Bevis v. Terrace View Partners, LP, 244 Cal. Rptr. 3d 797 (2019)

Citation: Bevis v. Terrace View Partners, LP, 244 Cal. Rptr. 3d 797 (2019)
Parent Document: Bevis v. Terrace View Partners, LP, 244 Cal. Rptr. 3d 797 (2019)
Jurisdiction: California (state)
Effective Date: 2019-02-28
Original Source: https://www.courtlistener.com/opinion/6240337/bevis-v-terrace-view-partners-lp/ ↗

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We conclude there was no evidence that defendants breached the implied covenant of good faith and fair dealing in setting rental rates for month-to-month tenants. As noted, the Automatic Vending court observed that " 'the fact that one of the parties reserves the power of varying the price or other performance is not fatal if the exercise of this power is subject to prescribed or implied limitations, as that the variation must be in proportion to some objectively determined base or must be reasonable. ' " ( Automatic Vending, supra , 182 Cal.App.2d at p. 357, 6 Cal.Rptr. 31, italics added.) In other words, it is unnecessary to invoke the implied covenant of good faith and fair dealing to limit a contracting party's discretion affecting the contractual rights of the other party if that discretion is subject to other prescribed or implied limitations, such as being in proportion to an objectively determined base.

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