Abbott v. BP Exploration & Production, Inc.
851 F.3d 384
5th Cir.2017Background
- Kenneth Abbott (relator) worked in BP’s Atlantis administrative offices (2008–2009) and alleged BP made false certifications to the Department of the Interior (DOI) about engineer-approved drawings and other regulatory compliance.
- Abbott filed a sealed False Claims Act (FCA) qui tam suit in April 2009; DOI began investigating in May 2009 and Congress held hearings after Abbott’s testimony.
- Abbott amended the complaint in 2010 to add Food & Water Watch and OCSLA claims, and pointed to specific certification language and allegedly missing/uncertified “As-Built” drawings.
- DOI completed an investigation and issued a 2011 report finding Abbott’s allegations unfounded and concluding Atlantis complied with certification regulations; DOI did not suspend operations or revoke BP’s operator status.
- After discovery, the district court granted summary judgment for BP on all claims; plaintiffs appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether BP made false statements or false certifications under the FCA | Abbott contended BP submitted certifications without required engineer approvals and missing "As-Built" markings | BP argued its certifications were valid and DOI’s investigation supported compliance | Court held plaintiffs failed to create a genuine dispute of material fact on falsity/materiality; summary judgment for BP |
| Whether BP acted with requisite scienter for FCA liability | Plaintiffs asserted intent/recklessness can be inferred from missing stamps and internal procedures | BP relied on DOI findings and lack of government action to show no knowing falsity | Court found scienter unresolved but materiality/causation dispositive; summary judgment upheld |
| Materiality of regulatory requirements for FCA purposes | Plaintiffs argued the certifications were material to DOI approvals and operations | BP pointed to DOI’s full investigation and continued payment/operation as evidence requirements weren’t material | Applying Escobar, court concluded DOI’s conduct was strong evidence of non-materiality; plaintiffs failed to rebut |
| Standing for OCSLA claims | Plaintiffs alleged injury from risk of oil spill affecting Gulf users, donors, and Abbott’s Gulf visits | BP argued injuries were generalized and not particularized | Court held plaintiffs lacked Article III standing because alleged harms were generalized, not particularized |
Key Cases Cited
- United States ex rel. Longhi v. United States, 575 F.3d 458 (5th Cir. 2009) (elements of an FCA claim)
- Universal Health Servs., Inc. v. United States ex rel. Escobar, 136 S. Ct. 1989 (2016) (demanding materiality standard; government payment despite knowledge is strong evidence of non-materiality)
- Spokeo, Inc. v. Robins, 136 S. Ct. 1540 (2016) (injury-in-fact must be concrete and particularized)
- Lujan v. Defenders of Wildlife, 504 U.S. 555 (1992) (standing requirements)
- Pub. Citizen, Inc. v. Nat’l Highway Traffic Safety Admin., 489 F.3d 1279 (D.C. Cir. 2007) (clarifying that injuries must be particularized, not generalized)
- DaimlerChrysler Corp. v. Cuno, 547 U.S. 332 (2006) (standing rejected where injury is shared generally)
