Opinion ID: 2507705
Heading Depth: 2
Heading Rank: 7

Heading: Isaac failed to allege contract damages for her breach of the covenant of good faith and fair dealing claim.

Text: Isaac argues the implied covenant of good faith and fair dealing in all employment contracts is breached when an employer sexually harasses an employee and that, therefore, the court erred by instructing the jury to disregard the evidence of Bybee's verbal abuse and physical touching of Isaac. The district court did not give Isaac's requested jury instruction that if Isaac was subjected to harassment, there was a breach of the covenant of good faith and fair dealing. Whether the implied covenant of good faith and fair dealing in employment contracts is breached by sexual harassment is an issue of first impression for this Court. In Metcalf v. Intermountain Gas Co., 116 Idaho 622, 778 P.2d 744 (1989), this Court recognized there is an implied in law covenant of good faith and fair dealing in employment contracts. This covenant is breached by [a]ny action by either party which violates, nullifies or significantly impairs any benefit of the employment contract. . . . Id. at 627, 778 P.2d at 749. However, a breach of this covenant results in contract damages, and not tort damages. Bakker v. Thunder Spring-Wareham, LLC, 141 Idaho 185, 192, 108 P.3d 332, 339 (2005); Smith v. Meridian Joint Sch. Dist. No. 2, 128 Idaho 714, 721, 918 P.2d 583, 590 (1996); Metcalf, 116 Idaho at 626, 778 P.2d at 748. Nonetheless, Isaac alleged tort damages and not contract damages for this breach. Without deciding whether sexual harassment violates the covenant of good faith and fair dealing in employment contracts, we hold the district court did not err in refusing to give an instruction on the claim because Isaac failed to request any contract based damages from the alleged violation of the covenant.