Pasadena Live, LLC v. City of Pasadena

Good Law

114 Cal. App. 4th 1089·2004 Cal. App. LEXIS 7·2004 Daily Journal DAR 242·8 Cal. Rptr. 3d 233·2004 Cal. Daily Op. Serv. 191

Court of Appeal of CaliforniaJanuary 7, 2004B164361California1,970 words

Opinion

Flier, J.

Pasadena Live, a limited liability company, brought an action for breach of contract against the City of Pasadena (City). City’s demurrer to the second amended complaint was sustained without leave to amend on the ground that Pasadena Live had not alleged that City breached the contract.

Pasadena Live appeals. We reverse because the second amended complaint alleges that City has breached the covenant of good faith and fair dealing. “Every contract imposes upon each party a duty of good faith and fair dealing in its performance and its enforcement.” (Rest.2d Contracts, § 205.) The trial court erred in sustaining the demurrer because the alleged breach of the covenant of good faith and fair dealing constitutes a breach of contract for which Pasadena Live may recover damages.

After Pasadena Live voluntarily withdrew its original complaint, Pasadena Live filed a first amended complaint that alleged two causes of action.

The first cause of action for breach of contract alleged that Pasadena Live and City had entered into a partly oral, partly written agreement “with respect to PASADENA LIVE’s plans for renovating the AMPHITHEATER and leasing the AMPHITHEATER long-term to…

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