Federal Circuit Court Rejects Claim That Contractor Violated The False Claims Act By Allegedly Submitting A Fraudulently Low Bid With The Intent Of Later Making Up For The Loss By Submitting Change Orders For Extra Work
United States ex. rel. Bettis v. Odebrecht Contractors of California, Inc.
393 F.3d 1321 (D.C. Cir. 2005)
A contractor entered into a contract with the Army Corp of Engineers for construction of the Seven Oaks Dam in San Bernardino County, California. The plaintiff was an alleged "whistleblower" who worked for one of the contractor's consultants. Plaintiff alleged the contractor had violated the federal False Claims Act ("FCA") by fraudulently inducing the government to enter into the contract by knowingly submitting a bid that was too low, with the intent of later making up for the loss by requesting change orders for extra work.
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United States, Ex Rel. Ali v. Daniel, Mann, Johnson, & Mendenhall
355 F.3d 1140 (9th Cir. 2004)
Construction management firm employed by university to coordinate reconstruction of buildings damaged by the January 1994 Northridge earthquake was not immune from suit for false claims submitted to the Federal Emergency Management Agency. The management firm was a private corporation and was not acting as an arm of the state. Therefore it is not shielded by the doctrine of sovereign immunity.
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