Equitable Defenses in the Age of Statutes

Abstract

The Supreme Court’s pending decision in SGA Hygiene Products Aktiebolag v. First Quality Baby Products, LLC, is the most recent in a series of cases struggling with the same issue: What is the scope and content of equitable defenses in federal statutes? This Article analyzes the integration of equitable defenses in statutory law for the first time. Concentrating on Supreme Court cases, it examines these doctrines across several statutory subjects. It identifies a pattern in the decisional history of equitable defenses in order to assist in building a body of cases along principled lines. The Article also reveals that while the Court tends to accept equitable defenses according to their tradition, it likewise limits them in light of legislative objectives. An expansive attitude of inclusion corresponds with a more restrictive view of their application. What is more, the Court is supplying their substance and scope from a combination of state and federal law. In this regard, the Court is adjudicating equitable defenses to generate a general common law. The Article additionally outlines the Court’s developing supervisory role vis-a-vis the lower courts. It further explores the challenges of continuity and change in incorporating these private law principles into public law to provide direction for the future. Overall, the Article suggests a way of looking at equitable defenses to better appreciate their place in the regulatory state.