Nurse filed previous lawsuit against staffing agency that connected her with hospital
The California Supreme Court recently found that a hospital and a staffing agency’s divergent interests meant that there was no privity between them. Thus, a nurse could bring a second action against the hospital even if the first action against the agency had been settled.
In Grande v. Eisenhower Medical Center, a nurse briefly worked at a hospital in line with a staffing arrangement between the hospital and a temporary staffing agency, which provided the following:
- The hospital had the discretion to assign shifts;
- Nurses should use the hospital’s time and attendance system;
- The staffing agency, as the supposed employer, retained total and exclusive legal responsibility and the obligation to comply and to satisfy wage and hour requirements;
- The agency agreed to indemnify the hospital for certain obligations relating to this arrangement.
Someone brought a putative class action against the staffing agency, among others. The class included the staffing agency’s nonexempt employees placed across California, not just those in the hospital. The nurse became a named plaintiff and claimed wage and hour violations during the time she worked at the hospital, which was not a named defendant in that action.
In the first lawsuit, the parties made a settlement agreement where the staffing agency would pay $750,000. The trial court approved the agreement and issued a judgment releasing the staffing...
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