Court: |
Federal Court of Appeals, 7th Circuit |
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Facts: |
Selmer was a subcontractor on a big construction project. The prime
contractor failed in its obligations, but Selmer completed its
work, then go stiffed for about 45% of what was owed. |
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Posture: |
2.5 years have gone by, and now Selmer is suing, saying that there
were extra costs above and beyond the original amount sought,
and hoping for some punitive damages. But this is Posner's court. |
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Issue: |
Was this the kind of offer that we want to discourage (i.e., a threat)? |
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Holding: |
Affirmed. |
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Rule: |
A threat not to honor a term of a contract is not duress. |
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Reasoning: |
Settlements have to be binding. If you settle, you settle. Selmer
wasn't forced to stay on the job. |
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Dicta: |
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