Justia Government Contracts Opinion Summaries

Relator filed a qui tam action under the False Claims Act, 31 U.S.C. 3729-3733, contending that Record Press had submitted a fraudulent bill for printing services to the government. The district court granted judgment for Record Press. The court affirmed the district court's conclusion because there was no evidence that Record Press had submitted any false claims with knowledge it was doing so, as would be required for liability under the Act. In this case, the district court properly considered testimony and evidence indicating that the government agreed with Record Press about the disputed contract rate. Further, the district court did not consider the government’s understanding of the contract as part of any defense. Rather, it relied on the government’s agreement with Record Press about the proper understanding of the contract as evidence that there had been no fraudulent behavior in the first place. The court remanded for further proceedings on Record Press’s motion for attorneys’ fees because the district court did not make the findings necessary to enable the court to review its grounds for denying a fee award. View "United States v. Record Press, Inc." on Justia Law

Plaintiff filed a qui tam suit under the False Claims Act (FCA), 31 U.S.C. 3729–3733, alleging fraud in the performance of a Government contract. The district court dismissed the suit. The court agreed with plaintiff that the district court erred in holding that the complaint was based upon prior public disclosures and was thus precluded by the public disclosure bar of the FCA. In this case, the complaint alleges fraud that is different in kind and degree from the previously disclosed information about Raytheon’s problems in performing on the contract at issue. As such, if his allegations prove to be true, plaintiff will undoubtedly have been one of those whistle-blowing insiders with genuinely valuable information, rather than an opportunistic plaintiff who has no significant information to contribute. Accordingly, the court reversed and remanded. View "United States ex rel Mateski v. Raytheon" on Justia Law

Relator brought a qui tam action (False Claims Act, 31 U.S.C. 3730(b)), alleging KHN (network of hospitals, physicians, and healthcare facilities) falsely certified its compliance with the Health Information Technology for Economic and Clinical Health Act (HITECH), 123 Stat. 226 (2009), to receive “meaningful use” incentive payments. HITECH was designed to encourage the adoption of sophisticated electronic health record technology and creates incentive payments for “meaningful use” of certified technology, 42 U.S.C. 1395. To receive incentive payments, providers must meet meaningful-use objectives and accompanying compliance measures. Stage 1 of Act implementation required a security risk analysis in accordance with 45 C.F.R. 164.308(a)(1); implementation of need security updates; and correction of identified security deficiencies. During Stage 2, providers are required to address[] the encryption/security of data stored in Certified EHR Technology in accordance with 45 C.F.R. 164.312(a)(2)(iv) and 164.306(d)(3). To receive incentive payments, providers must attest to meeting these standards. The Sixth Circuit affirmed dismissal, finding that Relator failed to plausibly allege that KHN’s attestation of HITECH compliance was false and failed to plead a specific claim for payment; and that Relator’s claims were precluded by a prior Ohio state judgment in a case involving similar claims filed by Relator against KHN. View "United States v. Kettering Health Network" on Justia Law

This appeal arose from the City's contract with Ambac to provide municipal bond insurance. The City filed suit against Ambac alleging that Ambac breached an agreement to provide a credit enhancement, that there was error in the principal cause, that Ambac acted in bad faith, and that the City had detrimentally relied on Ambac’s representations and assurances regarding the value of its credit enhancement product. The district court granted Ambac's motion to dismiss. The court concluded that the district court did not err in dismissing the City's breach of contract claim because the district court properly interpreted the Policy and because the City’s argument that it created a written and oral contract with Ambac for credit enhancement is not plausible based on the facts alleged. The court also concluded that any error about what the City was purchasing when it paid Ambac in excess of six million dollars was a unilateral error by the City because of the clear language of the Policy, and any unilateral error by the City about what it was purchasing from Ambac was not reasonable or excusable. Because the City’s proffered error is unreasonable, it does not vitiate consent. Because the City has failed to establish the existence of a larger credit enhancement agreement between it and Ambac, the City’s bad faith claim concerning this purported agreement necessarily fails. Finally, the court affirmed the district court's dismissal of the City's detrimental reliance claim where the City and Ambac are sophisticated parties that engaged in arm’s length negotiations with respect to this bond offering. Accordingly, the court affirmed the judgment. View "New Orleans City v. AMBAC Assurance Corp." on Justia Law

This case involved a second set of appeals arising from an action challenging the bidding process for the Idaho Education Network (“IEN”). Syringa Networks, LLC, sued Qwest Communications, LLC, ENA Services, LLC, and the Idaho Department of Administration (“DOA”) and certain DOA employees, alleging injury arising from contract awards and amendments that DOA issued to Qwest and ENA related to the IEN. The district court dismissed all of Syringa’s claims. On appeal the Idaho Supreme Court held that Syringa had standing to pursue Count Three, which alleged that DOA violated Idaho Code section 67-5718A. Count Three was remanded to the district court for further proceedings. On remand, the district court entered partial summary judgment for Syringa on Count Three, holding that the amendments and the underlying contracts were void for violating state procurement law. The district court denied Syringa’s motion to order DOA to demand repayment of money advanced under the void contracts. The district court also awarded Syringa attorney fees. Syringa, Qwest, ENA, and DOA each appealed: Syringa appealed the district court’s denial of its request to order DOA to demand repayment from Qwest and ENA; the other parties appealed the district court’s grant of partial summary judgment to Syringa, arguing that the district court’s conclusions were procedurally improper and substantively incorrect for a variety of reasons. DOA also challenges the district court’s award of attorney fees to Syringa. Finding no reversible error in the district court's judgment, the Supreme Court affirmed. View "Syringa Networks v. Dept of Administration" on Justia Law

Under the Urbanized Area Formula Program, 49 U.S.C. 5307, the Federal Transportation Administration (FTA) administers grant funding to urban transit programs for “operating costs of equipment and facilities for use in public transportation.” Recipients must submit “financial, operating, and asset condition information” to the National Transit Database. The agency apportions grants based, in part, on the number of Vehicle Revenue Miles (VRM) that accrue while a vehicle is “in revenue service,” available to the general public. In 2005, the Illinois House of Representatives called for a performance audit of the Chicago Transit Authority (CTA). The audit concluded that the CTA, from possibly as early as 1986, had been overstating its VRM and had received higher than justified UAFP disbursements. Notified of the report, the FTA required that CTA revise its data from 2011 forward. In 2012, a nonprofit watchdog organization contacted the Department of Justice requesting an investigation into the CTA’s reporting practices. The group then filed suit under the qui tam provision of the False Claims Act, 31 U.S.C. 3730. The Seventh Circuit affirmed dismissal, agreeing that the district court lacked subject matter jurisdiction because the allegations of wrongdoing had been publicly disclosed at the time the action was filed. View "Cause of Action v. CTA" on Justia Law

Agent Parkinson, of the FBI’s Sacramento field office, was the leader of a special operations group, tasked with relocating a previously compromised undercover facility. In 2006, the FBI leased a facility from Rodda, who agreed to contribute $70,000 to “construction, construction documents, permits and fees. Parkinson negotiated the lease on behalf of the FBI, and managed the tenant improvement funds. In 2008, during the work, Parkinson made whistleblower-eligible disclosures, implicating two pilots involved with the group in misconduct. Parkinson’s supervisor issued Parkinson a low-performance rating, removed him as group leader, and reassigned him. Believing this to be retaliation, Parkinson sent a letter to Senator Grassley, who forwarded Parkinson’s allegations to the Department of Justice’s Office of the Investigator General (OIG) for investigation. The OIG sent the FBI its report. Ultimately, the Merit Systems Protection Board upheld Parkinson’s termination for lack of candor under oath and obstruction of process of the Office of Professional Responsibility. The Federal Circuit reversed in part and remanded. The court sustained the obstruction charge and dismissal of Parkinson’s affirmative defense of violations of the Uniformed Services Employment and Reemployment Rights Act of 1994, but found the lack of candor charge unsupported by substantial evidence and that the Board improperly precluded Parkinson from raising an affirmative defense of whistleblower retaliation. View "Parkinson v. Dep't of Justice" on Justia Law

Relators filed suit under the False Claims Act (FCA), 31 U.S.C. 3729-3733, alleging that Academi knowingly submitted false claims to the United States in connection with a government contract to provide security services in Iraq and Afghanistan. The district court dismissed the complaint pursuant to the FCA's public-disclosure bar. The court concluded that the determination of when a plaintiff’s claims arise for purposes of the public-disclosure bar is governed by the date of the first pleading to particularly allege the relevant fraud and not by the timing of any subsequent pleading. The district court thus erred in holding the second-amended complaint was the relevant pleading by which to measure the public-disclosure bar. The court further concluded that the public-disclosure bar was inapplicable in this case where the article at issue on Wired.com was not a qualifying public disclosure that triggered the bar. Relators sufficiently pled the weapons qualifications scheme in their first-amended complaint that came well before the Wired.com article. Accordingly, the court vacated the portion of the district court’s order dismissing Relators’ weapons qualification claims under the public-disclosure bar and remanded for further proceedings. View "US ex rel. Beauchamp v. Academi Training Center" on Justia Law

Plaintiff Sweetwater Union High School District filed this action against defendants Gilbane Building Company, The Seville Group, Inc. (SGI), and Gilbane/SGI, a joint venture (the Joint Venture), seeking to void management contracts with all three entities, and to require that they disgorge all sums that Sweetwater paid them under the contracts. Sweetwater alleges that certain representatives of the defendant entities engaged in a "pay to play" scheme with several Sweetwater officials that involved paying for expensive dinners, tickets to entertainment and sporting events, and travel expenses, and making contributions to political campaigns and charities, in an effort to influence the officials to award defendants certain construction contracts. Gilbane and the Joint Venture brought a special motion to strike (or "anti-SLAPP motion"). The trial court denied the motion on the ground that the conduct underlying the complaint was illegal as a matter of law, and therefore, was not protected by the constitutional guarantees of free speech and petition. Defendants argued on appeal that the trial court erred in denying their anti-SLAPP motion. After review, the Court of Appeal concluded that the trial court did not abuse its discretion in considering the evidence proffered by Sweetwater, including signed plea forms and transcripts from grand jury testimony in criminal cases against many of the individuals involved in the alleged "pay to play" contracting scheme. "Such evidence is, in all material respects, indistinguishable from evidence presented by way of a declaration. Based on the proffered evidence, we conclude that Sweetwater has sufficiently demonstrated a probability of prevailing on the merits. We therefore affirm the trial court's denial of defendants' anti-SLAPP motion." View "Sweetwater Union School Dist. v. Gilbane Building Co." on Justia Law

A trade association of California unions, contractors’ associations and contractors filed suit. Following discovery and a contested hearing, the court ruled that defendant Ross Valley Sanitary District lacked authority under Public Contract Code 20803 to engage its own workforce to complete a sewer system improvement project costing more than $15,000 without putting the project out for competitive bid and contract. The trial court ordered the District to cease and desist from taking further action with respect to about 139 miles of its small diameter sewer pipe with in-house workers, and to conduct all future replacement of this pipe through competitive bid and contract. The court of appeal reversed. Section 20803 applies when a district contracts with a third party for public work, and not when a district relies on force account (in-house) work. View "Constr. Indus. Force Acct. Council, Inc. v. Ross Valley Sanitation Dist." on Justia Law