Equity and Trust: Reception of Equity

Study Notes

Main Rule SCR: No 2 of 1992 PNGLR 336 asserts legislation as the primary source of law.
Exceptions in PNG Constitution emphasize justice, natural principles, and necessary orders:
- Section 158(2): "Paramountcy of justice" in law application.
- Section 41: Courts can declare lawful actions unlawful if harsh or oppressive.
- Sections 59 and 60: Focus on natural justice principles in underlying law.
- Section 155(4): Courts possess the authority to issue orders essential for justice.

Adopt equity only when no underlying law exists; the Underlying Law Act, 2000 stipulates this.
Equity applied in law questions, not facts.
Common law can be adopted when it aligns with customary law.
Customary law and equity can conflict, as seen in Magiten v Beggie PNGLR 1.

Customs Recognition Act Ch 19 requires raising custom during pleadings.
Repugnancy signifies inconsistency in ideas/statements, relevant in specific cases:
- Magiten v Beggie: marriage issues for female widows.
- Kaigo v Kurond: land ownership through war.
- Kupil v PNG: lethal consequences of non-compensation payment.

Equity comprises a collection of principles; it exists but isn't codified as law.
Serves as a formal legal mechanism with remedies as behavioral sanctions.
Equity supersedes Common Law while being superseded by Customary Law, except under the Constitution.

A method of acquiring land interests through long-term continuous use.
Internationally relates to land sovereignty transfer.
Nationally involves expropriation, ancestral claims, and private property considerations (easement).

In Nimp v Rumants PNGLR 96, sales of land require clan member consent, indicating collective ownership.
Clan members serve as trustees for joint property agreements.

Equity principles include guidelines for achieving justice and fairness in legal proceedings.
First six maxims highlight notions of obligation, intention, and equitable remedies:
- Equity sees determined intentions as completed actions.
- No wrong remains without a remedy.
- Equity embodies equality principles.
- Seekers of equity must reciprocate equity.
- Intent holds more significance than formalities.
- Intent to fulfill obligations is assumed.