Opinion ID: 2585556
Heading Depth: 1
Heading Rank: 8

Heading: Duress and Unconscionable Bargain

Text: [¶ 23] Kendrick also seeks to defend against enforcement of the settlement with claims of duress and unconscionable bargain. She claims that she was placed under duress to settle when her first attorney caused her to believe that she would be responsible for all of Barker's attorney fees if she lost at trial at a time when medical expenses and lost income had financially harmed her. She also contends that her attorney pressured her to accept the settlement agreement. She claims that in the event that her insurer seeks subrogation an unconscionable result will occur because she will recover a mere $2,000 under the settlement as enforced. The trial court ruled that these allegations did not establish prima facie cases of these two defenses and entered judgment against Kendrick. [¶ 24] Kendrick bears the burden of proving that she agreed under duress. Goodson v. Smith, 69 Wyo. 439, 457-58, 243 P.2d 163, 171 (Wyo.1952). [D]uress exists whenever a person is induced, by the unlawful act of another, to perform some act under circumstances which deprive him of the exercise of free will. In Re TR, 777 P.2d 1106, 1111 (Wyo.1989). Kendrick's argument that financial issues constituted duress is a claim of economic duress. Whether particular facts are sufficient to constitute economic duress is a question of law. Whether these circumstances exist is a question of fact. The Tenth Circuit Court of Appeals, when applying Wyoming law to a duress defense to avoid the enforcement of an agreement, said: The Wyoming test for duress is not inconsistent with the test for economic duress developed in those states which have expressly recognized economic duress as grounds for avoiding a settlement agreement. This Court, however, has not directly had the opportunity to adopt what is commonly known as the economic duress doctrine. We take this opportunity now to do so and embrace the three-prong test employed by many courts to determine whether economic duress exists. Under this test, economic duress occurs when (1) a party involuntarily accepts the terms of another, (2) circumstances permit no other alternative, and (3) such circumstances are the result of coercive acts of the other party. Economic duress does not exist, however, unless a person has been the victim of a wrongful act and has no reasonable alternative but to agree with the terms of another or be faced with a serious financial hardship. What constitutes a coercive act or reasonable alternative is a question of fact depending upon the circumstances of each case. Ordinarily, those people who are claiming coercion are attempting to avoid the consequences of a modification or breach of a contract or a settlement and release of a contract, as in this case. A person may not have a reasonable alternative or remedy when the delay in pursuing the remedy would cause immediate or irreparable serious loss or financial ruin. Blubaugh v. Turner, 842 P.2d 1072, 1074-75 (Wyo.1992) (citations and quotations omitted). Kendrick does not present argument specific to these elements and does not present authority that her attorney's actions were wrongful, unlawful, or that these left her with no alternative. Refusing to sign the settlement agreement and hiring another attorney indicates that Kendrick was willing to go to trial and was not economically coerced into settling. She has not presented any evidence that she faced irreparable serious loss or financial ruin. We do not find any facts to support her claim of duress and affirm the trial court's ruling. [¶ 25] The district court's order of judgment is affirmed.