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A New Tort For Texas: Breach Of The Duty Of Good Faith And Fair Dealing., Evelyn T. Ailts

St. Mary's Law Journal

The concept of good faith and fair dealing as a general derivative contractual obligation remains unrecognized in Texas. However, in English v. Fischer the Texas Supreme Court recognized a duty of good faith and fair dealing exists in some contracts. Subsequent courts, including the Texas Supreme Court, have refused to apply a purely contractual obligation of good faith and fair dealing in every case. Instead, courts have recognized a good faith duty as arising out of “special” relationships of the contracting parties rather than being inherent in the contract itself. The courts focus on “special relationships” as a determinative of …