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Civil Procedure Government Contracting

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False Claims Act's "Rigorous" Materiality Standard Enforced by Second Circuit

by Jones Day on

The Situation: A decision by the U.S. Court of Appeals for the Second Circuit reinforces the growing body of case law regarding the strict materiality requirements of the False Claims Act. The Result: Coyne v. Amgen is...more

Materiality Part II: Government Knowledge

Editor’s Note: This is the second in a five-part series on how U.S. district courts and courts of appeal have applied the materiality standard set forth in Universal Health Services, Inc. v. United States ex rel. Escobar, 136...more

2017 Protest Roundup

In addition to our regular recap of key protest decisions by the Government Accountability Office (GAO) and Court of Federal Claims this month, we have compiled a year-end recap of key bid protest decisions from 2017. The...more

Another Banner Year for False Claims Act Recoveries Signals More of the Same for 2018

by Blank Rome LLP on

The Department of Justice (“DOJ”) reported $3.7 billion in False Claims Act (“FCA”) settlements and judgments for fiscal year 2017, the 8th straight year of 3-plus-billion-dollar recoveries and 700-plus new cases filed....more

Why Brexit Could Limit Damages in Procurement Challenges

by Bryan Cave on

A recent public procurement decision of the European Free Trade Association (EFTA) Court highlights the possibility that aggrieved suppliers in public procurement cases in the UK run the risk of losing their future rights to...more

D.C. District Court Clarifies Standard for Laboratory Determination of Medical Necessity

by Epstein Becker & Green on

This past June, a federal district court in the District of Columbia made headlines when it declined to dismiss an action brought by a qui tam plaintiff (“Relator”) against defendant Boston Heart Diagnostics (“Boston Heart”),...more

Use Of The Word “In” Indicates Geography; Use Of The Word “Of” Indicates Sovereignty: Federal District Court In Maryland Holds...

by Pepper Hamilton LLP on

Pritchett Controls, Inc. v. Hartford Accident & Indemnity Co., 2017 U.S. Dist. LEXIS 192182, 2017 WL 5591872 (D. Md. Nov. 21, 2017) - James W. Ancel, Inc. (“JWA”) was the prime contractor on a project for the Maryland...more

Pleading with Particularity: Sixth Circuit Upholds Stringent Pleading Requirements in FCA Cases

by McGuireWoods LLP on

In an effort to avoid transforming the FCA into “an all-purpose antifraud statute,” the Sixth Circuit recently reaffirmed that relators must plead a connection between the alleged fraud and an actual claim made to the...more

Georgia Court Of Appeals Holds That Sovereign Immunity Shields County From Contractor’s Claims Based Upon Unwritten Change Orders

by Pepper Hamilton LLP on

Fulton County v. Soco Contracting Company, Inc., 2017 Ga. App. LEXIS 568 (Ga. Ct. App., November 15, 2017) - Fulton County contracted with SOCO Construction Company (“SOCO”) to build a cultural center near the Fulton...more

Termination for Convenience: File on Time and Document Your Costs

by Davis Wright Tremaine LLP on

Last month, the Armed Services Board of Contract Appeals issued two decisions involving terminations for convenience. Both decisions are instructive regarding how contractors should anticipate contractual and regulatory...more

Sixth Circuit Reverses Dismissal Of Putative Class Action, Finding Third-Party Complaints May Be Sufficiently "True" To Constitute...

by Shearman & Sterling LLP on

On December 13, 2017, the United States Court of Appeals for the Sixth Circuit reversed the dismissal of a consolidated putative class action against Community Health Systems, Inc. (“Community”), its CEO, and CFO. Norfolk...more

Federal District Court in Virginia Holds That Prime Contractor’s Payment Bond Surety Cannot Rely on No-Damages-For-Delay Clause in...

by Pepper Hamilton LLP on

United States v. John C. Grimberg Co., Case No. 1:16-cv-991, 2017 U.S. Dist. LEXIS 173362 (E.D. Virginia, October 19, 2017) - John C. Grimberg (“Prime Contractor”) was awarded a contract (the “Prime Contract”) to design...more

Louisiana Governor Appeals LGBT Executive Order Ruling to State Supreme Court

On December 1, 2017, Louisiana Governor John Bel Edwards (D) appealed a state appellate court decision holding that Executive Order JBE 2016 – 11, which seeks to protect the rights of lesbian, bisexual, gay, transgender...more

Will DOJ Dismiss More Meritless Qui Tam Actions?

by Holland & Knight LLP on

Is the U.S. Department of Justice (DOJ) going to dismiss more meritless qui tam actions brought under the False Claims Act (FCA)? At a conference on Oct. 30, 2017, Michael Granston, the Director of DOJ's Civil Fraud Section,...more

The Expanding False Claims Act Materiality Requirement

by Holland & Knight LLP on

There is a renewed focus on the government’s activities for purposes of the False Claims Act (FCA) materiality analysis and as demonstrated by a number of recently issued decisions, the roster of relevant government actors is...more

Arizona Prompt Pay Act Held Inapplicable to Federal Construction Project

by Clark Hill PLC on

New Arizona case serves as a note of caution to the subcontractors doing work on federal projects, even if not directly contracting with a federal agency. On November 16, 2017, the Arizona Court of Appeals, Division One, in...more

DOJ Should Dismiss Meritless False Claims Act Qui Tam Relator Claims

by Jones Day on

The Situation: Despite recently acknowledging the significant burden imposed by frivolous False Claims Act claims and affirming its statutory grant of power to dismiss meritless claims brought by relators, DOJ has maintained...more

Escobar: Year One

Universal Health Services, Inc. v. U.S. ex rel. Escobar, 136 S. Ct. 1989 (2016) was a landmark case in FCA jurisprudence. In Escobar, the Supreme Court held that the implied false certification theory can be a basis for...more

Federal Government Will Seek Dismissal of False Claims Act Cases That Lack Merit

by Ruder Ware on

A top official in the U.S. Department of Justice (DOJ) recently announced a major change in the federal government’s position on claims brought under the False Claims Act (FCA). Michael Granston, the director of DOJ’s Civil...more

Change in Policy or Same Old Story? DOJ Suggests it Will Dismiss Unmeritorious Qui Tam Suits

An early report from the Health Care Compliance Association’s Health Care Enforcement Compliance Institute states that DOJ will be moving to dismiss False Claims Act cases that it concludes lack merit. DOJ has not yet posted...more

Third Circuit Confirms Government Knowledge Can Defeat Scienter and Materiality Requirements for False Claims Act Liability

by Jones Day on

The Situation: In Spay v. CVS Caremark Corp., the Third Circuit became the latest court of appeals to hold that, in False Claims Act litigation, scienter can be lacking when the government has knowledge of "the facts...more

DOJ Bows Out of ManorCare FCA Case

by Bass, Berry & Sims PLC on

After years of investigation and litigation, and on the eve of a highly anticipated trial, the government abandoned its FCA case against ManorCare, the nation’s second-largest operator of skilled nursing homes and assisted...more

New Court of Federal Claims Decision Is an Opportunity for Prospective Bidders

• A potential offeror may have jurisdiction to protest a government insourcing decision at the Court of Federal Claims. • This issue will likely need to be resolved by the Court of Appeals for the Federal Circuit. ...more

Seventh Circuit Resolves Circuit Split on Causation in FCA Cases

by Bass, Berry & Sims PLC on

In a recent opinion, the Seventh Circuit joined its sister circuits in holding that under the FCA, a defendant’s conduct must proximately cause injury to the government in order to incur liability for that injury. United...more

In Luce, The Seventh Circuit Joins the Third, Fifth, Tenth, and D.C. Circuits in Adopting a Proximate Causation Requirement for...

In United States v. Luce, the U.S. Court of Appeals for the Seventh Circuit recently held that a plaintiff suing under the False Claims Act (“FCA”), 31 U.S.C. § 3729 et seq., must demonstrate not merely that the government...more

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