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GUARDIOLA v. RENOWN HEALTH
3:12-cv-00295
D. Nev.
Sep 14, 2016
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Background

  • Guardiola, a qui tam relator under the False Claims Act (FCA), sued Renown for allegedly fraudulent billing of government health programs; the United States declined to intervene.
  • Parties settled; Guardiola is undisputedly entitled to a percentage of the settlement recovered in the lawsuit.
  • Guardiola alleges the government separately recovered additional, identical claims from Renown through a Recovery Audit Contractor (RAC) process and seeks a 29% relator share of those RAC-recovered funds as an “alternate remedy.”
  • Guardiola moved for an order requiring the United States to pay her a share or provide an accounting; she also moved to seal exhibits attached to that motion.
  • The United States did not file a direct response but sought leave to file an amicus brief arguing sovereign immunity; the court treated the U.S. filing as an opposition brief request.
  • The parties also filed a stipulation dismissing Renown with prejudice pursuant to their settlement.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the court can order relief from the United States for RAC-recovered funds (alternate remedy) Guardiola: FCA grants relator same rights in alternate proceedings; she is entitled to 29% of RAC recoveries or an accounting U.S.: sovereign immunity bars relief; moreover, U.S. is not a party in this case and opposed via amicus filing Court: Denied—cannot enter orders against the U.S. as a nonparty; motion for share denied for lack of jurisdiction
Whether the U.S. may file an amicus brief instead of responding Guardiola: U.S. should respond, not appear as amicus U.S.: sought leave to file amicus brief opposing motion Court: Denied as moot because main motion denied; discussed that U.S. is a real party in interest but not a party to the suit
Whether exhibits should be sealed under protective order Guardiola: Exhibits contain protected health and business information; seek sealing under the protective order No opposition recorded Court: Granted—exhibits fall within the Qualified Protective Order
Whether defendants should be dismissed with prejudice pursuant to settlement Parties: Stipulation to dismiss Renown with prejudice N/A Court: Granted—Renown dismissed with prejudice

Key Cases Cited

  • Eisenstein v. City of New York, 556 U.S. 928 (2009) (U.S. is a "real party in interest" in qui tam suits but is not automatically a party for all procedural purposes)
  • Taylor v. Sturgell, 553 U.S. 880 (2008) (general rule that courts may not bind nonparties to in personam judgments)
  • Kenseth v. Dean Health Plan, Inc., 722 F.3d 869 (7th Cir. 2013) (reiterating limits on entering orders against nonparties)
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Case Details

Case Name: GUARDIOLA v. RENOWN HEALTH
Court Name: District Court, D. Nevada
Date Published: Sep 14, 2016
Docket Number: 3:12-cv-00295
Court Abbreviation: D. Nev.