This means that neither party will do anything to unfairly interfere with the right of any other party to the contract to receive the contract's benefits; however, the implied promise of good faith and fair dealing
cannot create obligations that are inconsistent with the contract's terms.
Insurers have had more success pleading reverse bad faith claims as a contractually-based breach of the policyholder's duty of good faith and fair dealing
In the surety context, there are a number of important contracts to which either the duty of good faith and fair dealing
or the doctrine of "necessary implication" might apply.
The insurer argued that the covenant of good faith and fair dealing
did not come into play because the insurance policy did not, by its terms, provide a right to an insured to prosecute a claim against a third party.
Burger King sues the franchisees for past due fees and the franchisees' counterclaim against Burger King for three causes of action, including breach of the covenant of good faith and fair dealing
The court found that although there was no question that in Massachusetts bad faith required a showing of more than simple negligence, courts in other jurisdictions have recognized that--at least in the context of insurance contracts--a showing that the conduct was "highly unreasonable" or in deliberate disregard of a threatened harm could constitute a breach of the implied covenant of good faith and fair dealing
Allstate subsequently filed a motion to dismiss Hovet's claims against it, arguing that the duty of good Faith and fair dealing
only applies between insurer and insured, not insurer and claimant.
An insurer has no claim against its insured in tort for the breach of the covenant of good faith and fair dealing
, the California Court of Appeal, Second District, decided in Agricultural Insurance Co.
The lawsuit accuses Aetna of unfair competition, breach of contract, breach of the implied covenant of good faith and fair dealing
, and unjust enrichment.