1) 2) 3) 4) Totem Marine Tug v. Alyeska Pipeline Service Co. Supreme Court of Alaska 1978 Facts: a) Totem was hired by Alyeska Pipeline to carry pipeline construction materials b) Totem charterd a barge and an ocean-going tug boat c) To complete the job, Totem took out loans from Stair and Pacific Inc. d) Totem had numerous issues to completing their task on time e) The materials they were transporting were arranged incorrectly f) It took thirty days to load than three which was suspected g) There was more weight than was supposed to load as well h) Due to the extra weight the barges moved slower and fell behind i) Totem had to hire another barge to complete task on time j) After stopping at the Panama Canal, Alyeska affirmed they would pay for extra barge k) When they reached California, Aleyeska terminated the contract l) Totem invoiced them for $260,000 to $300,000 m) Alyeska said it would take up to 6-8 months to pay n) Totem needed money now so they settled for $97,500 History: a) Parties i) Totem Marine Tug (1) Plaintiff (2) Appellants ii) Alyeska Pipeline Co. (1) Defendant (2) Appellee b) Claims i) Plaintiffs claim they were forced to sign under duress and therefore they should receive the rest of their money ii) Defendants claim they signed a waiver releasing all rights to sue them therefore they have no claim c) History i) Plaintiffs bring contract action suit against Defendant ii) Defendants moved for a summary judgment iii) Superior court granted a summary judgment iv) Plaintiffs appeal summary judgment decision Issues: a) Did Totem sign their contract under duress and undue influence i) Holding: When one is under serious financial threat that could further cause irrevocable damages to their business then if one is forced to sign a document, it could be considered under duress ii) Rule: Williston, Contracts, Section 1617 at 704 iii) Application: Totem was forced to take a lesser sum of money due to creditors arguing they would foreclose on him which would have destroyed his business and credit that would have prevent him from operating anymore Judgment: Judgment is reversed and remanded to superior court.