EQUITABLE

MAXIMS Definition

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 Where will we
take you?

Historical Equitable Explanation Examples Relation

background maxims and cases with other
equitable
maxims

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 HISTORICAL Norman Invasion.
Common law was formed in England.
BACKGROUND

Formation of courts. Kings Bench, Exchequer, Common Pleas.

Initially, principles of common law began.
To understand the There remained, a right to petition to the king directly if
historical background of common law’s decision was unjust or unfair.
Proliferation of suits before the King eventually required a
equitable maxims requires separate mechanism as the King had many things to settle
the understanding of the to.
development of equity in
English history
Lord Chancellors.
Initially, issue writs then given power to hear petitions
which would otherwise brought before the monarch.
Did not concern with strict legal rules, develop
precedents as equitable maxims as guide which was
codified in latter century. Later, fused with common
law.
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“For common law, we have a measure…equity is [decided]
according to the conscience of him that is a Chancellor, and as
that is longer or narrower, so is equity.

Equity varies with the length of the chancellor’s foot.”

—John Selden, Table Talk of John Selden, 1927.

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 How is it different from common law?(“in
Equity acts in rem”).
personam Making order, based on individual facts.
Used to establish jurisdiction
Failure to comply, entails contempt of court.

The “core” of equity How is this maxim related to other maxims

and applies?
Equity will not suffer a wrong without a remedy
Concerned with a person’s Equity follows the law
conscience; preventing a Etc.
person from acting
unconscionably. Case(s)
Penn v Lord Baltimore All ER Rep 99
Re Valibhoy Deceased. 1961 1 MLJ 187
 Case(s) and
applications
Penn v Lord Baltimore.
Concern a suit filed with respect to property in
America, defendant claimed the court did not
have the jurisdiction
Court: the conscience of the party was bound by
this agreement; being within the jurisdiction of
this court, which acts ‘in personam’, the court
may properly decree it as an agreement.”
Re Valibhoy Deceased.
Concern a will with regard to a
foreign property for charitable
purposes.
Court: The defendant being within
the court’s jurisdiction even though
the property was in India, the court
held that it can heard the case.
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Limitations to this maxim

1. The defendant has to be within the jurisdiction of the court.

1. The order must not violate the legal rules of another country.

1. The order given must be capable of being executed without

intervention of a foreign court.

1. Legal proceedings must not have been started in the appropriate

court.

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 Equity Looks To The
Intention Rather Than The
Form
Concerned to which is a
matter of substance rather
than its surface appearance.
Islamic principle
Al Umuru bimaqasidiha / Al-Ibrah fî al-
uqud be al-maqasid wa al-ma’ani la
be al-Alfaz wa almabani)
How?
Consider the parties’ intentions and not simply
the form which any documents may take but
does not ignore all formalities altogether.
Availability of equitable remedies depends on the
substance.
Related Maxims
Equity acts in personam
Equity will not permit a statute to be used as an
instrument of fraud
Equity imputes intention to fulfil an obligation
Case(s)
Margaret Chua v Ho Swee Kiew (1961)1 MLJ 173
 Case(s) and applications

Margaret Chua v Ho Swee Kiew (1961)

Concern an unregistered lease which the appellant claimed will be void

under the law as the lease did not fulfil the necessary procedure to be
registered under the law.

The court held that a lease which is not registered is void as a lease
under the law but is good and valid as an agreement for a lease and may
be enforceable in equity by a decree of specific performance.

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 Equity Looks At How?
That As Done Equity creates equitable interests in
Which Ought To contract/property/etc even before the
Be Done remedies are granted

Court will consider that Related Maxims

something has been done if Equity acts in personam
the court believes that it Equity follows the law
ought to be done. Equity looks to the intent rather than the form

Case(s)
Walsh v Lonsdale 1882 2 Ch. D. 9
Moutney v Treharne 2003 Ch 135

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 Cases and applications
Walsh v Lonsdale Moutney v Treharn

The defendant (landlord) agreed in writing to grant

the tenant (plaintiff) a lease of a mill for 7 years. The
agreement provided that rent was payable in
advance if demanded. No grant by deed of the lease
was drawn up, which was required by the law to be
made for a lease exceeding three years. The tenant
entered into possession and paid quarterly, not in
advance. Landlord claimed for advanced payment
and later put the tenant in distress. Plaintiff sued for
illegal distress
Court:
The action failed. The distress would have been
illegal at law because no seven year lease had been
granted and the yearly legal tenancy did not provide
for payment of rent in advance.
However, in equity, an agreement for a lease is
considered to be good as a lease.
Concern the transfer of matrimonial property from
the husband to the wife upon divorce. The
husband went bankrupt a day before the order of
transfer was decreed. Issue is whether the wife
had equitable interest over the property over the
trustee in bankcruptcy.
Court:
Upon the order of the decree, the wife has a
beneficial interest in the property over the trustee
in bankcruptcy.
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 He Who Seeks Equity
Must Do Equity
The claimant comes to equity
must act fairly according to
equity, otherwise, court will
refuse to grant the aid.
Islamic principle: “Woe to those
who stint the measure: Who
when they take by measure from
others, exact the full; But when
they mete to them or weigh to
them, they cause loss” 83:1-3.
How?
Looking at plaintiff’s future conduct. Different with
“he who comes to equity must come with clean
hands”.
Related Maxims
Delays defeat equity
Equity requires diligence, clean hands and good faith
Equity abhors a vacuum
Equity will not assist a volunteer
Case(s)
Lee Boon Tien v Hiap Lee (Petrol) Sdn Bhd & Ors,
(2010) 2 MLJ 836
Syarikat Panon Sdn Bhd v Zecon Engineering
Works Sdn Bhd, (2005) 5 MLJ 609
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 Cases and applications
Lee Boon Tien v Hiap Lee (Petrol) Sdn
Bhd & Ors.
The plaintiff applied for injunction to the defendant to
stop operating its petrol premises near the plaintiff’s
site as it cause nuisance after 20 years. Further, the
evidence shown by the plaintiff was not original.
Court:
1)An equitable remedy, is that it should be made with
promptitude, which in this case had not been met by
the plaintiffs.
2) The balance of convenience did not weigh in favour
of the plaintiffs in this case as it would not be in the
interest of justice to grant the injunction based on the
plaintiffs bare allegations which were not supported by
any evidence. Further, the defendants would suffer
great injustice by the granting of any injunctive relief
sought by the plaintiffs.
Syarikat Panon Sdn Bhd v Zecon
Engineering Works Sdn Bhd.
The plaintiff applied for injunction that the defendant
be restrained from interfering with possession of
worksite of the plaintiff. The plaintiff tried to 'take
back' the disputed works by embarking on various
courses of action to physically obstruct the access to
the sites
Court:
The fact that the plaintiff went to such an extent
shows that it was bent on putting pressure on the
defendant through the disruption of its works. The
plaintiff has not come to court with clean hands.
Injunction failed. 13
 Equity will not suffer How?

a wrong to be Equitable remedies usually reflect cases where

without a remedy defendant’s wrong maybe not recognise by the

common law.

No wrong should go unattended if it is capable of being

When the common law courts
are unable to remedy a technical
defect of common law, equity
will intervenes and provides for
judicial enforcement.
remedied by the courts.
Usually used in allowing the beneficiary to enforce
their obligation to use the property against the
trustee.
Specific performance, injunction , ratification.

When there is right, there is a

remedy ( ubi jus ibi remedium) Related maxims

Equity acts in personam

Where A conveyed land to B to hold to the use of or on trust for C and B claimed to
keep the benefit of the land for himself. C had no remedy at common law, yet such and
abuse of confidence was clearly wrong. Hence the court of equity decided to redress
this wrong.
LIMITATIONS

This maxim does not apply to cases in which the right and remedy for its
breach both come under the jurisdiction of the common law courts

This maxim does not apply to cases where party either himself
destroyed or allowed to be destroyed evidence in his own favour, or
waived his right to an equitable remedy.
 How?
In the absence of any other basis of division, equity
Equity is Equality gives equal shares to those who are entitled to the
shares.

Proportionate equality; the benefit and burdens of

common interest and obligations is being spread
equally over all. (Eg. Matrimonial property)

In the absence of any other

basis of division, equity
gives equal shares to those Related maxims
who are entitled to the Where the equities are equal, the law prevails.
shares

Case(s) and application

Lau Choong Choo v Chou We Chuan (1980) 1 MLJ 6

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 Equity follows the
law
Equity comes only where
when law is too technical to
redress a legal wrong
How?
Equity does not come in where the wrong is not legal.
Equity has no clash with law neither it overrides the
provision of law to overcome rigidity by providing
alternative relief and remedies.
Courts will firstly look at common law and if it is unfair,
equitable remedy will be provided.
Related maxims
Equity will not suffer a wrong to be without remedy
Case(s) and application
Munah v Fatimah [1968] 1 MLJ 54
 He who comes to How?
equity must come He who has committed inequality shall not
have equality.
with clean hands
The hand is regarded as unclean if there is
some element of dishonesty.
The court will take into consideration the
Plaintiff must come with the aspect of the plaintiff conduct that might
perfect propriety of conduct have some connection with the dispute
before the court.

Islamic principle: Related maxims

Delay defeats equity
Harm shall not be inflicted
nor reciprocated
Case(s) and application.
Chettiar v Chettiar [1962] AC 294
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 Case(s) and applications
Chettiar v Chettiar

The defendant owned 99 acres of rubber land and to avoid from being subjected to tax

assessment on the ownership of over the maximum allowed acreage, he further acquired 40 acres

of land which then he transferred into his son’s name and the son was to be held as the nominee.

Later on, when the father contracted to sell this land, the son refused to give him the power of

attorney and the defendant brought an action for a declaration that the son held the land on trust

for him. The judge dismissed the defendant’s action on the ground of “unclean hand” as the

transfer made was due to fraudulent purposes.

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Delay defeats equity
This maxim applies where
such equitable claims which
no statute applies and is
therefore governed by the
rules of laches.
How?
The law will only assist those who are
watchful and not those who sleep on their
rights
Based on the doctrine of ‘laches’
(unreasonable delay in enforcing a right
cannot obtain an equitable relief)
Equitable claims are analogous to legal
claims for the enforcement of statutory
period by which the limitation of 6 years
period applied based on the Limitation Act.
Related maxims
Equity will not aid a vigilant who sleeps on
his rights
Case(s) and application
Re Valibhoy Deceased (1961) 1 MLJ 187
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Case(s) and applications

Re Valibhoy Deceased

The trustee had exceeded the limitation period of time according to the Limitation Act ie 6 years by
not performing his obligation and sleep on his rights for 7 years. Hence, any claim made therein
after was not recognise by the law.

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