This section contains the nature of the case and procedural background.

Machinery (P) was engaged in the hauling of freight. Steel (D) engaged P's services to transport 17 loads of steel to Shelby Steel in Kentucky. When delivery was nearly completed Shelby informed D that the product was not of merchantable quality and that it was rejected. P was instructed to return the product to D. Shortly thereafter an agent of D told P to pay D the sum of $31,000 the price of the undelivered goods or else D would never do business with P again. P sued D for an attempt to extort money from P. The court concluded that D's threats were not actionable. P appealed.

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