HIGHLIGHTS OF GRANDE V. EISENHOWER MEDICAL CENTER

In Grande v. Eisenhower Medical Center, the California Supreme Court allowed an employee who sued and settled its case against a staffing agency to move forward with a second lawsuit against the staffing agency’s client (a hospital) because (i) the settlement agreement with the staffing agency did not explicitly release the hospital; (ii) an agency relationship did not exist between the hospital and the staffing agency such that the hospital would come under the terms of the settlement agreement; and (iii) the hospital was not in privity with the staffing agency such that principles of claim preclusion would apply.

FIRST LAWSUIT AGAINST FLEXCARE

FlexCare LLC (FlexCare) is a staffing agency that supplies temporary employees to various entities throughout the State of California. One of its clients was Eisenhower Medical Center (Eisenhower). FlexCare and Eisenhower had a staffing agreement under which FlexCare would hold “exclusive and total legal responsibility as the employer” and would maintain an obligation to ensure compliance with wage and hour laws. FlexCare also agreed to indemnify Eisenhower for certain obligations concerning this staffing arrangement. In 2012, FlexCare assigned Lynn Grande, a nurse, to work at Eisenhower.

A putative class action was later filed against FlexCare alleging Labor Code violations at facilities for which it supplied temporary workers. However, Eisenhower was not a named defendant in this...

Read Full Story: https://www.natlawreview.com/article/essentials-california-employment-law-upd...