Justia Government Contracts Opinion SummariesArticles Posted in U.S. 1st Circuit Court of Appeals
Downing v. Globe Direct LLC
The Massachusetts Registry of Motor Vehicles sought proposals from contractors to print and send registration renewal notices along with advertisements to raise revenue to defray costs. RMV would provide the contractor with information (name, address, date of birth, and license number) that was generally exempt from public disclosure under the Driver's Privacy Protection Act, 18 U.S.C. 2721-25, and Mass. Gen. Laws ch. 4, sect. 7, cl. 26(n), that the contractor would need to safeguard from unlawful public disclosure. Defendant's winning bid indicated that it understood and accepted the terms. The contract specified that Massachusetts would continue to exercise ownership over all personal data, and that a violation of the DPPA or the Massachusetts privacy law would cause the contract to terminate. Plaintiff, who received a registration renewal notice that included advertisements, filed a putative class action on behalf of himself and other drivers who, without providing consent, had received advertisements from defendant. The district court granted defendant judgment on the pleadings based on failure to join the Commonwealth as an indispensable party. The First Circuit affirmed, finding no violation of the DPPA. Defendant does not disclose the information it legitimately receives, as the state's contractor, to others. View "Downing v. Globe Direct LLC" on Justia Law
Jones v. Brigham & Women’s Hospital
A doctor filed a qui tam action under the False Claims Act, 31 U.S.C. 3729, against Brigham and Women's Hospital, Massachusetts General Hospital and doctors, claiming violation of the Act by including false statements in a grant application, concerning neurodegenerative illness associated with aging, submitted to the National Institute on Aging in the National Institutes of Health, an agency of the U.S. Department of Health and Human Services, and that defendants, knowing of the falsity, failed to take corrective action. The district court granted defendants summary judgment. The First Circuit vacated. The district court abused its discretion by excluding or failing to consider certain expert testimony and erred by failing to consider statements of the parties and experts as required by the summary judgment standard. The dispute was not about which scientific protocol produces results that fall within an acceptable range of "accuracy" or whether re-measurements, the basis for preliminary scientific conclusions, were "accurate" insofar as they fall within a range of results accepted by qualified experts, but whether there was intentional falsification. View "Jones v. Brigham & Women's Hospital" on Justia Law
Harrington v. Aggregate Indus., Inc.
The "Big Dig" highway project, built largely with federal funds, has transformed vehicular travel in Boston. Defendant supplied concrete and, on occasion, secretly substituted substandard material for the concrete required by contract specifications. Certain employees, including plaintiff, learned of the deception and brought a sealed qui tam action under the False Claims Act, 31 U.S.C. 3729-3733. The federal government intervened, and settled the case for several million dollars. Plaintiff received a percentage of the settlement. A few days after he signed the settlement, defendant dismissed plaintiff, allegedly for his refusal to take a drug test. Plaintiff sued, asserting pretext and retaliation. The district court granted summary judgment in favor of the employer. The First Circuit vacated and remanded, applying a burden-shifting analysis and concluding that the circumstances of the firing are open to legitimate question and that the record, viewed as a whole and in the light most favorable to plaintiff, did not warrant the entry of summary judgment. View "Harrington v. Aggregate Indus., Inc." on Justia Law
Antilles Cement Corp. v. Fortuno
Two laws were challenged under the Buy American Act, 41 U.S.C. 8301, which requires that only materials mined, produced, or manufactured in the U.S. be employed for "public use" or used in construction, alteration, or repair of "any public building or public work. A 1985 Puerto Rican law required that local construction projects financed with federal or Commonwealth funds use only construction materials manufactured in Puerto Rico, with limited exceptions relating to price, quality, and available quantity, P.R. Laws Ann. tit. 3, 927-927h (Law 109). Cement is deemed "manufactured in Puerto Rico" only if composed entirely of raw materials from Puerto Rico. P.R. Laws Ann. tit. 10, 167e (Law 132), enacted in 2001, imposes labeling requirements on cement and required that foreign-manufactured cement carry a special label warning against its use in government-financed construction projects unless one of the exceptions contained in the BAA and Law 109 applies. The district court held that the local laws were preempted. The First Circuit upheld Law 109 as a permissible action taken by Puerto Rico as a market participant, but invalidated provisions of Law 132 that discriminate against sellers of foreign cement, leaving the remainder of the law intact. View "Antilles Cement Corp. v. Fortuno" on Justia Law
Carroll v. United States
A child was seriously injured when she was hit in the head by an object thrown by a lawnmower being operated at the federal building adjoining her childcare center. Separate entities provided child care and lawn maintenance, under contract with the federal government. The district court dismissed a suit under the Federal Tort Claims Act, 28 U.S.C. 1346(b), 2671-2680. The First Circuit affirmed. While noting that the landscaping and child care operators were independent contractors, the court applied the discretionary function exception to federal liability. The agreements and their actual execution show that the government did not carve out responsibility for safety measures from its otherwise comprehensive delegation of day-to-day authority to the companies. Federal law allows the government discretion to hire independent contractors and to adopt, or not adopt, safety measures suggested by the plaintiffs. View "Carroll v. United States" on Justia Law
Redondo Constr. Corp. v. Izquierdo
In 1999 plaintiff pled guilty to making false statements while working on a project funded by the Federal Highway Administration (18 U.S.C. 2, 1014, and 1020). The agreement prohibited plaintiff from participating in any FHWA-funded project for a year. Plaintiff challenged Puerto Rico agencies' subsequent actions. The parties negotiated settlements; plaintiff entered into an agreement allowing it to bid on FHWA projects. Puerto Rico then enacted Law 458, which prohibits award of government contracts to any party convicted of a crime constituting fraud, embezzlement, or misappropriation of public funds and requires rescission of any contract with a party convicted of a specified offense. The statute states that it does not apply retroactively. One agency cancelled plaintiff's successful bids, another withdrew its consent to the settlement. The district court rejected claims of violation of the federal Contracts Clause and breaches of contract under Puerto Rico law. The First Circuit affirmed with respect to the constitutional claim. Any breach of the settlement agreements did not violate the Contracts Clause, even if committed in an attempt to unlawfully enforce Law 458 retroactively; defendants have not impaired plaintiff's ability to obtain a remedy for a demonstrated breach. Given the stage of the litigation, the district court should have retained the breach of contract claims. View "Redondo Constr. Corp. v. Izquierdo" on Justia Law
United States v. Parisi
The former governor and former financial director of the Tribe were convicted for conspiracy to defraud the United States (18 U.S.C. 371), and of violations of 18 U.S.C. 287, 666 and 669, involving misuse of federal grant and tribal monies at the Passamaquoddy Tribe Indian Township Reservation in Maine. The First Circuit vacated the conviction of the financial director for making material misstatements about how grant money intended for HIV and substance abuse prevention was spent, but otherwise affirmed. The evidence that the director knew that his statements were false was insufficient. The district court had jurisdiction; several counts involved mismanagement of federal grants and contracts, which are subject to regulations that the Tribe is not free to ignore, and do not constitute internal tribal matters.View "United States v. Parisi" on Justia Law
Leavitt v. Correctional Medical Services, Inc.
An inmate of the Maine corrections system, sought a civil rights remedy (42 U.S.C. 1983) for alleged denial of adequate medical care for human immunodeficiency virus (HIV) by healthcare professionals at a jail and the state prison. The district court entered summary judgment for the defendants. The First Circuit affirmed with respect to the contractor that provides care, stating that the evidence could not establish Eighth Amendment violations, but reversed with respect to a physicians' assistant. Although the contractor acknowledged that its care "fell short of the mark," carelessness or inadvertence falls short of the Eighth Amendment standard of deliberate indifference. There was a material dispute about deliberate indifference by the physicians' assistant, who had a financial interest in limiting care and a disciplinary history.View "Leavitt v. Correctional Medical Services, Inc." on Justia Law
Brown v. Blackstone Medical, Inc
Plaintiff brought action under the False Claims Act, 31 U.S.C. 3729, claiming that the company used a kickback scheme and knowingly caused submission of false Medicare, Medicaid, and TRICARE claims by hospitals and doctors. The district court held that hospital claims at issue were not false or fraudulent, and that doctor claims were false or fraudulent, but not materially so. The First Circuit reversed. If kickbacks affected the transactions underlying the claims, the claims failed to meet a condition of payment and were false, regardless of the hospital's participation in or knowledge of the kickbacks. It cannot be said, as a matter of law, that the alleged misrepresentations were not capable of influencing Medicare's decision to pay the claims.