Covenant of Good Faith and Fair Dealing Arizona

In Arizona, a covenant of good faith and fair dealing is implied in every contract. Bike Fashion Corp. v. Kramer, 202 Ariz. 420, 423, P 13, 46 P.3d 431, 434 (App. 2002). This is so "neither party will act to impair the right of the other to receive the benefits which flow from their agreement or contractual relationship." Id. (quoting Rawlings v. Apodaca, 151 Ariz. 149, 153, 726 P.2d 565, 569 (1986)). Whether a party has breached the covenant of good faith and fair dealing is a question of fact. Wells Fargo Bank v. Ariz. Laborers Local No. 395 Pension Trust Fund, 201 Ariz. 474, 493, PP 69-70, 38 P.3d 12, 31 (2002). As such, we will not set aside the superior court's finding of breach "unless clearly erroneous, giving due regard to the opportunity of the court to judge the credibility of the witnesses." In re Estate of Zaritsky, 198 Ariz. 599, 601, P 5, 12 P.3d 1203, 1205 (App. 2000).