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Murphy v. American Home Products Corp.
New York Court of Appeals
58 N.Y.2d 293, 448 N.E.2d 86 (1983)
American Home Products Corporation (American) (defendant) employed Joseph Murphy (plaintiff) for 23 years in various accounting positions, including the office of assistant treasurer. The parties did not have a written employment contract. American terminated Murphy’s employment after Murphy revealed to American officers and directors that he had discovered illegal accounting practices involving secret pension reserves that improperly inflated American’s income growth, allowing high-ranking American employees to collect undeserved bonuses from a management incentive plan. Murphy filed suit against American, alleging that American wrongfully discharged him in retaliation for disclosing the accounting improprieties and for refusing to participate in them. Murphy also alleged that his disclosures were required by American’s internal policies and that American breached a duty of good faith and fair dealing when it terminated him. The trial court dismissed Murphy’s claims, and he appealed.
Rule of Law
Holding and Reasoning (Jones, J.)
Dissent (Meyer, J.)
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