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California
Law Dictionary
Contracts Breach
(
Beverly, dba PSB v. Network Solutions)

Contracts Breach-Tortious-Independent Duty Necessary
(Beverly, dba PSB v. Network Solutions)

"Conduct amounting to a breach of contract becomes tortious only when it also violates an independent duty arising from principles of tort law." Applied Equipment Corp v. Litton Saudi Arabia Ltd, 7 Cal. 4th 503, 515, 869 P.2d 454 (1994). While parties cannot immunize themselves from tort liability by virtue of the underlying contract, see Eads v. Marks, 39 Cal. 2d 807, 811, 249 P.2d 257 (1952), the contract alone is not sufficient to base a claim in negligence. See id; see also Applied Equipment, 7 Cal. 4th at 515. Because this contractual relationship is not sufficient by itself to establish a duty of care owed by NSI to Beverly and Beverly has failed to allege an independent duty arising under tort principles between the parties, there is no basis to hold NSI liable in tort. NSI has not failed to perform its obligations under the contract; it has fully performed. It has also not negligently performed its duty. Beverly's options under the dispute policy that NSI ultimately resorted to are expressly laid out in the contract. The NSI-Beverly contract contemplated the specific conduct that NSI engaged in thus negating the possibility of tortious breach of contract.

Similarly, Beverly has not established a claim for tortious breach of the implied covenant of good faith and fair dealing. Beverly has not alleged the requisite "special relationship" between the parties to the contract. See SOS, Inc v. Payday, Inc, 886 F.2d 1081, 1092 (9th Cir 1989). Because Beverly has failed to allege a special relationship between himself and NSI, or that NSI owed him a duty of care arising under tort principles, he has failed to state a cognizable claim for negligence.

BEVERLY, dba PSB,  v. NETWORK SOLUTIONS, No. C-98-0337-VRW-District Court Orde re Motion to Dismiss
 

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