Government Contracting Civil Procedure

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Whistleblower Pays Price for Frivolous Suit

On Wednesday of this week, the federal court for the Southern District of New York rejected Fox’s plea to spare it from the $169,000 bill submitted by the white shoe law firm that successfully defended Managed Health Care...more

One Of EEOC’s First Transgender Lawsuits Has Settled

The EEOC announced this week that one of the lawsuits — against Lakeland Eye Clinic of Florida — has settled. The Clinic has agreed to make two payments of $75,000 to Brandi Branson, who had been the Clinic’s Director of...more

Reed Smith's Government Contracts Weekly Rundown - April 2015 #2

Here is a rundown of last week’s top developments related to government contracts to get you back on track and ready for Monday....more

Petition Urges DOL To Target Contractual Clauses Discouraging Whistleblowing

The Government Accountability Project (GAP) and Zuckerman Law recently petitioned the U.S. Department of Labor (“DOL”) to issue rules and guidance prohibiting “de facto” gag clauses in settlement and severance agreements that...more

When A Protest Isn't A Protest

In her familiar soliloquy in Shakespeare’s Romeo and Juliet, while longingly looking out of her window, Juliet said of her new-found love, Romeo: “What’s in a name? That which we call a rose/By any other name would smell as...more

Successful Rule 9(b) Defense of False Claims Act Whistleblower Litigation

The lure of significant monetary awards continues to stimulate high-risk whistleblower actions under the False Claims Act (FCA), and these claims are increasingly common in the pharmaceutical and medical device industry. The...more

Illinois Supreme Court to Decide If State’s Union Contract Conditioned on Appropriations

In the closing days of the March term, the Illinois Supreme Court agreed to wade yet again into the contentious and politicized area of public employee wages and benefits. State of Illinois v. American Federation of State,...more

Connecticut Legislature Introduces Bill that Would Subject the State to a Statute of Limitations in Claims Against Design...

The Connecticut Legislature recently introduced a bill that would subject the State to a ten year statute of repose for claims against design professionals for defective design and/or administration of construction projects....more

Appellate Court Upholds Dismissal of False Claims Act Case Against QVC, Denies that Qui Tam Plaintiff is Owed Monetary Proceeds,...

On March 31, 2015, the Appellate Court of Illinois, First District in a Rule 23 Order, upheld the dismissal of a False Claims Act (“FCA”) case against QVC, Inc. (“QVC”). In the dismissed case, the qui tam plaintiff had...more

How Subcontractors Can Protect Themselves Following Binghamton Simulator

Subcontractors often play important roles in government contracting. A subcontractor may, for example, take the lead in drafting what becomes a winning proposal. A subcontractor may work on a day-to-day basis with...more

Security of Payment Legislation and Set-Off Under Commonwealth Insolvency Laws

A recent Victorian Supreme Court case has clarified the impact of Commonwealth insolvency set-off provisions on State-based security of payments legislation. The case demonstrates that although a principal is generally...more

Supreme Court Holds that Medicaid Providers Do Not Have Right to Challenge Medicaid Reimbursement Rates under Supremacy Clause

Yesterday, the United States Supreme Court issued an opinion that denies providers the right to challenge low Medicaid reimbursement rates by suing state agencies in federal court. In Armstrong v. Exceptional Child...more

BC Court of Appeal Overturns Ruling that BC Government Liable to Logging Company for Failure to Consult

In Moulton Contracting Ltd. v British Columbia, 2015 BCCA 89, the BC Court of Appeal recently overturned the trial judge’s decision (reported at 2013 BCSC 2348, and summarized in an earlier update here) which had awarded...more

Employment Flash - March 2015

In This Issue: - Supreme Court Rejects Sixth Circuit Yard-Man Vested Benefits Presumption - Supreme Court Revives Pregnancy Discrimination Light Duty Case - NY Wage Theft Protection Act Amended - Senate...more

Split Decision on Ormat’s Motion to Dismiss Ex-Employees’ Claims of Cash Grant Fraud

The opinion of March 24 from the U.S. District Court for Nevada granted in part and denied in part Ormat’s motion to dismiss an action brought by ex-Ormat employees under the False Claims Act. The ex-employees are alleging...more

Court of Federal Claims Holds that Contractor’s Defense of Defective Specifications Is Not an Independent Claim Requiring...

Total Eng’g, Inc. v. United States, 2015 U.S. Claims LEXIS 30 (Fed. Cl. Jan. 26, 2015) - The United States Army Corps of Engineers (the “Government”) awarded a contract to Total Engineering, Inc. (“Total”) for preliminary...more

The Pitfalls of Settling Qui Tam Lawsuits

In a recent federal court case, the federal government and the State of California successfully enforced an oral settlement agreement of a qui tam lawsuit against a health care provider. United States v. North East Medical...more

Court Dismisses Case For No Diversity Jurisdiction 2 Days After Filing

In an unusual display of speedy discretion, federal District Judge Sheri Polster Chappell wasted no time in dismissing the complaint on a public works payment bond filed by Advance Industrial Coating, LLC in Advance Indus....more

Those NDAs May Not Be Worth the Paper They Are Written On

It is a given that companies strive to protect their intellectual property. Over the years, as an instrument of that protection, companies have made increasing use of non-disclosure agreements to advance that objective. A...more

Should Health Care Providers Pay Attention to the Seventh Circuit’s New Definition of “Referral”? – Part One

The Seventh Circuit Court of Appeals, in the case of United States v. Patel, just expanded the definition of “referring” under the federal Anti-Kickback Statute (“Statute”). In light of this case, health care providers should...more

Second-Place Bidder On Public Works Contract Could Proceed With Tortious Interference Claim

Between 2009 and 2012, American Asphalt South, Inc. (“American”) outbid Roy Allan Slurry Seal, Inc. (“Allan”) or Doug Martin Contracting, Inc. (“Martin”) on 23 public works contracts totaling more than $14.6 million to apply...more

Provincial Licence Doesn’t Promise Adequate Consultation with First Nations

In its recent decision in Moulton Contracting Ltd. v. British Columbia, the British Columbia Court of Appeal (Court) held that the Province of British Columbia (Province) can contractually exclude liability for losses...more

Federal Appeals Court Finds that New RAC Contracts Violate Federal Regulations

On March 10, 2015, the U.S. Court of Appeals for the Federal Circuit found that the Federal Acquisition Regulation (FAR) applies to CMS’s revised payment terms for new Recovery Audit Contractor (RAC) contract solicitations,...more

Notes From The Off-Label Underground

Keeping track of litigation over off-label use/promotion frequently sends us off on tangents. We’ve wandered into abortion cases, securities law cases, criminal cases – even cases brought by criminals....more

Alert: Who Owns a Bribe: the Bribed Public Official or the Defrauded State?

A public official receives a bribe to award a contract. Does the bribe "belong" to the official or to the state that he or she represents? The answer to the question can matter a great deal to the success of a claim. But the...more

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