This week’s Court of Appeals decisions numbered 437-457 with 21 decisions; 6 decisions to be published.

This monument is erected by the citizens of Anderson County in honor of the valor and sacrifice of the volunteers of this county who served in the War with Mexico (1846-1848). Erected 1847, Restored 1997. Photo by Michael Stevens 4/14/2013.

This monument is erected by the citizens of Anderson County in honor of the valor and sacrifice of the volunteers of this county who served in the War with Mexico (1846-1848). Erected 1847, Restored 1997. Photo by Michael Stevens 4/14/2013.

The published decisions can be directly accessed as follows:

Click here for links to all the archived Court of Appeals minutes.

This week’s tort report of tort, insurance and civil decisions.

421.  Breach of good faith and fair dealing in contract.
Chou vs. Chilton
COA, Published 5/26/2014 from Jefferson County

We next review Chou’s claims for breach of the covenant of good faith and fair dealing. “In every contract, there is an implied covenant of good faith and fair dealing.” Ranier v. Mount Sterling Nat. Bank, 812 S.W.2d 154, 156 (Ky. 1991). The contract in question is the Operating Agreement. To put it another way, Chou is claiming that the Chiltons breached their contract with him. Here, the Operating Agreement specifically allows members to sue other members for “fraud, gross negligence, an intentional breach of this Agreement, or as otherwise required by the act.” The breach of the covenant of good faith and fair dealing would be a breach of the Agreement. Whether or not it was an intentional breach would be up to the fact finder at trial. The Operating Agreement that was signed by all the parties allows Chou to bring a suit based on this claim. Chou has standing to bring this claim and the trial court erred in holding otherwise.

[gview file=”http://apps.courts.ky.gov/Appeals/Minutes/MNT05232014.pdf”]