Foley v. Interactive Data Corporation: The Implied Covenant of Good Faith and Fair Dealing

McGuire, J. P.
February 1990
Labor Law Journal;Feb90, Vol. 41 Issue 2, p108
Academic Journal
The article focuses on the decision of the California Supreme Court in the case Foley v. Interactive Data Corp. The Supreme Court recognizes a cause of action by a former employee against his former employer for a discharge in breach of the implied covenant of good faith and fair dealing. The plaintiff filed an action in California Superior Court seeking compensatory and punitive damages for wrongful discharge. The Supreme Court upheld the dismissal of the public policy tort action on the ground that no public policy was contravened by the defendant's alleged actions. The California High Court overturned the dismissal of the claim based on an implied covenant of good faith and fair dealing, but held that such an action lies in contract and not tort.


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