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Posted: August 28, 2017

No Breach of Covenant of Good Faith and Fair Dealing; Plaintiff Received Benefits of Contract

On August 23, 2017, the Second Department issued a decision in Rayham v. Multiplan, Inc., 2017 NY Slip Op. 06306, holding that there was no breach of the covenant of good faith and fair dealing where the plaintiff was not deprived of the benefits of the parties’ contract, explaining:

The Supreme Court also properly granted that branch of the defendants’ motion which was for summary judgment dismissing the cause of action alleging a breach of the implied covenant of good faith and fair dealing. Implicit in every contract is a covenant of good faith and fair dealing, which encompasses any promise that a reasonable promisee would understand to be included. The covenant is breached where one party to a contract seeks to prevent its performance by, or to withhold its benefits from, the other. The defendants’ submissions established, prima facie, that they did not withhold the benefits of, or seek to prevent the performance of, the Beech Street Agreement either in its original form, or as amended.

(Internal quotations and citations omitted).

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