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Contracts Keyed to Frier
Centronics Corp. v. Genicom Corp.
Citation:
562 A.2d 187 (1989)Facts
Plaintiff contracted to sell business assets to Defendant. The contract required an escrow deposit by Defendant of the funds needed to fulfill the contract. The contract also contained an arbitration clause requiring any disputes over the value of the property to be submitted to arbitration. The parties had a dispute over the value of the property and turned to arbitration. While arbitration was pending, Plaintiff demanded a partial payment from the escrow funds of monies that were not in dispute. Defendant refused to release payment, arguing that the contract provided that the escrow agent should not release the funds until the completion of arbitration. Plaintiff sued Defendant in New Hampshire state court for breach of an implied covenant of good faith. The trial court held that Defendant didn’t violate a duty of good faith because the contract contained no such provision requiring the partial payment of funds pending arbitration. Plaintiff appealed.
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