$ a r%a$o+ +o) )oo
GROUNDS FOR SETTING ASIDE OR HARYING a+ &+A'+#)&o+ ;ra+)%d e4 !ate
(1" e$iden"e establishes there #as a misstatement or repression of rele$ant fa"ts
(2" e$iden"e establishes fa"ts #hi"h #ere not )no#n or "on"ealed b the C7 but #hi"h are rele$ant and
establish that the order "annot stand
(3" mista)e of fa"t b statement or omission so $ital that the order #ould ha$e been refused if the "ourt #as
a#are of it
(!" mista)e of la# if there is an appli"able legal authorit of so "learl a go$erning nature that the order
#ould ha$e been refused if the "ourt #as a#are of it
INTERLO0UTORY OR INTERIM IN?UN0TIONS
G%+%ral T%$)
A$eican Cyana$id sets out the basi" frame#or) (that has been refined b subsequent "ases)
Mac'loe "onfirmed this as the la# in /'
This is a holisti"7 global analsis* it is not me"hani"al or formalisti"
T5% '+d%rl*&+; #o+$&d%ra)&o+ &$ ,5%)5%r l%;al r%6%d* &$ &+ad%('a)% (01"
Accessi$ility t*res*old
(1" $%r&o'$ ('%$)&o+ )o <% )r&%d )5a) &$ +o) fr&/olo'$ or /%xa)&o'$
C must sho# he has a legal "ause of a"tions supporting the demand for in:un"tion on the fa"ts = that there
is a real prospe"t of su""eeding = or some merit
This is a fairl lo# threshold
this analsis is not to be a prolonged e&amination of the merits (R,R)
TWO %x#%.)&o+$ )o )5% ;%+%ral r'l% )5a) a A'd;% $5o'ld +o) %+;a;% &+ a+ %x)%+$&/% r%/&%, of
)5% 6%r&)$
(1) Fhen the interlo"utor in:un"tion #ill in effe"t amount to a final determination of the a"tion
(#here there #ill be no pra"ti"al effe"t of going to trial be"ause the in:un"tion has gi$en the
appli"ant e$erthing that #ould ha$e been obtained at trial) (Cascade) AND : OR
(2) Fhen the issue presents itself as a simple question of la# alone (is "onstitutionalit or
interpretation of a "lause of a "ontra"t (R,R< Cascade)
1iscretionary p*ase
(2" $.%#)r% of &rr%.ara<l% 5ar6
3o"used solel on the prospe"t of irreparable harm to the appli"ant
irreparable! harm that is in"apable of being remedied b an other means at the time of trial* that "annot
be "ompensated for #ith an a#ard at trial (ie the "ommon la# is inadequate)
if the "ommon la# remed of damages is adequate7 then equitable a"tion is not :ustified
degree of irreparabilit < irreparable refers to the nature of the harm suffered7 not its magnitude (R,R)
non,ex*austive list of so%e types of in2uries courts *ave found to constitute irrepara$le *ar%
harm to reputation or "areer
harm to $iabilit of business = good#ill7 mar)et share
in support of a restraint of trade "lause
some intelle"tual propert infringements
e$en if damage "an be quantified7 unli)el to be able to re"o$er (Mae%a)
infringement of the publi" interest in some "ir"umstan"es (R,R)
infringement of some natural resour"e of the quiet en:oment of land (Mac'loe)
(3" <ala+#% of (&+"#o+/%+&%+#%
here7 the relati$e irreparable harm to both parties is balan"ed
the "ourt must balan"e the CBs need for prote"tion against the "orresponding need of the E to be prote"ted
against in:ur resulting from being prohibited from e&er"ising her legal rights #hi"h ma not be
adequatel "ompensated b the CBs underta)ing as to damages
the "ourt #ill also "onsider possible irreparable harm to third parties
%ay weig* in favour of 1
C not being finan"iall able to fulfil underta)ing as to damages
-ne&plained dela on part of C (might sho# damage not irreparable)
A$eican Cyana$id F test for an interlocutory : interi% in2unction
FA0TS
0meri"an 'anamid o#ned a patent on sntheti" absorbable surgi"al sutures+ The sought the remed of a
quia ti%et anti"ipator in:un"tion for brea"h of patent to restrain E from distributing its produ"t7 and also
sought an immediate interlo"utor in:un"tion until the patent "ase #as resol$ed+ '+0+ o$erturned the
in:un"tion on grounds that C had to sho# a strong prima fa"ie "ase #ith o$er ,0P "han"es of su""ess) = the
appealed to 5+9+
ISSUE
Fhat is the test for granting an interlo"utorLinterim in:un"tion< Iust the appli"ant sho# a strong pri%a
facie "ase<
HELD
in:un"tion should be granted
RATIO
re:e"ts the pri%a facie Test for interlo"utor L interim in:un"tion7 abo$e
Mac'loe %& Michael Mullin (17@4 B0" F confir%s A%erican &yana%id as t*e law in B&
FA0TS
/' granted Ia"Iillan /loedel logging rights for Ieares (sland7 #hi"h had old%gro#th "edar+ 3irst ?ations
and other protestors obstru"ted the logging+
C brought an a"tion see)ing an in:un"tion restraining E from #rongfull interfering #ith the logging+
3irst ?ations brought an a"tion for 0boriginal title and sought an in:un"tion restraining the "ompan from
logging until disposition of their a"tion+
ISSUE
Fhi"h in:un"tion should be granted<
HELD
in:un"tion granted to both C and E (C not to log* E not to obstru"t C in #hat the #ere still permitted to after
the in:un"tion #as in pla"e)
?o underta)ing for damages required from either part
REASONING
/oth sides argued that it should be granted an in:un"tion be"ause it had a serious question to be tried7 #ould
suffer irreparable harm7 and the balan"e of "on$enien"e fa$oured it
'laim to 0boriginal title "annot be re:e"ted at su"h an earl stage = "omple& "ase7 substantial e$iden"e
RATIO
Aff&r6$ A$eican Cyana$id a$ )5% )%$) &+ B0
1UR1OSE of a+ &+)%rlo#')or* &+A'+#)&o+ &$ )o .r%$%r/% )5% status quo '+)&l a d%)%r6&+a)&o+ of )5%
6%r&)$
Ma* +o) 5a/% )o .ro/&d% '+d%r)aC&+; for da6a;%$ (<') RULE !4(" d&$.la#%$ )5&$ for e4 !ate
&+A'+#)&o+$"
NOTES
it #as easier for /' to a""ept the A%erican &yana%ide test7 be"ause it had ne$er de$eloped mu"h the
pri%a facie "ase test (unli)e other pro$in"es li)e Antario)
Eissent (Ia"Eonald 6+0+)! in:un"tion should be granted to C = 0boriginal title is a "omple& a"tion not
amenable to earl trial* he #as right! there still has not been a trial about Ieares (sland7 in:un"tion persists to
this da (e"otourism is no# booming there)
5igh #ater mar) for granting of in:un"tions for 0boriginal title
Haida ;ation &ase the S'' disappro$ed of interlo"utor in:un"tions as onl partial7 imperfe"t relief in the
"onte&t of 0boriginal "laims be"ause!
(1) in:un"tions "o$er onl part of the full s"ope of the 'ro#nBs dut
(2) balan"ed re"on"iliation of interests is preferable to the drasti"7 all%or nothing result of an in:un"tion
(2) the often de"isi$e fa"tor of balan"e of "on$enien"e prefers e"onomi" interests o$er 0boriginal ones
(>) holder of in:un"tion has the upper hand and less desire to settle = disputes drag on
'C )A9+ %& (ale
FA0TS
2 3irst ?ations /ands passed bla#s "laiming the right to "at"h unlimited quantities of fish for sale purposes+
The go$ernment sought an interlo"utor order en:oining the bands from
"at"hingLtransportingLbarteringLselling fish "ontrar to general regulations+ The 'hambers :udge granted the
in:un"tion7 the /ands appealed be"ause the :udge "onsidered irreparable harm to the C under the balan"e of
"on$enien"e
HELD go$ernmentBs in:un"tion upheld
REASONING
the "ourt is not a prisoner of formula7 and although the 'hambers :udge did not e&pressl refer to
irreparable harm7 she "learl "onsidered it under the balan"e of "on$enien"e
RATIO
fa&l'r% of ?'d;% )o $.%#&f&#all* addr%$$ &rr%.ara<l% 5ar6 $%.ara)%l* ,a$ +o) fa)alI the question of
irreparable harm ma be properl re$ie#ed as part of the assessment of the balan"e of "on$enien"e bet#een
the parties7 not#ithstanding its treatment as a separate element in A%erican &yana%id
0ro,+ +o) r%('&r%d )o ;&/% a+ '+d%r)aC&+; a$ )o da6a;%$ ,5%r% &) r%.r%$%+)$ )5% .'<l&# &+)%r%$) &+
'.5old&+; )5% la, of )5% la+d9
NOTE
$)a+dard of r%/&%, a dis"retionar ruling #ill not be o$erturned unless it is demonstrated that
(i) the :udge erred in prin"iple or
(ii) made an order not supported b the e$iden"e7 or
(iii) "ir"umstan"es ha$e suffi"ientl "hanged
if an of these are satisfied7 the appellate "ourt ma e&er"ise its dis"retion as if the matter #as de novo
'M(E %& Canadian #acific Ltd (S00 177" = inadequacy of legal re%edy# no underlying cause of action
FA0TS
/IFE had a labour agreement* in response to 'C "hanging shift patters7 /IFE filed a grie$an"e under its
"olle"ti$e agreement and sought an in:un"tion against 'C to prohibit instituting the "hange until the grie$an"e
#as heard b an arbitrator
'C argued that /'S' had no :urisdi"tion be"ause it #as a federall regulated industr under the 'anada
9abour 'ode
ISSUE
/'S' ha$e :urisdi"tion to issue in:un"tions in "onne"tion #ith a dispute in a federall regulated industr<
'an /'S' issue interlo"utor in:un"tions e$en if there is no "ause of a"tion to #hi"h the in:un"tion is
an"illar<
HELD
(n:un"tion granted
REASONING
(nadequa" of legal remed ! no re"ourse for the /rotherhood under the "olle"ti$e agreement or La$our &ode
= no pla"e to see) relief in la#
?o need for an underling "ause of a"tion = 'ourt is assisting another "ourtLtribunal #ith administration of
:usti"e
RATIO
T5% BEY #o+$&d%ra)&o+ &$ ,5%)5%r l%;al r%6%d* &$ &+ad%('a)%
A<$%+#% of a+ '+d%rl*&+; #a'$% of a#)&o+ do%$ +o) d%.r&/% B0S0 fro6 ;ra+)&+; a+ &+A'+#)&o+
0o'r) #a+ a$$&$) a+o)5%r )r&<'+al ,&)5 )5% ad6&+&$)ra)&o+ of A'$)&#%
N%;a)&/% 0o/%+a+)$
A +%;a)&/% #o/%+a+) &$ a+ a;r%%6%+) )o r%fra&+ fro6 do&+; $o6%)5&+; #hi"h is "ommonl seen in
emploment and sale of business "onta"ts see)ing to restri"t an emploee or a $endor in a from
#or)ingLstarting up as a "ompetitor to the emploerL$endee
(n"ludes "onfidentialit "lauses
/e"ause of the importan"e of the temporal nature of these "lauses7 people often see) interlo"utor in:un"tions
#hile see)ing their "ontra"t a"tion
Fhere there is a negati$e "o$enant7 a prohibitor in:un"tion is generall readil granted (Dohety)
U+d%r )5% r'l% &+ Dohety a +%;a)&/% #o/%+a+) &$ %+for#%a<l% &+ %('&)* unless there is doubt as to the
$alidit of the "lause at "ommon la# (ie unreasonable or against publi" interest be"ause it is &+ r%$)ra&+) of
)rad% )
I+ )5o$% #&r#'6$)a+#%$- a..l* )5% A$eican Cyana$id )%$)
HIGHER )5r%$5old for TEST %x#%.)&o+$ )o )5% ;%+%ral r'l% )5a) a A'd;% $5o'ld +o) %+;a;% &+ a+
%x)%+$&/% r%/&%, of )5% 6%r&)$
(#here there #ill be no pra"ti"al effe"t of going to trial be"ause the in:un"tion has gi$en the
appli"ant e$erthing that #ould ha$e been obtained at trial) (Cascade) AND : OR
interpretationLreasonabilit of a "lause of a "ontra"t (R,R< Cascade)
Cascade %& Lindsay (17@4 B00A"
FA0TS
E #as a bro)er for the C forest produ"ts #holesaler* emplment "ontra"t in"luded a negati$e "on$ant that E
#ould refrain from "ompeting for 1 ear
E quit and #ent to #or) for a ri$al
C sought in:un"tion to restrain E from #or)ing at the "ompetitor
ISSUE
Should the in:un"tion be automati"all granted to enfor"e the negati$e "o$enant<
HELD
Henerall7 negati$e "o$enant is automati"all enfor"eable in equit % unless there is doubt as to the $alidit
of the "lause (ie restraint of trade* unreasonable)+
0ppli"ation for in:un"tion refused
REASONING
There #as doubt about the $alidit of the "lause and be"ause the "o$enant might be unenfor"eable7 the 6udge
"orre"tl applied the test in A%erican &yna%id in "onsidering irreparable harm and balan"e of "on$enien"e
/alan"e of "on$enien"e fa$oured 9indsa! he #ould suffer irreparable harm as he #ould lose his :ob #ith the
ne# "ompan7 #hile 'as"ade #ould not lose mu"h (onl one emploee7 9indsa had not soli"ited business
from their "ustomers or use trade se"rets)
RATIO
U+d%r )5% r'l% &+ Dohety a +%;a)&/% #o/%+a+) &$ %+for#%a<l% &+ %('&)*L 5o,%/%r- &f )5%r% &$ do'<) a$ )o
)5% /al&d&)* of )5% #o/%+a+) )5% )%$) fro6 A$eican Cyana$id 6'$) <% a..l&%d
NOTES
HIGHER )5r%$5old for TEST %x#%.)&o+$ )o )5% ;%+%ral r'l% )5a) a A'd;% $5o'ld +o) %+;a;% &+ a+
%x)%+$&/% r%/&%, of )5% 6%r&)$
(Cascade)
interpretationLreasonabilit of a "lause of a "ontra"t (R,R< Cascade)
0o+$)&)')&o+al 0a$%$
(n the "onstitutional "onte&t7 parties #ill often see) a sta pending appeal or an in:un"tion against the
go$ernment to temporaril suspend the operation of the impugned la#
(a) as against the parties AR
(b) as against e$erone
7eneral <ntroduction
A$eican Cyana$id sets out the basi" frame#or) (that has been refined b subsequent "ases)
Mac'loe "onfirmed this as the la# in /'
This is a holisti"7 global analsis* it is not me"hani"al or formalisti"
T5% '+d%rl*&+; #o+$&d%ra)&o+ &$ ,5%)5%r l%;al r%6%d* &$ &+ad%('a)% (01"
<n t*e constitutional context+
The S'' has reaffirmed 0meri"an 'anamid approa"h #ith some modifi"ations to ta)e a""ount of the
$arious pri$ate and publi" interests at sta)e (R,R)
There is no presumption of "onstitutionalit operating during this test
A$eican Cyana$id fo Constitutional Cases
Accessi$ility t*res*old
(1" $%r&o'$ ('%$)&o+ )o <% )r&%d )5a) &$ +o) fr&/olo'$ or /%xa)&o'$
C must sho# he has a legal "ause of a"tions supporting the demand for in:un"tion on the fa"ts = that there
is a real prospe"t of su""eeding = or some merit
H&;5%r )5r%$5old &+ )5% #o+$)&)')&o+al $.5%r% = Fhile generall analsis is not to be a prolonged
e&amination of the merits7 #hen the issue presents itself as a simple question of la# alone (is
"onstitutionalit or interpretation of a "lause of a "ontra"t (R,R< Cascade) )5&$ &$ a+ %x#%.)&o+ )o )5%
;%+%ral r'l% )5a) a A'd;% $5o'ld +o) %+;a;% &+ a+ %x)%+$&/% r%/&%, of )5% 6%r&)$ (R,R)
1iscretionary p*ase
(2" $.%#)r% of &rr%.ara<l% 5ar6
Eiffi"ult to assess in the "onstitutional "onte&t
at this point in the :urispruden"e7 a "laimant #ill generall pass this stage quite easil e$en if the damages
are theoreti"all quantifiable
note that in R,R the ultimatel unsu""essful toba""o "ompan appli"ant #as able to demonstrate
irreparable harm EGE? though "an quantif #hat it #ould "ost to "hange the pa")aging to "onform
be"ause of the "onstitutional nature of the "ase = ,o'ld +o) M &rr%.ara<l% 5ar6 &+ a +o+=#o+$)&)')&o+al
#a$% (but lost at stage 2 be"ause it #as merel finan"ial loss $+ aim of the regs re health ris) = balan"eT)
(3" <ala+#% of (&+"#o+/%+&%+#%
0ppli"ations for interlo"utor in:un"tions against enfor"ement of legislation raise spe"ial "onsiderations
at the T5(RE ST0HE of A%erican &yana%id (Ha!e)
Hranting the in:un"tion ma ha$e the effe"t of depri$ing the publi" of a statute #hi"h has been
dul ena"ted and ma be $alid in the end
Refusing the in:un"tion ma depri$e appli"ant of "onstitutional rights simpl be"ause "ourts are
too slo#
)5&$ $)a;% <%#o6%$ )5% 6o$) &6.or)a+) &+ )5% #o+$)&)')&o+al #o+)%x) <%#a'$% of )5% &6.or)a+#% of )5%
.'<l&# &+)%r%$) &+ )5&$ )*.% of l&)&;a)&o+
.'<l&# &+)%r%$) 6'$) <% #o+$&d%r%d a$ a $.%#&al fa#)or a) )5&$ $)a;% &+ #o+$)&)')&o+al #a$%$ F ;o%$
<%*o+d )5% .ar)&%$ )o looC a) )5% #o+$%('%+#%$ for )5% .'<l&#
#hile in pri$ate a"tions it is possible to measure the respe"ti$e e"onomi" interests of the parties7 here
are highl smboli" publi" indi$idual rights at sta)e
(i) a..l&#a+) ,5o all%;%$ .'<l&# &+)%r%$) 5ar6 &$ .r%$'6%d )o <% a#)&+; &+
$%lf &+$)ar$ a+d must demonstrate the benefits to the publi" #hi"h #ill flo# from the in:un"ti$e
relief
(ii) .'<&# a')5or&)* &$ %+)&)l%d )o a lo,%r <'rd%+ )5a+ a .r&/a)% a..l&#a+) r%
%$)a<l&$5&+; &rr%.ara<l% 5ar6 does not ha$e to demonstrate actual irreparable harm (underling
assumption ma)es sense be"ause legislation O publi" good)
(iii) ,%&;5 )5% %x)%+) of )5% r%('%$)%d r%l&%fK$ &6.a#) o+ )5% .'<l&# (negati$el
effe"t a fe# or a lot of people)
(i$) 6a&+)a&+&+; )5% status quo &$ of l&6&)%d /al'% be"ause the #hole purpose of
the &*arter is to "hallenge la#s
R,R Macdonald (177!" F balan"e of (in)"on$enien"e in "onstitutional "ases
FA0TS
Cending S'' appeal R6R sought sta of '0 order* #anted the "oming into effe"t of Regulations #hi"h #ere
being tested for "onstitutionalit to be postponed until appeal #as resol$ed
Stas and interlo"utor in:un"tions operate under the same prin"iples
HELD : REASONING
The sta #as refused
BUT appli"ant #as able to demonstrate irreparable harm EGE? though "an quantif #hat it #ould "ost to
"hange the pa")aging to "onform be"ause of the "onstitutional nature of the "ase % ,o'ld +o) M &rr%.ara<l%
5ar6 &+ a +o+=#o+$)&)')&o+al #a$%
Ul)&6a)%l* lost at stage 2 be"ause it #as merel finan"ial loss $+ aim of the regulations re health ris) =
balan"eT
RATIO
Ex.a+$&o+ of )5% <ala+#% of (&+"#o+/%+&%+#% &+ #o+$)&)')&o+al #a$%$ F publi" interest is a spe"ial fa"tor to
be "onsidered the "ourt "an loo) at possible "onsequen"es to the publi" from granting L refusing the in:un"tion
TWO %x#%.)&o+$ )o )5% ;%+%ral r'l% )5a) a A'd;% $5o'ld +o) %+;a;% &+ a+ %x)%+$&/% r%/&%, of )5% 6%r&)$
(1) Fhen the interlo"utor in:un"tion #ill in effe"t amount to a final determination of the a"tion (#here there
#ill be no pra"ti"al effe"t of going to trial be"ause the in:un"tion has gi$en the appli"ant e$erthing that
#ould ha$e been obtained at trial)
(2) Fhen the question of "onstitutionalit presents itself as a simple question of la# alone
M' %& Meto!olitan Stoes (17@8 S00" = can consider pu$lic interest in t*e $alance of 4in5convenience
FA0TS
Store sought to "hallenge the "onstitutionalit of the statutor po#er of the I/ 9abour /oard to impose a
"olle"ti$e agreement7 and sought to sta the imposition of the "olle"ti$e agreement on the parties until after
the "onstitutional question had been ans#ered
(remember = sta and interlo"utor in:un"tion are go$erned b the same test)
HELD: REASONING
sta #as refused at the third stage! the publi" interest fa$oured the refusal of the suspension
(nterlo"utor relief is not appropriate in "onstitutional "ases be"ause it is too disrupti$e of go$ernment! the
'ourt dire"ted an earl trial date for the "onstitutional question
RATIO
W5%r% )5% a')5or&)* of a la, %+for#%6%+) a;%+#* &$ #o+$)&)')&o+all* #5all%+;%d- )5% #o'r) 6'$) )aC%
&+)o #o+$&d%ra)&o+ )5% .'<l&# &+)%r%$) o+ a+ a..l&#a)&o+ for a+ &+)%rlo#')or* &+A'+#)&o+: $)a* of
.ro#%%d&+;$
L&<%l a+d Sla+d%r
0 mu"h higher test than A%erican &yana%id
A+ &+A'+#)&o+ )o r%$)ra&+ d%fa6a)or* $.%%#5 or .'<l&#a)&o+$ ,&ll o+l* <% ;ra+)%d &+ )5% #l%ar%$) of
#a$%$- ,5%r% )5% D ad$its the falsity of )5% #o66%+)$- or ,5%r% &) ,o'ld <% &6.o$$&<l% for )5% D )o ra&$%
a /&a<l% d%f%+#%
The "ourt #ill ?AT issue an in:un"tion if the E intends to raise a defen"e (ie :ustifi"ation7 qualified pri$ilege7
fair "omment) unless the defen"e is "learl #ithout merit or the E is a"ting #ith mali"e
CA9('K = be"ause of importan"e of the #ider publi" interest of freedom of spee"h! the 'ourt of Equit #ill
be slo# to restrain a part from e&er"ising other#ise legitimate rights of freedom of spee"h
TEST &+ ord%r )o ;ra+) a+ &+A'+#)&o+ &+ a d%fa6a)&o+ #a$%- )5% 0o'r) 6'$) f&+dI
(1" #l%ar #a$% of d%fa6a)&o+
(2" )o ,5&#5 )5%r% &$ +o /&a<l% d%f%+#%
(3" ,5&#5 ,&ll l&C%l* <% r%.%a)%d
Chuch of Scientolgy %& Radio 3( et al& (178! B00A" 0 clear case = repetition
FA0TS
Radio ?F had a sho# "alled The (n$estigators that began broad"asting e&posUs of the 'hur"h of
S"ientolog7 in"luding an inter$ie# of 5arr Ran)in+ The 'hur"h sought an in:un"tion to pre$ent them from
"ontinuing+
HELD : REASONING
(n:un"tion #as granted be"ause!
(i) The statements #ere "learl libelous
(ii) There #as no possible defen"e
(iii) There #as probable repetition
RATIO
TEST a<o/%
Mae%a I+A'+#)&o+$
a+ &+A'+#)&o+ #hi"h o.%ra)%$ in !esona$ )o r%$)ra&+ a .ar)* fro6 r%6o/&+; a$$%)$ fro6 )5%
A'r&$d&#)&o+ <%for% A'd;6%+) on threat of #o+)%6.) of #o'r)
it restrains "urrent 0?E future assets7 and anone #ith noti"e of the order (ie if a person )no#ingl holds
our assets for ou in "ontra$ention7 the too "an fa"e "ontempt pro"eedings)
this is an e&traordinar remed be"ause it free@es assets before a determination on the merits
on appli"ation in 'hambers7 almost al#as e4 !ate (ob$iousl) $o )5%r% &$ a+ o<l&;a)&o+ )o ;&/% f'll a+d
fra+C d&$#lo$'r% of all 6a)%r&al fa#)$ a+d la,
remember to a"tuall ser$e the order on third parties holding assets (ie the /an) /ran"h)
Law and Equity Act, $9 37
37(1" #ithin the inherent :urisdi"tion of the "ourt to ma)e an in:un"tion #hi"h appears to be :ust or
"on$enient
37(2" ma be granted un"onditionall or on terms and "onditions the "ourt thin)s :ust
5ere is an e&pression of the d&$#r%)&o+ar* +a)'r% of the in:un"tion! "an be spe"ifi"all tailored
-suall granted on an underta)ing as to damages (B0S0 R'l% !4("* Mooney)
Enfoce$ent of Canadian ,udg$ents and Decees Act )-../ 'C+I
"an ta)e an ex parte interim in:un"tion from an#here in 'anada and enfor"e it in /' = "o$ers both
:udgments ('9) and de"rees (equit)
/areva <n2unction adopted into &anadian law! >ES> for granting! *ars* and exceptional re%edy
Aetna ?inancial %& ?eigel$an (S00 17@4"
"onfirmed that the Iare$a in:un"tion is adopted into 'anadian la# (Eenning "reation)
Iare$a in:un"tion is a harsh and e&"eptional remed that should onl be a$ailable in the "learest of "ases
TEST for ,5%)5%r )o ;ra+) a Mar%/a &+A'+#)&o+I
(1" C must demonstrate that she has a $)ro+; !i$a facie #a$% (from 8eynolds5*
(2" 6'$) <% a$$%)$ of )5% D ,&)5&+ )5% A'r&$d&#)&o+ $'$#%.)&<l% )o )5% %x%#')&o+ (ie in /') (?eigel$an)
(3" must be a r%al r&$C )5a) r%6a&+&+; $&;+&f&#a+) a$$%)$ ar% ;o&+; )o <% r%6o/%d fro6 )5% A'r&$d&#)&o+ or
d&$.o$%d of $o a$ )o 6aC% a+* la)%r A'd;6%+) a +'ll&)*
"ourts 6'$) a$$%$$ )5% <ala+#% of (&+"A'$)&#% a+d #ill also loo) at ! (Mooney)
past "ondu"t
nature of the transa"tions and their ris)s
#here E is residing and #hat the enfor"ement rights are there (ie re"ognition and enfor"ement of
'anadian :udgments % A? $+ /runei)
World=,&d% Mar%/a (Mooney)
/areva "an appl #orld%#ide as long as the part is #ithin the :urisdi"tion be"ause it is an in persona%
order
Iust ha$e some e$iden"e of assets outside the :urisdi"tion #hi"h ou #ant fro@en
0ssets #ithin :urisdi"tion of suffi"ient $alue to satisf potential :udgment7 less li)el to get #orld#ide*
Sil%e Standad
Mar%/a &+A'+#)&o+$ $5o'ld +o) <% &$$'%d #here funds and assets are being remo$ed in the normal "ourse of
business and there is no e$iden"e of s"heme to a$oid pament ('ourts #ant to stop unusual transa"tions that
are designed to frustrate the "ourt pro"ess)
'an "ombine /areva in:un"tion #ith A+)o+ 1&ll%r Ord%r* dis"losure order (defendant must file an affida$it
dis"losing #here assets are)* order appointing a re"ei$er under Law and Equity Act7 se"tion 28 (requiring
transfer of assets to a re"ei$er)
Anton #illa Ord%r
(0) F50T (S (T<
a+ i$ !esona$ 6a+da)or* &+A'+#)&o+ ,5&#5 allo,$ a $%ar#5 of .r%6&$%$ and $%&N% .ro.%r)* )o .r%$%r/%
%/&d%+#%
)5% &+A'+#)&o+ ;&/%$ *o' )5% r&;5) )o a$C for %+)r* ,&)5 )5% r%6%d* of #o+)%6.) &f *o' ar% d%+&%d
C-RCASE &$ )o .r%$%r/% %/&d%+#%- +o) 6or% d&$#o/%r* there "an be "ollateral purposes7 but must be set out
in the order
(/) 5AF EA ( HET A?E
diffi"ult to obtain and are $er e&pensi$e to "arr out (at least 100. generall)
a..l&#a)&o+ )o B0S0 &+ 05a6<%r$ <ro';5) e4 !ate 0?E ;&/%+ o+ '+d%r)aC&+; a$ )o da6a;%$(full J
fran) dis"losure of all rele$ant fa"ts and la#) but being strategi" in order to preser$e and obtain #hat ou
need* tailor the order to obtain our ob:e"ti$es as mu"h as possible (ie ou allo# for an e&tended period of
time bet#een ser$i"e L entr of (S and a"tual sear"h so that ou "an go earl in the morning and then #ait for
EBs "ounsel)
Anton #illa 29 %& Manufactuing #ocesses (0A 1784" )5r%% #o+d&)&o+$ for a+ Anton #illa ord%r
(1" +%%d %x)r%6%l* $)ro+; .r&6a fa#&% #a$% o+ )5% fa#)$
will only $e granted w*ere it essential for 2ustice to $e done
(2" .o)%+)&al da6a;%$ for 1 6'$) <% /%r* r%al a+d &rr%.ara<l%
*ig*er degree t*an -irrepara$le *ar%.
(3" 6'$) 5a/% #l%ar %/&d%+#% )5a) DK$ 5a/% &+#r&6&+a)&+; do#'6%+)$ )5a) )5%* 6a* d%$)ro* )5% 6a)%r&al
to prove intent to destroy = "an be inferred from fa"ts sho#ing the are dishonest7 fraudsters7 past
beha$ior
T%r6$ 6'$) <% #l%ar and #ill gi$e e&a"t time #indo# (and e&piration date of the order)* #hat "an be
(') EVE'-T(A?
"ourt appointed soli"itor independent of the parties is required to attend at the "ost of the appli"ant (to ma)e
sure E gets legal "ounsel and sear"h is "arried out to the stri"t letter of the order7 and the get the e$iden"e)
0$oid "arring it out at the same time as poli"e sear"h = EA ?AT #ant to get the &*arter in$ol$edT
(E) F50T S5A-9E ( .?AF (3 ( 0'T 3AR T5E E
Celanese Canada %& Muay De$olition (S00 2>>"
1ROTE0TIONS for .ar)* a;a&+$) ,5o6 a+ Anton #illa ord%r &$ ;ra+)%d
(1" Iust be e&e"uted during business hours for the most part (so E "an ha$e "ounsel there)
(2" 0 "arefull dra#n order #hi"h identifies the material to be sei@ed an sets out safeguards to deal #ith
pri$ileged do"uments+
(3" 0 $igilant "ourt appointed super$ising soli"itor #ho is independent of the parties
(!" 0 sense of responsible self%restraint on the part of those e&e"uting the order #ith a fo"us on its limited
purpose to preser$e rele$ant e$iden"e not to e&ploit it+
U$% of %/&d%+#% = e$iden"e obtained not to be used in other pro"eedings (default position)
unless there is a spe"ifi" term in our order (#hi"h ouBd ha$e to fight for)
(E) RA99(?H A;>O; ?<LLA8 AREER
?ila Canada %& ,ane Doe (177 F0TD"
FA0TS
3ila su"essull applied for an ex parte rolling Anton ?illar order against un)no#n street $endors allegedl
selling )no")%off 3ila produ"ts
RATIO
0o'r)$ ,&ll ;ra+) a 1 a Droll&+;E Anton #illa ord%r a;a&+$) '+C+o,+ D$
T5% )%$) &$ $)r&#)
(i) 'ourts #ill be $er "autious in granting an order against an un)no#n E
(ii) 'ounsel has a dut to the 'ourt to e&pli"itl "all attention to an #ea)nesses in the "ase
(iii) The CBs must ha$e ta)en reasonable steps to name the EBs
(i$) 0s soon as C )no#s the names of the E she must appl to amend the order #ith the "orre"t name
($) CBs rights must be "learl identified and demonstrated = a $er strong pri%a facie case
($i) The order is sub:e"t to "onstant re$ie# and "an be terminated b the 'ourt at an time
($ii) (ndependent super$ising soli"itor must be present at its e&e"ution7 so he "an later report to the 'ourt
A+)&=S'&) I+A'+#)&o+
0n in personam in:un"tion prohibiting a C from brining a suit in another :urisdi"tion
Anche$ #oducts %& 'C (1773 S00" = natural forum 4 balan"e of "on$enien"e (alternati$e forums)
FA0TS
'lass a"tion asbestos litigation* e&posure o""urred in /'* about 1,P of "laimants in /'* litigation in Te&as*
asbestos "ompanies sought an anti%suit in:un"tion in /'S'7 restraining the "laimants from "ontinuing the
Te&as a"tion7 on the basis that /' #as the proper forum for the a"tion
0lternati$e forums (Te&as 'ourt has alread dismissed a sta appli"ation there on the grounds of foru% non
conveniens be"ause it did not appl that do"trine at the time)
HELD:REASONING
?o anti%suit in:un"tion granted
The fa"t that the EBs "arried on business in Te&as #as suffi"ient to o$er"ome the fa"t that /' #as also a
natural forum
RATIO
T5%r% ar% ),o r%6%d&%$ )o #o+)rol #5o&#% of for'6
(1) lo"al sta ! lo"al "ourt stas its o#n pro"eeding pending the determination in the foreign :urisdi"tion AR
(2) anti%suit in:un"tion ! domesti" "ourt ta)es :urisdi"tion and prohibits parties from "ontinuing an a"tion
else#here
0o'r)$ $5o'ld '$% #a')&o+ &+ ;ra+)&+; a+)&=$'&) &+A'+#)&o+$- <%#a'$% of #o+$&d%ra)&o+$ of #o6&)*
= should onl be used #here a foreign "ourt has departed from foru% non conveniens to an e&tent that
the assumption of :urisdi"tion there a6o'+)$ )o a $%r&o'$ &+A'$)&#%
TEST for a+ ANTI=SUIT &+A'+#)&o+IJ
(1" )5% for%&;+ for'6 5a$ alr%ad* a$$'6%d A'r&$d&#)&o+ a+d r%A%#)%d &)$ %('&/al%+) of a lo#al
$)a* of .ro#%%d&+;$
(2" )5% a..l&#a+) #a+ $5o, )5a) B0 &$ )5% 6o$) a..ro.r&a)% for'6
(&" /S'S must as) itself if is there a foreign "ourt that is more appropriate than the domesti"
"ourt< /'S' must ta)ing into "onsideration that foreign "ourt has alread determined it is7
the "ourt must respe"t that -?9ESS that "ourt did not a"t on similar prin"iples to foru% non
convenience 0?E
(&&" (f there is a real and substantial "onne"tion bet#een /' and the a"tion or parties the "ourt
must "onsider "onne"ting fa"tors
t*e action s*ould $e tried in t*e 2urisdiction t*at *as t*e closest connection wit* t*e
action and parties
(3" W%&;5 )5% <ala+#% of (&+"#o+/%+&%+#% ,&)5 r%$.%#) )o A'r&d&#al ad/a+)a;%
&ourt %ust ensure it does not secure a 2uridical advantage to one of t*e litigants to t*e
expense of ot*ers
NOTES
This "ase is not appli"able to single forum "ases
3owich #ha$acal Ord%r
A+ &+)%rlo#')or* ord%r #o6.%ll&+; a 3
rd
.ar)* )o d&$#o/%r or d&$#lo$% )5% &d%+)&)* of .ar)&%$ )o %+a<l% )5%
1 )o &d%+)&f* )5% ,ro+;do%r
I) &$ a+ %('&)a<l% <&ll of d&$#o/%r*
TEST
(1" 1 5a$ a "ona fide #la&6 a;a&+$) )5% '+C+o,+ .ar)&%$
AND
(2" 1 5a$ a#)'al &+)%+)&o+ )o <r&+; a $'&) o+ )5% <a$&$ of )5% &+for6a)&o+ &) o<)a&+$ '+d%r )5% ord%r
AND
(3" T5%r% &$ +o &6.ro.%r .'r.o$% for $%%C&+; )5% &d%+)&)&%$ of )5% .ar)&%$
AND
(!" T5%r% &$ #l%ar %/&d%+#% )5a) )5% &+for6a)&o+ &$ +o) o<)a&+a<l% fro6 a+o)5%r $o'r#% (Cerson from
#hom dis"o$er is sought must be the onl pra"ti"al sour"e of the information"
AND
(4" T5% .%r$o+ fro6 ,5o6 d&$#o/%r* &$ $o';5 &$ 6or% )5a+ a 6%r% <*$)a+d%r (ie someho# in$ol$ed
in the matter = )no#ledgeable and benefiting from the #rongdoer)
AND
(" 1%r$o+ fro6 ,5o6 d&$#o/%r* &$ $o';5) 6'$) <% r%a$o+a<l* #o6.%+$a)%d for )5% %x.%+$% ar&$&+;
o') of #o6.l&a+#% a+d l%;al #o$)$
AND
(8" 1'<l&# &+)%r%$) &+ d&$#lo$'r% 6'$) o'),%&;5 l%;&)&6a)% .r&/a#* #o+#%r+$
Ather option! a 6ohnL6ane Eoe order (#hi"h binds person #hose a"tions fall #ithin the s"ope of the order = ie
logging protesters = if a "ause of a"tion e&ists and the E7 on"e )no#n7 has the "han"e to "hallenge the order)
'M9& %& ,ohn Doe, O2>>4P (F90909A9" = test
FA0TS
/IH #anted to sue people #ho #ere infringing their "opright b uploading and sharing musi" on the
internet* internet ser$i"e pro$ider refused to re$eal these peopleBs identities "iting pri$a" "on"erns
/IH applied for a ?or#i"h Charma"al Arder
HELD : REASONING
Arder refused be"ause the "ommer"ial interests did not out#eigh the pri$a" "on"erns (see (1) abo$e)
RATIO
TEST- a<o/%
INTELLE0TUAL 1RO1ERTY : BREA0H OF 0ONFIDEN0E
A%erican &yana%id #ith a higher threshold on the basis that interlo"utor pro"eedings in this area are li)el
to be determinati$e = so C must ha$e a higher%strength "ase than normal
0lso7 these often follo# Anton ?illar orders7 #hi"h require a $er strong pri%a facie "ase
0o+f&d%+)&al &+for6a)&o+ information that has a qualit of "onfiden"e that has been "on$eed to another in a
manner to ma)e "lear to that other that it #as "ommuni"ated in "onfiden"e = an a"tion for brea"h arises #hen
that person then uses the information in an unauthori@ed manner
T#o "ategories L t#o tpes of pri$a" interests
(&" Cersonal pri$a" = interlo"utor in:un"tion to pre$ent publi" dis"losure of personal details
Couts will geneally inte%ene unless stong !u"lic !olicy eason to do so
(&&" 'ommer"ial pri$a" ("ustomer lists trade se"rets) % interlo"utor in:un"tion to pre$ent publi"
dis"losure of information #hi"h #ill "ause "ommer"ial e&ploitation to the finan"ial detriment
of the appli"ant
Ba$&# A$eican Cyana$id )%$)
UNLESS )5% &+for6a)&o+ 5a$ alr%ad* <%%+ .la#%d <* )5% 1 &+)o )5% .'<l&# for'6 (,&ll <%
r%f'$%d r%l&%f"
Cad"uy Schwe!!es (1777 S00" Q +%, r%6%d* of D%('&)a<l% #o6.%+$a)&o+E #r%a)%d
FA0TS
0fter being fired b Iotts ('adbur)7 3E( began to ma)e 'lamato :ui"e itself* 'adbur sued for brea"h of
"onfiden"e re stealing7 modifing and selling the re"ipe
ISSUE
HELD : REASONING
0n in:un"tion #ould ha$e been to harsh a it #ould ha$e put 3E( out of business % balan"ing
RATIO
0r%a)%$ +%, r%6%d* of %('&)a<l% #o6.%+$a)&o+7 #hi"h is not tied to another equitable remed (ie su"h as
damages in lieu of spe"ifi" performan"e)
Equit is "apable of gro#th and de$elopment7 it is not set it stone ! authorit to a#ard finan"ial "ompensation
for brea"h of "onfiden"e is inherent in the e&er"ise of equitable :urisdi"tion and does not depend on the
ni"eties of the Lord &airns Act or its su""essors (#hi"h "reated equitable damages in 18D8) + + + the "ourt has
ample :urisdi"tion to fashion appropriate relief out of the full gambit of a$ailable remedies7 in"luding
appropriate finan"ial "ompensation
Sheppard sas S'' referred to '9 and equit as distin"t (rather than totall fused) but said the are "apable
of gro#th to meet ne# "ir"umstan"es7 and ea"h "an transform the other
NOTES
?ote! the point of equitable damages is to "ompensate for the harm that too) pla"e before the in:un"tion or
spe"ifi" performan"e+ So7 it "an be a#ard in addition to an in:un"tion or spe"ifi" performan"e+
0ONTRA0TS OF 1ERSONAL SERHI0E
Equity will not grant specific perfor%ance of a contract for personal service
Equity will not enforce slavery
BUT
E('&)* ,&ll ;ra+) a 6a+da)or* &+A'+#)&o+ )o $)o. a .ar)* fro6 <r%a#5&+; a #o+)ra#) for .%r$o+al $%r/&#%
<* %+for#&+; )5% +%;a)&/% o<l&;a)&o+$ of )5% #o+)ra#) (both e&press and inferred) a$ lo+; a$ )5% d%#r%% (1"
do%$ +o) a6o'+) )o a d%#r%% of $.%#&f&# .%rfor6a+#% of )5% .o$&)&/% #o/%+a+)$ of )5% #o+)ra#) OR (2"
r%$'l) )5% D 6'$) %&)5%r r%6a&+ &dl% or .%rfor6 .o$&)&/% #o/%+a+)$ ((ane 'os"
/asi" "on"ept that damages must be inadequate applies
Lu$ley "ould not for"e Fagner to sing at his theatre per their "ontra"t7 but he "ould restrain him from singing
at 'o$enant HardensT
(ane 'os& @& 3elson (B%))* Da/&$ 0a$%" 1738 BB
FA0TS
/ette Ea$is entered into a "ontra"t #ith F/ in the -S #herein she agreed to render her e&"lusi$e ser$i"es as
a motion pi"ture andLor stage a"tress for 8 ears* she brea"hed this b #or)ing for a 2
rd
part in the -.* F/
applied for a permanent in:un"tion to restrain the brea"h7 and for damages
HELD
Hranted for 2 ears ("ourt has dis"retion as to appropriate time)
RATIO
T5% 0o'r) ,&ll %+for#% )5% +%;a)&/% #o/%+a+)$ of a #o+)ra#) for .%r$o+al $%r/&#% a$ lo+; a$ &) (1" do%$
+o) a6o'+) )o a d%#r%% of $.%#&f&# .%rfor6a+#% of )5% .o$&)&/% #o/%+a+)$ of )5% #o+)ra#) OR (2" r%$'l) &+
a d%#r%% '+d%r ,5&#5 )5% D 6'$) %&)5%r r%6a&+ &dl% or .%rfor6 .o$&)&/% #o/%+a+)$
'ell & At5ins 0 can enforce a negative covenant not to fire
FA0TS
C agreed to manage a "ompan that #as in trouble* "ontra"t pro$ided that he "ould not be dis"harged e&"ept
for good "ause* he guaranteed some of the "ompanBs debts* dire"tors tried to fire him and he applied for an
in:un"tion
HELD : REASONING
(n:un"tion granted
'ourt "an enfor"e a negati$e "o$enant (e$en if it ends up meaning that a personal ser$i"e #ill be performed)
RATIO
DI) &$ ('&)% )r'% )5a) )5% 0o'r) a$ a ;%+%ral r'l% ,&ll +o) %+for#% $.%#&f&# .%rfor6a+#% of a #o+)ra#) for
.%r$o+al $%r/&#%$ <* &+A'+#)&o+ <') )5%* #a+ a+d do 5a/% )5% .o,%r )o r%$)ra&+ )5% <r%a#5 of a+*
a;r%%6%+) ,5%r%<* a+* of )5% .ar)&%$ #o/%+a+)%d +o) )o do a #%r)a&+ )5&+;9E
NOTES
mabe it is distinguishable on the basis that it is a "ompan = better bargaining position
Hill %& #asons (1781" F in2unction to co%pel reinstate%ent $y e%ployer
FA0TS
5ill #as fired at age D2 be"ause he refused to :oin the union7 #ould ha$e retired at age D,+ 5e sought an
in:un"tion to restrain the "ompan from a"ting on the noti"e of his termination of emploment+ The "ompan
"laimed spe"ifi" performan"e should not be a#arded in personal "ontra"t for ser$i"e+
ISSUE
'an an emploee #ho has been #rongfull dismissed obtain an in:un"tion to "ompel reinstatement b his
emploer<
HELD : REASONING
Kes = in:un"tion granted
(n"onsistent #ith the "onfidential nature of master%ser$ant relationship that the emploment relationship
should "ontinue "ontrar to the #ill of a third part
'ourt #ill normall grant damages but there #ould ha$e shortl been legislation pre$enting the -nion from
terminating 5illBs emploment
Thus in this "ase the in:un"tion must be granted be"ause damages #ould not be an adequate remed
RATIO
DW5%r% a 6a+ 5a$ a r&;5)- )5% la, $5o'ld ;&/% a r%6%d*E
A+ &+A'+#)&o+ ,&ll <% ;ra+)%d )o .r%/%+) a+ %6.lo*%r fro6 )%r6&+a)&+; %6.lo*6%+) ,5%r% da6a;%$
,o'ld +o) <% a+ ad%('a)% r%6%d*- or )5%r% ar% $.%#&al #&r#'6$)a+#%$ ,5&#5 ,o'ld 6aC% )5a) '+A'$) (&%
5%r%- )5% &6.%+d&+; l%;&$la)&o+ ,5&#5 ,o'ld 5a/% allo,%d 1 )o C%%. ,orC&+;"
NOTE
(f e$er there #as a "ase #here an in:un"tion should be granted against the emploers7 this is the "ase
emploer has done #rong7 should to be allo#ed to brea) the la# in this #a
MANDATORY IN?UN0TIONS
a+ &+)%rlo#')or* &+A'+#)&o+ ord%r&+; .o$&)&/% a#)&o+
),o )*.%$
(1) restorati$e mandator in:un"tion requires E to repair the "onsequen"es of her #rongful a"t
(2) mandator in:un"tion requiring fulfillment of positi$e obligation deri$ed from "ontra"t or statutor
underta)ing
histori"all harder to get than a prohibiti$e in:un"tion = needed a high assuran"e that at the trial it #ill appear
that the in:un"tion #as rightl granted =
the order must be "lear be"ause (a) the parties must )no# #hat the are to do and (b) the "ourt must be able to
super$ise
TEST A$eican Cyana$id
S1E0IAL THRESHOLD ,&)5 a+ '+'$'all* $)ro+; a+d #l%ar #a$% + $'ff&#&%+) 'r;%+#*
S.%#&al #o+$&d%ra)&o+$ )oo looC a) ,5&l% <ala+#&+; )5% (&+"#o+/%+&%+#% ! )5% #o'r) ,&ll looC )o )5% +a)'r%
of )5% d&$.')% a+d )5% .ar)&#'lar r&$C$ of &+A'$)&#% )o )5% .ar)&%$- a+d a$$%$$I
(1" Fill the order "ause the E a greater #aster of resour"es = time or mone = than merel being delas
(2" Fould the relief ma)e it unli)el that the C "ontinue (ie ma)ing in:un"tion determinati$e)
(3" 'an the order be made "learl and spe"ifi"all
(!" 0re there an due pro"ess "on"erns about the use of "oer"i$e and intrusi$e po#er #ithout a full trial<
(4" 5as the E in"reased #rongful omission L a"ti$it after )no#ing of CBs legal a"tion<
2ennad %& Coy A DMo/&+; Mo'+)a&+ 0a$%E = t*e order cannot $e too $road
FA0TS
E operated a mine on the mountain and dumped tailings #hi"h began to slide do#n onto CBs land
C #as su""essful in negligen"e and E #as ordered to install proper drainage to pre$ent future harm* that drain
be"ame "logged* slides began again
C sought mandator in:un"tion to "lear the drains and e&e"ute su"h #or)s as might be ne"essar to
prote"t CBs buildings from the slide
HELD : REASONING
Anl the narro#er "lear the drains in:un"tion #as granted! su"h #or)s as might be ne"essar #as to
broad "on"eptuall and temporall
The "ourt is generall relu"tant to grant orders that require "ontinuous super$ision
RATIO
Ma+da)or* &+A'+#)&o+ 6'$) #l%arl* $.%#&f* )5% ,orC )o <% do+% F &f &) &$ )oo <road- &) ,&ll +o) <%
%+for#%a<l%
She!hed Ho$es %& Sandha$ (178>" F unusually strong and clear case
FA0TS
Rogue sheep and horses be"ause to "ause ha$o" in an open plan subdi$ision so E built a fen"e
C sought a mandator in:un"tion to for"e E to tear it do#n
HELD : REASONING
The order #as refused
, month #ait to bring appli"ation W suffi"ient urgen"
RATIO
Ma+da)or* &+A'+#)&o+ ,&ll <% ;ra+)%d o+l* &f )5% #a$% &$ D'+'$'all* $)ro+; a+d #l%arE a+d &f )5%
a..l&#a+) $5o,$ $'ff&#&%+) 'r;%+#*
Ea$&%r )o ;%) a .ro5&<&)or* &+A'+#)&o+ = -suall the A%erican &yana%id prin"iples appl7 but be"ause of
the drasti" nature of the mandator order (requires that the defendant do something and spend mone)7 the
'ourt #ill be relu"tant to grant the in:un"tion
Doucet7'oudeau %& 3o%a Scotia (2>>3 S00" = court %ay *ave discretion to supervise
FA0TS
'ourt ordered that the Cro$in"e use its best efforts to build 3ren"h s"hools and to pro$ide the "ourt #ith
progress report
HELD : REASONING
Galid mandator in:un"tion
RATIO
0o'r) 5a$ d&$#r%)&o+ )o d%#lar% r&;5)$ a+d )o %+$'r% )5o$% r&;5)$ ar% %+for#%d
D%6o+$)ra)&/% of )5% a<&l&)* of %('&)* )o )a&lor a +o/%l- .ar)&#'lar r%6%d*
?ot li)el to be repeated7 this #as an unusual situation

EX1RO1RIATION DO0TRINE
The "ourt "an a#ard damages in substitution for or in addition to an in:un"tion (Lod Cains Act $9 2-
r%#%&/%d .%r $9 2 of L&E Act
Some#hat "on"eptuall unusual be"ause one of the first prin"iples of equit is that the legal remed be
inadequate7 et damages are a#arded
M'$) <%
(1" %+)&)l%d )o a+ &+A'+#)&o+- (Cad"uy" BUT
(2" <%#a'$% of fa&r+%$$ &+ )5% #&r#'6$)a+#% a+d
(3" )5% ,%&;5) of )5% <ala+#% of (&+"#o+/%+&%+#%-
a+ &+A'+#)&o+ ,o'ld <% &+$'ff&#&%+) or )oo 5ar$5- )5% #o'r) #a+ add da6a;%$ OR $'<$)&)')% )5%
&+A'+#)&o+ for da6a;%$
'an get prospe"ti$e damages for e&pe"ted future damages
'an get
Ro$"ough %& Cest"oo5 0i$"e (174 B00A" F prospective da%ages if su$stitution for in2unction
FA0TS
C sought an in:un"tion against E #hose sa#mill "aused damage from smo)e and ashes
T6 a#arded limited in:un"tion an an amount for e&pe"ted future damages (#hi"h results in an effe"ti$e
li"en"e for the E to "ommit the minor nuisan"e7 but pa for it)
HELD : REASONING
(n #eighing the balan"e of "on$enien"e7 the benefit to Rombough of issuing the in:un"tion is out#eighed b
the hardship to the rest of the "ommunit (#ould put too man people out of #or))
Eamages #ere more appropriate to "ompensate for the loss of $alue of CBs propert
RATIO
s+ 2 of Lord &airns Act (in operation of L9E Act) allo#s "ourt to a#ard damages in lieu ofLin addition to
in:un"tion or spe"ifi" performan"e
If da6a;%$ ar% a,ard%d &+ addition )o a+ &+A'+#)&o+ )5%* #o6.%+$a)% for &+A'r* do+%- BUT &f )5%* ar%
a,ard%d &+ su"stitution for a+ &+A'+#)&o+- 6'$) #o/%r +o) o+l* &+A'r* alr%ad* $'$)a&+%d <') al$o &+A'r*
)5a) ,o'ld <% &+fl&#)%d &+ )5% f')'r% <* )5% #o66&$$&o+ of )5% a#) +o) %+Ao&+%d
#o!ety Law Act $9 3 F co%pensation for encroac*%ent on ad2oining land
(n "ases of en"roa"hment7 the 'ourt of Equit #ould onl in the rarest of "ases a#ard damages rather than an
in:un"tion
9egislature in /' rea"ted b ena"ting the ?roperty Law Act to deal #ith en"roa"hment7 #hi"h broadened the
'ourtBs po#er to prote"t the propert of the en"roa"her and "ompensate the o#ner
If a <'&ld&+; : f%+#% &6.ro.%rl* %+#roa#5%$ o+ adAo&+&+; la+d )5% 0o'r) 6a*- o+ a..l&#a)&o+-
(a" d%#lar% a+ %a$%6%+) &+ fa/o'r of )5% %+#roa#5%rL
(<" /%$) )&)l% &+ %+#roa#5%r a+d 6aC% #o6.%+$a)&o+ ord%r OR
(#" ord%r )5% %+#roa#56%+) r%6o/%d

BU*A 0*ME0 OR ANTI0I1ATORY IN?UN0TIONS
A $.%#&al&N%d .%r.%)'al &+A'+#)&o+ ;ra+)%d )o .r%/%+) a ,ro+; or )o $)o. )5% #o+)&+'a)&o+ of a ,ro+;
E('&)* allo,$ a .%r$o+ r%l&%f quia ti$et D<%#a'$% 5% f%ar$E
'ourts are "autious in granting these be"ause the C "an al#as bring a "ommon la# a"tion should the loss
a"tuall happen
TEST (Redland 'ic5s"
(1" #a+ )5% 1 $5o, )5a) )5% .o)%+)&al 5ar6 &$ &66&+%+)J AND
a D$)ro+; #a$% of .ro<a<&l&)*E
6or% )5a+ $'<A%#)&/% f%ar
if the harm is ine$itable7 harm need not be as imminent (if all "ir"umstan"es are in pla"e to "ause the
harm)
(2" #a+ )5% 1 $5o, )5a) )5% 5ar6 ,&ll <% $'<$)a+)&al AND
da6a;%$ ,&ll +o) <% $'ff&#&%+) )o #o6.%+$a)%
easier to demonstrate #here C is see)ing to dis"ontinue and e&isting harm
(3" <ala+#% of (&+"#o+/%+&%+#%
#o$) of .r%/%+)&o+ /9 l&C%l&5ood of f')'r% ,ro+;
EX0E1T ,5%r% D 5a$ a#)%d r%#Cl%$$- '+r%a$o+a<l* or d%l&<%ra)%l*
Redland 'ic5s %& Mois (177 HL"
FA0TS
RedlandBs e&"a$ation "aused damage to IorrisB land* Iorris sought damages and an in:un"tion restraining
further quarring7 and a mandator in:un"tion to restore the land* Redland appealed
HELD
The mandator in:un"tion #as too broad and not upheld
The quia ti%et in:un"tion #as upheld
REASONING
T#o tpes of quia ti%et "ases! (i) #here irreparable harm has not et o""urred* and (ii) #here harm has
alread happened (and "ompensated for) but #here it is "ontinuing L li)el to "ontinue
RATIO
S%% a<o/% )%$)
NOTES
Redland /ri")s had been a"ting reasonabl (not a "ase of #ilfulLdeliberate #rongdoing)
DELAYED (SUS1ENDED" IN?UN0TION
G%+%ral S'$.%+$&o+
Henerall7 a de"ree is effe"ti$el immediatel7 but equit ma suspend operation the de"ree if the E "an
establish on appli"ation that immediate enfor"ement of order #ill "ause hardship (Chaington)* then7 the
timing of the order "an be tailored to the "ir"umstan"es of the "ase (#olai)
S'$.%+$&o+ of D%#r%% 1%+d&+; A..%al
S%% A$eican Cyana$id F )%$) for $)a* &$ )5% $a6% a$ a+ &+A'+#)&o+ (Ha!e"
Chaington %& Si$ons (1781 UB" = delay appropriate w*ere $alancing @ *ards*ip to 1
FA0TS
C applied for an in:un"tion to ha$e an obsta"le to his propert remo$ed* granted7 but T6 delaed its operation
for three ears
HELD
The dela #as remo$ed on appeal and the in:un"tion be"ame immediatel operati$e
REASONING
Three earsB dela #ould "ause hardship on the fa"es
RATIO
d%la* of a+ &+A'+#)&o+ &$ +o) a..ro.r&a)% ,5%r% &) #a'$%$ 5ard$5&. )o )5% 1
.o$$&<l% )o d%la* o.%ra)&o+ of a+ &+A'+#)&o+ (#olai" <') )5r%% *%ar$ 6&;5) <% )oo lo+;
Ha!e %& Canada (2>>> S00"
FA0TS
Stephen 5arper #as president of ?ational 'iti@ensB 'oalition* he sought a de"laration that limits on 2
rd
part
spending in the 'anada Ele"tions 0"t #ere un"onstitutional be"ause the restri"ted freedom of e&pression+
5e #as granted an in:un"tion to pre$ent the go$ernment from restri"ting 2rd part spending+
Ho$ernment applied to S'' for a sta of the in:un"tion pending determination of its appeal so it #ould not
affe"t the up"oming ele"tion
ISSUE
Should an in:un"tion that suspends enfor"ement of "ertain legislati$e pro$isions be staed<
HELD
Suspension granted
REASONING
0ppli"ations for interlo"utor in:un"tions against enfor"ement of legislation raise spe"ial "onsiderations at the
T5(RE ST0HE of A%erican &yana%id!
Hranting the in:un"tion ma ha$e the effe"t of depri$ing the publi" of a statute #hi"h has been dul
ena"ted and ma be $alid in the end
Refusing the in:un"tion ma depri$e appli"ant of "onstitutional rights simpl be"ause "ourts are too slo#
RATIO
1'<l&# &+)%r%$) &+ C%%.&+; )5% l%;&$la)&o+ &+ .la#% .%+d&+; #o+$)&)')&o+al r%/&%, o'),%&;5$ )5% d%)r&6%+)
)o fr%%do6 of %x.r%$$&o+ F 6'$) a$$'6% a) )5&$ $)a;% )5a) )5% l%;&$la)&o+ $%r/%$ a /al&d .'<l&# .'r.o$%
TEST for $'$.%+$&o+ of d%#r%% .%+d&+; appeal % See A%erican &yana%id = test for sta is the same as an
in:un"tion (Harper)
Spring 2008 Equitable Remedies (Sheppard) >0
THE ENFOR0EMENT OF 1UBLI0 RIGHTS (LEGISLATION"
Go/%r+6%+) a#)or$ (a+d &+ $o6% #a$%$ &+d&/&d'al$" #a+ o<)a&+ &+A'+#)&o+$ )o %+for#% .'<l&# r&;5)$I
(1" #r&6&+al la,L
(2" .'<l&# +'&$a+#%L
(3" )o .ro)%#) ad6&+&$)ra)&o+ of A'$)&#%
?ote that these are often used to enfor"e 0dministrati$e tribunal de"isions
0r&6&+al La,
H&$)or&#all* %('&)* 5ad +o #r&6&+al A'r&$d&#)&o+- <') #o'r)$ ar% +o, ,&ll&+; )o ;ra+) &+A'+#)&o+$ )o
.r%/%+) a #o+)&+'al flo')&+; of )5% la, ,5%r%
(1" the statutor penalt is inadequate to deter
(2" the statute pro$ides no penalt for the $iolation AR
(3" there is a serious threat to publi" safet
relief is not on the basis of prote"tion of proprietar rights or irreparable harm7 but is based on the .'<l&#
&+)%r%$) of all #&)&N%+$ )o $%% )5a) all la,$ ar% o<%*%d
WHY F <%#a'$% #o+)%6.) &$ )5% .'+&$56%+) for d&$o<%*&+; a d%#r%% M Aa&l
0H does not ha$e to sho# that all other remedies ha$e been e&hausted /-T &f )5% AG &$ $%%C&+; a+
&+A'+#)&o+ &+ a&d of a) Ci$inal Code /&ola)&o+ )5%r% ,&ll <% ;r%a)%r $#r')&+* a+d )5% &+A'+#)&o+ ,&ll o+l*
<% ;ra+)%d &+ %x)raord&+ar* #&r#'6$)a+#%$
City of 0oonto %& #olai (1782 S00" 3 .'<l&# &+)%r%$)L $'$.%+$&o+ of r%6%d*
FA0TS
Irs+ Colai had man "on$i"tions L fines for renting illegal suites7 but she "ontinued to flout the la#* on this
basis the 'it argued the legal remed #as inadequate and equit must inter$ene and issue an in:un"tion7 a
brea"h of #hi"h #ould trigger "ontempt pro"eedings and she "ould be imprisoned
RATIO
fines under bla# had no effe"t on Irs+ Colai = Equit "ould step in to restrain her from operating illegal
suites be"ause the legal remed of prose"ution under bla# #as inadequate to deal #ith the flouter
1'<l&# N'&$a+#% La,$
.'<l&# +'&$a+#% a""ording to Eenning 96+ a nuisan"e #hi"h is so #idespread in its range or so
indis"riminate in its effe"t that it #ould not be reasonable to e&pe"t one person to ta)e pro"eedings on his
o#n responsibilit to put a stop to it7 but that it should be ta)en on the responsibilit of the "ommunit at
large
#a+ <% <ro';5) <*
(&" the 0H as the guardian of the publi" interest OR
(&&" b an indi$idual in the name of the 0H ( ex realtor ) OR
(&&&" an indi$idual in her o#n name if the meet the requirements for standing
either the publi" nuisan"e also O pri$ate nuisan"e on the personBs propert AR the "an sho# some
spe"ial or parti"ular in:ur abo$e that to the "ommunit at large
of)%+ for &+)%rf%r%+#% ,&)5 .ro.%r)* OR #o+d'#) alr%ad* $'<A%#) )o a #r&6&+al la, .ro#%$$
A9 %& Couillad (17@! B0S0" equity can supple%ent legislation to protect t*e pu$lic
FA0TS
Fest End residents "omplained about prostitution* 0H applies for a de"ree to restrain prostitution in the Fest
End on publi" nuisan"e grounds (soli"itation for the purpose not et a &ri%inal &ode offen"e so there #as
no legal remed)
ISSUE
'an the 0H obtain an in:un"tion to pre$ent a publi" nuisan"e<
HELD : REASONING
Kes7 a permanent in:un"tion granted to restrain prostitution in the Fest End
RATIO
A+ %xa6.l% of %('&)* $'..l%6%+)&+; )5% #r&6&+al la, )o .r%/%+) : d&$#o+)&+'% a .'<l&# +'&$a+#%
T5% &+ad%('a#* of )5% Ci$inal Code )o .r%/%+) )5% .'<l&# +'&$a+#% allo,$ %('&)* )o $)%. &+ a+d
$'..l%6%+) )5% #r&6&+al la,
2ent Distict %& A9'C (172 B0" %ust consider t*e pu$lic interest at t*e 6
rd
stage of A%erican &yana%id
FA0TS
.ent Eistri"t passed an emergen" bla# prohibiting a "ertain interest group from entering the "ommunit to
protest the prison
The group "hallenged the bla#Bs $alidit in "ourt7 but .ent sought an in:un"tion restraining the group from
$iolating the bla# until its $alidit #as tested at trial
HELD
The in:un"tion #as granted on an underta)ing b .ent to e&pedite the trail
REASONING
A%erican &yana%id test (as usual)
1+ Serious question to be tried ! e$en though the $alidit of the bla# #as seriousl in
doubt7 the onl requirement at the first stage is that there is a serious question to be tried
2+ (rreparable harm ! ratepaers of .ent Eistri"t #ill suffer irreparable harm if the are
allo#ed the brea"h the la#
2+ /alan"e of "on$enien"e ! "i$il rights of Sons of 3reedom #ere out#eighed b the
propert rights of the ratepaers
RATIO
I+ d%#&d&+; ,5%)5%r a+ &+A'+#)&o+ $5o'ld <% ;ra+)%d )o %+for#% l%;&$la)&o+- )5% 0o'r) $5o'ld #o+$&d%r
o)5%r &+)%r%$)$ $'#5 a) )5&rd .ar)&%$ a+d )5% .'<l&# &+)%r%$)
NOTES
The bla# #as e$entuall stru") do#n
#o%incial Rental Housing Co!& %& Hal (2>>4 B00A" w*ere freedo% of expression en2oined 0 interi%# not
interlocutory if ex parte 0 *ar% at 6
rd
stage not li%ited to financial *ar%
FA0TS
Crotest % Squatters in the old Food#ardBs /uilding in $iolation of "ertain bla#s*
A#ner applied for an ex parte interlo"utor 6ohn and 6ane Eoe in:un"tion to end the squat
Crotesters found out about the 'hambers appli"ation and appeared7 tring to inter$ene
'ourt refused to hear them be"ause the appli"ation #as made against unnamed EBs
C su""essfull obtained an Enfor"ement Arder to authori@ed for"eful remo$al of the squatters b poli"e
Squatters appealed
ISSUE
Should the in:un"tion to enfor"e bla#s ha$e been granted ex parte gi$en that the squatters )ne# of the
appli"ation and in light of the so"ial or politi"al protest #hi"h the in:un"tion #as restri"ting<
HELD : REASONING
The in:un"tion #as o$erturned = should ha$e granted ex parte &+)%r&6 &+A'+#)&o+ to pre$ent the immediate
harm for a short spe"ified time and enable noti"e to be gi$en (e$en though an interlo"utor ex parte order "an
be set aside on 2>L>8 hours noti"e)
RATIO
(1" E4 !ate a..l&#a)&o+
I+)%rlo#')or* &+A'+#)&o+ &$ a+ %x)raord&+ar* r%6%d* F $5o'ld o+l* ;ra+) e4 !ate &f )5%r% &$ %x)r%6%
'r;%+#* F &+)%r&6 &$ <%))%r
Fhere an interlo"utor in:un"tion is sought7 #o'r)$ 6'$) %+$'r% ad5%r%+#% )o f'+da6%+)al .ro#%d'ral
$af%;'ard$- .ar)&#'larl* )5% r&;5) )o <% 5%ard
(f the appli"ation is made ex parte7 the first inquir is Fh did ou not gi$e noti"e< = if the ans#er
does not re$eal e&traordinar urgen"7 the appli"ation must be refused
(2" So#&al : .ol&)&#al .ro)%$) F .ar)&#'lar #o+#%r+ r% r&;5) )o %x.r%$$&o+ &+ )5% THIRD STAGE
'annot use in:un"tions as a #a to stifle un#anted publi" protest #here there is no irreparable harm or
the balan"e of (in)"on$enien"e does not support it
No)&#% #o'ld a+d $5o'ld <% ;&/%+ &+ )5%$% #a$%$ F .ar)&#'larl* ,5%r% fa&l'r% )o #'r)a&+ )5%&r
%x.r%$$&o+ #a+ r%$'l) &+ Aa&l
D5ar6E &$ +o) #o+f&+%d )o 6o+%)ar* lo$$ F 5%r%- )5% <ala+#% <%),%%+ .ar)&%$ F I+A'+#)&o+ ,a$ )oo
o+%ro'$ )o $('a))%r$K fr%%do6 of %x.r%$$&o+
NOTE
see abo$e MRolling Anton ?illar 20* ;orw*ic* 22 N re 6ohn and 6ane Eoe order! "an get an Arder against
anonmous persons = #ill be held in "ontempt on"e a person has noti"e of the Arder (usual pra"ti"e is to read
the Arder aloud to the "ro#d of protesters)
#ording of Enfor"ement Arder! 6ohn Eoe7 6ane Eoe and Cersons -n)no#ing 5a$ing ?oti"e of This Arder
Ad6&+&$)ra)&o+ of ?'$)&#%
'E9EU %& 'CA9 (17@@ S00" in2unction in protection of ad%inistration of 2ustice 4court*ouse picketing case5
FA0TS
/'HE- on stri)e against pro$in"ial go$ernment and pi")eted the "ourthouse7 urging people not to "ross the
line
-nion as)ed I"Ea"hern '+6+ to ad:ourn "ourt pro"eedings7 but he responded that he had a "onstitutional dut
to )eep the "ourts open
I"Ea"hern then issued an interim in:un"tion ex parte and on his o#n motion7 restraining pi")eting at all
"ourthouses on the ground that pi")eting #as a "riminal "ontempt of "ourt+
ISSUE
'an the 'ourt issue an in:un"tion on its o#n noti"e to pre$ent pi")eting of the "ourthouse<
HELD : REASONING
The in:un"tion #as upheld
(nterfering #ith the administration of :usti"e impairs the publi"Bs rights to :usti"e (in"luding peopleBs &*arter
rights)
RATIO
%('&)* #a+ a$$&$) &+ 6a&+)a&+&+; )5% .ro.%r ad6&+&$)ra)&o+ of A'$)&#%
0o'r) 6a* a#) o+ &)$ o,+ 6o)&o+ a+d e4 !ate ,5%+%/%r )5%r% &$ &+)%rf%r%+#% ,&)5 )5% #o'r)$ of A'$)&#%
,5&#5 ,&ll %+)a&l &rr%.ara<l% lo$$ of r&;5)$
NOTES
Similar to 'M(E %& Canadian #acific! "ourt "an assist #ith administration of :usti"e in other tribunals (ie
administrati$e tribunals) (in:un"tion "ould be granted although there #as no underling "ause of a"tion)
UNDERTABING AS TO DAMAGES
0n underta)ing is a solemn promise gi$en to the "ourt7 not bet#een the parties ('id)
RULEI If )5% 1K$ #la&6 fa&l$ or &$ a<a+do+%d )5% D &$ %+)&)l%d )o r%#o/%r all da6a;%$ flo,&+; fro6 )5%
,ro+;f'll* o<)a&+%d &+)%rlo#')or* &+A'+#)&o+ UNLESS )5%r% ar% $.%#&al #&r#'6$)a+#%$ )o )5% #o+)rar*
(@iewage)
Ia in"lude damages 0?E "osts % Da6a;%$ r%#o/%ra<l% ar% ;o/%r+%d <* '$'al #o+)ra#) .r&+#&.l% F
r%a$o+a<l* for%$%%a<l% da6a;%$ a) )5% )&6% of )5% '+d%r)aC&+; (Hadley %& 'a4endale) ie something
'R0XK happens W that #ould be the tort prin"iple
0pplies if a"tion fails or is dis"ontinued ('id)
/0S(S ! one w*o seeks equity %ust do equity % appli"ant must "arr the ris)! equitable relief is not an absolute
right7 the appli"ant must be a"ting fairl
-nderta)ing as to damages &$ r%('&r%d <* )5% B0S0 R'l%$ of #o'r) for &+)%rlo#')or* a+d &+)%r&6 (+o)
.%r6a+%+)" &+A'+#)&o+$
Law & Equity Act, $9 (2" #o'r) #a+ &6.o$% D)%r6$ G #o+d&)&o+$E o+ ;ra+)&+; a+ &+A'+#)&o+
R'l% !4("'+d%r)aC&+; a$ )o da6a;%$ '+l%$$ )5% #o'r) o)5%r,&$% ord%r$! automati"all in"luded unless
spe"iall e&"used (Mac'lo) (to pa damages for loss o""urring from operation of the in:un"tion if later sho#n
in:un"tion should not ha$e been granted)
This rule allo#s for :udi"ial dis"retion not to require the underta)ing (Delta) if #ould not be :ust 0?E there
are a fe# regular "ategories of e&"eption
EX0E1TIONSI
(&" 0ro,+ &$ r%.r%$%+)&+; )5% .'<l&# &+)%r%$) &+ '.5old&+; la,$ (B& v. Aale = upholding fishing la#s)
BUT #here the 'ro#n is .ro)%#)&+; &)$ .ro.r&%)ar* r&;5)$ it #ill be required
(&&" 1%r6a+%+) &+A'+#)&o+
(&&&" I6.o/%r&$5%d l&)&;a+) = the "ourt ma not require the underta)ing as to damages if the CBs "ase is
"ompelling and she does not ha$e finan"ial "apa"it to gi$e the underta)ing (Mac'loe the /and #as not
required to gi$e an underta)ing)
@iewage Constuction %& Rush (17! S00" = successful 1 entitled to da%ages flowing fro% interlocutory
in2unction
FA0TS
Eispute o$er equipment rental on a "onstru"tion pro:e"t* E threatened to remo$e the equipment if he #as not
paid* C obtained interlo"utor in:un"tion against the remo$al that in"luded an underta)ing as to damages
E ultimatel #on the a"tion but #as not a#arded damages flo#ing from the operation of the in:un"tion7 and
appealed that point
HELD
-nderta)ing damages a#arded
REASONING
E #ho su""eeds at trial is entitled to a hearing to assess damages
C is punishable b "ontempt if he does not fulfil the underta)ing
'ourt #ill onl depri$e E of damages in spe"ial "ir"umstan"es7 e.g. #here E has been guilt of unethi"al
"ondu"t
?o spe"ial "ir"umstan"es are present here7 so should be required to ma)e good the underta)ing as to
damages
RATIO
W5%r% )5%r% 5a$ <%%+ a+ &+)%rlo#')or* &+A'+#)&o+ ,&)5 a+ '+d%r)aC&+; a$ )o da6a;%$- a+d )5% D &$
'l)&6a)%l* $'##%$$f'l- )5a) D &$ %+)&)l%d )o a 5%ar&+; )o a$$%$$ da6a;%$ flo,&+; fro6 )5a) d%#r%%
UNLESS )5%r% 5a$ <%%+ '+%)5&#al #o+d'#) o+ )5% .ar) of )5% D (ie "lean handsT)
Spring 2008 Equitable Remedies (Sheppard) >>
'id Constuction %& #ateson (17>" ? discontinues , ad%ission of i%proper in2unction
FA0TS
/ird obtained in:un"tion against pi")eters7 then $oluntaril dis"ontinued a"tion before trial* E sough damages
flo#ing from the in:un"tion
HELD: REASONING : RATIO
B* d&$#o+)&+'&+; )5% a#)&o+- 1 ad6&)$ )5% &+A'+#)&o+ ,a$ &6.ro.%rl* ;ra+)%d a+d &$ +o) r%l%a$%d fro6
5%r '+d%r)aC&+;I D &$ %+)&)l%d )o da6a;%$ flo,&+; fro6 )5% &+A'+#)&o+
U+d%r)aC&+; &$ )o )5% #o'r)- &) &$ +o) a .ro6&$% <%),%%+ .ar)&%$
W5&l% )5% &+A'+#)&o+ #%a$%$ a) d&$#o+)&+'a+#%- )5% '+d%r)aC&+; $'r/&/%$
NOTES
1ro#%d'r% )o d&$#o+)&+'% appl to ha$e the in:un"tion dissol$ed7 and the "ourt #ill determine #hether the
CBs right to the in:un"tion #as a"tuall meritorious7 ma be released from underta)ing
1ra#)&#% +o)% re settlement! this underta)ing "an ma)e settlement diffi"ult = if C ma)e sure to ha$e the E
agree not to pursue damages per the underta)ing
?letton Ltd& @& #eat (17@ B0S0" Hadley v. Baxendale rule applies for quantifying da%ages
FA0TS
'ontra"t a"tion re pur"hase of #ashing ma"hines* C sought interlo"utor in:un"tion to ha$e the ma"hines held
until trial* C dismissed a"tion* E sought damages per underta)ing as to damages for e&penses of holding
(storage7 insuran"e7 et")
ISSUE
5o# are damages assessed<
HELD: REASONING : RATIO
D &$ %+)&)l%d )o da6a;%$ &+ )5% $a6% 6a++%r a$ a) #o66o+ la, of #o+)ra#)$ (r%a$o+a<l* for%$%%a<l%
da6a;%$ a) )5% )&6% of '+d%r)aC&+;L #a'$a)&o+- r%6o)%+%$$- for%$%%a<&l&)*- 6&)&;a)&o+- %)#"
B'rd%+ of #a'$a)&o+ o+ D
S.%#&al C+o,l%d;% of 1 6a* &+#r%a$% da6a;%$
0o'r) of E('&)* #a+ add %x%6.lar* da6a;% for fra'd : 6al&#%
D al$o ;%)$ #o$)$ of )5% 5%ar&+;
Spring 2008 Equitable Remedies (Sheppard) >,
1RO1ER FORM OF IN?UN0TION
&$ )5% ord%r #l%ar a+d $.%#&f&# %+o';5 $o )5a) (a" a .%r$o+ C+o,$ &f $5% &$ <o'+d AND (<" a+ %+Ao&+%d
.%r$o+ C+o,$ ,5a) $5% 6'$) or 6'$) +o) doJ
(n the past7 2
rd
part strangers to the in:un"tion de"ree #ere liable for "riminal "ontempt as aiding and abetting
the E* ho#e$er7 #hen 2
rd
part strangers are not aiding E7 but a"ting in their o#n self interest
Maengo %& Daily S5etch (17!@ HL" old rule @ loop*ole for 6
rd
party strangers to act in self interest
0n in:un"tion granted against the "orporation b their staff ser$ants and agents #as onl $alid
against the E "orporation (an agents) #as not "ompetent to hold a man #ho #as not a part to be bound b
the in:un"tion
Loo.5ol%I )5&rd .ar)&%$ ,5o ,%r% +o) +a6%d $.%#&f&#all* &+ )5% &+A'+#)&o+ #o'ld +o) <% 5%ld &+
#o+)%6.) for /&ola)&+; a+ &+A'+#)&o+
Mac'loe %& Si$!son (177 S00" t*ird parties , 'o*n and 'ane 1oe order to re%edy loop*ole
FA0TS
Ia"/loe obtained an in:un"tion against Simpson and 6ohn and 6ane Eoes from blo")ing the logging road
Coli"e read the order and then arrested 800 people for "ontempt7 most of #hom "laimed not to ha$e been
in"luded under the Arder
HELD : REASONING
the in:un"tion enfor"eable against the unnamed protesters
RATIO
'++a6%d .ar)&%$- ,5&l% +o) )%#5+&#all* <o'+d <* )5% ord%r- ar% <o'+d )o o<%* )5% ord%r
)5&rd .ar)* $)ra+;%r$ )o )5% ord%r ,5o C+o, of )5% ord%r a+d ,&ll&+;l* /&ola)% &) ar% l&a<l% for #o+)%6.)
of #o'r) for o<$)r'#)&+; A'$)&#%
BUT $5o'ld <% #ar%f'l )o ,ord )5% ord%r $o a$ )o al%r) 3
rd
.ar)&%$ /&a ?o5+ a+d ?a+% Do% $)r'#)'r%
BEFORE a+ ord%r #a+ <% %+for#%d a;a&+$) 3
rd
.ar)* $)ra+;%r$ )5%* 6'$) <% &+for6%d of )5% ord%r a+d
;&/%+ )5% o..or)'+&)* )o #o6.l* (poli"e reading O suffi"ient)
NOTES
ENFOR0EMENT ORDER ha$e to go ba") to "ourt to get one for poli"e to arrest L detain people on
"ontempt #ho are $iolating an in:un"tion
Sonoco Ltd& @& Local 4CC (178> B00A"
FA0TS
K #as arrested and "harged #ith "ontempt for $iolating an in:un"tion that prohibited EBs from unla#full
persuading or attempting to persuade in relation to logging protests in 'laoquot Sound
HELD : REASONING: RATIO
T5% ,ord&+; ,a$ +o) #l%ar %+o';5 )o <% %+for#%dI D'+la,f'lE R +o) $'ff&#&%+)l* #l%ar
I+A'+#)&o+ $5o'ld +o) r%f%r%+#% )5% la,f'l+%$$ or '+la,f'l+%$$ of a#)$I )5% .%o.l% %+Ao&+%d <* )5% ord%r
$5o'ld #l%arl* C+o, fro6 )5% ord%r ,5a) )5%* 6'$) +o) or 6'$) do F $5o'ld +o) 5a/% )o d%#&d% )5%
la,f'l+%$$ of )5%&r a#)&o+$
NOTES
See also #o7Swing order must be "lear enough so that the E )no#s #hat to do or not do* the A5 order #as
to un"ertain to be enfor"ed in A? ("onfusingl similar7 surrender all infringing golf "lubs or golf
"omponents)
Doucet7 'oudeau (2>>3 S00"
'ourt ordered that the Cro$in"e use its best efforts to build 3ren"h s"hools and to pro$ide the "ourt #ith
progress report
ISSUE
(s the order in$alid for un"ertaint (best efforts)
Spring 2008 Equitable Remedies (Sheppard) >D
HELD : REASONING
(n:un"tion upheld! not so $ague as to render in$alid (also7 made per &*arter 2>(2) #hi"h gi$es "ourt a #ide
dis"retion to fashion the remed it sees fit)
Eissent ! not "lear enough to put part on noti"e of #hat is e&pe"ted of them
RATIO
0o'r) $a&d )5a) D<%$) %ffor)$E ,a$ #l%ar %+o';5
NOTES
Ia not be li)el to be repeated7 this #as an unusual situation (&*arter :urisdi"tion 0?E super$ision aspe"t
0ONTEM1T
0&/&l
'CSC Rule :/)=+ A Conte$!t of cout A #owe of cout to !unishI T5% .o,%r of )5% #o'r) )o .'+&$5
#o+)%6.) of #o'r) $5all <% %x%r#&$%d <* a+ ord%r of #o66&))al or <* &6.o$&)&o+ of a f&+% or <o)59
3or#ard loo)ing! attempts to "oer"e future "ondu"t to obe the in:un"tion
0r&6&+al
Ci$inal Code, section ;.D A Conte$!tI A .%r$o+ ,5o fa&l$ )o a))%+d )o ;&/% %/&d%+#% ,5%r% r%('&r%d &f
;'&l)* of #o+)%6.) F .'+&$5a<l% <* f&+% or &6.r&$o+6%+)9
/a")#ard loo)ing! attempts to punish for pre$ious #rongful a"ts
'riminal offen"e! requires proof of actus reus and %ens rea /0RE

Equitable Remedies in Canada

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Equitable Remedies in Canada

Uploaded by

Copyright:

Available Formats

Spring 2008 Equitable Remedies (Sheppard) 1

HISTORY OF EQUITY + EQUITABLE MAXIMS

You might also like