Educational Testing Service v. Hildebrant

This case arises out of the administration of a standardized test by Educational Testing Service (“ETS”), petitioner, to Elba Hildebrant, respondent. We granted certiorari to consider the following two questions:

1. Whether one contracting party, which commits an issue to the exclusive discretion of a second party, may nonetheless go to trial against the second party for relying in good faith on its agent’s report merely by alleging that the agent wrote that report in bad faith and against the interests of the second party.

2. Whether a party suing for breach of the covenant of good faith and…