Question: 1. Based on Guz, can the implied covenant of good faith and fair dealing apply to any conditions not actually stated in a contract? In
1. Based on Guz, can the implied covenant of good faith and fair dealing apply to any conditions not actually stated in a contract? In other words, can the covenant apply to anything beyond that which is actually stated in an employment contract? If not, is there no implied covenant as long as someone is at-will without a contract?
2. Explain the distinction between the court’s discussion of the covenant of good faith and fair dealing and the possibility of an implied contract term.
Bechtel urges that the trial court properly dismissed Guz’s separate claim for breach of the implied covenant of good faith and fair dealing because, on the facts and arguments presented, this theory of recovery is either inapplicable or superfluous. We agree. The sole asserted basis for Guz’s implied covenant claim is that Bechtel violated its established personnel policies when it terminated him without a prior opportunity to improve his “unsatisfactory” performance, used no force ranking or other objective criteria when selecting him for layoff, and omitted to consider him for other positions for which he was qualified. Guz urges that even if his contract was for employment at-will, the implied covenant of good faith and fair dealing precluded Bechtel from “unfairly” denying him the contract’s benefits by failing to follow its own termination policies.
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