Ingleside v. Hollis

Supreme Court of Virginia·Decided December 18, 2025·No. 241064·Published

Opinion

PRESENT: All the Justices

INGLESIDE EMERGENCY GROUP, LLC, ET AL., OPINION BY

v. Record No. 241064 JUSTICE TERESA M. CHAFIN DECEMBER 18, 2025

MICHELE H. HOLLIS, M.D.

FROM THE COURT OF APPEALS OF VIRGINIA In this interlocutory appeal, appellants Ingleside Emergency Group, LLC, (“IEG”) and Kingsford Emergency Group, LLC, (“KEG”) (collectively, “appellants”) contend that the Court of Appeals erred in affirming the denial of their plea in bar to Dr. Michele Hollis’s claim under the Virginia Whistleblower Protection Act (the “VWPA”), Code § 40.1-27.3. Appellants maintain that the allegations of the complaint establish that Hollis’s VWPA claim was time barred where she alleged a prohibited retaliatory action that took place more than one year prior to filing suit. For the following reasons, we reverse the judgment of the Court of Appeals and remand this case to the circuit court for further proceedings.

I. BACKGROUND 1

Appellants are medical staffing companies that contract with physicians who provide clinical services to certain hospitals. In November 2018, Hollis entered into contracts with appellants to provide emergency medicine services at HCA Healthcare Company (“HCA”) facilities. After a series of renewals, Hollis signed new contracts (the “provider agreements”)

1 Consistent with the standard of review guiding this Court’s consideration of a decision on a plea in bar, where no evidence was taken on the plea, this Court considers solely the pleadings, and the facts as alleged in the complaint are deemed true. See Massenburg v. City of Petersburg, 298 Va. 212, 216 (2019).

that were effective for one year from July 6, 2020, and could be terminated without cause upon 90 days of written notice, or without notice by the staffing company for certain causes.

In November and December of 2020, Hollis voiced her opposition to practices she was directed to undertake as part of her services. Pertinently, Hollis reported to management that she refused to upcharge her services and that she believed the practice was fraudulent. At the same time, Hollis complained to management verbally and by email that appellants had intentionally mismanaged federal COVID-19 relief funds by failing to distribute any funds to the physicians. In later communications, after Hollis was informed in January 2021 that her contracts would not be renewed unless she agreed to a significant rate cut, Hollis remarked that failing to disburse relief funds to physicians while simultaneously “cutting the reimbursement of those very same workers presents a very bad visual for the general public.”

On March 2, 2021, Hollis “noticed that she was not scheduled to work in April.” Hollis contacted Jason Clark, the Vice President of Staffing Operations for HCA, to “ask why.” Clark responded that “there is a case pending review,” and directed Hollis to contact Dr. Ankur Fadia, who did not return Hollis’s calls or provide additional information. On June 2, 2021, Hollis received a letter from HCA stating that her “resignation” was “approved,” and that her “appointment and clinical privileges have been considered voluntarily relinquished effective 3/3/2021.” (Emphasis added.)

On April 1, 2022, Hollis filed suit in the Henrico County Circuit Court. Relevant to this appeal, Hollis alleged a violation of the VWPA “against all defendants” for “terminating” the provider agreements. 2 Her complaint alleged that the “decision to terminate Hollis” was made

2 Hollis’s complaint named several defendants: IEG; KEG; Subsidium Healthcare, LLC;

and SCP Health, d/b/a “Schumacher Clinical Partners,” d/b/a “Schumacher Group Healthcare

“in breach of her [provider agreements] and in retaliation for her refusal to engage in fraudulent billing and for reporting the misuse/misappropriation of other federal funds.” Without any written notice to Hollis, appellants “simply stopped scheduling Hollis for work at [the hospital] starting April 2021.”

Appellants demurred to Hollis’s complaint, arguing that Hollis failed to allege sufficient facts to state a claim under the VWPA. Appellants argued that Hollis failed to allege retaliatory acts taken by appellants that were causally connected to protected activity. In opposing the demurrer, Hollis reiterated the temporal proximity of her engagement in protected activity to when she “noticed that she had been removed from the schedule,” and “[t]hus began the retaliatory adverse action.” The circuit court overruled the demurrer, but appellants seized on Hollis’s characterization of her allegations and filed a plea in bar.

Appellants asserted that the VWPA claim was time barred because Hollis’s complaint alleged that she “suffered retaliation on March 2, 2021, when on that date she ‘noticed that she was not scheduled to work in April [2021.]’” Appellants repeated Hollis’s explanation that the March removal from the schedule “began the retaliatory adverse action.” Appellants emphasized Hollis’s early recognition that she had not been scheduled to work and that the removal was to her detriment, asserting that a cause of action for retaliation accrues when the plaintiff learns of the adverse employment action, not when she might experience the full consequences. Appellants argued that Hollis’s own actions and statements confirmed that she suffered her redressable injury in March when she took steps to learn why she was not placed on the schedule as required by the provider agreements.

Consulting, Inc.” Hollis alleged that all defendants “operate as a singular entity,” but the plea in bar was filed by appellants only.

Hollis opposed the plea in bar, arguing that the “ultimate act” giving rise to the cause of action occurred within the limitations period. She argued that a cause of action accrues in Virginia upon completion of the last act that completes all elements of the claim. The relevant “harm” contemplated by the VWPA, she argued, was “‘discharge’ and an action that ‘affects the terms and conditions of employment,” which were “[c]ollectively . . . an ‘adverse action.’” Hollis contended that no legal harm had occurred in March 2021 because appellants had approximately one month to change their minds and place her on the schedule going forward. Hollis argued that she did not suffer material harm until April when she still was not on the schedule, at which time the limitations period began to run. Hollis reiterated that the “ultimate act that completed the cause of action in this matter was not placing [her] on the schedule in April of 2021, causing her to go without pay and essentially terminating her employment.”

Following oral argument, the circuit court denied the plea in bar. At appellants’ request, and pursuant to Code § 8.01-675.5, the circuit court certified an interlocutory appeal of its order denying the plea in bar to the VWPA claim.

The Court of Appeals granted review and affirmed the circuit court’s judgment. It distinguished the present case from its earlier decision in Rivera v. Mantech Int’l Corp., 81 Va. App. 170 (2024), in which it held that an employee’s cause of action under the VWPA accrued on the date his employer notified him that his employment was being terminated, not the later date when the termination took effect. The Court of Appeals determined that Hollis was “never explicitly notified by her employer that it was taking a definitive, adverse employment action against her that was certain to take effect in the future.” Ingleside Emergency Group, et al. v. Hollis, 2024 Va. App. LEXIS 654, at *9 (Nov. 12, 2024) (unpublished). Despite Hollis’s attempts to communicate about the status of her employment, appellants “did not engage in any

meaningful communication with her.” Id. As such, neither her realization in March that she was not scheduled to work nor the limited communication she received in response to her inquiry could constitute an adverse employment action akin to the notice of termination considered in Rivera.

This Court granted appellants’ appeal.

II. ANALYSIS

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