City of Los Angeles Settles Whistleblower Case for $3.15M

Case Background

Steve Ongele, a long-serving Bureau Chief within the Los Angeles Department of Building and Safety (LADBS), dedicated years of service to the city before his career came to an abrupt and contentious end. As a high-ranking official, Ongele oversaw significant financial and administrative operations. His professional journey took a sharp turn when he began noticing irregularities in how the department handled public funds and employee compensation.

Cause

The legal battle began because Ongele believed the City of Los Angeles had illegally fired him for exposing corruption. Ongele alleged that his troubles started in 2013 when he informed then-Executive Officer Raymond Chan that the department was collecting millions of dollars in fees that exceeded the actual cost of providing services. He had urged the city to conduct studies to ensure these fees complied with state laws. Years later, in 2016, Ongele uncovered that several high-level employees who were ineligible for overtime pay had received such payments for years. He insisted that these employees refund the money to the city. Ongele claimed that his superiors responded to his honesty with a campaign of retaliation that ultimately led to his termination in October 2019.

Injury

The fallout from his firing left Ongele with deep physical and emotional scars. Ongele suffered from severe depression and anxiety as he watched his career vanish. His legal team revealed that the stress of the ordeal had driven him to have suicidal thoughts and developed a safety plan with his therapist to prevent self-harm. Beyond the mental toll, Ongele struggled with cognitive issues and debilitating physical conditions that made it impossible for him to return to work.

Damages Sought

Ongele sought justice for the financial and personal ruin he endured. He asked for compensation to cover his massive loss of past and future earnings, noting that he had fallen $50,000 into debt after losing his job. He also demanded damages for his intense emotional distress and the physical ailments caused by the city’s actions.

Key Arguments and Proceedings

The case moved through the Los Angeles County Superior Court, where the city fought aggressively to dismiss Ongele’s claims. A significant backdrop to the proceedings was the federal investigation into Raymond Chan, Ongele’s former boss, who was later convicted and sentenced to 12 years in prison for a separate massive bribery and racketeering scheme.

Legal Representation

Plaintiff(s): Steve Ongele.

·       Counsel for Plaintiff(s): Gregory W. Smith | Diana Wang Wells | Beth D. Corriea

Defendant(s): City of Los Angeles.

·       Counsel for Defendant(s): Egan Audrey | Lyon Douglas

Key Arguments or Remarks by Counsel

Claims

Ongele’s lawyers argued that the city had violated California Labor Code Section 1102.5, which protects whistleblowers from retaliation. They maintained that the department fired Ongele specifically to silence him and to warn other employees against speaking out about government wrongdoing. The legal team emphasized that Ongele was a "man of integrity" who had been discarded for trying to protect the taxpayers' money.

Defense

The City of Los Angeles denied all allegations of retaliation. Defense attorneys argued that Ongele's firing was based on legitimate performance issues rather than his whistleblowing activities. They further claimed that his lawsuit was barred by the statute of limitations and that the city enjoyed legal immunity from certain claims. The defense suggested that Ongele’s mental health struggles were not caused by his termination but were pre-existing or unrelated to his work at LADBS.

Settlement

After years of intense litigation and just before the case was set for a trial that had been moved up due to Ongele's failing health, the parties reached a resolution.

On October 9, 2024, the City of Los Angeles agreed to settle the whistleblower lawsuit. In light of the evidence presented regarding the retaliatory nature of his firing and the subsequent destruction of his health and finances, the city finalized a payment of $3,150,000 to Steve Ongele. This settlement ended the legal battle and provided Ongele with the financial resources to address his medical needs and debts, while also serving as a high-profile acknowledgment of the claims brought against the Department of Building and Safety.

Court documents are available upon request at jurimatic@exlitem.com