Justia Government Contracts Opinion Summaries

Articles Posted in US Court of Appeals for the Fifth Circuit

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Mississippi requires that a public board speak and act only through its minutes, and Mississippi courts will not give legal effect to a contract with a public board unless the board's approval of the contract is reflected in its minutes. In this case, the Medical Center filed suit against Horne, alleging accounting malpractice. Horne claimed that the action must fail because there can be no accounting malpractice claim without proof of a professional relationship, and there was no record evidence on the minutes that the Medical Center ever entered into a professional relationship with Horne. The Fifth Circuit affirmed the district court's judgment in favor of Horne, holding that, by virtue of the minutes rule, the Medical Center never formed a contract with Horne to perform the four audits conducted from 2010 to 2013. The court held that the district court correctly concluded that the Medical Center failed to offer any competent evidence that it was in privity with Horne. View "Lefoldt v. Rentfro" on Justia Law

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After a jury found that Allied Corporation was liable under the False Claims Act (FCA) for misrepresentations about its compliance with the Federal Housing Act underwriting guidelines, the jury awarded over $85.6 million in damages and found Defendant Hodge and Allied Capital liable under the FCA for misrepresentation. The jury awarded more damages and also found all three defendants were liable under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). The Fifth Circuit affirmed, holding that the evidence was sufficient to convict defendants. The court rejected defendants' claims of error regarding the admission of expert testimony, and held that the district court did not err by dismissing a juror shortly before the remaining jurors reached their verdict based mainly on the juror's lack of candor and his threatening behavior. View "United States v. Hodge" on Justia Law

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Qui tam relators appealed the district court's dismissal of their False Claims Act (FCA) suit against several hospice organizations owned and operated by Walter Crowder, the president and director of Nurses to Go. The Fifth Circuit considered the materiality factors in Universal Health Services, Inc. v. United States ex rel. Escobar, and held that relators' alleged violations were material. In this case, defendants' alleged fraudulent certifications of compliance with statutory and regulatory requirements violated conditions of payment under 42 U.S.C. 1395(a)(7), and relators' allegations were sufficient to state a claim that the Government would deny payment if it knew of defendants' false certifications. The court reversed and remanded for further proceedings to allow the district court to conduct a Rule 9(b) particularity analysis consistent with United States ex rel. Grubbs v. Kanneganti. View "United States ex rel Lemon v. Nurses To Go, Inc." on Justia Law

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The Fifth Circuit affirmed the district court's holding that it lacked jurisdiction over relator's claims based on the public disclosure bar of the False Claims Act (FCA). Relator filed suit against his employer Northrop Grumman and against Lockheed Martin for making false claims against the government. The court held that it lacked jurisdiction to hear relator's claims because he failed to demonstrate that he was the original source of the Systems Design and Development contract. In this case, the record made clear that relator derived his knowledge about the connection between cost performance and award fees from portions of the contract that were publicly disclosed before he filed his complaint. View "Solomon v. Lockheed Martin Corp." on Justia Law

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The Fifth Circuit reversed and rendered judgment as a matter of law for Trinity, the manufacturers of the ET-Plus guardrail system under an exclusive licensing agreement with Texas A&M University. Relator filed suit under the False Claims Act, alleging that Trinity failed to disclose fabrication changes to the ET-Plus beyond the change from five- to four-inch guide channel. The district court denied Trinity's motion for judgment as a matter of law and entered final judgment for relator and the United States. However, the court held that it need not consider the issue of post-judgment relief under Federal Rule of Civil Procedure 60(b) because Trinity was entitled to judgment as a matter of law on the issue of materiality. In this case, given FHWA's unwavering position that the ET-Plus was and remains eligible for federal reimbursement, Trinity's alleged misstatements were not material to its payment decisions. View "Harman v. Trinity Industries, Inc." on Justia Law