The Court of Chancery was a court of equity in England and Wales that followed a set of loose rules to avoid a slow pace of change and possible harshness (or "inequity") of the common law. The Chancery had jurisdiction over all matters of equity, including trusts, land law, the estates of lunatics and the guardianship of infants.
Its initial role differed somewhat: as an extension of the lord chancellor's role as Keeper of the King's Conscience, the court was an administrative body primarily concerned with conscientious law. Thus the Court of Chancery had a far greater remit than the common-law courts (whose decisions it had the jurisdiction to overrule for much of its existence) and was far more flexible.
Until the 19th century, the Court of Chancery could apply a far wider range of remedies than common law courts, such as specific performance and injunctions, and had some power to grant damages in special circumstances. With the shift of the Exchequer of Pleas towards a common law court and loss of its equitable jurisdiction by the Administration of Justice Act 1841, the Chancery became the only national equitable body in the English legal system.
Scholars estimate that the Court of Chancery formally split from and became independent of the curia regis in the mid-14th century, at which time it consisted of the lord chancellor and his personal staff, the Chancery. Initially an administrative body with some judicial duties, the Chancery experienced an explosive growth in its work during the 15th century, particularly under the House of York (r. 1461–1485); academics attribute this to its becoming an almost entirely judicial body. From the time of Queen Elizabeth I (r. 1558–1603) onwards the Court was severely criticised for its slow pace, large backlogs, and high costs. Those problems persisted until its dissolution, despite being mitigated somewhat by reforms, particularly during the 19th century.
Attempts at fusing the Chancery with the common law courts began in the 1850s, and finally succeeded with the Supreme Court of Judicature Act 1873 and the Supreme Court of Judicature Act 1875, which dissolved the Chancery and created a new unified High Court of Justice, with the Chancery Division – one of three divisions of the High Court – succeeding the Court of Chancery as an equitable body.
For much of its existence the court was formally led by the lord chancellor, assisted by the judges of the common-law courts. The staff of the court included a large number of clerks, led by the master of the rolls, who regularly heard cases on his own. In 1813 a vice-chancellor was appointed to deal with the Chancery's increasing backlogs, and two more vice-chancellors were appointed in 1841. Lord chancellors sold offices of the Chancery for much of its history, raising large amounts of money. Many of the clerks and other officials held sinecures; the holders, in lieu of wages, charged increasingly exorbitant fees to process cases – one of the main reasons for the high cost of bringing a case to the Court of Chancery.
The 19th century saw the abolition of many sinecure offices and the institution of a wage and pension for the lord chancellor to curb the sale of offices; and later[when?] the right to appoint officials was transferred from the chancellor to the Crown.