HI Bar Remedies 2 — Questions and Answers
Question 1: A preliminary injunction requires the moving party to show all of the following EXCEPT:
- Likelihood of success on the merits
- Irreparable harm absent the injunction
- Balance of equities favoring the movant
- That money damages would be an adequate remedy (Correct answer)
Correct answer: That money damages would be an adequate remedy
A preliminary injunction requires the movant to show likelihood of success, irreparable harm, a favorable balance of equities, and no disservice to the public interest — the movant must show damages are INADEQUATE, not adequate.
Question 2: The equitable doctrine of 'clean hands' bars relief when:
- The defendant has a prior criminal conviction
- The plaintiff engaged in inequitable conduct related to the subject matter of the suit (Correct answer)
- The plaintiff failed to mitigate damages
- The defendant acted in good faith throughout the transaction
Correct answer: The plaintiff engaged in inequitable conduct related to the subject matter of the suit
The clean hands doctrine denies equitable relief to a plaintiff whose own inequitable or unconscionable conduct is directly related to the controversy before the court.
Question 3: Specific performance is most commonly granted for contracts involving:
- Personal service agreements
- Sale of fungible goods available on the open market
- Unique goods or real property (Correct answer)
- Employment contracts
Correct answer: Unique goods or real property
Specific performance is granted when money damages are inadequate, typically for unique goods or real property, because each parcel of land is considered legally unique and cannot be replaced with money.
Question 4: A mandatory injunction differs from a prohibitory injunction in that it:
- Has a longer duration
- Commands a party to perform an affirmative act rather than refrain from acting (Correct answer)
- Requires a higher standard of proof
- Can only be issued after a full trial on the merits
Correct answer: Commands a party to perform an affirmative act rather than refrain from acting
A mandatory injunction commands affirmative action (e.g., 'tear down the fence'), while a prohibitory injunction restrains a party from acting (e.g., 'do not build the fence').
Question 5: Rescission as a contractual remedy is available when:
- A contract was breached but fully performed
- The contract was induced by fraud, mutual mistake, or failure of consideration (Correct answer)
- The plaintiff simply prefers money damages to performance
- The contract was formed under duress only if it was in writing
Correct answer: The contract was induced by fraud, mutual mistake, or failure of consideration
Rescission voids the contract ab initio and is available when consent was undermined by fraud, mutual mistake, misrepresentation, or failure of consideration, restoring both parties to their pre-contract positions.
Question 6: The equitable doctrine of laches bars relief when:
- The plaintiff filed suit more than three years after the cause of action accrued
- The plaintiff unreasonably delayed bringing suit and the defendant was prejudiced by the delay (Correct answer)
- The defendant acquired the property as a bona fide purchaser for value
- The plaintiff failed to demand a jury trial within the prescribed time
Correct answer: The plaintiff unreasonably delayed bringing suit and the defendant was prejudiced by the delay
Laches bars equitable relief when the plaintiff unreasonably delayed asserting their rights AND the defendant suffered prejudice as a result of that delay; both elements are required.
Question 7: A permanent injunction requires the plaintiff to demonstrate:
- Only a showing of irreparable harm going forward
- Success on the merits and that legal remedies are inadequate (Correct answer)
- That a preliminary injunction was previously issued
- Proof of punitive intent on the defendant's part
Correct answer: Success on the merits and that legal remedies are inadequate
A permanent injunction requires the plaintiff to succeed on the merits and show that legal remedies are inadequate to remedy the continuing or threatened harm.
A preliminary injunction requires the moving party to show all of the following EXCEPT: