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Wednesday, June 22, 2022 7:52:06 PM
Lamberth has a pretty good shot, however. I can't imagine a competent jury could look at the facts--and understand them--and not agree with Plaintiffs. “Unfairly frustrating the other party’s right to receive the benefits of the agreement actually made” aligns pretty well with FHFA's actions regarding the NWS. Also this quote:
“[A] party exercising its right to use discretion in setting price under a contract breaches the duty of good faith and fair dealing if that party exercises its discretionary authority arbitrarily, unreasonably, or capriciously, with the objective of preventing the other party from receiving its reasonably expected fruits under the contract.” R.J. Gaydos Insurance Agency, Inc. v. National Consumer Insurance Company, 168 N.J. 255 (2001)
I also think that the "breach implied covenant of good faith and fair dealing" is ambiguous enough where we won't get blindsided by another three word technicality (e.g. - or the agency, may vs. shall, etc.).
Also, unrelated, I'm weirdly optimistic for Fairholme v. US, and I hope SCOTUS reverses appellate court's takings opinion.
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