The Selmer Company v. Blakeslee-Midwest Company
United States Court of Appeals for the Seventh Circuit
704 F.2d 924 (7th Cir. 1983)
The Selmer Company (Selmer) (plaintiff), a subcontractor for Blakeslee-Midwest (Blakeslee) (defendant), agreed to keep working after Blakeslee failed to supply concrete as required, in exchange for Blakeslee covering the extra completion costs; Selmer later demanded $120,000 for those extra costs (against actual added costs of $150,000), but facing its own financial difficulties, settled for the $67,000 Blakeslee was willing to pay. Selmer later sued for the shortfall, arguing it had settled under economic duress; the trial court granted Blakeslee summary judgment, and Selmer appealed.
Whether a plaintiff's ordinary financial difficulties, standing alone, constitute economic duress sufficient to invalidate a settlement agreement it entered into.