The following is not meant to be legal advice.
The case law has remained consistent in Massachusetts concerning good faith and fair dealing claims.
Ayash v. Dana-Farber Cancer Inst., 443 Mass. 367, 388 has been frequently cited. In Ayash, the employee failed to offer evidence of compensable loss as a result of a breach of contract action. The claim of a breach of implied covenant of good faith and fair dealing was dismissed.
In non-employment related cases involving the subject, most Massachusetts cases have stated that if there is no breach of contract, there cannot be a violation of the covenant of fair dealing and good faith.
In Bain Capital, Inc. v. Wesley Jessen Corp., 2003 Mass. Super. LEXIS 124, *14 (April 16, 2003), the court found that there was no breach of contract regarding a transaction fee and payment of advisory fees, resulting in no breach of implied covenant of fair dealing and good faith.
Massachusetts case law appears to demonstrate that there must be a breach of contract in order for a claim for breach of covenant of good faith and fair dealing to prevail in employment related cases.
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