Opinion ID: 612629
Heading Depth: 1
Heading Rank: 6

Heading: conclusion

Text: To summarize, while Interpharm alleges that it was effectively destroyed by Wells Fargo's decision to limit the credit it would extend from October 2007 through June 2008, after Interpharm defaulted on the parties' Credit Agreement, Wells Fargo was under no obligation to extend any further credit. To the extent it agreed to do so in a series of forbearance agreements imposing stricter conditions and costs on Interpharm, these demands by a lender otherwise under no obligation to continue extending credit cannot constitute the wrongful threat required to establish economic duress under New York law. Nor can a wrongful threat be based on Wells Fargo's exercise of discretion specifically conferred by the Credit Agreement. Accordingly, the releases granted by Interpharm in favor of Wells Fargo in these forbearance agreements are enforceable, and the district court correctly dismissed this action based on the release in the May 12, 2008 Forbearance Agreement. The judgment of dismissal is AFFIRMED.