NCR’s written contract contains an implied covenant of good faith and fair dealing, and a termination not made in good faith constitutes a breach of contract.
-NCR’s right to make decisions in its own interest is not hampered by a requirement of adherence to a good faith standard.
-The fact that the discharge was after a portion of the bonus vested still creates a question for the jury on the defendant’s motive in terminating the employment.
-The analysis is case-specific and here there is a breach based on the implied covenant because the principal sought to deprive the agent of a portion of compensation by terminating the contractual arrangement when the agent is on the brink of successfully completing the sale.
-The fact that Fortune was willing to work while being deprived compensation is not waiver on his part, but shows that he was at the mercy of NCR.
- Application of the covenant of gf and fd is narrow and fact-specific.
1. Find that the covenant of gf and fd violates some independent public policy. The problem with this approach is that it only works if the state has a public policy exception to at-will employment and if it does, the covenant of gf and fd becomes superfluous.
2. Find that the covenant of gf and fd violates some reasons that are impermissible bases for termination (violates ground rules and basic understanding of the rules). This is the broad Mass. approach.
- Good faith is narrower than good cause. It is only imposed in egregious situations and is more subjective than objective in nature.
- Good faith is violated when there is opportunistic and egregious behavior on the part of the employer.
- The firing itself is not what is actionable in these cases.
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