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Contracts
Breach of Contract
Whistleblower

Melissa Egge, M.D., v. County of Santa Clara, Santa Clara Valley Medical Center, Phoung Nguyen, M.D., Jeffrey Smith, M.D., and Does 1-50, inclusive

Published: Sep. 30, 2022 | Result Date: Apr. 28, 2022 | Filing Date: May 30, 2018 |

Case number: 18CV329071 Summary Judgment –  Defense

Judge

Shella Deen

Court

Santa Clara County Superior Court


Attorneys

Plaintiff

James H. McManis
(McManis Faulkner)

R. Tyler Atkinson
(McManis Faulkner APC)

Hilary Weddell
(McManis Faulkner APC)


Defendant

James R. Williams
(Office of the Santa Clara County Counsel)


Facts

Dr. Melissa Egge is a Suspected Child Abuse and Neglect (SCAN) physician who was hired by the County of Santa Clara on July 1, 2011, serving Santa Clara Valley Medical Center (SCVMC). Dr. Egge reported to Dr. John Stirling, and they both reported to Dr. Stephen Harris. Dr. Egge and Dr. Stirling were the only SCAN physicians at the facility and therefore alternated on calls regarding child abuse issues. On July 3, 2015, a two-year old child was transferred to the hospital with fractures. Dr. Egge was consulted by phone and after receiving a description of the injuries and mother's explanation, she stated that if the doctors from the hospital where the child was transferred from suspected possible abuse, that hospital should make a report. As described though, Dr. Egge dd not feel that it did not fit the pattern of injury typical for abuse situations. Moreover, no orthopedic surgeons had seen the child no x-rays were available, and Dr. Egge was not asked for further consultation, so there was no further clinical involvement. However, during the following days, SCVMC found out that the child had suffered additional fractures. In November 2015, the Orthopedic Review Committee reviewed the case and became concerned. Dr. Harris and Dr. Egge were asked for their opinions. After Dr. Egge reviewed the child's records, and discussed the case with Dr. Stirling, Dr. Stirling agreed to file a Child Protective Services (CPS) report. When Dr. Egge checked with Dr. Stirling regarding the filing of the report, Dr. Stirling told Dr. Egge he had forgotten but would do so. He never filed the report and in January 2016, the child died as a result of alleged physical and sexual abuse. Dr. Egge found out that Dr. Stirling never made the CPS report, but had placed a note in the chart stating that it was not warranted. She then contacted Dr. Harris about Dr. Stirling's failure to report and expressed concerns about inadequate compliance with California's mandating laws. In March 2016, Dr. Egge was put on administrative leave and the following month, she was terminated. On May 20, 2018, Dr. Egge then filed an action against the County and others for breach of contract and violation of the whistleblower statute, Labor Code Section 1102.5.

Contentions

PLAINTIFF’S CONTENTIONS: Plaintiff contended that Dr. Nguyen’s report to the Medical Board of California of her suspension was false, misleading and failed to provide her with the opportunity to explain or comment. Though not obligated to do so, the filing of the report, left a negative mark on her career and her suspension, termination and the subsequent reporting were done with malice and bad faith. Furthermore, she was made a scapegoat and punished for voicing her concern. Due to defendants’ actions, she has been unable to obtain employment in the Bay Area and was required to commute to Southern California in order to continue work as a doctor.

DEFENDANTS' CONTENTIONS: Defendant denied all contentions. Specifically, as to the County, the County asserted, among others, that plaintiff's employment was statutory and at-will, not contractual. Moreover, plaintiff could not establish a case for retaliation because the County had legitimate, nonretaliatory reasons for terminating her employment. Dr. Egge did not document her original consult and it was only after a pediatric radiologist noticed an older healing fracture, reported it to a physician who then consulted with Dr. Stirling was Dr. Egge notified about the older fracture. The failure of a pin to secure the child's fractured bones triggered a departmental peer review and while she advised about the abuse concern and need to report to CPS, she did not report to CPS nor told Dr. Harris, or anyone else, that Dr. Stirling failed to report. After some communications regarding the child, an external peer review that occurred thereafter concluded that Dr. Egge was deficient in her documentation and that her conduct probably had a negative impact on the patient's outcome. They concluded that as the child abuse expert, Dr. Egge had the affirmative duty to ensure that the CPS report was made and because she did not do so, she was suspended and determined that a report to the state Medical Board was required. The County placed both Dr. Stirling and Dr. Egge on paid administrative leave pending the investigation and thereafter decided that Dr. Egge should be let go.

Result

The County's motion for summary judgment was granted.


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