Dykema Successfully Represents City of Denton, Texas, in Landmark Whistleblower Case Decided by Supreme Court of Texas

Dykema, a leading national law firm, is pleased to announce its successful representation of the City of Denton, Texas, in a significant whistleblower case before the Supreme Court of Texas. In a landmark decision delivered on May 3, 2024, the Supreme Court of Texas ruled in favor of the City of Denton, reversing previous judgments. The Supreme Court’s decision clarified the scope of the Texas Whistleblower Act, emphasizing that the Act only protects reports of violations of law by the employing governmental entity or another public employee.

City of Denton v. Grim centered around allegations brought forth by former city employees under the Texas Whistleblower Act, who claimed they were wrongfully terminated by the City of Denton after reporting alleged violations of law by a city council member. The former employees prevailed in a jury trial in Dallas County, Texas, and received a multi-million judgment. A divided Dallas Court of Appeals affirmed the judgment against Denton in 2022. However, the Texas Supreme Court reversed the jury’s verdict and the resultant judgment against Denton, holding that under Texas law the actions of an individual council member could not be imputed to the city, as she had acted independently and without authority from the city. The Supreme Court reversed and rendered judgment in favor of Denton, meaning the case is now over and there will not be a re-trial.

Members of the Dykema trial team that represented the City of Denton include Chris Kratovil, Alison Ashmore, and Elizabeth Voss. Ashmore and Voss took this case to trial in Dallas in late February 2020. Kratovil argued the appeal at the Supreme Court of Texas in January 2024.

“We are very pleased with the Texas Supreme Court’s decision, which is well-reasoned and comprehensive. The Supreme Court has recognized the limitations and scope of whistleblower protections under Texas law,” said Kratovil. “This ruling will benefit cities and other local governmental entities throughout Texas by protecting them from liability for the actions of rogue council members and others who act without proper authorization.”