McKay & Co. v. Garland

James R. Cooper, Judge.

The central issue on appeal is whether the chancellor erred in failing to find that the appellees breached the implied covenant of good faith arising out of their exclusive listing agreement with the appellant realty company. We reverse the chancellor’s decision, and hold that the appellees acted in bad faith by selling their residence to a purchaser procured by the appellant.

The appellees hired a contractor, G. Pat Murtha, to build their new home for the sum of $127,935.00. As an incentive, the builder agreed to purchase the home then owned by the appellees and to give…