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

Selmer (P) agreed to act as a subcontractor on a construction project with Blakeslee (D) the general contractor. P was to get $210,000 for erecting prestressed concrete materials supplied by D. D failed to fulfill its part in that it was tardy in supplying P with the materials. P could have terminated the contract without penalty but orally agreed with D to complete the work provided that D would pay extra money for D’s defaults. When the job was completed P demanded $120,000 and D offered $67,000. P was in desperate financial condition and accepted the offer. Two and a half years later, P sued D claiming that its extra costs have amounted to $150,000 and asked for that less the $67,000 it took from D, plus consequential and punitive damages. The district court granted summary judgment to D holding that the $67,000 payment was a valid settlement agreement. P appealed contending that the agreement was invalid as it was procured by economic duress.

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