Chancery Regulation Act 1862
Encyclopedia
The Chancery Regulation Act 1862 (25 & 26 Vict., c. 42), also known as Rolt's Act was an Act
of the United Kingdom Parliament that was an important step in the fusion of law and equity.
, equity developed as a system of justice
in parallel with and complementary to the common law
. By the 19th century, with the rise of capitalism
in Victorian Britain, equity had become very important. The remedies available to the common law were limited to damages
and those disuptes demanding an injunction
or specific performance
of a contract
needed to be heard in equity which was administered in Courts of Chancery, separate from the common law courts. Moreover, procedure in equity was better able to handle complex disputes involving the relationship between several parties such as partnership
s and trusts.
However, the dual jurisdiction of law and equity caused problems for litigants. In equity, all parties had to be represented at all hearings and if one died or married complex procedures were needed to maintain the action. The rate of progress of the action was in the hands of the parties and would tend to be determined by the slowest. Many uncontroversial administrative actions, such as appointing a new trustee
, were dealt with as though they were contentious, adding further delay. There were many inefficiencies in procedure with high costs and a certain amount of corruption
. Further, cases that involved questions of both law and equity would be hampered, shuttling between the courts of Chancery and common law courts for years, as in Wood v. Scarth.
The Chancery commission (1824–26) made recommendations on streamlining procedure but the commissioners concluded that the Chancery courts themselves had the powers to improve matters. Over the following decades there was much debate leading to legislation including the Improvement of the Jurisdiction of Equity Act 1852 which allowed Chancery judges to decide questions of fact rather than remitting them to the common law courts. However, by 1862, Chancery judges were still reluctant to make use of these powers so Attorney General
Sir John Rolt
introduced a bill
to make determination of facts by Chancery judges mandatory.
The Act applied to the High Court of Chancery of England and Wales and also to the Court of Chancery of the County Palatine of Lancaster
which had an independent jurisdiction in equity. A further Act brought a similar reform to Ireland
.
.
Act of Parliament
An Act of Parliament is a statute enacted as primary legislation by a national or sub-national parliament. In the Republic of Ireland the term Act of the Oireachtas is used, and in the United States the term Act of Congress is used.In Commonwealth countries, the term is used both in a narrow...
of the United Kingdom Parliament that was an important step in the fusion of law and equity.
Background
From the 13th century in England and WalesEngland and Wales
England and Wales is a jurisdiction within the United Kingdom. It consists of England and Wales, two of the four countries of the United Kingdom...
, equity developed as a system of justice
Justice
Justice is a concept of moral rightness based on ethics, rationality, law, natural law, religion, or equity, along with the punishment of the breach of said ethics; justice is the act of being just and/or fair.-Concept of justice:...
in parallel with and complementary to the common law
Common law
Common law is law developed by judges through decisions of courts and similar tribunals rather than through legislative statutes or executive branch action...
. By the 19th century, with the rise of capitalism
Capitalism
Capitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...
in Victorian Britain, equity had become very important. The remedies available to the common law were limited to damages
Damages
In law, damages is an award, typically of money, to be paid to a person as compensation for loss or injury; grammatically, it is a singular noun, not plural.- Compensatory damages :...
and those disuptes demanding an injunction
Injunction
An injunction is an equitable remedy in the form of a court order that requires a party to do or refrain from doing certain acts. A party that fails to comply with an injunction faces criminal or civil penalties and may have to pay damages or accept sanctions...
or specific performance
Specific performance
Specific performance is an order of a court which requires a party to perform a specific act, usually what is stated in a contract. It is an alternative to award/ for awarding damages, and is classed as an equitable remedy commonly used in the form of injunctive relief concerning confidential...
of a contract
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
needed to be heard in equity which was administered in Courts of Chancery, separate from the common law courts. Moreover, procedure in equity was better able to handle complex disputes involving the relationship between several parties such as partnership
Partnership
A partnership is an arrangement where parties agree to cooperate to advance their mutual interests.Since humans are social beings, partnerships between individuals, businesses, interest-based organizations, schools, governments, and varied combinations thereof, have always been and remain commonplace...
s and trusts.
However, the dual jurisdiction of law and equity caused problems for litigants. In equity, all parties had to be represented at all hearings and if one died or married complex procedures were needed to maintain the action. The rate of progress of the action was in the hands of the parties and would tend to be determined by the slowest. Many uncontroversial administrative actions, such as appointing a new trustee
Trustee
Trustee is a legal term which, in its broadest sense, can refer to any person who holds property, authority, or a position of trust or responsibility for the benefit of another...
, were dealt with as though they were contentious, adding further delay. There were many inefficiencies in procedure with high costs and a certain amount of corruption
Political corruption
Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...
. Further, cases that involved questions of both law and equity would be hampered, shuttling between the courts of Chancery and common law courts for years, as in Wood v. Scarth.
The Chancery commission (1824–26) made recommendations on streamlining procedure but the commissioners concluded that the Chancery courts themselves had the powers to improve matters. Over the following decades there was much debate leading to legislation including the Improvement of the Jurisdiction of Equity Act 1852 which allowed Chancery judges to decide questions of fact rather than remitting them to the common law courts. However, by 1862, Chancery judges were still reluctant to make use of these powers so Attorney General
Attorney General for England and Wales
Her Majesty's Attorney General for England and Wales, usually known simply as the Attorney General, is one of the Law Officers of the Crown. Along with the subordinate Solicitor General for England and Wales, the Attorney General serves as the chief legal adviser of the Crown and its government in...
Sir John Rolt
John Rolt
Sir John Rolt PC QC was an English lawyer, Conservative politician and judge who served as Attorney General under Lord Derby.-Early life:...
introduced a bill
Bill (proposed law)
A bill is a proposed law under consideration by a legislature. A bill does not become law until it is passed by the legislature and, in most cases, approved by the executive. Once a bill has been enacted into law, it is called an act or a statute....
to make determination of facts by Chancery judges mandatory.
The Act
In the end, the Act was weakened from its initial intentions, allowing matters of fact to be decided by the assizes.The Act applied to the High Court of Chancery of England and Wales and also to the Court of Chancery of the County Palatine of Lancaster
Court of Chancery of the County Palatine of Lancaster
The Court of Chancery of the County Palatine of Lancaster was a court of chancery that exercised jurisdiction within the County Palatine of Lancaster.-Relevant legislation:The court was regulated by the following Acts in particular:...
which had an independent jurisdiction in equity. A further Act brought a similar reform to Ireland
Ireland
Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...
.
Subsequent developments
The fusion of law and equity was finally effected in the 1870s by the Judicature ActsJudicature Acts
The Judicature Acts are a series of Acts of Parliament, beginning in the 1870s, which aimed to fuse the hitherto split system of courts in England and Wales. The first two Acts were the Supreme Court of Judicature Act 1873 and the Supreme Court of Judicature Act 1875 The Judicature Acts are a...
.