In the end I had conformation that this was a lateral violence issue and worse, issues escalated. I did keep my cool, managed to stick up for myself and found a new position in the system. I was hired for a job with a manager that chose to give me a chance based on my interview despite the internal reference from my past manager. Lateral violence causes problems, serious issues with communication and patient care issues. It is never okay but never punished, nor reported so continues to exhist. As a rule though, I don't say things concerning people or situations that I would not expect to get back to them. It is a hard job market out for everyone. I am fortunate at this time to have a job that I love, that I can grow in and learn from. As for my past manager, I hope that she learned something from this situation. Thanks for all the support from everyone.