A recent case from the Western District of Pennsylvania suggests the duty of good faith is implied in every contract and at every stage of contracting. The decision also suggests that breach of the duty of good faith and fair dealing should constitute its own separate cause of action in addition to a breach of contract cause of action. In Martrano v. The Quizno’s Franchise Co. , Magistrate Lisa Pupo Lenihan compares the statewide class action case against Quizno’s before her with other national cases and surveys Pennsylvania law on a variety of issues, including the gist of the action doctrine, contractual bars to class actions and good faith and fair dealing.
A majority of Pennsylvania courts recognize the duty of good faith and fair dealing only in limited situations. In the context of franchise agreements, this principle is “applicable only in context of an attempt on the part of a franchisor to terminate its relationship with a franchisee.” (See Witmer v. Exxon Corp. and Bishop v. GNC Franchising LLC .) This was recently reinforced in GNC Franchising LLC v. Khan .
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