Earl of Oxford's Case

Facts

A judgment had been obtained at common law. Chancery was asked to restrain its enforcement because it had been obtained in a way that was against conscience.

Issue

Could Chancery interfere with a party relying on a common-law judgment?

Held

Lord Ellesmere LC held that it could. Chancery did not reverse the judgment. It acted on the conscience of the party who sought to use it unfairly. The dispute with Coke was settled by King James I in 1616 in favour of Chancery.

Principle

Equity acts on the person to correct the conscience of a party, and where equity and the common law conflict, equity prevails.

Why it matters

It is the classic statement of why there is a Court of Chancery, and the origin of the rule that equity prevails.

For study only. By lanbuk.com. Always check current sources and consult a qualified professional.