Breach of implied covenant of good faith and fair dealing

Every contract obligates each party to act with good faith and fair dealing during its performance and enforcement. In Florida law, the implied covenant of good faith and fair dealing is an integral part of every contract. 

Florida contract law recognizes the implied covenant of good faith and fair dealing in every contract. However, it’s crucial to understand that under Florida law, there’s no independent cause of action for breach of this implied covenant. As per the law, “Where a party to a contract has in good faith performed the express terms of the contract, an action for breach of the implied covenant of good faith and fair dealing will not lie.” Furthermore, a claim for breach of the implied covenant of good faith and fair dealing can only be made if the claimant can identify specific express contractual provisions that have been violated. Additionally, the claimant should be cautious about using the implied obligation of good faith to alter the terms of an express contract. Finally, the allegations pleading breach of the implied covenant of good faith and fair dealing should not be redundant when the conduct that constitutes the alleged violation is similar to the companion cause of action.

The implied covenant of good faith and fair dealing is limited in two ways. Firstly, the claim must be accompanied by an allegation that an express term of the contract has been breached. Secondly, the implied obligation of good faith cannot be used to modify the terms of an express contract. Therefore, to establish this cause of action, a plaintiff must demonstrate a conscious and deliberate act of failure or refusal to discharge contractual responsibilities that unfairly frustrate the agreed-upon common purpose and disappoint the reasonable expectations of the other party, thereby depriving that party of the benefits of the agreement. Generally, the courts have been divided on whether the insured should be allowed to plead breach of the implied covenant of good faith and fair dealing.

What do I do after I’ve been sued?

If you’ve been sued, don’t hesitate to reach out to Ormond Beach, Florida foreclosure defense attorney Andrew J. Pascale at 877-667-1211 for a comprehensive discussion. Remember, this blog isn’t legal advice, just some helpful info.