Graciani v. Providence Health & Services

CourtDistrict Court, D. Alaska
DecidedAugust 15, 2025
Docket3:18-cv-00087
StatusUnknown

This text of Graciani v. Providence Health & Services (Graciani v. Providence Health & Services) is published on Counsel Stack Legal Research, covering District Court, D. Alaska primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Graciani v. Providence Health & Services, (D. Alaska 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF ALASKA

DEBRA RENA GRACIANI,

Plaintiff, Case No. 3:18-cv-00087-MJP

v. ORDER ON POST-TRIAL MOTIONS PROVIDENCE HEALTH & SERVICES, (DKT. NOS. 636, 646, 648) KELLI RINAS, and BRENDA FRANZ,

Defendants.

I. INTRODUCTION This matter comes before the Court on a trio of post-trial motions. The first is Defendants Providence Health & Services, Kelli Rinas, and Brenda Franz’s Motion for Attorneys’ Fees (Dkt. No. 636). The second is Plaintiff Debra Rena Graciani’s Motion to Review and Offset Taxed Costs (Dkt. No. 646). The third is Plaintiff’s Motion to Seal (Dkt. No. 648). Having reviewed the Motions, the Oppositions (Dkt. Nos. 642, 650), the Replies (Dkt. Nos. 645, 651), and all supporting materials, the Court DENIES Defendants’ Motion for Fees, GRANTS IN PART Plaintiff’s Motion for Costs, and GRANTS IN PART Plaintiff’s Motion to Seal. II. BACKGROUND Given the Parties’ familiarity with the underlying dispute and lengthy record in this case, the Court briefly reviews the relevant factual background. 1 Plaintiff Debra Rena Graciani alleged that her former employer, Defendant Providence Health & Services, violated civil rights laws when it discriminated against her

on the basis of her race when it terminated her employment in the dialysis suite of the Alaska Medical Center, and retaliated against her after she complained about discrimination, harassment, and retaliation she claimed to have suffered while on the job. (See Court’s Final Instructions to the Jury (Dkt. No. 627).) She also alleged that Providence and two of her former supervisors, Defendants Kelli Rinas and Brenda Franz, violated federal civil rights laws by preventing her from enjoying a benefit, privilege,

term, or condition of a contract because of Plaintiff’s race. (Id.) While this case was being litigated, Plaintiff was investigated by the Alaska Board of Nursing (“BON”) regarding accusations of misconduct related to “patient care/nursing decisionmaking, falsification of a patient record, hostile and disruptive behavior, and improper access and/or handling of confidential patient records.” (BON Decision (Dkt.

No. 424-1) at 6.) The BON held a hearing on the allegations during which Plaintiff was represented by counsel and was permitted to participate in her defense. (Id.) The BON hearing resulted in 19 days of testimony from 32 witnesses. (Id.) In a written order dated June 13, 2022, the presiding administrative law judge concluded that Plaintiff had “[f]alsified orders and medical records, [d]isregarded physician orders, [f]ailed to

communicate with other professionals about the care of shared patients,[t]reated colleagues throughout the care setting with disdain and disrespect, and [f]lagrantly ignored her obligation to safeguard confidential patient health records,” while “insist[ing] 2 on deflecting responsibility for every single violation and attempting to portray this licensing action as an employer’s devious plot, rather than acknowledging her role in the

many events that led to [the accusations].” (Id. at 67–68.) As a result, Plaintiff’s nursing license was revoked. (Id. at 68.) Plaintiff then appealed the loss of her license to the Superior Court of Alaska, where, in a 46-page order, Superior Court Judge Laura Hartz affirmed the ALJ’s findings and determination. (See generally Sup. Ct. Order (Dkt. No. 424-2).) The majority of this case proceeded before Judge Joshua Kindred, who resigned

his commission shortly before trial began due to substantiated allegations of misconduct and numerous violations of his duties as a judge. (See Dkt. No. 534 at 1–6.) Prior to his resignation, however, Judge Kindred issued three significant rulings which shaped the contours of the case. First, Judge Kindred granted in part Defendants’ Motion for Summary Judgment which resulted in the dismissal of several of Plaintiff’s claims,

including all claims against named Defendants James Efird and James Blankenship. (See March 30, 2023, MSJ Order (Dkt. No. 379).) Second, Judge Kindred took judicial notice of the BON decision and Alaska Superior Court order and granted partial summary judgment in favor of Defendants on their after-acquired evidence defense. (See April 24, 2024, PMSJ Order (Dkt. No. 437).) The court concluded that “if Plaintiff succeeds on her

claims [at trial], Providence does not have to offer reinstatement or provide front pay, and must only provide backpay from the date of the unlawful discharge to November 18, 2021, when Providence employees discovered Plaintiff’s misconduct.” (Id. at 19.) And 3 third, Judge Kindred applied the doctrine of res judicata to the factual findings made by the BON and the Superior Court, and prohibited Plaintiff from arguing or otherwise

contesting the truth of those findings. (June 28, 2024, MIL Order (Dkt. No. 490).) In the fallout of Kindred’s resignation, the Ninth Circuit designated the undersigned to preside over the matter beginning July 31, 2024. (See Dkt. Nos. 505, 506.) This case began its ten-day trial nearly a year later, on May 12, 2025. During the trial, Defendants moved for judgment as a matter of law under Federal Rule of Civil Procedure 50(a), which was granted in part as to certain elements of Plaintiff’s retaliation claim and

request for punitive damages, but otherwise denied based on the Court’s conclusion that a reasonable juror could find in favor of Plaintiff. (Dkt. No. 630 at 80–81.) Shortly thereafter, the case was submitted to the jury, which, after approximately two hours of deliberation, returned a verdict for the Defendants. (See Minutes for Trial Day 10 (Dkt. No. 628); Jury Verdict (Dkt. No. 634).)

As the prevailing party, Defendants submitted their bill of costs seeking $91,265.32 in taxable costs from Plaintiff. (Dkt. No. 635.) Plaintiff submitted timely objections to those costs. (Dkt. No. 638.) The Clerk of the United States District Court for the District of Alaska reviewed the bill and objections and taxed a total of $40,312.18 in costs against Plaintiff. (Dkt. No. 643.)

Plaintiff moves the Court to review and offset those costs taxed against her. (Dkt. No. 646.) Separately, Defendants move the Court to award them $982,284.05 in attorneys’ fees. (Dkt. No. 363.) The Court discusses both motions, below. 4 III. ANALYSIS A. Motion for Fees (Dkt. No. 636) Defendants ask the Court to award them with nearly a million dollars in attorneys’

fees on the basis that Plaintiff “knew (or should have known)” that her “race discrimination and retaliation were frivolous, unreasonable, entirely without merit, and could not be pursued unless in bad faith.” (Mot. at 8–9.) In summary, Defendants claim that the BON decision and the findings of the Alaska Superior Court “rendered Plaintiff’s claims entirely without merit and frivolous,” and that her “unjustified continuation of meritless claims justifies fees against both Plaintiff as an individual and her counsel.” (Id.

at 26.) The Court disagrees. The Court “may in its discretion award attorney’s fees to a prevailing defendant in a Title VII case upon a finding that the plaintiff’s action was frivolous, unreasonable, or without foundation, even though not brought in subjective bad faith.” Christiansburg Garment Co. v. Equal Emp. Opportunity Comm’n, 434 U.S. 412, 421 (1978). And “if a

plaintiff is found to have brought or continued such a claim in bad faith, there will be an even stronger basis for charging him with the attorney's fees incurred by the defense.” Id. at 422.

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