Cox v. CSX Intermodal, Inc.

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• recognizing that when a contract vests one party with “a degree of discretion in performance,” there is in general “an implied obligation of good faith to observe reasonable limits in exercising that discretion” (internal quotation marks omit- ted)
• noting that “the implied obligation of good faith cannot be used to vary the express terms of a contract”
• applying implied covenant where contract afforded discretion to one party, despite the absence of a viable breach-of-contract claim
• stating “where the terms of the contract afford a party substantial discretion ..., the duty to act in good faith ... limits that party’s ability to act capriciously to contravene the reasonable contractual expectations of the other party”
• imposing a duty of good faith and fair dealing where the contract provided for an unspecified quantity of commodities to be shipped by one of the parties at the other party’s discretion
• stating “where the terms of the contract afford a party substantial discretion . . ., the duty to act in good faith . . . limits that party’s ability to act capriciously to contravene the reasonable 9 contractual expectations of the other party”

Source: CourtListener parenthetical corpus (CC0).