Illinois Appellate Court Upholds $3.5 Million Retaliation Verdict in Whistleblower Case
An Illinois appellate court has affirmed a $3.5 million jury verdict in favor of Kevin Kaytor, a former employee of Southern Illinois Hospital Services, who alleged he was unlawfully terminated after reporting suspected Medicare and Medicaid fraud and abuse.
The decision reinforces key protections for employees who report unlawful conduct in the workplace — and underscores the importance of holding employers accountable when retaliation occurs.
Kaytor, represented by Sedey Harper Westhoff PC, initially filed suit after being fired for raising concerns about misconduct involving the hospital’s sleep center operations. Despite having positive performance reviews, Kaytor was terminated shortly after reporting what he believed to be fraudulent billing and misuse of hospital resources.
A jury found that Southern Illinois Hospital Services’ actions were retaliatory, awarding Kaytor $291,251 in economic damages, $250,000 for emotional distress, and $3 million in punitive damages. The appellate panel upheld the full award, rejecting the hospital’s arguments that punitive and emotional distress damages were improperly granted.
In its opinion, the appellate court emphasized that sufficient evidence was presented for jurors to conclude that the hospital’s conduct was “willful and wanton.” The court also noted that the $3 million punitive award was consistent with damages awarded in similar retaliatory discharge cases.
“This case sends a clear message that employees who report wrongdoing should be protected, not punished,” said the team at Sedey Harper Westhoff PC. “We’re proud to have represented Mr. Kaytor in achieving justice and accountability.”
The case is Kaytor v. Southern Illinois Hospital Services, Appellate Court of Illinois, Fifth District, case number 5-24-0416.