Bak-A-Lum Corporation of America, a New Jersey Corporation, Plaintiff-Appellant and Cross-Respondent v. Alcoa…

Summary

The New Jersey Supreme Court affirmed the judgment for the defendant and modified the plaintiff's judgment, holding that the exclusive distributorship could be terminated on reasonable notice of twenty months, that plaintiff's damages are $7,500 per month for twenty months, and that the defendant is not entitled to prejudgment interest on its counterclaim. The court based its decision on the implied covenant of good faith and fair dealing and rejected the trial court's seven‑month notice period and lower damage award.