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At Will Agreement Defeats Termination Claim: Bernard v. State Farm Mutual Automobile Insurance

Posted in Employment Contracts and Agreements

In Bernard v. State Farm Mutual Automobile Insurance, plaintiff sued his employer for constructive discharge and "breach of covenant of good faith and fair dealing," claiming it misrepresented its sales program requirements. Plaintiff claimed the company had a termination for cause only policy. However, he had signed the following at will agreement: "You or State Farm have the right to terminate this Agreement by written notice delivered to the other or mailed to the other’s last known address." The termination provision also provided for termination upon specified notice. The court found that this provision negated any arguments that the company needed good cause for termination.