Are there any remedies for a breach of the duty of good faith and fair dealing?
Yes, there are remedies for a breach of the duty of good faith and fair dealing in Washington. A breach of the duty of good faith and fair dealing means that a party has failed to use equitable and fair methods in performing a contract. When this happens, the effected party can bring a legal action to recover losses caused by the breach. The most common form of remedy for a breach of the duty of good faith and fair dealing is what is known as a "specific performance". This is when a court orders one party to perform the duties they agreed to in the contract. For example, if a party agreed to buy a certain piece of property but then backed out of the agreement, the court may order them to fulfill their agreement and purchase the property. The court might also award "liquidated damages". This is when the court finds that a party must pay the injured party a certain amount of money as compensation for the breach. The court will usually use a formula to determine the amount of the damages. Finally, the court may award "injunctive relief". This is when the court orders one party to stop doing a certain act or to start doing a certain act. For example, if a party breaches the duty of good faith and fair dealing by using unfair trade practices, the court may order them to stop using these practices. Overall, when a party breaches the duty of good faith and fair dealing, the court may award remedies such as specific performance, liquidated damages and injunction to remedy the breach.
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