This Tentative Ruling is made by Judge James Reilly The Court rules as follows on the Demurrer by Plaintiff and Cross-Defendant Flatiron West Inc. ("Flatiron") to the Second Amended Cross-Complaint of the City of Oakland ("the City"):

The demurrer to the Second Cause of Action for Breach of the Implied Covenant of Good Faith and Fair Dealing is OVERRULED. The City alleges that Flatiron breached the implied covenant of good faith and fair dealing by repeatedly making unsupported requests for additional compensation to which it was not entitled. Although the parties' contract included a procedure by which Flatiron could pursue claims for additional compensation, the implied covenant of good faith and fair dealing imposes on each party the duty to assert its contractual rights fairly and in good faith. (See, e.g., Careau & Co. v. Security Pacific Business Credit Inc. (1990) 222 Cal.App.3d 1371, 1393 and Carma Developers (Cal.) Inc. v. Marathon Development California Inc. (1992) 2 Cal