A DIVIDED state appellate court yesterday allowed a physician to sue her employer, The New York Times Company, for wrongful discharge stemming from her alleged refusal to violate an ethical obligation to protect the confidentiality of fellow employees’ medical records.

The Appellate Division, First Department, split 3-2 in Horn v. The New York Times, 4354, in affirming Justice Edward Lehner’s refusal to dismiss Dr. Sheila Horn’s claim for breach of an implied contract against her former employer.

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