Adler v. American Standard Corp

In Adler v. American Standard Corp., 291 Md. 31, 35, 432 A.2d 464 (1981), the Court of Appeals recognized the common law tort of wrongful discharge, constituting in this State the first judicially created exception to the at-will doctrine. Id. at 47. The Court reviewed the evolving case law from other jurisdictions, noting that the overwhelming majority that adopted the cause of action defined it as a tort in which the employee may recover damages arising from the employee's discharge under circumstances violating a clear mandate of public policy. Id. at 35-41. The "public policy" could derive from statute, judicial decision, administrative regulation, or from any other appropriate source. Id. at 45. In deciding whether a policy will support a cause of action, however, the touchstone must be clarity. Id. at 42-43. The Court determined that the public policy in question was not sufficiently clear to support the particular claim at issue. Id. at 43-47. In sum, the Court of Appeals first recognized the now familiar limitation on an employer's discretion to fire an at-will employee. "An employment contract of indefinite duration, that is, at will, can be legally terminated at the pleasure of either party at any time." Id. at 35. The reason for the discharge, however, may not violate a "clear mandate of public policy." Id. at 47. A tort claim for abusive discharge of an at-will employee lies "when the motivation for the discharge contravenes some clear mandate of public policy." Id. Since the Adler decision, the Court has limited the type of claims that can be pursued via an abusive discharge cause of action.