CTN Cash and Carry v Gallaher [1993] EWCA Civ 19 (15 February 1993)

CTN Cash and Carry v Gallaher [1993] EWCA Civ 19 (15 February 1993)

In arm's length commercial dealings, a threat to withdraw credit facilities in pursuit of a bona fide claim, even if mistaken, does not amount to economic duress. Lawful commercial pressure, absent impropriety or bad faith, is not sufficient to vitiate consent or justify restitution.

Citation
[1993] EWCA Civ 19
Parties
Appellant (plaintiff): C. T. N. Cash and Carry Limited; Respondent (defendant): Gallaher Limited
Jurisdiction
England and Wales
Judgment Date
15 February 1993
Procedural Posture
Civil Appeal / Appeal From High Court (queen's Bench Division, Commercial List) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Economic Duress, Lawful Act Duress, Restitution, Unjust Enrichment
Contract Law Commercial Law Economic Duress Lawful Act Duress Restitution Unjust Enrichment

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Parties

C. T. N. Cash and Carry Limited

Appellant (plaintiff)

Gallaher Limited

Respondent (defendant)

Procedural Posture

Civil Appeal / Appeal From High Court (queen's Bench Division, Commercial List) to Court of Appeal

Legal Issues

  1. 1 Whether payment made under threat to withdraw credit facilities, in the context of a bona fide but mistaken claim, constitutes economic duress enabling recovery of the payment

Ratio Decidendi

In arm's length commercial dealings, a threat to withdraw credit facilities in pursuit of a bona fide claim, even if mistaken, does not amount to economic duress. Lawful commercial pressure, absent impropriety or bad faith, is not sufficient to vitiate consent or justify restitution.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs