IN April 2009, Robert Pedowitz, M.D., was hired by the University of California Los Angeles (UCLA) to become chairperson of its Department of Orthopedic Surgery. In the first year of his chairmanship, Dr. Pedowitz reported to top UCLA officials his concerns regarding colleagues who were receiving money from medical-device makers in possible violation of the law and UCLA policy. Most importantly, he was concerned that these colleagues may be compromising their care of patients as a result of their financial ties to these companies.
However, instead of his concerns being addressed, Dr. Pedowitz found himself being removed from his position as department chair. Though he signed an agreement to remain at UCLA as a regular faculty member, he was no longer included in departmental activities.
In 2012, Dr. Pedowitz sued UCLA for retaliation and violation of California’s Whistleblower Protection Act. He testified that he reported to UCLA officials an orthopedic surgeon who received $250,000 in consulting fees from Medtronic, a device maker that was testing its products on patients. Dr. Pedowitz saw that this orthopedic surgeon had enrolled patients into a Medtronic research study. At the same time, this doctor was receiving money from Medtronic, which may not have been properly disclosed, as required by regulations.
Dr. Pedowitz claimed that because of his disclosures, the employer spread false rumors about him in the department to justify his removal.
The employer denied any liability, arguing that Dr. Pedowitz was removed as chairman because of his poor leadership and negative interaction with faculty and staff. The employer also said that it investigated all of Dr. Pedowitz’s whistleblower claims but found that none of its doctors violated the law. Finally, the employer argued that the alleged “rumors” about Dr. Pedowitz were mostly true but not common knowledge.
The trial lasted seven weeks. However, before the parties could make their closing arguments to the jury, the parties announced that they reached a settlement. UCLA, while continuing to deny liability, agreed to pay Dr. Pedowitz $10,000,000. (Dr. Pedowitz had originally sought $723,372 for past lost earnings, and $9,508,679 to $11,801,825 for future lost earnings.)
The California Whistleblower Protection Act protects whistleblowing state employees from retaliation by their employers. It provides for civil liability against any person who intentionally threatens or retaliates against a state employee for making a ‘protected disclosure’ as provided by law.
The law further states that an employer, or any person acting on behalf of the employer, shall not retaliate against an employee for providing information to a government or law enforcement agency, where the employee reasonably believes that a violation of state or federal laws has occurred. The employer cannot also retaliate against an employee who refuses to participate in activities that violate the law.
The law was recently expanded to cover employees who complain only within a company about unlawful practices. It also now applies to cases where the employee truly believed the conduct they complained about was unlawful, even if it was not.
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The Law Offices of C. Joe Sayas, Jr. welcomes inquiries about this topic. All inquiries are confidential and at no-cost. Atty. Sayas’ Law Office is located at 500 N. Brand Blvd. Suite 980, Glendale, CA 91203. You can contact the office at (818) 291-0088 or visit www.joesayaslaw.com.
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C. Joe Sayas, Jr., Esq. is trial attorney who has obtained several million dollar recoveries for his clients against employers and insurance companies. He has been selected as a Super Lawyer by the Los Angeles Magazine, featured in the cover of Los Angeles Daily Journal’s Verdicts and Settlements, and is a member of the Million Dollar-Advocates Forum.
