inequity, in equity

Inequity or inequity ( one word ) means unfairness or injustice --
We should redress this inequity before it becomes a legal problem.
He believes that he is a victim of inequity, particularly in our admissions policy.

In equity or in equity ( two words ) means [ in ] a petition to a court to impose fairness, or to stop harmful behavior, when no law has been broken  ( equity ) --
In civil cases people sue for financial judgments; in equity cases they may seek some other remedy.
In law, he doesn't have a case, but in equity, a judge may offer to settle the problem with a court order.

In equity may also mean [ in ] the value of a mortgaged property, or of shares of stock, above what is still owed ( equity ) --
They don't want to sell the house until they have $50,000 in equity.
He has over $20,000 in equity; he should sell his shares if he needs money.

Now that you know that, you can say --
"In equity cases, a judge may use the powers of the court to redress inequity."

Note -- "iniquity" means wickedness or sin --
He believes that his problems are a punishment for his iniquity.