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United Airlines, Inc. v. Good Taste, Inc.

Alaska Supreme Court

982 P.2d 1259 (1999)

Relevant factsFree

SSC (plaintiff), a catering business, spent roughly $1 million expanding operations to meet its three-year catering contract with United (defendant), which included a termination-for-convenience clause allowing either party to end the agreement with 90 days' notice; United terminated about a year in, allegedly to pursue a better deal with another company, and SSC sued for breach of the implied covenant of good faith and fair dealing, winning a jury verdict.

IssueFree

Whether the implied covenant of good faith and fair dealing requires a party to have cause to terminate an agreement that can be terminated at will.

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