Holland v. Union Oil Co. of California, Inc.

OPINION

COMPTON, Justice.

I. INTRODUCTION

Union Oil Company of Alaska (Unocal) demoted Michael Holland for committing a significant error in judgment involving an ethical issue. Holland allegedly asked a subordinate contractor to work on a personal project during work hours and instructed him to use plant materials. Unocal based its decision to demote Holland on information that it gathered during interviews with Holland and four other individuals. Holland sued Unocal for, among other things, breach of contract and breach of the implied covenant of good faith and fair dealing. The superior court…