Chancery courts base decisions on equity, not common law. England established the first chancery court to provide remedies for disputes not recognized by common law. The US adopted this system, but later abolished it due to inefficiency and high costs, replacing it with the High Court of Justice.
A chancery court is a court of equity, meaning that its decisions are based on equity rather than the application of the common law. England was the first to establish a chancery court as a forum where people could seek and obtain remedies for disputes not recognized by the common law. The common law evolved in England from ancient community customs and traditions. Common law courts would not settle disputes unless the common law recognizes the dispute and provides a remedy. This resulted in angry citizens complaining to the king and the eventual establishment of the English Chancery Court.
The ultimate aim of a clerk’s court is to avoid injustice by offering fair compensation. In some cases, awarding monetary damages is not a fair remedy. As a result, a clerk court could order just compensation, such as specific benefits, that the common law courts have failed to recognize. The specific performance requires a party to fulfill its contractual obligations. For example, if a party entered into a contract for the sale of land and then backed out, a clerk’s court could enforce the contract by ordering specific performance to force the sale of the land.
England exported its system of common law court and chancery court to the American colonies, where the King of England authorized such courts to function. These courts operated in the same way as the English courts, using its methods and laws to settle disputes. After the colonies gained their independence from England, the American judicial system continued to apply English methods of hearing cases and providing remedies based on common law and the chancery court. Over time, the application and interpretation of laws have changed to accommodate American notions of justice.
England eventually abolished its Chancery Court, including its common law courts. England abolished these courts due to the inefficiency and high cost of handling cases. In its place, England established the High Court of Justice with a division of the chancery. The Section of the Chancery exercises equitable powers.
The United States also abolished its common law courts and chancery court system through the enactment of federal rules of civil procedure. Federal rules of civil procedure established a form of action, called a civil action, which eliminated all other actions based on equity and common law. Most states would follow the federal government’s lead and adopt state rules of civil procedure, which mirrored the federal rules. This resulted in the elimination of state chancery courts for those states.
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