Selmer Company v. Blakesley-Midwest Company

1983

Court: Federal Court of Appeals, 7th Circuit

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.

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.

Issue: Was this the kind of offer that we want to discourage (i.e., a threat)?

Holding: Affirmed.

Rule: A threat not to honor a term of a contract is not duress.

Reasoning: Settlements have to be binding. If you settle, you settle. Selmer wasn't forced to stay on the job.

Dicta: