United States Ex Rel. Purcell v. MWI Corp.
2014 U.S. Dist. LEXIS 86009
| D.D.C. | 2014Background
- MWI, a Florida corporation, sold pumps to seven Nigerian states for $82.2 million and sought Ex-Im financing of $74.3 million.
- MWI submitted eight Letter of Credit Supplier's Certificates and 50 Disbursement Certificates claiming only regular commissions were paid.
- Relator Purcell (former MWI employee) filed FCA suit in 1998; US intervened in 2002 alleging $25–28 million in illicit commissions to Nigerian agent Indimi.
- Jury trial held Nov. 6–25, 2013; jury found MWI liable on Counts I and II (false claims and false records); Counts III–IV were dismissed with prejudice.
- Court denied MWI’s Rule 50 motions; addressed retroactivity of the 2009 FCA amendments and whether the 58 certificates constituted “claims” and “falsity” under the pre- or post-amendment regime.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the 58 Supplier's Certificates were claims for payment under the FCA | Purcell/USA argued certificates satisfied claim definition | MWI contended lack of claim presentment or insufficiency | Yes; evidence supported them as claims under FCA |
| Whether Indimi commissions were not regular, making the certificates false | Indimi’s commissions were irregular by size/percentage | Commissions could be regular under industry practice/formula | Sufficient evidence of falsity; certificates were not regular |
| Whether MWI acted with requisite scienter | MWI knew or reckless regarding falsity | Evidence did not show knowledge or recklessness | Sufficient evidence of knowledge/reckless disregard |
| Whether the jury instructions on industry standard and regular commissions were proper | Instruction appropriately defined regular commissions | Industry standard evidence required more precise benchmarks | Instruction proper; evidence supported the standard |
| Whether retroactivity of the FCA amendments affected the outcome | Retroactivity applies to claims; pre-2010 trial applied | Retroactivity limited as to claims, not cases | Court applied pre-amendment framework consistent with controlling authority; no reversal |
Key Cases Cited
- United States v. Sci. Applications Int'l Corp., 626 F.3d 1257 (D.C. Cir. 2010) (retroactivity and FCA falsity standards discussed)
- United States ex rel. Purcell v. MWI Corp., 520 F. Supp. 2d 158 (D.D.C. 2007) (First MSJ/summary judgment on existence of claim and presentment)
- United States v. K & R Ltd. P'ship, 530 F.3d 980 (D.C. Cir. 2008) (reckless disregard standard under FCA; scienter framework)
- Reeves v. Sanderson Plumbing Products, Inc., 530 U.S. 133 (2000) (deliberate standard for judgment as a matter of law; evidentiary weight on review)