## Facts

- Browning-Ferris Industries of Colorado, Inc. (BFI) employed Thomas H. Decker as a trash removal worker who advanced from helper to driver and received wage increases and a discretionary bonus.
- Jose Castillo worked for BFI in the same district as a trash removal truck driver’s helper.
- After a management change, BFI terminated Decker for allegedly working too slowly; Castillo was also discharged.
- In Decker’s case, BFI stipulated it had expressly promised to treat him fairly, and Decker proceeded on an express covenant of good faith and fair dealing theory.
- Both employees sued BFI asserting contract and tort theories and obtained jury verdicts including damages associated with tort recovery (including exemplary-type damages).

## Issues

1. Whether Colorado recognizes a tort cause of action against an employer for breach of an express covenant of good faith and fair dealing in the employment context.
2. If no such tort exists, how damages should be handled when verdict forms and instructions intermingled contract and tort theories.

## Decision

- The Colorado Supreme Court held that Colorado does not recognize a tort claim for breach of a covenant of good faith and fair dealing in the employment context, even if the covenant is expressly promised.
- The Court held the covenant is enforceable only as a matter of contract, limiting recovery to contract remedies.
- The Court affirmed the court of appeals’ rejection of tort liability for breach of the covenant.
- The Court reversed the court of appeals to the extent it required automatic new trials on damages, and remanded with directions to align the remedy with contract-only recovery and exclude tort damages.

## Legal Principles

- In Colorado employment cases, breach of a covenant of good faith and fair dealing does not give rise to an independent tort.
- An express promise by an employer to treat an employee fairly may be enforceable as a contractual commitment, but remedies are limited to contract damages.
- Tort-style damages (including exemplary/punitive damages) are unavailable solely for breach of the employment-related good-faith covenant.
- When trial submissions commingle contract and tort theories, reviewing courts must ensure awards reflect only legally permissible contract damages once tort recovery is excluded.

## Conclusion

The court confined enforcement of an employment-related covenant of good faith and fair dealing to contract law, rejecting tort liability and requiring that any damages award be limited to contract remedies rather than tort-based recovery.


Decker v. Browning-Ferris Indus. of Colo., Inc., 931 P.2d 436 (Colo. 1997)