{"id":328,"date":"2021-10-25T03:53:49","date_gmt":"2021-10-25T03:53:49","guid":{"rendered":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/?page_id=328"},"modified":"2022-05-02T19:29:27","modified_gmt":"2022-05-02T19:29:27","slug":"caci-333-affirmative-defense-economic-duress","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/caci-333-affirmative-defense-economic-duress\/","title":{"rendered":"CACI 333 Affirmative Defense\u2014Economic Duress"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-ku5664uf-0ffd6d04e524080aa44cf2849e7c84de\">\n#top .av-special-heading.av-ku5664uf-0ffd6d04e524080aa44cf2849e7c84de{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-ku5664uf-0ffd6d04e524080aa44cf2849e7c84de .av-special-heading-tag 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itemprop=\"text\" ><ul>\n<li><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/\">CACI Jury Instructions Index<\/a><\/li>\n<li><a href=\"https:\/\/caci-fillable-forms.crowdsourcelawyers.com\/\">App: CACI Jury Instructions Fillable Forms Word Format<\/a><\/li>\n<\/ul>\n<\/div><\/section>\n<div  class='hr av-av_hr-91d7ccd583a503147498e120fee2ff9b hr-default  avia-builder-el-4  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-ku567ptw-0998e2614add07db60f88c861e3b7f10\">\n#top .av_textblock_section.av-ku567ptw-0998e2614add07db60f88c861e3b7f10 .avia_textblock{\nfont-size:20px;\n}\n<\/style>\n<section  class='av_textblock_section av-ku567ptw-0998e2614add07db60f88c861e3b7f10 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><h2 class=\"SS_Banner\">333\u00a0Affirmative Defense\u2014Economic Duress<\/h2>\n<hr \/>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] claims that there was no contract because [his\/her\/<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">nonbinary pronoun<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">\/its] consent was given under duress. To succeed, [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] must prove all of the following:<\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">1.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] used a wrongful act or wrongful threat to pressure [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] into consenting to the contract;<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">2.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That a reasonable person in [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s position would have believed that there was no reasonable alternative except to consent to the contract; and<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">3.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] would not have consented to the contract without the wrongful act or wrongful threat.<\/span><\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">An act or a threat is wrongful if [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">insert relevant rule, e.g., \u201ca bad-faith breach of contract is threatened\u201d<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">].<\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">If you decide that [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] has proved all of the above, then no contract was created. <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\"><\/h2>\n<div id=\"TRNotes_n_1\">\n<p><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">New September 2003; Revised December 2005, June 2011, December 2011, May 2020 <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/\">Crowdsource Lawyers<\/a><\/p>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\">https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci<\/a><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\"><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Directions for Use<\/h2>\n<div id=\"TRNotes_n_2\">\n<p>Different elements may apply if economic duress is alleged to avoid an agreement to settle a debt. (See\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Perez v. Uline, Inc.<\/span>\u00a0(2007) 157 Cal.App.4th 953, 959\u2013960 [68 Cal.Rptr.3d 872].)<\/p>\n<p>Element 2 requires that the defendant have had \u201cno reasonable alternative\u201d other than to consent. Economic duress to avoid a settlement agreement may require that the creditor be placed in danger of imminent bankruptcy or financial ruin. (See\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Rich &amp; Whillock, Inc. v. Ashton Development, Inc.<\/span>\u00a0(1984) 157 Cal.App.3d 1154, 1156\u20131157, 204 Cal.Rptr. 86].) At least one court has stated this standard in a case not involving a settlement (see\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Uniwill v. City of Los Angeles<\/span>\u00a0(2004) 124 Cal.App.4th 537, 545 [21 Cal.Rptr.3d 464]), though most cases do not require that the only alternative be bankruptcy or financial ruin. (See, e.g.,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Chan v. Lund<\/span>\u00a0(2010) 188 Cal.App.4th 1159, 1173\u20131174 [116 Cal.Rptr.3d 122].)<\/p>\n<p>In the next-to-last paragraph, state the rule that makes the alleged conduct wrongful. (See\u00a0Restatement 2d of Contracts, \u00a7\u2009176, When a Threat is Improper.) The conduct must be something more than the breach or threatened breach of the contract itself. An act for which a party has an adequate legal remedy is not duress. (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">River Bank America v. Diller<\/span>\u00a0(1995) 38 Cal.App.4th 1400, 1425 [45 Cal.Rptr.2d 790].) <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Sources and Authority<\/h2>\n<div id=\"TRNotes_n_3\">\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">When Consent Not Freely Given.\u00a0Civil Code sections 1567,\u00a01568.<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cThe doctrine of \u2018economic duress\u2019 can apply when one party has done a wrongful act which is sufficiently coercive to cause a reasonably prudent person, faced with no reasonable alternative, to agree to an unfavorable contract. The party subjected to the coercive act, and having no reasonable alternative, can then plead \u2018economic duress\u2019 to avoid the contract.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">CrossTalk Productions, Inc. v. Jacobson<\/span>\u00a0(1998) 65 Cal.App.4th 631, 644 [76 Cal.Rptr.2d 615], internal citation omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">The nonexistence of a \u201creasonable alternative\u201d is a question of fact. (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">CrossTalk Productions, Inc., supra,<\/span>\u00a065 Cal.App.4th at p. 644.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c\u2009\u2018At the outset it is helpful to acknowledge the various policy considerations which are involved in cases involving economic duress. Typically, those claiming such coercion are attempting to avoid the consequences of a modification of an original contract or of a settlement and release agreement. On the one hand, courts are reluctant to set aside agreements because of the notion of freedom of contract and because of the desirability of having private dispute resolutions be final. On the other hand, there is an increasing recognition of the law\u2019s role in correcting inequitable or unequal exchanges between parties of disproportionate bargaining power and a greater willingness to not enforce agreements which were entered into under coercive circumstances.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Rich &amp; Whillock, Inc., supra<\/span>, 157 Cal.App.3d at p. 1158.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c\u2009\u2018As it has evolved to the present day, the economic duress doctrine is not limited by early statutory and judicial expressions requiring an unlawful act in the nature of a tort or a crime.\u2009\u2026 Instead, the doctrine now may come into play upon the doing of a wrongful act which is sufficiently coercive to cause a reasonably prudent person faced with no reasonable alternative to succumb to the perpetrator\u2019s pressure.\u2009\u2026 The assertion of a claim known to be false or a bad faith threat to breach a contract or to withhold a payment may constitute a wrongful act for purposes of the economic duress doctrine.\u2009\u2026 Further, a reasonably prudent person subject to such an act may have no reasonable alternative but to succumb when the only other alternative is bankruptcy or financial ruin.\u2009\u2026\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Chan, supra<\/span>, 188 Cal.App.4th at pp. 1173\u20131174.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c\u2009\u2018It is not duress \u2026 to take a different view of contract rights, even though mistaken, from that of the other contracting party, and it is not duress to refuse, in good faith, to proceed with a contract, even though such refusal might later be found to be wrong. [\u00b6] \u2026 \u201cA mere threat to withhold a legal right for the enforcement of which a person has an adequate [legal] remedy is not duress.\u201d\u2009\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">River Bank America, supra<\/span>, 38 Cal.App.4th at p. 1425.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[W]rongful acts will support a claim of economic duress when \u2018a reasonably prudent person subject to such an act may have no reasonable alternative but to succumb when the only other alternative is bankruptcy or financial ruin.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Uniwill, supra<\/span>, 124 Cal.App.4th at p. 545.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cEconomic duress has been recognized as a basis for rescinding a settlement. However, the courts, in desiring to protect the freedom of contracts and to accord finality to a privately negotiated dispute resolution, are reluctant to set aside settlements and will apply \u2018economic duress\u2019 only in limited circumstances and as a \u2018last resort.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">San Diego Hospice v. County of San Diego<\/span>\u00a0(1995) 31 Cal.App.4th 1048, 1058 [37 Cal.Rptr.2d 501].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cRequired criteria that must be proven to invalidate a settlement agreement are: \u2018(1) the debtor knew there was no legitimate dispute and that it was liable for the full amount; (2) the debtor nevertheless refused in bad faith to pay and thereby created the economic duress of imminent bankruptcy; (3) the debtor, knowing the vulnerability its own bad faith had created, used the situation to escape an acknowledged debt; and (4) the creditor was forced to accept an inequitably low amount.\u2009\u2026\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Perez, supra<\/span>, 157 Cal.App.4th at pp. 959\u2013960.) <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<h2 class=\"SS_Heading\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\"><span class=\"SS_ib\" data-housestyle=\"EMPHASIS_ib\">Secondary Sources<\/span><\/span><\/h2>\n<div>1 Witkin, Summary of California Law (11th ed. 2017) Contracts, \u00a7\u00a7\u2009315\u2013317<\/div>\n<div>17\u00a0California Forms of Pleading and Practice, Ch. 215,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Duress, Menace, Fraud, Undue Influence, and Mistake,<\/span>\u00a0\u00a7\u00a7\u2009215.22,\u00a0215.122\u00a0(Matthew Bender)<\/div>\n<div>9\u00a0California Points and Authorities, Ch. 92,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Duress, Menace, Fraud, Undue Influence, and Mistake<\/span>, \u00a7\u200992.24\u00a0(Matthew Bender)<\/div>\n<div>1\u00a0Matthew Bender Practice Guide: California Contract Litigation, Ch. 8,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Seeking or Opposing Equitable Remedies in Contract Actions<\/span>, 8.07<\/div>\n<div>1\u00a0Matthew Bender Practice Guide: California Contract Litigation, Ch. 17,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Attacking or Defending Existence of Contract\u2014Fraud, Duress, Menace, and Undue Influence<\/span>, 17.03\u201317.06, 17.20\u201317.24[2]<\/div>\n<div class=\"SS_Note\">\n<div id=\"TRNotes_n_3\"><\/div>\n<\/div>\n<\/div><\/section>\n<div  class='hr av-swzk8-62d06a864adc6fd97f794b9b8b019211 hr-default  avia-builder-el-6  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-l6s4o-5226224ac5abe696608a699dd788acc6\">\n#top .av_textblock_section.av-l6s4o-5226224ac5abe696608a699dd788acc6 .avia_textblock{\nfont-size:22px;\n}\n<\/style>\n<section  class='av_textblock_section av-l6s4o-5226224ac5abe696608a699dd788acc6 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><p><a href=\"https:\/\/crowdsourcelawyers.com\/\">CrowdSourceLawyers.com<\/a><\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-328","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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