Case 2:10-cv-05074-RRM -CLP Document 18
Filed 03/10/11 Page 12 of 20
overtly injured or destroyed Stuhrling's right to receive the fruits of its contract with Fuhrman, i.e., the right to use the images free from the ever-looming threat of not only having to defend against a false claim of copyright infringement, but of having to indemnify and possibly lose, its primary avenue of distribution, ShopNBC. 62.
By retroactively revoking the license he granted to Stuhrling to use his images,
after Stuhrling had relied on them and used them in its advertising, and then threatening Stuhrling with frivolous litigation in an effort to cause Stuhrling to pay him a large and unearned sum of money, Fuhrman intentionally and directly impaired the value of his contract with Stuhrling to the extent that Fuhrman's overt acts were inconsistent with the intent of the parties. 63.
By retroactively revoking the license he granted to Stuhrling to use his images,
after Stuhrling had relied on them and used them in its advertising, Fuhrman violated Stuhrling's presumed or reasonable expectations, which arose out of the agreement between the parties, i.e., that Stuhrling would have the unfettered right to use Fuhrman's images in its advertising without fear of frivolous litigation. 64.
Clearly, Fuhrman breached the implied covenant of good faith and fair dealing by
overtly and intentionally directly impairing the value of the contract for Stuhrling to the extent that it may be assumed that Fuhrman's actions are inconsistent with the intent of both Stuhrling and Fuhrman; that Fuhrman's actions had the effect of destroying or injuring the right of Stuhrling to receive the fruits of the contract; and that Fuhrman intentionally, by his conduct, violated Stuhrling's presumed or reasonable expectations, which arose out of the agreement entered into between the parties. 65.
Fuhrman has breached the covenant of good faith and fair dealing by his bad faith
acts and unfair dealing with Stuhrling.