Hair stylists' claim that they were mistreated for alleging health care fraud is dismissed
Abby Duncan and Samantha Summerfield sued their employer, the Tricho Salon and Spa. They claimed that they were discriminated against, and mistreated because they had filed a health care fraud report against their employer. Their original complaint arose out of Tricho's continued deduction of health insurance premium contributions from their paycheck for several months after Blue Cross had canceled their coverage. The employer argued that the cancellation was caused by an error at Blue Cross and was in the process of repair. The women alleged that they didn't learn of the problem until their health care expenses were denied.
The Court ultimately ordered the dismissal of the womens' lawsuit, in part because the employer effectively documented the reinstatement of their health care coverage by Blue Cross who apparently acknowledged its error. The appellate judges also overturned a sanction order against the women, noting that their original lawsuit, although unsustainable, was not "frivolous."