Justia Government Contracts Opinion Summaries

The Pacific Regional Director of the Interior Department's Minerals Management Service ("Director") caused four oil and gas leases off the coast of California, for which appellants had originally paid the United States over $140 million, to expire. The Director later testified that he based his decision solely on political considerations and that absent such considerations, he would have extended the leases instead. At issue was whether the Interior Board of Land Appeals ("IBLA") should have adopted the decision the Director said he would have made absent political influence in order to cure the Director's original decision of political taint. The court affirmed the district court's decision and held that the IBLA fulfilled its role and appellants received all they were entitled to, i.e., an agency decision on the merits without regard to extrastatutory, political factors.

Beka Industries, Inc. ("BEKA") sued the Board of Education of Worcester County ("County Board") alleging claims that arose from a written contract dispute between BEKA and the County Board when BEKA was dissatisfied with the methods and amounts of the County Board's payment for its work. The court considered several issues on appeal and held that a new trial was warranted where the County Board was precluded from presenting evidence on its recoupment claim and BEKA may have been awarded impermissible "delay damages" under the contract. The court also reversed the intermediate appellate court's holding that the County Board's governmental immunity was not waived unless and until BEKA proved that there was a funding mechanism to satisfy a judgment for money damages rendered against the County Board. Accordingly, court affirmed in part, reversed in part, and remanded the case to the intermediate appellate court with direction to remand to the circuit court for a new trial.

Dunn, McCormack & MacPherson (Dunn), a Virginia law firm, served as legal counsel to the Fairfax County Redevelopment and Housing Authority for thirty years. Dunn worked for the Authority on an at-will contract for legal representation, which was terminated in September, 2005. Dunn filed a complaint against the County Board of Supervisors, alleging that the Chairman of the Board tortiously interfered with Dunn's contract with the Authority. The circuit court sustained the Board's demurrer, holding that Dunn's complaint failed to state sufficient facts to support a cause of action for intentional interference with a contract. Dunn amended its complaint, but ultimately failed to convince the court to rule in its favor. On appeal, the Supreme Court found the record clearly demonstrated that the circuit court sustained the County's demurrer for failing to "adequately state a prima facie cause of action" and affirmed the lower court's decision.

Plaintiff appealed the district court's refusal to enforce a settlement agreement between plaintiff and his former employer, a government contractor, after plaintiff brought an action against his employer under the False Claims Act. At issue was whether the district court erred by not enforcing the settlement agreement, whether the district court made various errors during trial entitling plaintiff to a new trial, and whether the district court erred by awarding attorneys' fees to the employer. The court held that the district court properly denied plaintiff's motion to enforce the settlement agreement where the agreement died when the government rejected it and was not revived by a subsequent agreement between plaintiff and the government. The court also held that plaintiff was not entitled to a new trial where the district court committed no reversible error during trial The court further held that the district court erred in awarding attorneys' fees to the employer where plaintiff's claims were not clearly frivolous.

A podiatrist, primarily serving elderly patients, was convicted of healthcare fraud counts that resulted in a loss of $120. The podiatrist was sentenced to 18 months in prison followed by three years of supervision and ordered to pay more than $244,000, based on acquittal counts. The Sixth Circuit affirmed the conviction, but vacated and remanded the sentence. There was sufficient evidence that the podiatrist mailed bills for patients who were not actually treated and for work done by staff no longer employed at the office. Sentencing based on acquittal counts is not unconstitutional if those counts have been established by a preponderance of evidence, but the sentence was unreasonable. Although a court need only make a reasonable estimate of loss, the court relied solely on statistical evidence about loss from up-coding without a sound representative sample. The acquittal counts were part of a broad scheme to defraud and an award of restitution, based on those counts, was proper.