Foley v. Interactive Data Corp.

47 Cal.3d 654, 765 P.2d 373 (1988).

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Nature of the Case

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Facts

Foley (P) informed his former supervisor that his new supervisor was under investigation by the FBI for embezzlement from his former employer. P asserts that he made this disclosure in the interest and for the benefit of his employer. P was told not to discuss rumors and to forget about Kuhne's past. Within three months, P was suddenly informed by Kuhne that for performance reasons he would have to accept a transfer to another division or face termination. P accepted the transfer and was further informed that he must agree to go on a performance plan. P agreed but was then given the opportunity to resign or be fired. P sued Interactive (D) for a breach of contract, tortuous discharge, and breach of the implied covenant of good faith. P was hired by D in 1976 and worked for six years and nine months with a steady series of salary increases and promotions, bonuses, awards, and superior performance reviews. D contends that officers of D made repeated oral assurances of job security so long as his performance remained adequate. P also contends that D had written termination guidelines with a mandatory seven-step pretermination procedure. Thus, P claimed that D could not discharge him except for good cause and therefore he refrained from accepting or pursuing other employment opportunities. The trial court dismissed all the claims. P filed two amended pleadings, and the trial court dismissed them all on demurrer from D. The Court of Appeals affirmed. P appealed.