16 U.S.F. L. Rev. 187 (1981-1982)
Standards for Limiting the Tort of Bad Faith Breach of Contract

handle is hein.journals/usflr16 and id is 197 raw text is: ARTICLES
Standards for Limiting the Tort
of Bad Faith Breach of Contract
By CHARLES M. LOUDERBACK*
Associate, Ropers, Majeski, Kohn,
Bentley, Wagner & Kane, San Jose;
B.A., University of California at Davis,
1976; J.D., University of San Francisco,
1979; Member, California Bar.
THOMAS W. JURIKA**
Introduction
IN RECENT YEARS, California courts have been struggling with
the issue of whether the tort of bad faith breach of contract
should be expanded to cover not only insurance contracts, but also
other commercial contracts. Every contract contains an implied
duty of good faith and fair dealing. When this duty is breached, a
cause of action arises. As a general rule, a breach of this duty in
most commercial contracts results merely in a breach of contract.
However, in the limited area of breaches of insurance contracts, a
tort of bad faith breach of contract has been recognized.
Despite the confinement of the tort of bad faith breach of con-
tract to insurance contracts, there is a recent trend toward consid-
ering expansion of this tort to non-insurance, commercial cases.
California appellate courts have discussed this issue in some de-
*1 would like to thank Michael J. Brady, a partner in the law firm of Ropers, Majeski,
Kohn, Bentley, Wagner & Kane, for his critical comments on the style and substance of this
article and for his encouragement in the article's completion.
**Class of 1982.

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