Government Contracting Civil Remedies

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Pennsylvania Court Refuses to Enforce “No Damages for Delay” Clause

A Pennsylvania appellate court recently refused to enforce a “no damages for delay” clause and upheld an award of delay damages against a school district where the district actively interfered with a general contractor’s...more

Whistleblower Filed Too Early & Too Late for Share of $322M SCAN Scam Recovery

During his days as a data encounter manager at SCAN, Jim suspected the company had been double-billing Medicare and Medicaid for years. He expressed his concerns within SCAN. When he refused a job reassignment, he was fired....more

Court Throws Wet Blanket On Prime Contractor's Attorneys' Fees Request In Prompt Payment Case

In James L. Harris Painting & Decorating, Inc. v. West Bay Builders, Inc., et al. (No. C072169, filed 8/27/15), the California Court of Appeal for the Third Appellate District upheld the trial court's discretion to not award...more

Pennsylvania’s Contractor and Subcontractor Payment Act Does Not Apply to Public Projects

Pennsylvania’s Contractor and Subcontractor Payment Act (“CASPA”) is a powerful tool for contractors and subcontractors to ensure that they receive prompt payment for their work and may entitle them to expansive remedies,...more

How Is a Relator’s Recovery in an FCA Settlement Taxed?

This rarely litigated question was presented to the Seventh Circuit in Patrick v. Commissioner of Internal Revenue, No. 14-2190, 2015 WL 5024985, — F.3d —- (Aug. 26, 2015). Previously, the First Circuit, in Fresenius Medical...more

The Difficulty Of Challenging FCA Fine As Excessive

Last month, in U.S. ex rel. Drakeford v. Tuomey, No. 13-2219, (4th Cir. July 2, 2015), the Fourth Circuit affirmed a False Claims Act verdict against a nonprofit hospital in Sumter, South Carolina. In an area of the law where...more

Hospital Chain Pays Heavy Price for Being Too Clever

Finding that Community Hospital Systems had been “too clever by half” in negotiating a global settlement agreement for seven whistleblower suits, a federal judge ordered the chain to pay the attorneys’ fees of all the...more

Ninth Circuit Eases Ability for Whistleblowers to Bring Qui Tam Actions

In an important development under False Claims Act (“FCA”) case law, the U.S. Court of Appeals for the Ninth Circuit has expressly abrogated former precedent limiting the ability of whistleblowers to recover funds reimbursed...more

Court Adopts Tough Interpretation of 60-Day Repayment Rule

New York’s Mt. Sinai Hospitals can’t seem to catch a break in its long-running battle with whistleblower Bob Kane. First, the government joined the case and wanted not just the $1,000,000 in Medicaid overpayments, but an...more

Contractor’s Repeated Material Breach Excuses Subcontractor From Further Performance

The Appellate Division of the Supreme Court of New York in U.W. Marx, Inc. v. Koko Contracting, Inc. affirmed judgment in favor of a subcontractor, holding that the general contractor’s failure to make three successive...more

Circuit Court Affirms $237.5 Million Judgment Against Tuomey

On July 2, 2015, the Fourth Circuit affirmed a $237,454,195 judgment against Tuomey Health Care System (Tuomey) for violations of the Federal False Claims Act (FCA), which liability arose from violations of the Stark law....more

Beware of Nurses Bearing Gifts

Alisia and David blew the whistle on their former employer, Nurses’ Registry & Home Health, for sending gift baskets and ticket events to doctors who referred patients to the home health operation. Their qui tam suit alleged...more

Contractor Barred from Using the “Total Cost” or “Modified Total Cost” Approach to Establish Delay Claim

In a recent ruling, Hill York Service Corporation v. Critchfield Mechanical, Inc., the U.S. District Court for the Southern District of Florida held that a contractor may not establish damages for delay under either the...more

Mintz Levin Health Care Qui Tam Update - July 2015

Trends & Analysis - ..We have identified 36 health care–related qui tam cases that have been unsealed since the cases covered in our last Qui Tam Update. Of these cases, eight were filed within the last year. A number...more

Fourth Circuit Upholds $237M Verdict Against South Carolina Hospital System for Stark Law Violations

On July 2, 2015, the United States Court of Appeals for the Fourth Circuit affirmed a $237 million judgment against Tuomey Healthcare System, Inc., in a federal False Claims Act (FCA) case arising out of violations of the...more

Blog: What States Should Know About The Contractual Consequences Of Bribery

Bribery. States often have to decide to exit or continue with contracts procured by bribes paid to public officials. Bribery gives rise to various types of claim. We have previously covered claims to recover the value of...more

Pennsylvania Supreme Court Clarifies Applicability of Contractor and Subcontractor Payment Act

Last week, the Supreme Court of Pennsylvania issued a decision which has important consequences for all members of the construction industry involved with public works projects. In Clipper Pipe & Service, Inc. v. The Ohio...more

The Federal and Nevada False Claims Acts

Contractors are no strangers to the courts of justice. Litigation between contractors and owners frequently occurs when a project does not get completed on time or the work does not comply with the Contract Documents. The...more

Supreme Court Decides Horne v. Department of Agriculture

On June 22, 2015, the Supreme Court decided Horne v. Department of Agriculture, No. 14-275, holding that the Fifth Amendment’s Takings Clause applies to personal property as well as real property, and a requirement that...more

Cancelled Solicitation: What Can A Government Contractor Do?

Proposal preparation can be a difficult and expensive process. On top of the normal challenges of spending thousands of dollars preparing what a contractor hopes is a successful proposal, they also face the risk of an agency...more

The False Claims Act – the Basics Every Provider Should Know, Part Two

FCA penalties are harsh, as they are designed to truly deter attempts to defraud the federal government. The penalty for an FCA violation begins with treble damages, requiring the offender to pay three times the amount of the...more

Arizona State Legislature Expands Prompt Payment to Design Professionals on Public Works Projects

Arizona law has long protected the rights of contractors, subcontractors and suppliers to prompt payment. However, all such protections have not extended to design professionals. For example, in 2013, the Arizona Court of...more

Arizona Court of Appeals Interprets Stricter Requirements for Payment Bond Claimants

Arizona has long protected the rights of subcontractors and material suppliers to seek recovery from the payment bond surety on public bonded projects. Arizona’s Little Miller Act, A.R.S. § 34-223, provides that claimants...more

West Virginia Employment Update: The Mountain State is Becoming Much More Attractive to Employers

For the past several decades, West Virginia has not fared particularly well when employers were faced with tough decisions regarding whether to close or open new facilities in the state.  One of the factors that undoubtedly...more

Unanimous Supreme Court Rejects Wartime Tolling of Statute of Limitations for Civil False Claims but Opens Door to Successive Qui...

On May 26, 2015, the United States Supreme Court resolved uncertainty surrounding the application of wartime tolling of the statute of limitations under the civil False Claims Act (FCA), but simultaneously opened the door to...more

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