Excerpt from Popular Government, Vol. 54: Spring 1989
Finally. Some state courts have found an exception to the doctrine of employ ment at will in the case of an implied covenant of good faith and fair dealing. In these cases. An employer's decision to dismiss an employee is challenged as arbitrary. With the employee claiming that the employer had no right to fire employees for a bad reason. For ex ample, the Montana courts. In Gates v. Life of Montana.25 recognized the theory that there is an implied covenant of good faith and fair dealing in employment contracts and subsequently described the covenant exception this way.
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