Elements for a Claim of Breach of the Implied Covenant of Good Faith and Fair Dealing — Contract

In Nevada, the elements for a contract claim of breach of the covenant of good faith and fair dealing are:

  1. Existence of a valid contract;
  2. Every contract in Nevada contains an implied covenant to act in good faith in performance and enforcement of the contract;
  3. Justifiable expectation by the plaintiff to receive certain benefits consistent with the spirit of the agreement;
  4. Defendant performed in a manner that was in violation of or unfaithful to the spirit of the contract (the terms of the contract are complied with in a literal sense, but the spirit of the contract is breached);
  5. Unfaithful actions by the defendant were deliberate; and
  6. Causation and damages.

NRS 104.1304; NRS 104.1201(t); Klein v. Freedom Strategic Partners, LLC, 595 F. Supp. 2d 1152 (D. Nev. 2009); George v. Morton, No. 2:06-CV-112-PMP-GWF, 2007 WL 680788, at *8 (D. Nev. 2007); Nelson v. Heer, 123 Nev. 217, 163 P.3d 420 (2007); Ins. Co. of the W. v. Gibson Title Co., Inc., 2006 WL 1278706 (May 11, 2006); State, University and Community College System v. Sutton, 120 Nev. 972, 989, 103 P.3d 8, 19 (Nev. 2004); Frantz v. Johnson, 116 Nev. 455, 465 n. 4, 999 P.2d 351, 358 n. 4 (2000); Perry v. Jordan, 111 Nev. 943, 900 P.2d 335 (1995); Hilton Hotels Corp. v. Butch Lewis Prod., Inc., 107 Nev. 226, 808 P.2d 919 (1991); A. C. Shaw Constr. v. Washoe County, 105 Nev. 913, 784 P.2d 9 (1989); Bowser v. McDonald’s Corp., 714 F.Supp 839 (SD Tex 1989); NRS 104.1203.   The Covenant of Good Faith and Fair Dealing in Nevada, 1 Nevada Law Review 68 (Spring 1998).

 

See elements for other claims at the Nevada Law Library

 

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Jay Young, Mediator and Arbitrator

Jay Young is a Las Vegas, Nevada attorney. His practice focuses on acting as an Arbitrator and Mediator. Mr. Young can be reached at 702.667.4828 or at jay@h2law.com. The information provided on this site does not, and is not intended to constitute legal advice. You understand each legal matter should be considered to be unique and subject to varying results. You should not take or refrain from taking action based on any information contained on this website without first consulting legal counsel, as it is not intended to advise you on your particular matter. Further, you understand that no guarantee is given that the information contained herein is an accurate statement of the law at any given point in time, as the law is constantly changing. Guest bloggers are responsible for their own content, which is not to be construed as an article authored by Jay Young. Please see http://nevadalaw.info/disclaimer

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