She Flagged Expired Medical Equipment. Dignity Health Pushed Her Out. Jury: $27.5M.

Nancy Valla had spent more than 30 years in healthcare when she arrived at St. Mary Medical Center in Long Beach as Chief Nursing Officer in 2018. She'd run nursing operations at a hospital in Dubai. She had a master's degree, a Six Sigma certification, and a career built on making hospitals safer. What happened next would end up in a Los Angeles courtroom - and cost Dignity Health $27.5 million.

The Safety Concerns Nobody Wanted to Hear

In her first year on the job, Valla began surfacing problems that hospital leadership appeared unwilling to fix. She documented anesthesia machines and defibrillators being used past the manufacturer's end-of-life date - equipment that was supposed to have been retired. During a routine pre-use inspection, a tube in one of those anesthesia machines burst. Similar machines remained in service. Valla also reported surgical instruments that were not being properly sterilized.

She pushed for action. According to trial testimony, hospital leadership declined, citing budget concerns. She also advocated for additional safety measures following a tragic death on the hospital's parking structure in 2019 - and offered to personally fund the protective measures herself. Hospital executives said no, worried it would attract negative attention to the facility.

Replaced While on Leave

In May 2019, after months of pushing for change, Valla took medical leave for a diagnosed mental health condition. What happened while she was gone became the central issue at trial. Internal communications - later presented to the jury - showed that hospital superiors planned to "embellish the justification for her removal and block her reinstatement." Her position was filled while she was on protected medical leave. When she sought to return, the accommodation was refused. Valla filed suit in Los Angeles Superior Court in August 2020.

Dignity Health denied any wrongdoing throughout the litigation. Their defense argued she had "suffered no adverse employment action for any reason at any time."

One Hour to Decide

On June 26, 2025, after deliberating for just one hour, the jury at Los Angeles Superior Court (Case No. 20STCV30610) returned a unanimous verdict on every cause of action. They awarded Valla $5 million in economic damages - past and future lost wages and benefits - and $22.5 million in compensatory damages for pain, suffering, and emotional distress. Total: $27.5 million.

After the verdict was read, several jurors tearfully embraced Valla in the courtroom. Trial attorney David deRubertis of Hershey Law called the outcome "a clear message that healthcare institutions cannot silence employees who speak up for patient safety." It stands as one of the largest single-plaintiff employment verdicts in California in 2025.