Justia Government Contracts Opinion Summaries

LFD operates a Lake Cumberland, Kentucky marina under a lease from the Army Corps of Engineers, covering approximately 130 acres of water and 36 acres of land. The Lease states: The right is reserved to the United States ... to enter upon the premises at any time and for any purpose necessary or convenient ... to flood the premises; to manipulate the level of the lake or pool in any manner whatsoever; and/or to make any other use of the lands as may be necessary in connection with project purposes, and the Lessee shall have no claim for damages. By 2007, Wolf Creek Dam, which created the lake, was at a high risk of failure; the Corps began lowering the lake's water level. The Corps returned the lake to its previous levels in 2014, when restoration was complete. LFD submitted a certified claim to the District Engineer, asserting $4,000,000 in damages. The Federal Circuit affirmed rejection of the claim. While the Lease is a contract for “the disposal of personal property” under 41 U.S.C. 7102(a)(4), giving the court jurisdiction, LFD did not properly present its reformation claim to the District Engineer. Rejecting a breach of contract claim, the court stated the Lease granted the Corps the right to manipulate the level of the lake in any manner whatsoever. View "Lee's Ford Dock, Inc. v. Secretary of the Army" on Justia Law

The Fourth Circuit held that the first-to-file rule of the False Claim Act mandates dismissal of a relator's action brought while related actions were pending, even after the related actions have been dismissed and the relator's complaint has been amended, albeit without mention of the related actions. In this case, because the Carter Action violated the first-to-file rule in a manner not cured by subsequent developments, the action must be dismissed. Accordingly, the court affirmed the district court's judgments. View "US ex rel. Carter v. Halliburton Co." on Justia Law

Plaintiffs Chorches and Fabula filed a qui taim suit under the False Claims Act (FCA), 31 U.S.C. 3729 et seq., against AMR, alleging that AMR made false statements and submitted false Medicare and Medicaid claims. Plaintiff Fabula also alleged a retaliation claim. The Second Circuit vacated the district court's dismissal of the claims and held that Chorches has pled the submission of false claims with sufficient particularity under Fed. R. Civ. P. 9(b), as applied in the qui tam context, and that Fabula's refusal to falsify a patient report, under the circumstances of this case, qualified as protected activity. Accordingly, the court remanded for further proceedings. View "Fabula v. American Medical Response, Inc." on Justia Law

The City of Albuquerque (“the City”) provided public-bus services to Albuquerque residents. The City hired Soto Enterprises, Inc., d/b/a Miracle Delivery Armored Services (“Soto”) to count the cash fares received money, transport it by armored car to the City’s bank for deposit, and verify the daily deposit amount with the City. In the second half of 2014, the City noticed irregularities between the amount of fare money that it internally recorded and the amount Soto deposited. After investigating these irregularities, the City sued Soto in New Mexico state court, alleging contract and tort claims. Though the City had not yet served process on Soto, Soto filed three documents in state court in response to the complaint. Then Soto filed an answer to the complaint, including a notice of removal to federal district court. In federal court, the City moved for a remand to state court, arguing that Soto had waived its right to remove the case to federal court after participating in the state court by filing the motion to dismiss. The district court agreed with the City’s position and remanded the case. The district court remanded this case after concluding that the defendant had waived its right to remove by filing a motion to dismiss in state court. Finding no reversible error with that decision, the Tenth Circuit affirmed. View "City of Albuquerque v. Soto Enterprises" on Justia Law

Relator filed two suits alleging that Verizon violated the False Claims Act by overbilling the government in its telecommunications contracts. The D.C. Circuit affirmed the district court's holding that relator's second qui tam action violated the first-to-file bar and that, to proceed, he must file a new action; upheld the dismissal of the second suit without prejudice under the first-to-file bar; rejected Verizon's claim that relator's action should be dismissed with prejudice under the public disclosure bar; and held that the district court did not abuse its discretion in declining to dismiss relator's action with prejudice under Rules 8 and 9. View "Shea v. Cellco Partnership" on Justia Law

In 1993, Congress amended the Communications Act, 47 U.S.C. 151–622, to allow the Federal Communications Commission (FCC) to grant electromagnetic spectrum licenses through a system of competitive bidding. The Act requires the FCC to pursue objectives required by statute, including promoting economic opportunity and competition and ensuring that new and innovative technologies are readily accessible to the American people by avoiding excessive concentration of licenses and by disseminating licenses among a wide variety of applicants, including small businesses, rural telephone companies, and businesses owned by members of minority groups and women (designated entities or “DEs”). The FCC’s principal means of fulfilling the statutory objectives for DEs is to confer bidding credits upon small and rural businesses that participate in FCC auctions. Bidding credits operate as a discount on the spectrum DEs purchase, allowing them sometimes to outbid companies that make higher bids. In 2015, the FCC issued a rule indicating that it would cap credits available in future auctions. The Third Circuit concluded the FCC acted legally when it limited the bidding credits available to DEs. The Order: preserved a significant bidding credit program; reviewed data suggesting DE participation would continue despite the proposed caps; and altered other rules to make DEs more competitive. View "Council Tree Investors, Inc. v. Federal Communications Commission" on Justia Law

Relators filed suit under the False Claims Act (FCA), 31 U.S.C. 3729-33, alleging that Gilead made false statements about its compliance with FDA regulations regarding certain HIV drugs. The Ninth Circuit reversed the district court's dismissal of relators' complaint pursuant to Federal Rule of Civil Procedure 12(b)(6). The panel held that relators stated a plausible claim by alleging factually false certification, implied false certification, and promissory fraud. Furthermore, relators adequately plead scienter, materiality, and that Gilead submitted false claims. The panel reversed the dismissal of the retaliation claim, holding that the Second Amended Complaint sufficiently alleged facts showing that Relator Jeff Campie had an objectively reasonable, good faith belief that Gilead was possibly committing fraud against the government; sufficient facts to show Gilead knew of Campie's protected activity; and causation. View "United States ex rel. Campie v. Gilead Sciences, Inc." on Justia Law

This case presented for the Washington Supreme Court's review an award of attorney fees against five surety companies following a jury trial for breach of contract in a public works project. The parties litigated the issue of whether three construction firms had defaulted on a contract, thus triggering coverage under a performance bond issued by the surety companies. At issue was whether the existence of a statutory fee provision barred equitable remedies available at common law for coverage disputes and whether the trial court correctly determined that segregation between covered and uncovered fees was impossible. The Court of Appeals affirmed the award of Olympic Steamship fees and held that the trial court did not abuse its discretion in determining that the fees could not be segregated. Finding no reversible error in that judgment, the Washington Supreme Court affirmed. View "King County v. Vinci Constr. Grands Projets" on Justia Law

In 2004, Hesperia began acquiring vacant property in its downtown for development of a Civic Plaza, with a city hall, public library, other government buildings and “complimentary retail, restaurant, and entertainment establishments.” Cinema West articulated a plan to develop a cinema immediately west of the Civic Plaza Park: the city would convey 54,000 square feet of real property to Cinema for $102,529, the property‘s fair market value; Cinema would construct a 38,000-square foot, 12-screen digital theatre; the city would construct the necessary parking lot, develop a water retention system for the theater and the parking lot, and install off-site improvements including curb, gutter and sidewalks. Cinema would execute a 10-year operating agreement with the city. The city later made a $250,000 forgivable loan to Cinema to aid with a $700,000 anticipated shortfall. As development of the theater and parking lot was nearing completion, the Electrical Workers Union requested a public works coverage determination under California‘s prevailing wage law (Lab. Code, 1720–18611 ) The State Department of Industrial Relations concluded that the project was subject to the prevailing wage requirement. The court of appeal affirmed, noting that Cinema received the benefit of a new, publicly-funded parking lot adjacent to the theater, which, though owned by the city, is Cinema‘s to use for as long as it operates the theater. View "Cinema West v. Baker" on Justia Law

Parrino worked as a pharmacist for NRS. He was responsible for preparing medications, mainly inhalers. After leaving NRS, Parrino was contacted by the FDA and FBI, which were investigating reports that NRS was filling prescription medications for Pulmicort, a steroid used for the treatment of asthma, with a sub-potent amount of the active ingredient. Parrino cooperated and pleaded guilty to introducing misbranded drugs into interstate commerce, 21 U.S.C. 331(a), 352(a), and 18 U.S.C. 2, a strict liability misdemeanor. Parrino was sentenced to one year of probation and ordered to pay $14,098.24 in restitution for Medicaid and Medicare payments. The Department of Health and Human Services notified Parrino that it was required to exclude him from participation in any capacity in the Medicare, Medicaid, and all federal healthcare programs for at least five years, under 42 U.S.C. 1320a-7(a). Rejecting Parrino’s argument that he lacked any mens rea to commit a crime and was convicted of a strict liability misdemeanor, an ALJ and the Appeals Board upheld HHS’s decision. The Sixth Circuit affirmed dismissal of Parrino’s suit, finding that HHS’s action affected no substantive due process right because “health care providers are not the intended beneficiaries of the federal health care programs” and that the decision to exclude Parrino was “not so shocking as to shake the foundations of this country.” View "Parrino v. Price" on Justia Law