Seubert v. Mckesson Corporation

223 Cal.App.3d 1514 (1990)

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Nature of the Case

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Facts

Seubert (P) was hired by McKesson (D) to sell a standalone computer system to retail pharmacies in eastern states. P's agreement with D contained a termination at will clause. By November of that year, P had accepted a substantial promotion to regional sales manager for the western United States. He relied on D's representations that the system was complete when in fact it was missing key components that caused sales customers to return the units as fast as they were sold. In December 1984, D adopted a quota system calling for termination of any salesperson who failed to meet quota two quarters in a row. D failed to meet quota because of product returns and was termination. P sued D for breach of an implied covenant of good faith and fair dealing. P got the judgment of $240,000 and D appealed.