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$27.5M Verdict in Whistleblower Case Against Hospital

$27.5M Verdict in Whistleblower Case Against Hospital

S
Sohini Chakraborty
June 27, 2025
$27.5M Verdict in Whistleblower Case Against Hospital

Case Background

Nancy Valla had been hired in April 2018 as the Chief Nurse Executive Officer at St. Mary Medical Centre in Long Beach, which is operated by Dignity Health. In March 2019, a tragic suicide occurred when a woman leapt from the hospital’s parking structure. This was not the first time such an incident had taken place; another person had died similarly in 2013, which had triggered a $50,000 fine and recommendations to install safety barriers. No such barrier had ever been built.

Valla, emotionally shaken by the preventable nature of the tragedy and the facility’s inaction, began advocating strongly for safety improvements. At the same time, she suffered from acute emotional distress, including PTSD and depression, which she reported to her superiors. Her calls for safety measures and requests for mental health accommodations were repeatedly dismissed or ignored. She eventually went on medical leave and was replaced soon after. She filed suit claiming retaliation, discrimination, failure to accommodate her disability, and wrongful termination.

The Cause that led to the legal dispute

Valla sued Dignity Health, its St. Mary facility, and CEO Carolyn Caldwell under several California statutes. She alleged whistle-blower retaliation under Labour Code 1102.5, retaliation and discrimination under Health & Safety Code 1278.5, multiple violations of the Fair Employment and Housing Act (FEHA), and common law claims including intentional infliction of emotional distr

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Tags

whistleblower
WorkplaceDiscrimination
WrongfulTermination
DisabilityRights