Selmer Co. v. Blakeslee-Midwest Co.

704 F.2d 924 (7th Cir. 1983)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

Selmer (P) agreed to act as a subcontractor on a construction project with Blakeslee (D) the general contractor. P was to get $210,000 for erecting prestressed concrete materials supplied by D. D failed to fulfill its part in that it was tardy in supplying P with the materials. P could have terminated the contract without penalty but orally agreed with D to complete the work provided that D would pay extra money for D’s defaults. When the job was completed P demanded $120,000 and D offered $67,000. P was in desperate financial condition and accepted the offer. Two and a half years later, P sued D claiming that its extra costs have amounted to $150,000 and asked for that less the $67,000 it took from D, plus consequential and punitive damages. The district court granted summary judgment to D holding that the $67,000 payment was a valid settlement agreement. P appealed contending that the agreement was invalid as it was procured by economic duress.