DSND Subsea Ltd v Petroleum Geo-Services ASA [2000]

DSND Subsea Ltd v Petroleum Geo-Services ASA [2000] BLR 530 centred on a contractual variation and the claim of economic duress by Petroleum Geo-Services ASA against DSND Subsea Ltd, a subcontractor involved in construction work on oil rigs.

The factual background involved a change in the scope of work, prompting DSND Subsea Ltd to suspend its activities until a contractual variation was signed. The purpose was to ensure that insurance covered the new type of work, reflecting a genuine concern about the associated risks. Under financial pressure, Petroleum Geo-Services ASA eventually entered into the contractual variation but later sought to escape from it, claiming that entry had been induced by duress.

In the High Court, the judgment by Dyson J clarified the elements constituting actionable duress. These included pressure with a practical effect of compelling or limiting practical choices for the victim, illegitimacy of the pressure, and the pressure being a significant cause inducing the claimant to enter into the contract.

The court considered various factors in assessing whether the pressure amounted to illegitimacy. These factors encompassed an actual or threatened breach of contract, the good or bad faith of the party exerting pressure, the existence of realistic practical alternatives for the victim, whether the victim protested at the time, and whether the victim later confirmed and sought to rely on the contract. It was emphasised that illegitimate pressure should be distinguished from the ordinary pressures of normal commercial bargaining.

In the specific circumstances of this case, even if DSND Subsea Ltd was deemed to be in breach of contract, the court held that the pressure exerted was not illegitimate. Dyson J characterised it as reasonable behaviour by a contractor acting bona fide in a very difficult situation. The court highlighted that Petroleum Geo-Services ASA had realistic practical alternatives, such as seeking alternative vessels, pursuing an injunction against DSND Subsea Ltd, or terminating the contract based on its contractual rights.

Ultimately, the court concluded that the contract was not voidable for duress, as the pressure exerted by DSND Subsea Ltd was considered legitimate under the challenging circumstances. This case serves as an illustration of the careful examination courts undertake to distinguish between legitimate commercial pressures and illegitimate pressures amounting to economic duress.
Back to blog

UOL Case Bank

Upon joining, you become a valuable UOL student and gain instant access to over 2,100 essential case summaries. UOL Case Bank is constantly expanding. Speed up your revision with us now.

Subscribe Now

Where are our students from?

Council of Europe
Crown Prosecution Service
Baker Mckenzie 
Yale University
University of Chicago
Columbia University
New York University
University of Michigan 
INSEAD
University of London
University College London (UCL)
London School of Economics (LSE)
King’s College London (KCL)
Royal Holloway, University of London 
Birkbeck, University of London
SOAS, University of London
University of Manchester
University of Zurich
University of York
Brandeis University
University of Exeter
University of Sheffield
Boston University
University of Washington
University of Leeds
University of Law
University of Kent
University of Hull
Queen’s University Belfast
Toronto Metropolitan University
Hong Kong University of Science and Technology
University of Buckingham
ESSEC Business School

  • Criminal Practice

    Diagrams and Charts

    Our carefully designed diagrams and charts will guide you through complex legal issues.

  • Criminal Law

    Clear and Succinct Definitions

    Key concepts are concisely defined to help you understand legal topics quickly.

  • Property Law

    Statutory Provisions

    Statutory provisions are provided side by side with legal concepts to help you swiftly locate the relevant legislation.

  • Public Law

    Case Summaries

    We have summarised important cases for you so that you don't need to read long and boring cases.

  • Evidence

    Rules and Exceptions

    Rules and exceptions are clearly listed so that you know when a rule applies and when it doesn't.

  • Company Law

    Terminology

    Legal terms and key concepts are explained at the beginning of each chapter to help you learn efficiently.

  • Case Law

    Case law is provided side by side with legal concepts so that you know how legal principles and precedents were established.

  • Law Exam Guide

    Law Essay Guide

    You will learn essential law exam skills and essay writing techniques that are not taught in class.

  • Law Exam Guide

    Problem Question Guide

    We will show you how to answer problem questions step by step to achieve first-class results.

  • Conflict of Laws

    Structured Explanations

    Complex legal concepts are broken down into concise and digestible bullet point explanations.

  • Legal System and Method

    Legal Research

    You will learn legal research techniques with our study guide and become a proficient legal researcher.

  • Jurisprudence and Legal Theory

    Exam-focused

    All essential concepts, principles, and case law are included so that you can answer exam questions quickly.