Alan Knobelman v Cussons Pty Limited

In *Alan Knobelman v Cussons Pty Limited*, the Supreme Court of New South Wales considered a dispute concerning the enforceability of a deed of release. The plaintiff, Alan Knobelman, sought to set aside a deed of release he had executed in favour of the defendant, Cussons Pty Limited, alleging that the deed was voidable due to duress.

The central legal issue before the court was whether the plaintiff had established the elements of economic duress, specifically whether he had been subjected to illegitimate pressure that vitiated his consent to the deed. This required the court to determine if the pressure exerted by Cussons was illegitimate and if it was the operative cause of Mr. Knobelman entering into the deed.

Justice Ian Thompson found that the plaintiff had not discharged the onus of proving economic duress. His Honour reasoned that while there was pressure applied by Cussons, it did not amount to illegitimate pressure in the circumstances. The court considered the plaintiff's financial position and his ability to seek independent legal advice, concluding that he had not been deprived of any practical choice. The legal principle applied was that for economic duress to be established, the pressure must be illegitimate, and it must have compelled the victim to enter into the contract against their will, leaving them with no reasonable alternative.

The court therefore dismissed the plaintiff's claim and upheld the validity of the deed of release.