EQUITY AND TRUSTS

MAXIMS OF EQUITY

(Kaedah-Kaedah Ekuiti)

EQUITY ACTS IN PERSONAM• Personal order against the defendant;• Equity enforces its powers against persons in its

jurisdiction regardless whether it relates to a property which is situated abroad;

• Penn v. Lord Baltimore (1750);• Webb v. Webb [1994];• Chellaram v. Chellaram [1985];• Re Valibhoy Decd (1961);

EQUITY FOLLOWS THE LAW

• Equity may not depart from statute law, nor does it refuse to follow common law rules;

• Equity does not destroy but fulfils the law;

• Eq. comes in when law too technical to redress a legal wrong;

• Punca Klasik Sdn. Bhd. v. Abdul Aziz Bin Abd. Hamid & Ors [1994];

EQUITY IS EQUALITY

• Equality – concurrent entitlement to identical interest and no express provision otherwise;

• Not necessarily mean equal shares but proportionate equality;

• Lau Choong Choo [1980];

• Tai Kwong Goldsmiths [1995];

EQUITY WILL NOT SUFFER A WRONG TO BE WITHOUT A REMEDY

• means : equity will ensure protection for a right which due to some technical defects is not enforceable at law;

•Plaintiff’s right must be suitable for enforcement by the court;

•Haji Osman (1952); MIMB [1992];

Eg. - Quia Timet Injunction;

- Trust;Settlor TP Trustee (Legal Owner)

Beneficiary (Eq. Owner)

HE WHO SEEKS EQUITY MUST DO EQUITY

• Means : Plaintiff who seeks equitable relief must be prepared to act fairly towards defendant

• Davis v. Duke of Marlborough (1819) : “… the principle of this court is not to give relief to those who will not do equity …”;

• Chappel v. Times newspaper [1975];• Solle v. Butcher [1950];• Boo Kok Ngeak & Anor [1998]

HE WHO COMES TO EQUITY MUST COME WITH CLEAN HANDS

• Similar : seeks equity do equity;• Difference ??;• NO – element of dishonesty on the

part of the plaintiff with regard to his previous conduct;

• Argyll (Duchess) v. Argyll (Duke) [1967];

• Chettiar v. Chettiar [1962];• Suntoso Jacob v. Kong Miao Ming

[1986];

WHERE THE EQUITIES ARE EQUAL THE LAW PREVAILS

• Twp persons, competing rights to the same item of property, A, both legal and equitable right, B equitable right only , A prevail;

• Langan v. Lee Cheng Keat;

WHERE THE EQUITIES ARE EQUAL THE FIRST IN TIME PREVAILS

• UMBC Corp. Bhd. (1976);

• Vallipurram Sivaguru (1937);

• Tee Say Poh (1939).

EQUITY REGARDS THAT AS DONE WHICH OUGHT TO BE DONE

• Where there is a specifically enforceable obligation, equity regards the arties as already in the position which they ought to be in;

• Walsh v. Lonsdale (1882);

• HL Bannerji [1983];

• Tee Say Poh (1939);

EQUITY LOOKS TO INTENT RATHER THE FORM

• Equity looks to the substance rather than the form;

• Hj Osman Bin Abu Bakar(1952);

EQUITY DOES NOT ALLOW A STATUTE TO BE USED AS AN

INSTRUMENT OF FRAUD

• Sia Siew Hong & Ors. V. Lim Gim Chian & Anor [1995] 3 MLJ 14

DELAY DEFEATS EQUITY

• Equity will not assist a Plaintiff who has failed to assert his rights within a reasonable time;

• Nelson v. Rye [1996];

• Haji Abdullah v. Abdul Majid [1949];