Farm Credit Services of America v. Dougan

KONENKAMP, Justice.

[¶ 1.] While a lender was in the process of foreclosing on its mortgage loan, the borrowers managed to obtain a new loan to pay off the debt and the foreclosure was dismissed. But the borrowers persisted in their counterclaim against the lender, seeking damages for breach of the implied covenant of good faith and fair dealing for the lender’s conduct in attempting to foreclose. The essential complaint was that the lender only granted a two-month extension on a late installment payment instead of the longer extension the borrowers sought. Because the lender held adequate…