Decker v. Browning-Ferris Industries Of Colorado, Inc.

931 P.2d 436 (1997)

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Nature of the Case

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Facts

In June 1985, P obtained a position as a trash removal truck driver's helper with D. P was subsequently promoted to the position of trash removal truck driver, which position P held for five years. In 1990, P received a 'discretionary' $ 400 bonus, congratulating P 'on having a successful winter season with D,' and stating that D appreciated P's work. The letter contained a statement that D 'looked forward to a long and lasting relationship' with P. In January 1991, P got a new supervisor who terminated P claiming that P worked too slowly. Castillo was hired by D in 1989. In 1990 Castillo also received a 'discretionary' $400 bonus containing a statement that D looked forward to a 'long and lasting relationship' with Castillo. In May 1991, Castillo broke his ankle while performing duties at D. In June 1991, Castillo obtained permission from his physician to return to D with the restriction that he perform only light duties. In August 1991 Castillo's employment was terminated on the stated ground that Castillo was working too slowly. Ps filed suit. Bot contained claims of 'breach of covenant of good faith and fair dealing' based on alleged express promises by D's management that they would be treated fairly. The complaints characterized this as a contract claim, but the amended complaints requested compensatory, noneconomic, and punitive damages. D objected to the instructions and special verdict forms which would permit the jury to award punitive damages on the breach of covenant of good faith and fair dealing claim. D argued that this claim sounded in contract, and punitive damages are not available for a breach of contract. The trial court held that its breach constituted a tort and could thus properly support an award of punitive damages. The jury awarded Castillo $ 33,500 in damages for lost income, determined that D's breach of covenant of good faith and fair dealing was attended by circumstances of willful and wanton conduct, and awarded Castillo punitive damages in the amount of $11,500. D raised the same issues as with Castillo. The jury found that D had willfully and wantonly breached its promises of good faith and fair dealing. The jury awarded Decker $600,000 in damages for lost income, $80,000 in damages for inconvenience and emotional stress, and an additional $680,000 in punitive damages on the claim of breach of covenant of good faith and fair dealing. D appealed both cases. he primary issue presented which the parties framed for the court of appeals was whether Colorado recognized a tort claim for breach of an express covenant of good faith and fair dealing in the employment context. The court of appeals accepted that the breach of disciplinary policy claim as a contract claim and the breach of covenant of good faith and fair dealing claim as a tort claim. It held that because Colorado does not recognize a tort claim in the employment context for breach of covenant of good faith and fair dealing, the trial court erroneously allowed the jury to consider that claim. In the absence of a viable tort claim, the awards for punitive damages and noneconomic damages must be vacated. It set aside the award of punitive damages. It also held that the award of economic damages had to be vacated because it was impossible to determine whether it had been awarded under the proper contract theory or the improper tort theory. This appeal resulted.