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Huang v. BP Amoco Corp.

Summary judgment in favor of defendant reversed because district court ignored plaintiff's allegations of bad faith against defendant, made an assumption based on its own notion of "common sense" rather than facts in the record, and decided an issue of material fact that should have been submitted to a jury.

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Argued: August 2, 2001

In this diversity action alleging breach of a commercial property lease under Pennsylvania law, appellants Joseph and Julia Y. Huang (collectively, the “Huangs” or “Lessor”) appeal an order by the United States District Court for the Eastern District of Pennsylvania (“the District Court”) granting summary judgment in favor of appellee BP Amoco Corporation (“BP Amoco”), the successor in interest of Amoco Oil Company (“Amoco” or “Lessee”). We conclude that by making the unsupported factual assumption that Amoco could not apply for contractually required Government approvals until it procured satisfactory agreements with third-party co-developers, the District Court unjustifiably allowed BP Amoco to flout its implied covenant of good faith and fair dealing.

I. Factual and Procedural History

 
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