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What is equitable relief?

| Jun 3, 2021 | Blog |

Many business litigation cases involve a breach of contract where the plaintiff is seeking a specific amount of financial damages due to certain actions or failure to act. Most remedies for breach of contract in Minnesota are settled with financial compensation. However, the issue might be such that financial compensation cannot provide proper relief, which then prompts a plaintiff to file for equitable relief in the form of a court order of some type. These orders can come in a wide variety of rulings.

Injunction or special performance

Many times, equitable relief requests in contract disputes come in an order to refrain from doing a particular act, such as a gag order, or to act in a specific manner to satisfy the plaintiff. These are the most common requests in equitable relief litigation; they do not always include financial remuneration although they can.

Rescission or reformation

Rescission is a request to annul an existing contract for possible purpose of restructuring the responsibilities of each contracting party. It often resets the duties each party owes to the other to prevent further damage. Reformation is the actual restructuring of a contract, and the final product can look much different from the original agreement. This can be a highly effective method of settling contract disputes, and it works well for those wanting to continue a business relationship with a fresh start.

Minnesota business law attorneys who are knowledgeable in all aspects of equitable relief litigation may be able to help settle disputes in mediation without going to arbitration or a formal court hearing. It is best for all plaintiffs to consult with a business law professional before requesting equitable relief because judges have significant latitude when issuing these sometimes unexpected rulings.