Opinion ID: 2033184
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Heading: The Effect of Legal Defenses Asserted on the Equitable Claim

Text: The shareholders also assert that a jury should hear legal defenses raised. Regarding legal defenses in equity, several Iowa cases have held: We have recognized that a defendant has no right to a trial by jury of law issues raised in the answer to an action properly brought in equity. Once equity has obtained jurisdiction of a controversy the court will determine all questions material or necessary to accomplish full and complete justice between the parties, even though in doing so the court may be required to pass upon certain matters ordinarily cognizable at law. In re Marriage of Stogdill, 428 N.W.2d 667, 670 (Iowa 1988); see also Grandon v. Ellingson, 259 Iowa 514, 518-19, 144 N.W.2d 898, 901 (1966) (Equity had jurisdiction of the controversy and the raising of defenses not solely cognizable at law did not give defendant the right to a law trial on these issues.... Equity may determine all matters both legal and equitable when the controversy is properly before it.). Similarly, if an action was brought at law, and an equitable defense raised, that would not invoke equity jurisdiction automatically. 27A Am.Jur.2d Equity § 5. It should follow then that invoking a legal defense in a shareholder's derivative suit does not defeat equitable jurisdiction.