Hobin v. Coldwell Banker Residential Affiliates, Inc.
New Hampshire Supreme Court
744 A.2d 1134 (N.H. 2000)
Hobin (plaintiff) became a Coldwell Banker (defendant) franchisee after employees suggested company policy would keep another franchise out of his market, even though the written franchise agreement expressly reserved Coldwell Banker's right to place a franchise anywhere. After Hobin received substantial franchise benefits and Coldwell Banker incurred real costs providing them, the company placed one of its largest franchisees in Hobin's market, and Hobin sued for breach of the implied covenant of good faith and fair dealing; the lower court dismissed the claim.
Whether the implied covenant of good faith and fair dealing can override an express contract term when the contract is otherwise supported by adequate consideration.