Opinion ID: 77681
Heading Depth: 3
Heading Rank: 1

Heading: Wrongful Acts or Threats

Text: 26 There was no wrongful act in the context of a duress analysis because KMA did not present unfavorable contractual terms to Appellants before acting wrongfully to coerce their consent. Although KMA's purported failure to pay ELL 12 for warranty claims, sales incentives, and advertising costs are wrongful acts, they were not carried out as part of an attempt to induce Appellants to execute the Release. Indeed, the alleged wrongful acts occurred before any mention of the Release. Consequently, a fundamental element of economic duress is missing because KMA never set forth any terms before acting wrongfully to induce Appellants' acquiescence. [T]he mere withholding of payment of a debt, without more, is insufficient to constitute economic duress . . . . Id. (internal citation omitted). Similarly, Appellants' remaining examples of wrongful acts—improper vehicle allocation, failure to provide marketing support and to locate a purchaser for the Huntsville dealership—do not support a claim of economic duress because they occurred before the Release was introduced. In addition, Appellants had expressly agreed in the franchise agreement[], at a time when they were under no financial distress whatsoever, that they would not [sell] the business without [KMA's] consent. Brock v. Entre Computer Ctrs., Inc., 933 F.2d 1253, 1260 (4th Cir.1991). Thus, these wrongful acts do not represent unjustified coercion or extortive measures, nor do they constitute unlawful or unconscionable pressure to induce Appellants into signing the Release.