How To Prove A California Economic Duress Defense

 

How To Prove A California Economic Duress Defense

 

In California, a defense of Economic Duress is defined as:

Wrongful or unlawful conduct that creates fear of economic hardship which prevents the exercise of free will in engaging in a business transaction

It simply means:

The plaintiff entered into a contract under the threat of economic harm

There are 3 elements of the defense:

  • Element 1. The plaintiff used a wrongful act or threat to pressure defendant into consenting to a contract. The plaintiff forced the defendant to agree to a contract by using threats or unfair pressure, making the defendant’s consent not truly voluntary.

    Facts that might support this element look like:

    * The plaintiff threatened to publicly disclose damaging information about the defendant unless the defendant signed the contract.
    * The plaintiff insisted that the defendant would face severe financial consequences if the contract was not executed immediately.
    * The plaintiff used aggressive tactics, including repeated phone calls and in-person confrontations, to coerce the defendant into compliance.
    * The defendant was informed that failure to sign the contract would result in the loss of a critical business opportunity.
    * The plaintiff created a false sense of urgency, claiming that the terms would drastically change if the defendant did not act quickly.

  • Element 2. A reasonable person in defendant’s position would have believed that there was no reasonable alternative except to consent to the contract. A reasonable person in the defendant’s situation would have thought that they had no other choice but to agree to the contract, feeling pressured by circumstances that left them with no viable options.

    Facts that might support this element look like:

    * The defendant was facing imminent financial ruin and had no viable options to secure necessary funding elsewhere.
    * The defendant was under significant pressure from a third party, who threatened to withdraw critical support unless the contract was signed immediately.
    * The defendant had a limited time frame to act, as the opportunity to enter the contract would expire within hours.
    * The defendant sought advice from multiple professionals, all of whom indicated that signing the contract was the only feasible course of action.
    * The defendant was informed that failure to consent would result in severe consequences, including potential legal action or loss of business relationships.

  • Element 3. The defendant would not have consented to the contract without the wrongful act or threat. The defendant only agreed to the contract because they were pressured or threatened, meaning they wouldn’t have signed it if not for that wrongful influence.

    Facts that might support this element look like:

    * The defendant was threatened with immediate financial ruin if they did not sign the contract under duress.
    * The defendant was misled about the consequences of not agreeing to the contract, believing it would result in severe legal repercussions.
    * The defendant was coerced into signing the contract by the plaintiff’s threats to disclose damaging information.
    * The defendant had no reasonable alternative but to accept the contract due to the plaintiff’s aggressive tactics.
    * The defendant expressed clear reluctance to enter the contract but felt compelled to do so because of the plaintiff’s threats.

(See California Civil Jury Instructions (CACI), No. 333.)
If you’re in court without a lawyer and plan to assert a Defense of Economic Duress, having a Personal Practice of Law at Courtroom5 is essential. You’ll need to make informed decisions about what to file at each phase of your case and prepare legal documents that are supported by thorough legal research and a strong analysis of the facts. Equip yourself with the tools and knowledge necessary to effectively present your Defense of Economic Duress.

Prove Your CA Economic Duress Defense

U.S. Civil Cases Only

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