Back in 2007, Caroline D. Stevens, a registered nurse in the employ of Saint Elizabeth Medical Center, Inc. ("SEMC"), Physician Associates, LLC ("PAL"), and Patient First Physician Group ("Patient First"), became romantically and sexually involved with her boss, Defendant Donald Saelinger, M.D. (case). Saelinger was married at the time. Stevens admits to disclosing "the relationship with other employees, patients, and drug company representatives [and] that she and Saelinger had sex on the Patient First premises several times."

Over the course of their relationship, Stevens claims that Saelinger repeatedly told her that he was in the process of divorcing his wife. Saelinger's failure to actually do so ultimately led to the relationship ending in the summer or fall of 2009. When Stevens learned that Saelinger had been dishonest about the status of his marriage, she began to tell other Patient First employees that the relationship was over. According to Stevens, Saelinger sent her romantic text messages and attempted to touch her. As such, she began to avoid him at the office sometimes.

Stevens sent a letter to the Patient First management in which she expressed concern that she was feeling "pressured to leave [her] position due to 'personal agendas' and/or perceived threats of legal action." The letter prompted Patient First to hire an attorney to investigate. In December 2009, Steven was offered a severance package, which she declined.

On December 18, her employment was terminated for "disruptive workplace behavior and having sex on the premises." Saelinger also had been fired on December 3 for having sex at the office.