Quimbee logo
DMCA.com Protection Status
From our private database of 17,600+ case briefs...

Foley v. Interactive Data Corp.

Supreme Court of California
47 Cal. 3d 654, 765 P.2d 373 (Cal. 1988)



Interactive Data Corporation (IDC) (defendant) hired Daniel Foley (plaintiff) in 1976. Foley worked for IDC for almost seven years, during which time he received consistently good evaluations, numerous bonuses, salary increases, and ultimately a promotion to branch manager. IDC maintained a set of termination guidelines which provided grounds for discharging employees and mandated a seven-step pre-termination procedure. In January 1983, Foley learned that his new supervisor, Robert Kuhne, was being investigated by the FBI for embezzling from a previous employer. He informed IDC’s vice president Richard Earnest of the investigation, allegedly for the benefit of IDC. According to Foley, Earnest dismissed the story as a rumor and told Foley to forget it. In March, Kuhne informed Foley that Foley was being replaced for performance reasons. Foley was initially given a choice to transfer, but eventually was simply asked to resign or be fired. Foley sued IDC for wrongful discharge on several grounds. He argued he had been tortiously discharged in violation of public policy, in retaliation for reporting Kuhne’s suspected wrongdoing to IDC officials. Second, Foley alleged that the termination without cause was a breach of an implied contract. Finally, he argued that IDC breached the implied covenant of good faith and fair dealing. IDC moved to dismiss each of Foley’s causes of action for failure to state a claim. The trial court granted the motion to dismiss, and the appellate court affirmed. Foley successfully brought the case to the California Supreme Court.

Rule of Law


Holding and Reasoning (Lucas, C.J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 457,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 457,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 17,600 briefs, keyed to 984 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Questions & Answers

Have a question about this case?

Sign up for a free 7-day trial and ask it

Sign up for a FREE 7-day trial