The applicant, a care facility operator, brought an application seeking declarations that the respondent County acted in bad faith by not renewing their annual services agreement under the Domiciliary Care Program.
The County had declined to renew the fixed-term contract due to a history of non-compliance, particularly regarding Fire Code violations and the delayed installation of a sprinkler system.
The court dismissed the application, finding that the contract had a clear end date with no automatic renewal clause, and therefore the County owed no duty of good faith to renew it.
Furthermore, the court found no evidence of bad faith, noting that the County had repeatedly communicated its concerns and provided reasons for non-renewal despite having no contractual obligation to do so.