Facts

Plaintiff Alberto Diaz was employed as a controller at the Alameda County Medical Center (ACMC). After his employment was terminated, Diaz sued ACMC, ACMC's CEO and CFO for wrongful termination and defamation.

PLAINTIFF'S CONTENTIONS:
Plaintiff contended he was a whistleblower and that he was fired in retaliation for assisting a former member of the hospital board of trustees who had complained about the hospital's management practices. Plaintiff alleged defamation by hospital officials for stating that he was put on administrative leave for insubordination and misappropriation of public grant funds. Plaintiff denied the allegations against him and accused ACMC, and its CEO and CFO of mismanagement and financial improprieties.

DEFENDANTS' CONTENTIONS:
Defendants contended that plaintiff was employed in an at-will position and was fired for insubordination and misappropriation for concealing his order for office furniture, in which he used public grant funds, after being specifically told not to do so by his supervisor, the CFO. The defense denied all allegations of mismanagement, financial impropriates, wrongful termination, and defamation.

Settlement Discussions

Plaintiff demanded $4,428,000 in May 2007. Defendants made a C.C.P. section 998 offer for dismissal with a waiver of costs in March 2008. Plaintiff made another demand for $580,000 plus $187,000 in attorney fees and costs at a mandatory settlement conference in October 2008. There was no counter-offer.

Damages

Plaintiff claimed $1,750,000 in past and future economic losses plus an unreported amount in emotional distress damage. Plaintiff further claimed attorney fees under the whistleblower statute (California Government Code section 12653). Defendants contested the damages and pointed to the fact that since plaintiff was terminated, he was able to get three high-level finance positions and was currently employed at the time of trial.

Result

Defense verdict.

Other Information

EXPERT TESTIMONY: Plaintiff's expert Timothy Farrell testified that plaintiff would be expected to have a lengthy job search following termination and will also never reach his pre-termination salary. Plaintiff's expert Margo Ogus testified that plaintiff's past and future economic damages range from $1,000,000 to $1,740,000. Defense expert Michael Teutschel testified that plaintiff's economic damages, if any, were only $87,000 because of his history of short term job tenure and because he was able to quickly get three jobs following his termination. Defense expert Rhoma Young testified that ACMC followed its policies in its HR investigation and provided plaintiff with due process before they terminated him. She also testified that plaintiff could find ample opportunities for employment and therefore had little to no damages. POST TRIAL MOTIONS: Plaintiff has not filed a motion for new trial but has opposed ACMC's motion for costs. Plaintiff has also filed a notice of appeal. FILING DATE: July 3, 2007.

Deliberation

1.5 days

Poll

10-2 (retaliation), 11-1 (whistleblowing), 12-0 (defamation)

Length

19 days