California Court Reinstated Harmon Wrongful Termination Case
The appellate court ruled that the former mayor's retaliation and discrimination claims against the Romero Institute must go to trial.
Updated on Oct. 1, 2026 in Criminal Justice
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The California Court of Appeal reversed a summary judgment that had previously blocked Heidi Harmon's lawsuit against the Romero Institute. The court ruled that certain evidence previously excluded as hearsay is admissible, requiring the case to proceed to trial.
Why it matters
The ruling allows Harmon's claims of retaliation, discrimination, and wrongful termination to be heard by a jury after the court determined there was sufficient evidence to raise triable issues. The Romero Institute continues to maintain that the termination was due to financial reasons.
The California Court of Appeal reinstated five claims, including wrongful termination and discrimination, while upholding the dismissal of a defamation claim. The case now returns to the Santa Cruz Superior Court for trial proceedings.
The players
Heidi Harmon
She is a former mayor of San Luis Obispo who filed a lawsuit alleging wrongful termination and retaliation.
Romero Institute
This organization is an advocacy group that maintains it fired employees, including Harmon, for financial reasons.
California Court of Appeal
This is the state judicial body responsible for reviewing decisions made by lower trial courts within California.
The details
The appellate court determined that key evidence, which the Santa Cruz Superior Court judge had previously dismissed as hearsay, is admissible. Consequently, the trial court must vacate the summary judgment granted in March 2025 and move the lawsuit forward.
Timeline
Heidi Harmon resigned as the mayor of San Luis Obispo in 2021.
Harmon filed her lawsuit against the Romero Institute on October 25, 2023.
A Santa Cruz Superior Court judge issued a summary judgment in March 2025.
The California Court of Appeal reversed that judgment on October 1, 2026.
Legal Context
This reversal highlights the high evidentiary bar required to win a summary judgment in California employment law. By allowing previously excluded evidence, the appellate court ensured that factual disputes are resolved by a jury rather than through pre-trial dismissal.
Residents and local observers will now see this high-profile labor dispute proceed through a public trial process. The outcome may set a precedent for how similar retaliation claims are handled in the local court system.
The takeaway
The appellate court's decision underscores the importance of evidentiary standards in employment litigation. Plaintiffs seeking to overcome summary judgments must ensure all relevant supporting documentation is presented clearly for judicial review.
Further reading
For more information on state litigation, visit the Criminal Justice section.
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