Hobin v. Coldwell Banker Residential Affiliates, Inc.
Supreme Court of New Hampshire
744 A.2d 1134 (N.H. 2000)
Ross T. Hobin (Hobin) (plaintiff) was interested in becoming a franchisee of Coldwell Banker Residential Affiliates, Inc. (Coldwell Banker) (defendant). Hobin discussed the terms of a franchise agreement with Coldwell Banker employees, and those employees suggested that, per company policy and procedures, the company would not place another franchise within the same market as Hobin. The franchise agreement, however, stated that Coldwell Banker had the authority to establish a franchise in any location. Hobin executed the franchise agreement, and as a franchisee Hobin received numerous benefits, such as business and training tools. Coldwell Banker incurred significant costs in providing these benefits. Later, one of Coldwell Banker’s largest franchisees obtain a franchise, which was in Hobin’s market. Hobin sued Coldwell Banker for breach of contract, specifically breach of the implied covenant of good faith and fair dealing. The lower court dismissed Hobin’s claim, and he appealed.
Rule of Law
Holding and Reasoning (Horton, J.)
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