What now for lawful act economic duress?

• Considers a recent lawful act economic duress case, Pakistan International Airline Corporation v Times Travel (UK) Ltd.

In Pakistan International Airline Corporation v Times Travel (UK) Ltd [2021] UKSC 40, [2021] All ER (D) 40 (Aug) the Supreme Court declined to expand the scope of the controversial doctrine of lawful act economic duress so as to allow the claimant to prevail.

However, in judgments written by Lords Hodge and Burrows, the court both affirmed the doctrine’s existence, and addressed the possibility of future development of this area of law.

The case

Times Travel (UK) Limited (Times Travel) is a travel agent. During the relevant period, Times Travel’s business consisted almost entirely of selling airline tickets from the UK to Pakistan. Pakistan International Airline Corporation (the Airline) was the only operator of direct flights from the UK to Pakistan at that time.

The parties entered into an agreement under which Times Travel