Lead Opinion
I.
BACKGROUND AND PRIOR PROCEEDINGS
Diane Ostrander (Ostrander) was an insurance agent for Farm Bureau Mutual Insurance Company (Farm Bureau) for fourteen years before her agreement was terminated in March, 1990. Under the terms of her Special Agent’s Agreement with Farm Bureau, Ostrander was an independent contractor. The agreement specified that either party could cancel the agreement at any time, with or without cause.
On August 28, 1990, Ostrander filed a complaint in district court against Farm Bureau and her supervisor, Dave Hart (Hart). Ostrander claimed that Farm Bureau terminated their agreement with her because of her gender and her age, but she did not challenge her status as an independent contractor. In her complaint, Ostrander alleged that Hart intentionally made inaccurate and negative evaluations of her performance in order to support his later termination of her contract.
In response to the complaint, Farm Bureau and Hart filed a motion to dismiss under I.R.C.P. 12(b)(6) for failure to state a claim for which relief could be granted. The trial court dismissed Ostrander’s claims but gave her leave to file an amended complaint to allege breach of contract. At the request of Ostrander, the trial court certified the dismissal as final and Ostrander appealed to this Court.
Ostrander alleged four different causes of action, each of which is an issue on appeal. She argues: (1) she was dismissed in violation of public policy; (2) Farm Bureau violated the covenant of good faith and fair dealing; (3) her supervisor, Dave Hart, tortiously interfered with her contract; and (4) she is entitled to treble damages for unpaid commissions as a claim for wages under Title 45, Chapter 6 of the Idaho Code.
II.
STANDARD OF REVIEW
Our standard for reviewing a dismissal under Rule 12(b)(6) is the same as our standard for summary judgment. Tomchak v. Walker,
III.
OSTRANDER DOES NOT HAVE A TORT CLAIM BASED ON A VIOLATION OF PUBLIC POLICY
Ostrander states that she was terminated as an independent contractor for Farm Bureau based on her age and her gender. While Idaho courts have recognized claims based on an allegation that a specific provision of a contract is against public policy,
Ostrander argues that her dismissal violated the public policies embodied in Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e (Title VII), the Age Discrimination in Employment Act, 29 U.S.C. § 623 (ADEA), and the Idaho Human Rights Act, I.C. §§" 67-5901 to -5912. Here she states that the Court should provide a remedy in tort to assure the effectiveness of these provisions. We have recognized that when a legislative provision protects a certain class of persons but does not provide a civil remedy, the court may accord an injured member of the class a right of action in tort. White v. Unigard Mut. Ins. Co.,
However, Ostrander has not shown that she is in the class of persons protected by any legislative provision. The statutes on which Ostrander bases her public policy claim were not intended to protect independent contractors. Title VII and the ADEA apply exclusively to employees, and not to independent contractors. Knight v. United Farm Bureau Mut. Ins. Co.,
As an independent contractor, Ostrander is not protected by the provisions of Title VII, the ADEA or the Idaho Human Rights Act. These statutes do provide civil remedies, they are just not available to independent contractors. Thus, Ostrander has no cause of action for a violation of public policy under these statutes.
We note that the Court has previously enunciated an exception to employment-at-will contracts where a discharge is for a reason contravening public policy. See, e.g., Jackson v. Minidoka Irrigation Dist.,
IV.
OSTRANDER DOES NOT HAVE A CLAIM FOR VIOLATION OF THE IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING
Ostrander asks this Court to apply the covenant of good faith and fair dealing to her as an independent contractor. Until now, the Court has not directly decided the issue of whether the covenant applies to independent contractors. We now hold that the implied covenant of good faith and fair dealing does not apply to independent contractors.
In Clement v. Farmers Ins. Exch., a 3-2 majority of the Court held that the implied covenant of good faith did not apply to the appellant, who by his own admission was
Metcalf v. Intermountain Gas Co.,
Nevertheless, it is the opinion of this Court today that in employer-employee relationships (as distinguished from principal-agent (independent contractor) relationships, Clement v. Farmers Insurance Exchange, supra) we should adopt an implied-in-law covenant of good faith and fair dealing (the covenant) as hereinafter outlined.
Id. at 626,
We recognize that due to bargaining position and other circumstances surrounding a working relationship some nominal independent contractors may be de facto employees. However, in cases such as this one, where the plaintiff does not challenge her status as an independent contractor, there is no cause of action under the implied covenant of good faith and fair dealing.
V.
OSTRANDER DOES NOT HAVE A CLAIM FOR TORTIOUS INTERFERENCE WITH CONTRACT AGAINST HER SUPERVISOR
Ostrander claims that her supervisor, Dave Hart, tortiously interfered with her contract with Farm Bureau. In Barlow v. International Harvester Co.,
The general rule is that a party cannot tortiously interfere with its own contract. See Houser v. City of Redmond,
In her complaint, Ostrander does not allege that Hart took any actions that were outside his capacity as her supervisor. Ostrander only alleged that Hart intentionally made inaccurate evaluations of her performance and then dismissed her. As an agent of Farm Bureau, Hart had the authority to evaluate Ostrander and terminate her contract. Since Hart’s actions with respect to Ostrander were within the scope of his authority as an agent of Farm Bureau, there was no third party to the contract. Accordingly, Ostrander has not stated a claim for tortious interference with contract.
VI.
OSTRANDER DOES NOT HAVE A CLAIM FOR TREBLE DAMAGES UNDER THE WAGE PROVISIONS OF TITLE 45, CHAPTER 6 OF THE IDAHO CODE
Under certain circumstances, an employee may be entitled to treble dam
VII
CONCLUSION
For the reasons stated herein, the trial court correctly found that Ostrander did not state a claim for which relief could be granted under I.R.C.P. 12(b)(6). The decision of the trial court is affirmed.
Costs to respondent. No attorney fees on appeal.
Notes
. See, e.g., State v. Clark,
Dissenting Opinion
dissenting.
Today the Court holds that independent contractors may be terminated solely because of their age or gender. I disagree. The better course of action for the Court would be to hold that such terminations are void for public policy and violate the duty of good-faith and fair dealing implied in every contract.
Public Policy
As the majority recognizes, this Court has held that an employer may be held liable for wrongful discharge of an at-will employee when the motive for the discharge violates public policy. See, e.g. Jackson v. Minidoka Irrigation Disk,
Perhaps the majority’s lack of discussion is caused by the absence of any sound reason for treating at-will employees differently from independent contractors who, under the terms of a written contract, may be terminated at will. Why should we allow an independent contractor to be terminated for reasons which would be void for public policy if s/he were an employee? And why is the termination of an independent contractor because s/he is thought to be the wrong age or the wrong sex (or, presumably, wrong race, color, or religion) less violative of public policy than the termination of an at-will employee for the same reason(s)? Realistically, there is no reason to permit such disparate treatment, regardless of the legal contortions in which the majority engages or the meaningless factual distinctions the majority advances.
Ironically, if Ostrander were an employee, she would not need to look to the public policy exception to the employment at will doctrine because employees are specifically protected against age and gender discrimination by state and federal statute. I would extend the public policies embodied in those statutes to any such circumstances as presented in this case and would hold that at-will termination clauses in independent contractor contracts do not permit ter
Good Faith and Fair Dealing Later in the majority’s opinion, the Court recognizes that we have never decided the issue of whether the covenant of good faith and fair dealing applies to contracts involving independent contractors, although we have held it applies to at-will employment contracts. Metcalf v. Intermountain Gas Company,
In my opinion, it makes no sense to say there is no covenant of good faith and fair dealing in the Ostrander-Farm Bureau contract when we have consistently held that the implied covenant exists in every contract, see, e.g., Idaho First National Bank v. Bliss Valley Foods,
I am, as was Justice Huntley, “unconvinced there is any difference between employees at will and independent contractors when a bad faith termination is involved.” And, as today’s offering by the majority offers no reason to depart from that view, I believe that “the limited protection afforded by law applies equally to both [employees and independent contractors].” Clement v. Farmers Ins. Exchange,
ON DENIAL OF PETITION FOR REHEARING.
. See generally, Ruggero J. Aldisert, The Judicial Process (West Publishing Co., 1976).
Dissenting Opinion
dissenting.
Tempus fugit.
The elapse of time since the pro and con opinions of this Court were issued in Clement v. Farmers Ins. Exchange
Justice Huntley’s efforts at stemming the majority’s tide were not an impulsive thought, but in reality a veritable treatise. Therein he cited to and laid out in full the provisions of I.C. § 72-1302, Declaration of State Public Policy.
Justice Huntley respected the special concurring opinion of Justice Johnson, as to which he observed:
I think it is a sad day for ‘justice’ when this Court, having before it a case of first impression, adopts the following rule of law:
There is no cause of action in Idaho for an intentional, willful, bad faith termination of an agency relationship.
Most other wrongful, willful and bad faith violations of relationships between individuals or entities in the United States of America are actionable. The majority articulates no plausible reason for an exception when the tort feasor happens to be the principle of an ‘at will’ agency contract.
Clement,
Unfortunately, as the readers learn on perusing the sequel to Clement, the carefully chosen words of Justice Huntley may see another ten years pass by before an opinion is authored which embraces the views which he so painstakingly advanced in the effort to illustrate that there is no genuinely sound basis for differentiating between an employee and an “independent contractor” for the purpose of disqualifying the latter from receiving that which is due them. Many are working people, both men and women, who in finding and accepting work are escalated to the status of “independent contractors,” and thus exposed to summary discharge sans just compensation or fundamental fairness.
. Clement v. Farmers Ins. Exchange,
