What is the test for recoverable damages when a party is forced to make a payment of money which is not bound to be paid?
Saskatchewan, Canada
The following excerpt is from Marshall v. Marshall, 1923 CanLII 165 (SK CA):
In Maskell v. Horner, [1915] 3 K.B. 106, 84 L.J.K.B. 1752, Lord Reading, at p. 1755, is reported as follows: If a person with knowledge of the facts pays money which he is not in law bound to pay, and in circumstances implying that he is paying it voluntarily to close the transaction, he cannot recover it. Such a payment is in law like a gift, and the transaction cannot be reopened. If a person pays money which he is not bound to pay, under the compulsion of urgent and pressing necessity, or of seizure, actual or threatened, of his goods, he can recover it as money had and received.
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