I think of a case that happened about 18 years ago. A baby was born very prematurely at 23 to 24 weeks gestation and weighed very little, about 500 grams. I remember that the survival statistics at that time showed about a 10% chance of survival for this unfortunate child. We got the baby through the first three weeks of life, but then, in spite of our best efforts, she developed an infection and died from infection related renal failure. It was a not atypical way for such a premature baby to live and die.
One of the NICU nurses thought she detected malpractice and told the parents to sue. Sure enough, one of our town's most prominent malpractice attorneys came sniffing around and deposed a few of us neonatologists. After he found, appropriately, that no malpractice had occured, he and the hospital settled for a small amount of money, (about $10,000, I think) enough to cover the attorney's expenses up to that point, but small enough that it wasn't worth the hospital's time to fight it further. There was no admission of guilt by the neonatologists or the hospital.
I think the nurse told the parents to sue because the physician chief of that NICU had recently been demoted and a new chief brought in. Some of the nurses remained loyal to the old chief and were happy to keep the pot stirred up. I think the nurse really thought malpractice had occured, but she was biased and also not knowledgeable enough to determine whether malpractice had occured. I mean, it's not likely malpractice when a baby with a 90% chance of dying actually dies. Her telling the parents to sue did no one any good, except the attorneys involved. It just sustained the parents' grief, rather than helping them deal with the sad loss of their child.
I don't know whether a health care worker should tell the parents to sue if they see malpractice occur or not, but I do know this: You had better be sure you know what you're talking about, or else you'll look like a jackass and lose some friends and your job, which is what happened - appropriately - to the nurse in this case.