United States Ex Rel. Lesinski v. South Florida Water Management District
739 F.3d 598
| 11th Cir. | 2014Background
- FCA creates liability for false/fraudulent claims and allows qui tam relators to sue on the Government’s behalf.
- The FCA’s scope excludes states or state agencies as “persons” for qui tam purposes, per Stevens.
- This suit alleges the South Florida Water Management District, a state instrumentality, fraudulently sought FEMA reimbursements.
- The District argued it is an arm of the State, not a “person” subject to FCA liability; district court agreed and dismissed.
- The court applies an Eleventh Amendment arm-of-the-state framework (Manders) to determine whether the District is an arm of the state; it holds it is.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the District is an arm of the State under the Eleventh Amendment for FCA liability. | Relator argues the District is autonomous and not an arm of the State. | District contends it is an arm of the State and not a “person” under the FCA. | Yes; the District is an arm of the State and not a proper FCA defendant. |
| Whether the Manders four-factor test supports treating the District as an arm of the State. | Funding and control indicate autonomy sufficient to negate arm status. | State control, funding, and oversight show the District remains an arm of the State. | The four factors collectively show the District is an arm of the State. |
Key Cases Cited
- Stevens v. United States ex rel. Stevens, 529 U.S. 765 (U.S. 2000) (states and state agencies cannot be “persons” for FCA qui tam actions)
- Cook County v. United States ex rel. Chandler, 538 U.S. 119 (U.S. 2003) (local governments can be “persons” under the FCA; states cannot)
- Manders v. Lee, 338 F.3d 1304 (11th Cir. 2003) (four-factor arm-of-the-state test; case-by-case inquiry)
- Abusaid v. Hillsborough Cnty. Bd. of Cnty. Comm’rs, 405 F.3d 1298 (11th Cir. 2005) (context for applying Manders and arm-of-state analysis)
- Grimshaw v. S. Fla. Water Mgmt. Dist., 195 F. Supp. 2d 1358 (S.D. Fla. 2002) (court's prior finding of strong state control over the District)
- Oberg v. Ky. Higher Educ. Student Loan Corp., 681 F.3d 575 (4th Cir. 2012) (review of arm-of-state determination in FCA context)