Economic duress has always been considered by lawyers as a notoriously difficult allegation to establish. Two recent cases in the Technology and Construction Court provide guidance as to what is required and practical examples of what does and what does not constitute economic duress.
Background
In substance, economic duress amounts to the application of illegitimate pressure by one party on another, which results in the innocent party being forced to enter into a contract they would otherwise not have entered into. The concept of economic duress has been recognised, in theory at least, for many years. However, it remains difficult to establish in practice. The problem for judges and arbitrators is drawing a distinction between tough, but legitimate commercial negotiations on the one hand and unlawful coercion on the other. DSND Subsea v. Petroleum Geo-Services [2000] BLR 531 and Carillion Construction Limited v. Felix (UK) Limited [2001] BLR 1 are two recent cases in which economic
