What is the equitable defense of unclean hands?
The following excerpt is from Fed. Deposit Ins. Corp. v. Ching, 189 F.Supp.3d 978 (E.D. Cal. 2016):
The equitable defense of unclean hands allows a defendant to escape liability when the plaintiff acts unconscionably, in bad faith, or inequitably. Salas v. Sierra Chem. Co. , 59 Cal.4th 407, 432, 173 Cal.Rptr.3d 689, 327 P.3d 797 (2014). Not just any wrong can support a defense of unclean hands; the misconduct in question must "relate directly" to the transaction that underlies the plaintiff's case, it must "pertain to the very subject matter involved
[189 F.Supp.3d 988]
and affect the equitable relations" between the plaintiff and defendant. Id. (citations and quotation marks omitted).
1. Barred By Federal Common Law No-Duty Rule?
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