SANDERS V. FEDEX GROUND PACKAGE SYSTEM, INC.
188 P.3d 1200 (2008)
NATURE OF THE CASE: Sanders (P) sought review of the decision, which found in favor of
Fedex (D) and reversed and remanded for a new trial from a jury verdict for P on his claims
for breach of contract and tortious interference with contractual relations.
FACTS: D recruited P to be an independent contractor charged with making pick-ups and
deliveries along a specified route. During initial negotiations that P was told he would
have the ability to grow his business by buying routes from other contractors as they became
available. P tried unsuccessfully to buy other routes over D's opposition. D eventually
chose not to renew P's contract, and he sold his route. According to P, D made it impossible
for the new owner to operate the route successfully. D refused to get insurance coverage for
the new owner's vans, D failed to pay the new owner for more than a month, and D refused to
allow the new owner to hire her own drivers. Eventually, the new owner defaulted on her
payment obligations to P. P filed suit against D for breach of contract and tortious
interference with contractual relations. After a six-day trial, the jury returned a general
verdict in P's favor and awarded compensatory damages in the amount of $680,161.00. D
appealed arguing that the jury was improperly instructed as that particular claim was
submitted to the jury on a theory of breach of contract as well as the implied covenant of
good faith and fair dealing. D pointed out that its written contract with P made no express
representation that P would have a right to buy other routes, and therefore, the contract
could not give rise to an implied covenant of good faith and fair dealing with respect to a
nonexistent term of the contract. The Court of Appeals agreed and remanded for a new trial.
P appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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