Dossett v TKJ Nominees Pty Ltd

The High Court of Australia considered an appeal from the Supreme Court of Queensland in a dispute between the appellant, Mr. Dossett, and the respondent, TKJ Nominees Pty Ltd. The core of the disagreement concerned the interpretation and enforceability of a deed of settlement and release entered into by the parties, which Mr. Dossett sought to set aside.

The central legal issue before the High Court was whether the deed of settlement and release was voidable on the grounds of duress, specifically economic duress. This required the court to determine if Mr. Dossett had entered into the deed under illegitimate pressure exerted by TKJ Nominees, which left him with no practical alternative but to agree to its terms.

The High Court, in a joint judgment, affirmed the principles governing economic duress. Their Honours held that for duress to be established, the pressure exerted must be illegitimate, and it must have caused the victim to enter into the contract. Illegitimate pressure can include threats to breach a contract unless the other party agrees to new terms, provided that the victim had no reasonable alternative but to submit to the pressure. In this instance, the Court found that the conduct of TKJ Nominees in threatening to withdraw from a joint venture and pursue other remedies, which would have had severe financial consequences for Mr. Dossett, constituted illegitimate pressure. Crucially, the Court determined that Mr. Dossett did not have a reasonable alternative but to sign the deed, as the potential financial fallout from TKJ Nominees' threatened actions was too great.

The High Court allowed the appeal, setting aside the deed of settlement and release.