Racine & Laramie, Ltd., Inc. v. Department of Parks and Recreation
Court of Appeal of California
14 Cal. Rptr. 2d 335 (1992)
Relevant factsFree
Racine (plaintiff) held a 40-year concessions contract with the state parks department (defendant) and spent years negotiating an expansion to add a restaurant and alcohol sales, but the negotiations eventually broke down and the department declined to sign an amended contract; Racine sued for breach of the implied covenant of good faith and fair dealing, and a jury found the department had negotiated in bad faith and awarded damages, which the department appealed.
IssueFree
Whether, absent an existing contract covering the subject, there is an obligation to bargain for a new or amended contract in good faith.