Breach of Implied Covenant of Good Faith and Fair Dealing as a Cause of Action in New York

Breach of Implied Covenant of Good Faith and Fair Dealing

“The implied covenant of good faith and fair dealing between parties to a contract embraces a pledge that neither party shall do anything which will have the effect of destroying or injuring the right of the other party to receive the fruits of the contract. (Moran v Erk, 11 N.Y.3d 452, 456 [2008] [internal quotation and citation omitted.).” Earthlink, LLC v. Charter Commc’ns Operating, LLC, 2022 N.Y. Slip Op. 31177 (N.Y. Sup. Ct. 2022).

“A breach of the implied covenant claim is duplicative of a breach of contract claim if both claims arise from the same facts and seek the identical damages for each alleged breach. (Amcan Holdings, Inc. v Canadian Imperial Bank of Commerce, 70 A.D.3d 423, 426 [1st Dept 2010] [citations omitted], Iv denied, 15 N.Y.3d 704 [2010].) However, causes of action for breach of contract and breach of the covenant of good faith and fair dealing may stand together where the defendant engages in conduct that injures or frustrates the other party’s right to receive the fruits of the contractual bargain. (MBIA Ins. Corp. v Credit Suisse Sees. (USA) LLC, 32 Misc.3d 758, 778 [Sup Ct, NY County 2011] [citation omitted].)” Earthlink, LLC v. Charter Commc’ns Operating, LLC, 2022 N.Y. Slip Op. 31177 (N.Y. Sup. Ct. 2022).