Foley v. Interactive Data Corp. — Quick Summary

Foley v. Interactive Data Corp.

47 Cal. 3d 654 (1988)

In Brief

Foley v. Interactive Data Corp.

Key Issue

Can an employee who has been terminated from an at-will employment position recover for breach of an implied-in-fact contract that the employment would not be terminated without cause?

The Rule

California law recognizes that even in an at-will employment relationship, an implied-in-fact contract may exist if there are employer's policies, practices, or representations that give rise to such a contract, altering the at-will nature of the employment.

Bottom Line

The Supreme Court of California held that an at-will employee could indeed establish the existence of an implied-in-fact contract that his employment would not be terminated without good cause, and such a determination requires examination of the employer's policies, practices, and the conduct of both parties.

Why It Matters

Foley v. Interactive Data Corp. is significant for establishing that implied-in-fact contracts can modify the traditional at-will employment relationships, impacting how employers draft and communicate employment terms and how employees understand their job security. It serves as a critical benchmark for law students studying employment law and the nuances of implied contracts within the workplace.

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