Universe Tankships Inc of Monrovia v International Transport Workers' Federation
Encyclopedia
Universe Tankships Inc of Monrovia v International Transport Workers’ Federation [1982] 2 All ER 67 is an English contract law
case relating to duress
.
black listed a Universe Tankship Inc ship in the context of a trade dispute. To secure the release of the ship, Universe Tankships Inc paid $6,480 into ITWF’s welfare fund. ITWF admitted this was an agreement procured by duress, but it argued its actions were protected by immunity from tort in Trade Union and Labour Relations Act 1974
s 13.
Lord Scarman said that duress not only renders a contract voidable but is also a tort if it causes damage or loss (referring to Barton v Armstrong
and Pao On v Lau Yiu Long
). It comes from (1) pressure amounting to compulsion of the will of the victim; and (2) the illegitimacy of the pressure exerted.
The ‘lack of any practicable choice but to submit’ should be proved for (1) and here, for (2) the question was whether it was a trade dispute. The majority held the payment was unconnected with terms and conditions of employment and therefore not a trade dispute within s 29(1). Hence the act was duress.
English contract law
English contract law is a body of law regulating contracts in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries across the Commonwealth , and the United States...
case relating to duress
Duress
In jurisprudence, duress or coercion refers to a situation whereby a person performs an act as a result of violence, threat or other pressure against the person. Black's Law Dictionary defines duress as "any unlawful threat or coercion used... to induce another to act [or not act] in a manner...
.
Facts
The International Transport Workers' FederationInternational Transport Workers' Federation
The International Transport Workers' Federation is a global union federation of transport workers' trade unions, founded in 1896. In 2009 the ITF had 654 member organizations in 148 countries, representing a combined membership of 4.5 million workers....
black listed a Universe Tankship Inc ship in the context of a trade dispute. To secure the release of the ship, Universe Tankships Inc paid $6,480 into ITWF’s welfare fund. ITWF admitted this was an agreement procured by duress, but it argued its actions were protected by immunity from tort in Trade Union and Labour Relations Act 1974
Trade Union and Labour Relations Act 1974
The Trade Union and Labour Relations Act 1974 was a UK Act of Parliament, now replaced by the Trade Union and Labour Relations Act 1992. The 1974 Act was introduced by the Labour Government, and both repealed and replaced the Conservatives' Industrial Relations Act 1971...
s 13.
Judgment
Lord Diplock said duress is not about not knowing what you are contracting for, but ‘his apparent consent was induced by pressure exercised on him by that other party which the law does not regard as legitimate, with the consequence that the consent is treated in law as revocable unless approbated either expressly or by implicattion after the illegitimate pressure has ceased to operate on his mind.’ It was not appropriate to say the conduct was commercial pressure ‘wherever one party to a commercial transaction is in a stronger bargaining position than the other party’ should give rise to a right of redress.Lord Scarman said that duress not only renders a contract voidable but is also a tort if it causes damage or loss (referring to Barton v Armstrong
Barton v Armstrong
Barton v Armstrong [1973] is an English contract law case relating to duress. It held that a person who agrees to a contract under physical duress may avoid the contract, even if the duress was not the main reason for agreeing to the bargain.-Facts:...
and Pao On v Lau Yiu Long
Pao On v Lau Yiu Long
Pao On v Lau Yiu Long [1979] is an contract law appeal case from the Court of Appeal of Hong Kong decided by the Privy Council, concerning duress.-Facts:...
). It comes from (1) pressure amounting to compulsion of the will of the victim; and (2) the illegitimacy of the pressure exerted.
The ‘lack of any practicable choice but to submit’ should be proved for (1) and here, for (2) the question was whether it was a trade dispute. The majority held the payment was unconnected with terms and conditions of employment and therefore not a trade dispute within s 29(1). Hence the act was duress.
See also
- UK labour law
- English contract lawEnglish contract lawEnglish contract law is a body of law regulating contracts in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries across the Commonwealth , and the United States...
- Lloyds Bank Ltd v BundyLloyds Bank Ltd v BundyLloyds Bank Ltd v Bundy [1974] is a landmark case in English contract law, on undue influence. It is remarkable for the judgment of Lord Denning MR who advanced that English law should adopt the approach developing in some American jurisdictions that all impairments of autonomy could be collected...
[1975] QB 326 - Williams v. Walker-Thomas Furniture Co.Williams v. Walker-Thomas Furniture Co.Williams v. Walker-Thomas Furniture Co., 350 F.2d 445 , was a court opinion, written by Judge J. Skelly Wright, that had a definitive discussion of unconscionability as a defense to enforcement of contracts in American contract law. As a staple of first-year law school contract law courses, it has...
350 F.2d 445 (C.A. D.C. 1965) - Pao On v Lau Yiu LongPao On v Lau Yiu LongPao On v Lau Yiu Long [1979] is an contract law appeal case from the Court of Appeal of Hong Kong decided by the Privy Council, concerning duress.-Facts:...
[1980] AC 614
- Alec Lobb (Garages) Ltd v Total Oil (Great Britain) LtdAlec Lobb (Garages) Ltd v Total Oil (Great Britain) LtdAlec Lobb Garages Ltd v Total Oil Ltd [1984] is an English contract law case relating to undue influence.-Facts:Mr Lobb was the managing director of a small petrol station in South Street, Brain-tree, Essex. It had to buy petrol only from Total Oil. In 1969 he was in financial difficulty...
[1984] EWCA Civ 2, [1983] 1 WLR 87, 94, refusal to waive existing contractual obligations is not duress, because there is no wrongful threat.