Opinion ID: 612629
Heading Depth: 1
Heading Rank: 3

Heading: Interpharm's Defaults Preclude It from Accusing Wells Fargo of Wrongful Threats in Conditioning Forbearance Agreements on New Demands

Text: These principles readily reveal a critical flaw in Interpharm's pleading of economic duress. Specifically, once Interpharm defaulted on its obligations under the Credit Agreement, as it did in the third quarter of 2007 and again in early 2008, Wells Fargo was no longer obliged to continue providing Interpharm with any credit pursuant to that contract. Rather, Wells Fargo had the legal right at both junctures to terminate the line of credit and to demand immediate repayment of Interpharm's legal obligations, which then totaled more than $30 million. Further, because Wells Fargo was not obliged to forbear the exercise of these legal rights, see MLI Indus. v. N.Y.S. Urban Dev. Corp., 205 A.D.2d at 1000, 613 N.Y.S.2d at 980, its threat not to forebear exercise of those rights was not wrongful. Interpharm has pleaded no facts supporting a different conclusion.