 |
 |
to fill out a simple form to connect to Employee Leasing Services in your area.
|
|
|
|
|
Allum v. Valley Bank of Nevada12/30/1998
Robert L. Allum was a loan officer for Valley Mortgage Company ("VMC"). He alleges that Valley Bank of Nevada ("Valley") created VMC,
"for the purpose of transferring funds from the regulated bank to the unsupervised exempted mortgage company to enable the Defendant, Valley Mortgage Company, to make loans to selected persons without adhering to the ordinary underwriting criteria, banking regulations and loan loss reserve requirements for loans made by the Defendant, Valley Bank of Nevada."
In early 1989, Allum claims to have discovered that a number of VMC loans violated rules and regulations of the Federal Housing Administration ("FHA"). He contends that his supervisors threatened to discharge employees who refused to become involved in these loans. Allum reported his findings to the management of VMC, who promptly prohibited him from participating in certain transactions.
Allum alleges that he disapproved other loans he believed to be in violation of FHA rules, only to have his decisions overturned by Daniel Ryssman, VMC's vice-president. Allum claims Ryssman would fabricate necessary information to make it appear that the loans met FHA requirements.
In July of 1989, Allum reported specific rule violations directly to the FHA. He claims that, as a result, the FHA audited VMC's Reno office and issued a report ordering termination and rescission of one loan agreement. Employees of Valley investigated Allum's contentions during the first week of April 1990. On April 19, 1990, Allum was terminated.
Respondents claim that Allum was discharged because he was disruptive, failed to follow directions, failed to comply with company policies, and was abusive to other employees.
Allum sued Valley, VMC, Nevada First Development Corporation, Valley Capitol Corporation, Kenneth Callahan (VMC's president), and Ryssman (hereinafter collectively referred to as "Valley") for wrongful discharge.
The jury returned a general verdict in favor of Valley, and judgment was entered in accordance with the jury's verdict on February 16, 1993. Thereafter, Allum unsuccessfully moved for a judgment notwithstanding the jury's verdict, as well as for a new trial. Although the district court found one of the contested jury instructions to be improper, it denied Allum's motion on the ground that the error was harmless. Allum appeals from the district court's order denying his motion for a new trial.
DISCUSSION
Standard of Review
NRCP 59 provides:
"(a) A new trial may be granted to all or any of the parties and on all or part of the issues for any of the following causes or grounds materially affecting the substantial rights of the parties:"
"(7) Error in law occurring at the trial and objected to by the party making the motion; . . . ."
"The decision to grant or deny a motion for a new trial rests within the sound discretion of the trial court and will not be disturbed on appeal absent palpable abuse." Pappas v. State, Dep't Transp., 104 Nev. 572, 574, 763 P.2d 348, 349 (1988). Having considered the parties' briefs and having had the benefit of oral argument of counsel, we conclude that the district court abused its discretion in denying Allum's motion for a new trial.
Introduction
An employer commits a tortious discharge by terminating an employee for reasons that violate public policy. Western States Minerals Corp. v. Jones, 107 Nev. 704, 712, 819 P.2d 206, 212 (1991). The district court in this case noted that
"this state has a strong public policy in ensuring that banks within this state comply with FHA mortgage-
Page 1 2 3 4 5 6 7 8 Nevada Employee Leasing Services
Employee Leasing Services
|
| |
to fill out a simple form to connect to Employee Leasing Services in your area.
|
|