Allum v. Valley Bank of Nevada
970 P.2d 1062 (Nev. 1998)
A wrongful-discharge standard centered on good-faith reasonable belief. That is the rule the Nevada Supreme Court articulated in Allum.
The Matter
Robert Allum, represented by Mr. McKenna, was terminated by Valley Bank of Nevada after refusing to engage in conduct that he alleged involved federal Fair Housing Act violations. The question before the Nevada Supreme Court was whether the tort of wrongful discharge required proof that the employee had been presented with an explicit “participate or be fired” ultimatum, or whether a good-faith reasonable belief of illegality was sufficient.
The Nevada Supreme Court held that the claim is available where the employee is terminated for refusing to engage in conduct he in good faith reasonably believes to be illegal. Proof of an explicit ultimatum is not required. Allum v. Valley Bank of Nevada, 970 P.2d 1062 (Nev. 1998).
Legal Significance
Before Allum, Nevada case law had been read to require more explicit proof of coercion. After Allum, a good-faith reasonable belief of illegality is enough to support the claim.
The opinion continues to be cited in Nevada wrongful-discharge and whistleblower-style litigation, and in federal cases applying Nevada law.
Mr. McKenna’s Role
Counsel for appellant Allum through the Nevada Supreme Court appeal.
Citations & Related Authority
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