Justia Government Contracts Opinion Summaries

Dr. Braun worked at the National Institutes of Health (NIH) for almost 32 years as a research doctor with a specialty in neurological disorders. He obtained tenured status in 2003. In 2016, the NIH, which is located within the U.S. Department of Health and Human Services, removed Dr. Braun from his position after an audit revealed that his records were incomplete for all but 9% of the human subjects who had participated in his research over the course of six years.The Merit Systems Protection Board rejected Braun’s argument that an NIH policy required de-tenuring of tenured scientists (which NIH had not done in his case) before they could be removed for performance-related reasons and that the NIH committed certain other errors. The Board reasoned that the cited NIH policy allows removal “for cause” without de-tenuring. The Federal Circuit affirmed. The “for cause” provision was properly applied to this case. The evidence permitted the conclusions that Dr. Braun, “over a long period of time,” failed to a “dramatic and disturbing” degree, to comply with protocol requirements that exist “for the safety of the patients and the credibility of the research.” There was no denial of due process. View "Braun v. Department of Health and Human Services" on Justia Law

The United States appealed the district court's dismissal of its claims under the False Claims Act (FCA) and federal common law against SCI. The government's claims stemmed from its belief that a service-disabled veteran's ownership in VECO was illusory. Rather, the government alleges that the company was controlled by Defendant Lee Strock, who set up VECO as a front to funnel contract work for his company, SCI.The Second Circuit concluded that the district court's finding with respect to materiality was erroneous because it was premised on too restrictive a conception of the FCA materiality inquiry set out in Universal Health Services, Inc. v. United States ex rel. Escobar, 136 S. Ct. 1989 (2016); the government has plausibly alleged materiality in this case; the district court's conclusion that the complaint failed to allege defendants' knowledge was erroneous as to Lee Strock, and potentially as to SCI, but not as to Cynthia Golde; and the district court should not have dismissed the common law claims on jurisdictional grounds because it had original jurisdiction over these claims under 28 U.S.C. 1345. Accordingly, the court affirmed in part, reversed in part, and vacated in part. View "United States v. Strock" on Justia Law

Dr. Korban and his medical practice Delta, practice diagnostic and interventional cardiology. In 2007, Dr. Deming filed a qui tam action under the False Claims Act (FCA), 31 U.S.C. 3729(a)(1)(A)–(C), (G) against Korban, Jackson Regional Hospital, and other Tennessee hospitals, alleging “blatant overutilization of cardiac medical services.” The United States intervened and settled the case for cardiac procedures performed in 2004-2012. Korban entered into an Integrity Agreement with the Office of Inspector General, effective 2013-2016 that was publicly available and required an Independent Review Organization. The U.S. Department of Justice issued a press release that detailed the exposed fraudulent scheme and outlined the terms of Korban’s settlement. In 2015, Jackson Regional agreed to a $510,000 settlement. The Justice Department and Jackson both issued press releases.In 2017, Dr. Maur, a cardiologist who began working for Delta in 2016, alleged that Korban was again performing “unnecessary angioplasty and stenting” and “unnecessary cardiology testing,” paid for in part by Medicare. In addition to Korban and Jackson, Maur sued Jackson’s corporate parent, Tennova, Dyersburg Medical Center, and Tennova’s corporate parent, Community Health Systems. The United States declined to intervene. The district court dismissed, citing the FCA’s public-disclosure bar, 31 U.S.C. 3730(e)(4). The Sixth Circuit affirmed. Maur’s allegations are “substantially the same” as those exposed in a prior qui tam action and Maur is not an “original source” as defined in the FCA. View "Maur v. Hage-Korban" on Justia Law

In this infrastructure development dispute, the Supreme Court vacated the judgment of the court of appeals concluding that the Legislature had not waived immunity for Plaintiff's declaratory relief claims against the City of New Braunfels, holding that because Plaintiff relied on the court of appeals' holding in a previous appeal that declaratory relief was available and the Open Meeting Act and Tex. Local Gov't Code chapter 252 afforded alternative relief to consider, remand was required in the interest of justice.Plaintiff sued the City seeking declaratory relief for violations of the Open Meetings Act and the contract-bidding provisions of chapter 252. The trial court denied the City's jurisdictional plea based on governmental immunity, and the court of appeals affirmed, permitting Plaintiff's claims to proceed. Plaintiff prevailed at an ensuing trial, and the trial court awarded declaratory relief. The court of appeals reversed, concluding that the City was immune. The Supreme Court vacated the judgment and remanded the case, holding that this was a compelling case requiring a remand in the interest of justice. View "Carowest Land, Ltd. v. City of New Braunfels, Texas" on Justia Law

Plaintiff County of Monterey (County) appealed when the trial court denied its petition for writ of mandate and complaint for declaratory and injunctive relief. The County was the successor agency for its former redevelopment agency ("RDA"), and challenged decisions by the Department of Finance (Department) relating to a development known as the East Garrison Project, which was part of the Fort Ord Redevelopment Project located on a closed military base in Monterey. The County claimed the trial court erroneously determined that a written agreement entered into between its former RDA and a private developer (real party in interest, UCP East Garrison, LLC) was not an enforceable obligation within the meaning of the dissolution law because the former RDA did not have the authority to approve the agreement on the date the governor signed the 2011 dissolution legislation. The County further contended the trial court erred in determining the County failed to show the Department abused its discretion in disapproving two separate requests for funding related to administration of the East Garrison Project. The County claimed these administrative costs were expended to complete an enforceable obligation within the meaning of the dissolution law, and therefore the Department should have approved its requests for payment of such costs. Finally, the County argued the Department’s application of the dissolution law improperly impaired UCP’s contractual rights. The Court of Appeal rejected each of the County's contentions and affirmed judgment. View "County of Monterey v. Bosler" on Justia Law

The Supreme Court affirmed the circuit court's dismissal of West Virginia Counties Group Self-Insurance Risk Pool, Inc.'s (WVCoRP) claims against Great Cacapon Volunteer Fire Department, Inc. (VFD), holding that the circuit court did not err.When a fire destroyed the building where VFD was housed, the owner of the building, the Morgan County Commission, was reimbursed for the loss by WVCoRP. Seeking to recover the funds it expended, WVCoRP sued the VFD and other parties for negligence. In the process, WVCoRP invoked a contractual right to subrogation. The circuit court determined that the claims against VFD were barred by W. Va. Code 29-12A-13(c), which prohibits claims against political subdivisions made under a right of subrogation. The Supreme Court affirmed, holding (1) WVCoRP's claims spring from its coverage contract with the Commission and fall within any plain meaning of subrogation; and (2) section 29-12A-13(c) is not an insurance law of the State from which WVCoRP is exempt. View "West Virginia Counties Group v. Great Cacapon Volunteer Fire Department, Inc." on Justia Law

The Supreme Court affirmed the decision of the court of appeals requiring Appellant to comply with a subpoena duces tecum issued to him by the Secretary of the Finance and Administration Cabinet (Secretary), holding that the subpoena powers of the Secretary extend to suspected violations of Kentucky's Model Procurement Code (KMPC) and that the Secretary has the power to subpoena non-government employees as part of an investigation into a possible violation of the KMPC.The Secretary issued a subpoena to Frank Lassiter seeking information to assist in an investigation into whether certain government contracts complied with the KMPC. Lassiter refused to comply with the subpoena, arguing that the Secretary's authority to issue subpoenas under Ky. Rev. Stat. Chapter 45 did not extend to investigations into potential KMPC violations and, regardless, did not allow him to subpoena non-government employees. The circuit court denied the Secretary's motion to compel Lassiter's compliance, finding that the Secretary subpoena power did not apply to investigations into possible violations of the KMPC. The court of appeals reversed. The Supreme Court affirmed, holding that the Secretary's subpoena power applies to investigations into possible violations of the KMPC. View "Lassiter v. Landrum" on Justia Law

Appellant SEDA-COG Joint Rail Authority (the “JRA”) was a joint authority formed pursuant to the MAA, governed by a sixteen member Board, with each of the eight member counties appointing two members. In addition to the MAA, the Board’s operations were governed by the JRA’s bylaws and a code of conduct. Appellee Susquehanna Union Railroad Company (“SURC”) was a third-party rail line operator. The JRA began the process to award a new operating agreement. At an October 2014 Board meeting, the JRA’s counsel announced because the Board had sixteen members, a nine-vote majority was required for the Board to act. Carload Express received twenty-four points, SURC received twenty-three, and Northern Plains Railroad received thirteen. A roll call vote was taken on the motion to award the contract to Carload and, of the ten voting Board members, seven voted in favor and three against. When certain Board members questioned the nine vote requirement for action, the Board voted unanimously to table the decision to award the operating agreement to Carload pending further review of the JRA’s bylaws and the applicable law. After the meeting, Carload submitted its position to the JRA, arguing that it had been awarded the operating agreement based upon the seven-to-three vote. The JRA responded by filing an action requesting a declaration upholding its use of the nine vote requirement. The Supreme Court granted discretionary appeal to determine whether Section 5610(e) of the Pennsylvania Municipality Authorities Act's use of the phrase “members present” abrogated the common law rule that a simple majority (a majority vote of the voting members who make up the quorum of a municipal authority) carried a vote. Because the Court concluded that it did not, it affirmed the Commonwealth Court. View "Seda-Cog Joint Rail Auth v. Carload Express et al" on Justia Law

In this case related to the disbursement of Purdue Pharma funds, the Supreme Court reversed the court of appeals' grant of summary judgment for the Office of the Attorney General (OAG) and Dolt Thompson declaring that a contract was enforceable and a payment to Dolt, Thompson, Shepherd & Kinney, P.S.C. (Dolt Thompson) was proper, holding that the circuit court did not err.The then-attorney general filed a lawsuit against Purdue Pharma regarding the OxyContin epidemic. The OAG selected Dolt Thompson to assist in the Commonwealth's litigation against Purdue Pharma. After the OAG settled with Purdue Pharma it paid Dolt Thompson in part. The Legislature then passed a 2016 budget bill directing payment of attorney's fees and expenses in the Purdue Pharma case. The OAG filed a complaint seeking a declaration that the payment to Dolt Thompson was proper. The Finance Cabinet filed an action against Dolt Thompson. The circuit court consolidated the cases and entered summary judgment for the OAG and Dolt Thompson. The court of appeals reversed and ordered the circuit court to allow the Cabinet to conduct discovery. The Supreme Court reversed, holding that the Legislature acted within its authority in stating that the attorney's fees should be paid prior to any other disbursement of the Purdue Pharma funds. View "Dolt, Thompson, Shepherd & Conway, P.S.C." on Justia Law

After the Mississippi Department of Public Safety (MDPS) reinterpreted a provision in a contract between it and the Mann Agency, LLC, the MDPS refused to pay more than $700,000 in invoices submitted by the Mann Agency. The Mann Agency filed suit against the MDPS for breach of contract. The trial court dismissed each party’s breach-of-contract claim, found that the case involved a bona fide dispute, and denied the Mann Agency’s claim for interest and attorneys’ fees. The Mann Agency appealed the trial court’s decision to deny its claim for interest and attorneys’ fees, arguing that the MDPS acted in bad faith. The MDPS cross-appealed, arguing the trial court erred by dismissing as moot its breach-of-contract claim. Finding no reversible error, the Mississippi Supreme Court affirmed the trial court's decisions. View "Mann Agency, LLC v. Mississippi Department of Public Safety" on Justia Law