California, United States of America
The following excerpt is from Alajayan v. Fed. Ins. Co., B263203 (Cal. App. 2016):
The implied covenant of good faith and fair dealing cannot exist absent a contractual right. (See Waller v. Truck Ins. Exchange, Inc. (1995) 11 Cal.4th 1, 36 ["the
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implied covenant . . . 'should not be endowed with an existence independent of its contractual underpinnings'"]; see also Kransco v. American Empire Surplus Lines Ins. Co. (2000) 23 Cal.4th 390, 408.) Because the Alajajyans had no contractual right to payment, their implied covenant of good faith and fair dealing cause of action also fails.
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