Procedural Posture

Appellant, renter of limousine, sought review of an order from the Superior Court of Los Angeles County (California), which dismissed his complaint against respondent limousine owner for tortious breach of the covenant of good faith and fair dealing in their contract for the rental of a limousine.

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Overview

Appellant renter of limousine hired respondent limousine owner to take appellant and his wife to a cocktail and swimming party, because appellant would be drinking and did not want to worry about driving drunk. The driver of the limousine left, taking appellants' belongings that were in the limousine and left appellant and his wife stranded drunk, without money and clothes. The trial court dismissed appellant's second amended complaint without leave to amend. On appeal, the court reversed the trial court's order of dismissal, and remanded with directions to vacate and allow appellant to amend, because appellant's complaint stated a valid cause of action based on the recovery of emotional distress damages under a contract where emotional distress was a foreseeable and contemplated result of a breach. The court held that the trial court correctly declined to extend tort liability for breach of the implied covenant of good faith to appellant's contract because he had adequate breach of contract and possibly statutory remedies and because he failed to provide evidence that respondent denied in bad faith and without probable cause that the contract between them existed.

Outcome

The court reversed and remanded with directions to vacate the order, and allow appellant, renter of limousine, to amend his complaint, because appellant had stated a cause of action based on at least one valid legal theory in his action against respondent limousine owner for tortious breach of the covenant of good faith and fair dealing in their limousine rental contract. Therefore, the demurrer should not have been granted.