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Duration Mun. Fund v. J.P. Morgan Sec. Inc.

Appellate Division of the Supreme Court of New York, First Department
Oct 14, 2010
77 A.D.3d 474 (N.Y. App. Div. 2010)

Summary

affirming dismissal of breach of covenant of good faith and fair dealing action where the complained-of transactions were not governed by the contract at issue

Summary of this case from Block Commc'ns, Inc. v. Moorgate Capital Partners, LLC

Opinion

No. 3348.

October 14, 2010.

Judgment, Supreme Court, New York County (Bernard J. Fried, J), entered September 23, 2009, dismissing this action for breach of implied covenant of good faith and fair dealing, unanimously affirmed, with costs.

Friedman Kaplan Seiler Adelman LLP, New York (Eric Seiler of counsel), for appellants.

Levi Lubarsky Feigenbaum LLP, New York (Howard B. Levi of counsel), for respondent.

Before: Friedman, J.P., DeGrasse, Freedman and Richter, JJ.


A cause of action based upon a breach of a covenant of good faith and fair dealing requires a contractual obligation between the parties ( see Phoenix Capital Invs. LLC v Ellington Mgt. Group, L.L.C., 51 AD3d 549, 550; Triton Partners v Prudential Sec., 301 AD2d 411). Here, plaintiffs cannot sustain their claim for breach of the convenant of good faith and fair dealing because the contractual relationships governing the relevant transactions were between plaintiffs and an entity other than defendant, namely, a nonparty affiliate of defendant. Indeed, the contract in question specifically contemplates that the transactions complained of will be governed by other agreements, but none of the agreements referred to were between plaintiffs and defendant. Furthermore, the complaint does not allege facts that J.P. Morgan Securities Inc. acted in bad faith.

In light of our determination, we need not reach the parties' remaining arguments.

[Prior Case History: 25 Misc 3d 1203 (A), 2009 NY Slip Op 51962(U).]


Summaries of

Duration Mun. Fund v. J.P. Morgan Sec. Inc.

Appellate Division of the Supreme Court of New York, First Department
Oct 14, 2010
77 A.D.3d 474 (N.Y. App. Div. 2010)

affirming dismissal of breach of covenant of good faith and fair dealing action where the complained-of transactions were not governed by the contract at issue

Summary of this case from Block Commc'ns, Inc. v. Moorgate Capital Partners, LLC
Case details for

Duration Mun. Fund v. J.P. Morgan Sec. Inc.

Case Details

Full title:DURATION MUNICIPAL FUND, L.P., et al., Appellants, v. J.P. MORGAN…

Court:Appellate Division of the Supreme Court of New York, First Department

Date published: Oct 14, 2010

Citations

77 A.D.3d 474 (N.Y. App. Div. 2010)
2010 N.Y. Slip Op. 7260
908 N.Y.S.2d 684

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