August 28, 2025
CTN Cash and Carry v Gallaher [1993] EWCA Civ 19 (15 February 1993)
A supplier threatened to withdraw future credit facilities from a customer unless a disputed invoice was paid. The customer paid under protest and sued, claiming economic duress. The court held the threat, being a lawful act made in good faith, was not duress. Facts The plaintiff, CTN Cash and Carry Ltd (CTN), was a wholesaler of tobacco products. The defendant, Gallaher Ltd, was a major cigarette manufacturer and CTN’s supplier. The parties had a long-standing commercial relationship, but no overarching supply contract. Gallaher provided credit facilities to CTN, but this was at Gallaher’s sole discretion and could be withdrawn at