In the May 22, 2025 edition of The Legal Intelligencer, Edward Kang writes, “Reading Between the Lines: Implied Covenant of Good Faith and Fair Dealing.”
It is not in boldface. It does not appear in the indemnity clause. And it is rarely the lead count in a complaint. But the implied covenant of good faith and fair dealing arises from a duty that is embedded in every contract, and a breach of the implied covenant claim can be a powerful tool in litigation. Too often, litigators make the mistake of tacking on a breach of implied covenant as a boilerplate claim or abandoning it in response to a motion to dismiss. Properly framed, a breach of the covenant claim is not just filler, but a remedy in cases where the contract is silent, ambiguous, or grants the opposing party discretion exercised for bad-faith advantage. In complex business disputes, especially those involving strategic behavior that may evade a literal breach, a well-pleaded covenant claim may be the best—or only—path forward. Continue reading ›