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United Airlines, Inc. v. Good Taste, Inc.

Alaska Supreme Court
982 P.2d 1259 (1999)


Facts

Good Taste, Inc. (plaintiff) was a catering business that operated under the name Saucy Sisters Catering (SSC). United Airlines, Inc. (United) (defendant) invited SSC to submit a bid for a catering contract and ultimately awarded SSC the contract. In order to meet the obligations under the contract, SSC spent approximately $1 million to expand its operations. The contract contained a termination provision that allowed either party to terminate at any time with 90 days’ notice. United terminated the contract under this provision approximately one year into the three-year agreement. SSC sued United for breach of contract under the theory that United had breached the implied covenant of good faith and fair dealing. The jury found in SSC’s favor and awarded damages for the breach. United appealed to the Alaska Supreme Court.

Rule of Law

Issue

Holding and Reasoning (Bryner, J.)

Dissent (Matthews, J.)

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