What Happens When You’re Found With ‘Unclean Hands’ in Business?

The legal phrase “unclean hands” refers to the concept of a plaintiff or party seeking relief from a court based on actions that involve unethical or wrongful behavior. In essence, a party seeking relief cannot have been complicit in any actions that helped create the situation in the first place. Unclean hands is a defense in litigation, and it can involve revealing personal secrets or showing any inconsistencies in the plaintiff’s position.

In modern business, the most common type of unclean hands defense is that of a breach of contract. Let’s say that company A contracts with company B to provide services for a mutually agreed upon fee. Company B delivers the services but company A doesn’t pay them. Company B then goes to court to sue for payment, but company A reveals that upon signing the contract, company B gave an assurance that they would complete the job in half the time but didn’t deliver. Company A can then use unclean hands as a means of denying the breach of contract claim.

It is important to note, however, that unclean hands does not prohibit or prevent the court from granting relief to the plaintiff. Rather, it is used as a means of denying the claim or as a measure to reduce the amount of relief awarded to the plaintiff. The court might find that the plaintiff should not be able to benefit from the wrongdoings due to their unclean hands or seek an alternate form of relief, such as specific performance or a smaller damages award.

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It’s also important to note that, no matter the situation, unclean hands should not be taken lightly. It could significantly affect the outcome of any case and, in some cases, could even lead to the plaintiff being ordered to pay damages to the defendant in order to make up for the plaintiff’s wrongdoing.

The Bottom Line

Unclean hands is an important legal concept for business professionals to be aware of in order to protect themselves in potential litigation. Whenever entering into a contract, it’s important to make sure that both parties are acting in an ethical and legal manner to avoid any issues down the road. Unclean hands could be used as a means of denying a claim or reducing the relief awarded to the plaintiff in the event of a legal dispute.

Related Legal Concepts

Understanding unclean hands often goes hand in hand with the clean hands doctrine, which is essentially the same equitable principle stated in positive terms. Both concepts stem from the fundamental legal maxim that equity will not aid a wrongdoer, and courts applying these principles examine whether a party’s own misconduct should bar them from obtaining relief.

The Bottom Line

The unclean hands defense serves as an important check on parties who seek legal relief while having engaged in wrongful conduct related to the dispute. This equitable doctrine ensures that courts do not reward or assist those who have acted improperly, though it does not automatically bar all relief in every case. For guidance specific to your situation, always consult a qualified, licensed attorney.