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March 28, 2018

Hanaway: A Truly Bizarre Opinion on the Obligation of Good Faith and Fair Dealing

Written By

Thomas E. Rutledge
Member, Stoll Keenon Ogden PLLC

Published in CCH’s Journal of Passthrough Entities -Volume 21, Issue 2

Within every contract there exist an obligation of good faith and fair deal­ing. If you don’t believe me, believe the Restatement (Second) of Contracts, which at section 205 provides: Every contract imposes upon each party a duty of good faith and fair dealing in its performance and enforcement.

Numerous Pennsylvania courts have recognized this to be the case. That said, in a recent and fairly described as truly bizarre decision from the Pennsylvania Supreme Court, it held that no obligation of good faith and fair dealing arose in an agreement of limited partnership.

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Written By

Rutledge
Thomas E. Rutledge

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