Balch v. JPMorgan Chase Bank, 2015 WL 1592386 (N.D. Tex. Apr. 8, 2015)
In this case, the court dismissed a case seeking to bar bank’s collection activities, which had asserted several oral agreements or statements. The Texas statute of claims (Tex. Bus. & Com. Code section 26.02(b)) renders unenforceable agreements involving more than $50,000 unless in writing. The court said that, essentially, the statute means what it says, and dismissed the claim. But in the same case there had been a claim for a breach of a duty of good faith and fair dealing, the court stated that “under Texas law, a duty of god faith and fair dealing does not exist in all contractual contexts”, and “ordinarily there is no such duty in lender-lendee relationships.”
It is facially obvious that this rule differs from the commonly understood duty of good faith under New York law. And it is worth remembering, however, that Texas (and Texas law) was noted as one of the main areas in which lender liability developed in the early 1980’s (or, as may be said, in which that concept was re-recognized). For a brief summary until 2008, see http://corporate.findlaw.com/business-operations/lender-liability-update-recent-cases-and-trends.html. In those cases, the court’s general statement in Balch concerning good faith/fair dealing may well be limited.
