Article III of the U.S. Constitution extended the judicial power to cases in law and in equity. Equity was a centuries-old system of English jurisprudence in which judges based decisions on general principles of fairness in situations where rigid application of common-law rules would have brought about injustice. Pursuant to its authority under the 1792 Process Act, the Supreme Court during its February 1822 term established rules of equity procedure for the federal courts to go into effect on July 1, 1822. The rules specified that all situations not otherwise provided for were to be governed by the practices of the High Court of Chancery in England. The Court issued new sets of equity rules in 1842 and 1912. In 1938, the Federal Rules of Civil Procedure merged law and equity into one type of suit known as a "civil action," but the distinction remained relevant for the purpose of determining the applicability of the Seventh Amendment right to a jury trial in suits at common law.
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