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Vander Veur v. Groove Entertainment Technologies, 2019 UT 64 (Oct. 29, 2019)

Oct 29, 2019

The court of appeals previously held that an implied covenant may preclude an employer from firing an at-will employee to avoid paying commissions owed under a separate compensation agreement.  In a split decision, the supreme court reversed, holding that applying the covenant of good faith and fair dealing to require payment of post-termination commissions contradicted the express terms of the compensation agreement at issue. Concurring in part and dissenting in part, Justice Pearce, joined by Justice Himonas, argued that the majority’s reasoning virtually eliminated application of the covenant of good faith and fair dealing in the at-will employment context and invited “unchecked mischief” by employers.