“The respondent argues that he was subject to duress. He alleges that Mr. Snell advised him that “it may get worse for you” if he did not agree to the Minutes of Settlement. The respondent also indicates his concern that if he did not agree to the Minutes he might incur an additional $10,000 to $15,000 in legal costs if the matter proceeded to arbitration.
In my view the financial pressures described by the respondent do not meet the requirements of “duress”. In Taplin v. Walsh, 2016 ONSC 2998, Woodley J. set out the following definitions of duress in the context of a s. 56(4) case:
Duress is present where there is coercion of the will of one party or where one party feels that they have no other realistic alternative but to sign the agreement. While one party might feel pressured and trapped by the circumstances into signing an agreement, this does not mean that the other party exerted undue pressure or subjected the party to duress (Balsmeier v. Balsmeier, 2016 ONSC 950, at para. 135).
…
The circumstances that will constitute duress must be quite extreme; antagonism and stress do not qualify as duress or economic duress. The burden is on the party alleging duress to prove that duress existed (Mayerovitch v. Breslin, 2012 ONSC 5192, at paras. 336, 344).
The affidavit evidence presented by the respondent does not disclose that duress of the nature and quality required existed. The economic and personal pressures described by the respondent are the types of pressures commonly felt by one or both parties involved in the negotiation and settlement of domestic financial disputes. Such negotiations are almost always stressful; parties are forced to make difficult financial decisions with long-term implications for themselves and their children. The costs consequences of litigation are an inherent pressure faced by all litigants. The threat of potential increased legal costs if a settlement is not reached is intended to put pressure on both parties to arrive at a negotiated settlement. These inherent pressures cannot be used as a basis for setting aside a negotiated agreement.
In addition, most settlements contain some element of compromise, and the caution that “it may get worse for you” if the case proceeds to arbitration or court is a fair and usually accurate warning to a recalcitrant party.
There is no suggestion by the respondent that the applicant was aware of his suicidal thoughts, or that she deliberately took advantage of or exploited him in these circumstances. There is no suggestion that the respondent sought an adjournment of the mediation to accommodate his mental health issues. The applicant participated in the mediation and agreed to the Minutes of Settlement in good faith.
Finally, while the respondent indicates that he was suffering from depression and addiction issues when he signed the Minutes of Settlement, there is no suggestion in his affidavit evidence that he lacked legal capacity to enter into an agreement at that time.”