Does a franchise agreement with a distributor constitute a "special relationship" between the parties?
MultiRegion, United States of America
The following excerpt is from Sutter Home Winery, Inc. v. Vintage Selections, Ltd., 971 F.2d 401 (9th Cir. 1991):
6 The vast majority of courts which have considered the issue have also held that franchise and distributor agreements do not give rise to the type of special relationship necessary to maintain a tort action for breach of the implied covenant of good faith and fair dealing. See O'Neal v. Burger Chef Systems, Inc., 860 F.2d 1341, 1349 n. 4 (6th Cir.1988), for a comprehensive list of cases adopting this position.
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