599 U.S. 419
SCOTUS2023Background
- The False Claims Act (FCA) authorizes private relators to bring qui tam suits on the Government’s behalf; relators file complaints under seal and the Government has 60 days (often extended) to decide whether to intervene.
- If the Government intervenes, it “shall have the primary responsibility” and the relator remains only in a subordinate role; the FCA also allows post-seal intervention upon a showing of good cause.
- Jesse Polansky filed a qui tam suit alleging Executive Health Resources enabled hospitals to overbill Medicare; the Government declined to intervene in the initial seal period.
- After years of discovery and mounting burdens (including privilege issues), the Government moved under 31 U.S.C. §3730(c)(2)(A) to dismiss the action over Polansky’s objection.
- The district court granted dismissal; the Third Circuit affirmed, holding the Government may dismiss whenever it has intervened (including post-seal) and that Federal Rule of Civil Procedure 41(a) governs the standard.
- The Supreme Court affirmed: the Government may seek dismissal under §3730(c)(2)(A) whenever it has intervened (pre- or post-seal), and district courts should apply Rule 41(a) (with the FCA’s notice/hearing requirement and attention to relator interests).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Government can move to dismiss under §3730(c)(2)(A) after it declined to intervene during the seal period | Polansky: dismissal power applies only if Government intervened during the seal period; a later intervention must not strip the relator of the “right to conduct the action.” | Government (and EHR): Paragraph 2 applies regardless of intervention timing; Government can dismiss even if it never intervened. | The Court: Paragraph 2 applies only once the Government has intervened, but timing doesn’t matter—Government may dismiss if it intervenes either during the seal period or later. |
| Standard for district court review of a §3730(c)(2)(A) dismissal motion | Polansky: a more searching standard (arbitrary-and-capricious with burden-shifting) to protect relator interests. | Government: essentially broad discretion to dismiss. | The Court: apply Federal Rule of Civil Procedure 41(a) (post-answer dismissals require court order under Rule 41(a)(2)); incorporate FCA’s notice/hearing requirement and give substantial deference to Government while considering relator interests. |
Key Cases Cited
- United States v. Detroit Timber & Lumber Co., 200 U.S. 321 (syllabus is not part of the Court’s opinion)
- United States ex rel. Eisenstein v. City of New York, 556 U.S. 928 (Government remains a real party in interest; nonparty status before intervention)
- Vermont Agency of Natural Resources v. United States ex rel. Stevens, 529 U.S. 765 (qui tam actions effect a partial assignment of the Government’s claim; relator standing)
- Montclair v. Ramsdell, 107 U.S. 147 (interpretive principle that every clause and word of a statute should have meaning)
- United States v. American Tobacco Co., 221 U.S. 106 (statutory constructions that put provisions at war should be avoided)
- Cooter & Gell v. Hartmarx Corp., 496 U.S. 384 (Rule 41 analysis centers on the interests implicated by voluntary dismissal)
- Jones v. Bock, 549 U.S. 199 (courts should not infer that Congress intended to displace the Federal Rules absent a clear statement)
- Marek v. Chesny, 473 U.S. 1 (similar principle limiting implied exceptions to the Federal Rules)
