Labor/Employment,
Insurance
Jul. 21, 2009
The Art of the Covenant
After years of relative judicial inactivity, the implied covenant has recently resurfaced.
Rex Heeseman
JAMS
555 W 5th St Fl 32
Los Angeles , CA 90013-1055
Phone: (213) 253-9772
Fax: (213) 620-0100
Email: rheeseman@jamsdar.com
Stanford Univ Law School
Rex Heeseman retired from the Los Angeles Count Superior Court bench in 2014. He is at JAMS, Los Angeles. Besides speaking at various MCLE programs, he co-authors The Rutter Group's practice guide on "Insurance Litigation." From 2002 to 2015, he was an adjunct professor at Loyola Law School.
A 2004 case noted that "'Every contract imposes upon each party a duty of good faith and fair dealing in its performance and its enforcement' ... '[t]he precise nature and extent of the duty imposed by such an implied promise will depend on the contractual purposes.'" Jonathan Neil & Associates v. Jones, 33 Cal.4th 917 (2004). This implied covenant has a guiding principle: "Neither party will do anything which will injure the right of the other to receive the benefits of the agreement." ...
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