Smith v. Clark/Smoot/Russell

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Relator filed suit under the False Claims Act (FCA), 31 U.S.C. 3730(h), against several defendants for violation of the Davis-Bacon Act, 40 U.S.C. 3141-3144, 3146, 3147. In this case, although the FCA complaint was properly filed under seal, relator's attorney revealed to relator's employer the existence of the complaint well before the end of the sixty day waiting period. The district court found a violation of the seal requirement and dismissed the action with prejudice. However, the court concluded that the dismissal was inappropriate under the FCA because the seal violation did not incurably frustrate the seal’s statutory purpose. The court further concluded that neither of the district court’s alternative reasons for dismissing relator’s claims - the doctrine of primary jurisdiction and failure to comply with Civil Procedure Rule 9(b) - warrant dismissal with prejudice. Finally, the court concluded that the district court erred when it dismissed relator’s retaliation claim. Accordingly, the court reversed and remanded for further proceedings. View "Smith v. Clark/Smoot/Russell" on Justia Law