Houston North Hospital Properties v. Telco Leasing, Inc.

ALVIN B. RUBIN, Circuit Judge:

Peers who deal at arm’s length with each other may strike a hard bargain so long as it is not an unconscionable one. Here, a business debtor seeks to set aside an agreement entered into with its creditor whereby the creditor agreed, for a price, to accept prepayment of a loan and release the lien securing it. The debtor argues that it had no economic choice but to acquiesce in the creditor’s demands and was, therefore, the victim of economic duress entitling it to recover damages. The district court found that the threat of economic burden to a debtor, not…