Economic Duress in UK Law

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

  • Dimskal Shipping Company S.A. v International Transport Workers Federation (No. 2) (Evia Luck)
    • Court of Appeal
    • 11 Dic 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 Abr 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.

    In the instant appeal the economic duress complained of was exercised in the field of industrial relations to which very special considerations apply.

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