Keystone Carbon Co. v. Black

CHEZEM, Judge,

dissenting.

I respectfully dissent. The majority confirms that Black alleged in his complaint that he suffered damages as a result of Keystone's breach of an implied covenant of good faith and fair dealing in the wrongful termination of their agency relationship. However, in footnote one, the majority states, "Black did not allege, nor was this case tried, under the theory that Black suffered damages from Keystone's breach of an implied duty to exercise good faith in the course of dealing during the life of the agency." The jury may very well have determined that Keystone failed to act with good faith in the course of dealing with Black.

Keystone gave Black's territory including the G.E. account to the son of Keystone's Chief Engineer. Clearly, that decision was made during the life of the agency relationship between Keystone and Black. The jury, as fact finder, found for Black. The jury easily could have determined that this action, among others, constituted a failure to act with good faith in the course of dealing.

While the majority correctly states that Indiana law permits the termination of an at-will agency contract without cause or regardless of bad faith, it is repugnant to our ideas of fairness that Keystone should be allowed to encourage Black to work harder and make more sales, to wait until Black is successful in obtaining a major contract, and then terminate him, thereby denying him approximately $350,000 in commissions over the following four (4) years. I would vote to affirm the trial court.