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Favorable False Claims Act Judgment Upheld on Appeal

Thursday, July 7 2016 3:42 PM

On June 13, 2016, the United States Court of Appeals for the Tenth Circuit upheld a judgment that had been entered in favor of one of the firm’s clients in a long-contested federal False Claims Act case.

The client is a manufacturer of aircraft parts. The parts were sold to an airplane manufacturer which installed the parts in airplanes sold to the United States Government. The Relators (Plaintiffs) alleged that the parts did not conform to the contract requirements and that the Defendants submitted or caused to be submitted false claims for payment to the government. Relators claimed damages of $1.6 billion.

The lawsuit was filed in the United States District Court for the District of Kansas in 2005, and the parties engaged in extensive discovery and briefing. On October 8, 2014, the district court judge found that there were no triable issues and entered judgment in favor of the Defendants on all of the Relators' claims. The Relators then appealed the summary judgment dismissal to the Tenth Circuit.

In a unanimous decision, the Tenth Circuit panel held that the district court had correctly entered judgment in favor of the Defendants. As had the lower court, the court of appeals concluded that there was no evidence that the Defendants had knowingly submitted false claims to the government.

Steve Robison and Ron Campbell primarily handled the defense of the case for the firm’s client while Lyndon Vix assisted with the briefing.

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