Economic Duress in UK Law

Leading Cases
  • Dimskal Shipping Company SA v International Transport Workers Federation (The Evia Luck)
    • House of Lords
    • 07 November 1991

    However, since the decisions of Kerr J. in Occidental Worldwide Investment Corporation v. Skibs, A/S Avanti (The Siboen and the Sibotre) [1976] 1 Lloyd's Rep. 293, of Mocatta J. in North Ocean Shipping Co. Ltd. v. Hyundai Construction Co. Ltd. [1979] Q.B. 705, and of the Judicial Committee of the Privy Council in Pao On v. Lau Yiu Long [1980] A.C. 614, that limitation has been discarded; and it is now accepted that economic pressure may be sufficient to amount to duress for this purpose, provided at least that the economic pressure may be characterised as illegitimate and has constituted a significant cause inducing the plaintiff to enter into the relevant contract (see Barton v. Armstrong [1976] A.C. 104 at p. 121 per Lord Wilberforce and Lord Simon of Glaisdale (referred to with approval in Pao On v. Lau Yiu Long [1980] A.C 614, 635, per Lord Scarman); and Crescendo Management Pty. Ltd. v. Westpac Banking Corporation (1988) 19 N.S.W.L.R. 40, 46, per McHugh J.A.).

    It follows therefore that, prima facie at least, whether or not economic pressure amounts to duress sufficient to justify avoidance of the relevant contract by the innocent party is a matter for the proper law of the contract, wherever that pressure has been exerted. The question then arises whether there is any basis in law for rejecting this simple approach, on the ground that the conduct in question was lawful by the law of the place where it occurred, viz. Swedish law.

  • Dimskal Shipping Company S.A. v International Transport Workers Federation (No. 2) (Evia Luck)
    • Court of Appeal (Civil Division)
    • 11 December 1989

    In my judgment a similar approach should be adopted for the purpose of determining in the field of industrial relations whether economic pressure applied abroad is or is not legitimate.In my judgment a similar approach should be adopted for the purpose of determining in the field of industrial relations whether economic pressure applied abroad is or is not legitimate.

  • Universe Tankships Inc. of Monrovia v International Transport Workers Federation (Marine)
    • House of Lords
    • 01 April 1982

    The rationale is that his apparent consent was induced by pressure exercised upon him by that other party which the law does not regard as legitimate, with the consequence that the consent is treated in law as revocable unless approbated either expressly or by implication after the illegitimate pressure has ceased to operate on his mind.

    It is not, however, in my view, necessary, nor would it be appropriate in the instant appeal, to enter into the general question of the kinds of circumstances, if any, in which commercial pressure, even though it amounts to a coercion of the will of a party in the weaker bargaining position, may be treated as legitimate and, accordingly, as not giving rise to any legal right of redress.

  • Woolwich Equitable Building Society v Commissioners of Inland Revenue
    • House of Lords
    • 20 July 1992

    (a) Money paid as a result of actual or threatened duress to the person, or actual or threatened seizure of a person's goods, is recoverable. For an example of the latter, see Maskell v. Horner [1915] 3 K.B. 106. Since these forms of compulsion are not directly relevant for present purposes, it is unnecessary to elaborate them; but I think it pertinent to observe that the concept of duress has in recent years been expanded to embrace economic duress.

    I would therefore hold that money paid by a citizen to a public authority in the form of taxes or other levies paid pursuant to an ultra vires demand by the authority is prima facie recoverable by the citizen as of right.

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Legislation
  • Nationality and Borders Act 2022
    • UK Non-devolved
    • January 01, 2022
    ... ... decisions etc) ;(d) regulation 36 of the Immigration (European Economic Area) Regulations 2016 (S.I. 2016/1052) (appeals against EEA decisions) as ... in regulations under subsection (4) (b) was as a result of duress.(10) If a penalty is imposed under subsection (1) in relation to the ... ...
  • Treaty of Peace (ROUMANIA) Order, 1948
    • UK Non-devolved
    • January 01, 1948
    ... ... property at present in Bulgaria which was removed by force or duress by any of the Axis Powers from the territory of any of the United Nations, ... ECONOMIC CLAUSES PART VI ... ECONOMIC CLAUSES ... Article 23 Article 23 ... ...
  • Treaty of Peace (ROUMANIA) Order, 1948
    • UK Non-devolved
    • January 01, 1948
    ... ... property at present in Hungary which was removed by force or duress by any of the Axis Powers from the territory of any of the United Nations, ... ECONOMIC CLAUSES ... Article 26 ... In so far as Hungary has not already done ... ...
  • Treaty of Peace (ROUMANIA) Order, 1948
    • UK Non-devolved
    • January 01, 1948
    ... ... property at present in Roumania which was removed by force or duress by any of the Axis Powers from the territory of any of the United Nations, ... ECONOMIC CLAUSES PART VI ... ECONOMIC CLAUSES ... Article 24 ... 1. In so ... ...
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Books & Journal Articles
  • Whither Economic Duress? Reflections on Two Recent Cases
    • No. 53-1, January 1990
    • The Modern Law Review
  • Understanding Intimidation
    • No. 77-1, January 2014
    • The Modern Law Review
    This article examines the gist, vitality and practical utility of the tort of intimidation and identifies what count as unlawful threats and as actionable harm. While two versions of the tort have ...
    ... ... under the law of contract via the doctrines of anticipatory breach, duress and economic duress. The article concludes with two radical suggestions ... ...
  • From Circular Migrants in the Mines to Transnational Polygynists in the Townships: A Century of Transformation in Central Mozambican Male Migration Regimes (1900‐1999)
    • No. 47-3, August 2009
    • International Migration
    This article tracks the most significant transformations in the international migration regime between central Mozambique and South Africa throughout the twentieth century as the product of complex...
    ... ... and continu- ous interactions between the broader political-economic environment and local forms of gendered and inter-generational social ... deployment as a strategy for coping with various forms of political duress, seizing new economic opportunity, and negotiating local social relations, ... ...
  • Contract, Consideration and the Critical Path
    • No. 53-4, July 1990
    • The Modern Law Review
    ... ... although the case does not itself involve any element of duress, by relaxing the consideration requirement, it shifts the burden of regulating price re-negotiation on tlo the doctrine of economic duress.’ In Williams v Roffey , the defendants were main ... ...
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Law Firm Commentaries
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