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Contracts Keyed to Frier
Racine & Laramie, Ltd., Inc. v. Department of Parks and Recreation
Citation:
11 Cal. App. 4th 1026, 14 Cal. Rptr. 2d 335 (1992)Facts
Plaintiff had a 40-year contract with Defendant to operate concessions at a state park. During the term of the contract, Plaintiff began negotiations with Defendant to expand Plaintiff’s operations to include a full-service restaurant and the sale of alcohol on the premises. They negotiated for several years before negotiations broke down, and Defendant declined to enter into an amended contract. Plaintiff sued Defendant for a breach of the implied covenant of good faith and fair dealing, based on Defendant’s apparent reversal of its negotiating stance. The jury concluded that Defendant had exhibited bad faith in its negotiations and awarded damages to Plaintiff. Defendant appealed.
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