Los Angeles — In a major victory for whistleblower protections and patient safety advocacy, a California jury has awarded $27.5 million to former hospital executive Nancy Valla in a landmark retaliation case against Dignity Health. The case was brought by Hershey Law and trial attorney David M. deRubertis, who represented Valla in the high-profile employment lawsuit.
The jury found that Valla, a former executive at St. Mary Medical Center in Long Beach, was wrongfully retaliated against after raising alarms about serious safety issues at the hospital. Her concerns included reports of unsterilized surgical instruments, malfunctioning anesthesia machines and defibrillators, and the hospital’s failure to act following multiple suicide deaths from the facility’s parking structure.
One of the most disturbing incidents occurred in March 2019, when an unhoused woman jumped from the eighth floor of the hospital’s parking structure. Although a doctor located her with a faint pulse and notified emergency staff, the hospital’s emergency department allegedly refused to respond, citing a mistaken interpretation of federal EMTALA regulations. Staff believed they were not obligated to provide care to anyone more than 250 feet from the hospital, though the law actually requires aid within a 250-yard range. The woman died at the scene. Valla, deeply troubled by the incident and what she viewed as a preventable death, confronted hospital leadership—only to be met with inaction.
According to testimony presented at trial, Valla repeatedly urged Dignity Health to install suicide prevention barriers, citing global research in support of such measures. Her requests were reportedly dismissed over concerns about optics and cost. At one point, she even offered to pay for the barriers herself, but was turned down by executives who allegedly feared it would imply the hospital was at fault.
Lead counsel David M. deRubertis and co-counsels Brennan Hershey and Johnny Rundell presented compelling evidence that Dignity Health executives retaliated against Valla for her persistent advocacy. The jury issued a unanimous verdict, awarding Valla $5 million in economic damages and $22.5 million in compensatory damages—one of the largest single-plaintiff employment verdicts in California this year.
“This case was always about doing the right thing,” said Brennan Hershey. “Ms. Valla stood up for vulnerable patients and was met with hostility instead of support. The jury’s message was clear—retaliation has consequences and the truth always prevails.”
Johnny Rundell added, “This verdict sends a clear message that healthcare institutions cannot silence employees who speak up for patient safety. Nancy Valla’s courage has paved the way for others to advocate without fear.”
Following the verdict, jurors embraced Valla, many with tears in their eyes, in a moment of powerful emotional closure. Their response underscored the deep empathy they felt for Valla and the weight of the evidence presented during trial.
The case had garnered public attention even before trial, with a 2023 Los Angeles Times investigation highlighting the hospital’s prior suicide-related fatality in 2013, which led to a $50,000 fine but no significant changes. Valla’s internal advocacy and subsequent legal fight brought renewed scrutiny to the hospital’s safety practices.
Dignity Health denied any wrongdoing during the proceedings. However, the jury’s unanimous decision delivered a sweeping rebuke to the hospital’s leadership and affirmed the legal protections for employees who raise concerns about patient care.
The verdict marks a milestone for both Hershey Law and The deRubertis Law Firm, reinforcing their commitment to holding institutions accountable and defending employee rights in the healthcare sector.
