Burger King Corp. v. Weaver
169 F.3d 1310 (1999)
Author: Jim

Facts: Defendant (D) obtained the franchise for two Burger King restaurants from Burger King Corp. (P).  P franchised a new restaurant to another party in the area and D claimed that P breached its agreement.  Noting in the K gave D the exclusive right to conduct business in the area. D stopped paying rent and P sued.  D counterclaimed claiming breach by P of its duty of good faith and fail dealing.

Procedure: The district court granted P’s summary judgment on D’s counterclaim.

Issue: Did D have an implied covenant of good faith and fair dealing in the K?

Holding: No

Rationale:  Under Florida law, breach of implied covenant of good faith and fair dealing is refused under two circumstances: 1. where the party alleged to have breached the implied covenant has in good faith performed all of the express contractual provision, 2. where the implied duty of good faith alleged to have been breached would vary the express terms of the K.  In this case, P has in good faith performed the express terms of the K and therefore, D does not have a case for breach of implied good faith.