Rich & Whillock, Inc. v. Ashton Development, Inc.

Rich & Whillock, Inc. (Rich & Whillock) (plaintiff) contracted to grade and excavate property for Ashton Development, Inc. and Bob Britton, Inc. (Ashton and Britton) (defendants), with an agreed extra charge for removing unexpected rock. When rock removal costs ran far higher than estimated, Britton agreed to pay the added expense, but after paying about $190,000, refused to pay Rich & Whillock's final $72,286.45 invoice. Facing imminent bankruptcy and telling Britton so, Rich & Whillock accepted Britton's take-it-or-leave-it offer of $50,000 in full settlement -- calling it 'blackmail' even as it signed -- and Britton paid that amount. Rich & Whillock then sued for the remaining $22,286.45, and the trial court awarded it based on economic duress; the defendants appealed.