GRAHAM COUNTY SOIL AND WATER CONSERVATION DISTRICT ET AL. v. UNITED STATES EX REL. WILSON
No. 08-304
Supreme Court of the United States
Argued November 30, 2009—Decided March 30, 2010
559 U.S. 280
Christopher G. Browning, Jr., Solicitor General of North Carolina, argued the cause for petitioners. With him on the briefs were Roy Cooper, Attorney General, Zeyland G. McKinney, Jr., and Sean F. Perrin.
Mark T. Hurt argued the cause for respondent. With him on the brief was Brian S. McCoy.
Douglas Hallward-Driemeier argued the cause for the United States as amicus curiae in support of respondent. With him on the brief were Solicitor General Kagan, Deputy Solicitor General Stewart, Douglas N. Letter, and Stephanie R. Marcus.*
*Briefs of amici curiae urging reversal were filed for the Commonwealth of Pennsylvania et al. by Thomas W. Corbett, Jr., Attorney General of Pennsylvania, Calvin R. Koons, Senior Deputy Attorney General, and John G. Knorr III, Chief Deputy Attorney General, by Richard S. Gebelein, Acting Attorney General of Delaware, and by the Attorneys General for their respective States as follows: Troy King of Alabama, Daniel S. Sullivan of Alaska, Dustin McDaniel of Arkansas, John W. Suthers of Colorado, Bill McCollum of Florida, Thurbert E. Baker of Georgia, Mark J. Bennett of Hawaii, Lawrence G. Wasden of Idaho, Gregory F. Zoeller of Indiana, Thomas J. Miller of Iowa, Steve Six of Kansas, James D. “Buddy” Caldwell of Louisiana, Douglas F. Gansler of Maryland, Martha Coakley of Massachusetts, Michael A. Cox of Michigan, Jon Bruning of Nebraska, Michael A. Delaney of New Hampshire, Anne Milgram of New Jersey, Gary K. King of New Mexico, Wayne Stenehjem of North Dakota, Richard Cordray of Ohio, W. A. Drew Edmondson of Oklahoma, Henry McMaster of South Carolina, Mark L. Shurtleff of Utah, William H. Sorrell of Vermont, William C. Mims of Virginia, Robert M. McKenna of Washington, and Bruce A. Salzburg of Wyoming; for the Chamber of Commerce of the United States of America et al. by Malcolm J. Harkins III, James F. Segroves, Robin S. Conrad, and Amar D. Sarwal; for the National League of Cities et al. by Richard Ruda and Dan Himmelfarb; and for the Washington Legal Foundation et al. by John T. Boese, Douglas W. Baruch, Daniel J. Popeo, and Richard A. Samp.
Briefs of amici curiae urging affirmance were filed for the American Center for Law and Justice by Jay Alan Sekulow and Walter M. Weber; and for the Taxpayers Against Fraud Education Fund by Robert L. Vogel and Joseph E. B. White.
Since its enactment during the Civil War, the False Claims Act,
I
In 1995 the United States Department of Agriculture (USDA) entered into contracts with two counties in North Carolina authorizing them to perform, or to hire others to perform, cleanup and repair work in areas that had suffered extensive flooding. The Federal Government agreed to shoulder 75 percent of the contract costs. Respondent Karen T. Wilson was at that time an employee of the Graham
Graham County officials began an investigation. An accounting firm hired by the county performed an audit and, in 1996, issued a report (Audit Report) that identified several potential irregularities in the county‘s administration of the contracts. Shortly thereafter, the North Carolina Department of Environment, Health, and Natural Resources issued a report (DEHNR Report) identifying similar problems. The USDA‘s Office of Inspector General eventually issued a third report that contained additional findings.
In 2001 Wilson filed this action, alleging that petitioners, the Graham County and Cherokee County Soil and Water Conservation Districts and a number of local and federal officials, violated the False Claims Act (FCA) by knowingly submitting false claims for payment pursuant to the 1995 contracts. She further alleged that petitioners retaliated against her for aiding the federal investigation of those false claims. Following this Court‘s review of the statute of limitations applicable to Wilson‘s retaliation claim, Graham County Soil & Water Conservation Dist. v. United States ex rel. Wilson, 545 U. S. 409 (2005), the Court of Appeals ordered that that claim be dismissed as time barred. 424 F. 3d 437 (CA4 2005). On remand, the District Court subsequently dismissed Wilson‘s qui tam action for lack of jurisdiction. App. to Pet. for Cert. 95a-105a. The court found that Wilson had failed to refute that her action was based upon allegations publicly disclosed in the Audit Report and the DEHNR Report. Id., at 95a-98a. Those reports, the District Court determined, constituted “administrative report[s], audit[s], or investigation[s]” within the
The Court of Appeals reversed the judgment of the District Court because the reports had been generated by state and local entities. “[O]nly federal administrative reports, audits or investigations,” the Fourth Circuit concluded, “qualify as public disclosures under the FCA.” 528 F. 3d 292, 301 (2008) (emphasis added). The Circuits having divided over this issue,2 we granted certiorari to resolve the conflict. 557 U. S. 918 (2009).
II
We have examined the FCA‘s qui tam provisions in several recent opinions.3 At issue in this case is the FCA‘s public disclosure bar, which deprives courts of jurisdiction over qui tam suits when the relevant information has already entered the public domain through certain channels. The statute contains three categories of jurisdiction-stripping disclo-
“No court shall have jurisdiction over an action under this section based upon the public disclosure of allegations or transactions [1] in a criminal, civil, or administrative hearing, [2] in a congressional, administrative, or Government Accounting Office [(GAO)] report, hearing, audit, or investigation, or [3] from the news media, unless the action is brought by the Attorney General or the person bringing the action is an original source4 of the information.”
§ 3730(e)(4)(A) (footnote omitted).
This dispute turns on the meaning of the adjective “administrative” in the second category (Category 2): whether it embraces only forums that are federal in nature, as respondent alleges, or whether it extends to disclosures made in state and local sources such as the DEHNR Report and the Audit Report, as petitioners allege.
In debating this question, petitioners have relied primarily on the statute‘s text whereas respondent and the Solicitor General, as her amicus, have relied heavily on considerations of history and policy. Although there is some overlap among the three types of argument, it is useful to discuss them separately. We begin with the text.
III
The term “administrative” “may, in various contexts, bear a range of related meanings,” Chandler v. Judicial Council of Tenth Circuit, 398 U. S. 74, 103, n. 8 (1970) (Harlan, J., concurring in denial of writ), pertaining to private bodies as
The Court of Appeals’ conclusion that “administrative” nevertheless reaches only federal sources rested on its application of the interpretive maxim noscitur a sociis. See id., at 302-305. This maxim, literally translated as “it is known by its associates,” Black‘s 1160, counsels lawyers reading statutes that “a word may be known by the company it keeps,” Russell Motor Car Co. v. United States, 261 U. S. 514, 519 (1923). All participants in this litigation acknowledge that the terms “congressional” and “[GAO]” are federal in nature; Congress is the Legislative Branch of the Federal Government,5 and the GAO is a federal agency.6 Relying on
We find this use of noscitur a sociis unpersuasive. A list of three items, each quite distinct from the other no matter how construed, is too short to be particularly illuminating. Although this list may not be “completely disjunctive,” 528 F. 3d, at 302—it refers to “congressional, administrative, or [GAO]” sources,
More importantly, we need to evaluate “administrative” within the larger scheme of the public disclosure bar. Both parties acknowledge, as they must, that “[s]tatutory language has meaning only in context,” Graham County Soil, 545 U. S., at 415; where they differ is in determining the relevant context. The Sandwich Theory presupposes that Category 2 is the only piece of
When we consider the entire text of the public disclosure bar, the case for limiting “administrative” to federal sources becomes significantly weaker. The “news media” referenced in Category 3 plainly have a broader sweep. The Federal Government funds certain media outlets, and certain private outlets have a national focus; but no one contends that Category 3 is limited to these sources. There is likewise no textual basis for assuming that the “criminal, civil, or administrative hearing[s]” listed in Category 1 must be federal hearings.8 Of the numerous types of sources that serve a common function in
If the Court of Appeals was correct that the term “administrative” encompasses state and local sources in Category 1, see 528 F. 3d, at 303, it becomes even harder to see why the term would not do the same in Category 2. See Erlenbaugh v. United States, 409 U. S. 239, 243 (1972) (“[A] legislative body generally uses a particular word with a consistent meaning in a given context“). Respondent and the Solicitor General assert that
Respondent and the Solicitor General try to avoid this inference, and to turn a weakness into a strength, by further averring that the sources listed in Category 1 are themselves only federal. See Brief for Respondent 23-24; Brief for United States 25-26. No court has ever taken such a view of these sources. See 528 F. 3d, at 303 (citing cases from the Third, Fourth, Fifth, Ninth, and Eleventh Circuits and stating that “[t]he courts have easily concluded that [Category 1] applies to state-level hearings“); Sylvia § 11:37, at 643, n. 1 (citing additional cases).10 The arguments in favor of read-
ing a federal limitation into Category 1 are supported, if at all, by legislative history and policy; they find no support in the statute‘s text.
Moving from the narrow lens of the Sandwich Theory to a bird‘s-eye view, respondent and the Solicitor General also maintain that the “exclusively federal focus” of the FCA counsels against reading the public disclosure bar to encompass nonfederal sources. Brief for Respondent 10, 18; Brief for United States 13. The FCA undoubtedly has a federal focus. But so does every other federal statute. And as respondent and the Solicitor General elsewhere acknowledge, quite a few aspects of the FCA, including a reference to “administrative” proceedings in
Respondent and the Solicitor General make one last argument grounded in the statutory text: It would be anomalous, they say, for state and local administrative reports to count as public disclosures, when state legislative reports do not. See Brief for Respondent 15; Brief for United States 15-16. Yet neither respondent nor the Solicitor General disputes the contention of petitioners and their amici that, at the time the public disclosure bar was enacted in 1986, Congress
In sum, although the term “administrative” may be sandwiched in Category 2 between terms that are federal in nature, those terms are themselves sandwiched between phrases that have been generally understood to include nonfederal sources; and one of those phrases, in Category 1, contains the exact term that is the subject of our inquiry. These textual clues negate the force of the noscitur a sociis canon, as it was applied by the Court of Appeals.12 We are not persuaded that the associates with which “administrative” keeps company in
IV
As originally enacted, the FCA did not limit the sources from which a relator could acquire the information to bring
The present text of
In respondent and her amici‘s view, this background counsels in favor of an exclusively federal interpretation of “administrative” for three separate reasons. First, the drafting history of the public disclosure bar suggests that Congress intended such a result. Second, a major aim of the 1986 amendments was to limit the scope of the Government knowledge bar, and “[c]onstruing [
There is, in fact, only one item in the legislative record that squarely corroborates respondent‘s reading of the statute: a letter sent by the primary sponsors of the 1986 amendments to the Attorney General in 1999. See 145 Cong. Rec. 16032 (1999) (reproducing text of letter in which Rep. Berman and Sen. Grassley state: “We did intend, and any fair reading of the statute will confirm, that the disclosure must
We do not doubt that Congress passed the 1986 amendments to the FCA “to strengthen the Government‘s hand in fighting false claims,” Cook County, 538 U. S., at 133-134, and “to encourage more private enforcement suits,” S. Rep., at 23-24. It is equally beyond cavil, however, that Congress passed the public disclosure bar to bar a subset of those suits that it deemed unmeritorious or downright harmful. The question before us concerns the precise scope of that subset; and on this matter, the record is all but opaque. While “the absence of specific legislative history in no way modifies the conventional judicial duty to give faithful meaning to the language Congress adopted in the light of the evident legislative purpose in enacting the law in question,” United States v. Bornstein, 423 U. S. 303, 310 (1976), there is no “evi-
V
Respondent and her amici likewise fail to prove their case that petitioners’ reading of the statute will lead to results that Congress could not have intended. Their argument rests on an empirical proposition: “While federal inquiries and their outcomes are readily available to Department of Justice [(DOJ)] attorneys, many state and local reports and investigations never come to the attention of federal authorities.” Brief for United States 22; see also 528 F. 3d, at 306 (“Because the federal government is unlikely to learn about state and local investigations, a large number of fraudulent claims against the government would go unremedied without the financial incentives offered by the qui tam provisions of the FCA“). This proposition is not implausible, but it is sheer conjecture. Numerous federal investigations may be occurring at any given time, and DOJ attorneys may not reliably learn about their findings. DOJ attorneys may learn about quite a few state and local inquiries, especially when the inquiries are conducted pursuant to a joint federal-state program financed in part by federal dollars, such as the program at issue in this case.18 Just how accessible to the Attorney General a typical state or local source will be, as compared to a federal source, is an open question. And it is
not even the right question. The statutory touchstone, once again, is whether the allegations of fraud have been “pub-lic[ly] disclos[ed],”Respondent‘s argument also gives insufficient weight to Congress’ decision to bar qui tam actions based on disclosures “from the news media.” Ibid. Because there was no such bar prior to 1986, the addition of the news media as a jurisdiction-stripping category forecloses the suggestion that the 1986 amendments implemented a single-minded intent to increase the availability of qui tam litigation. And since the “news media” include a large number of local newspapers and radio stations, this category likely describes a multitude of sources that would seldom come to the attention of the Attorney General.
As for respondent and her amici‘s concern that local governments will insulate themselves from qui tam liability “through careful, low key ‘disclosures‘” of potential fraud, Brief for American Center for Law and Justice as Amicus Curiae 17, this argument rests not just on speculation but indeed on rather strained speculation. Any such disclosure would not immunize the local government from FCA liability in an action brought by the United States, see Rockwell Int‘l Corp. v. United States, 549 U. S. 457, 478 (2007)—and to the contrary it could tip off the Attorney General that such an action might be fruitful. It seems to us that petitioners have the more clear-eyed view when they assert that, “[g]iven the fact that the submission of a false claim to the United States subjects a defendant to criminal liability, fines, debarment, treble damages and attorneys’ fees, no rational entity would prepare a report that self-discloses fraud with the sole purpose of cutting off qui tam actions.” Reply Brief for Petitioners 19; see also United States ex rel. Bly-Magee v. Premo, 470 F. 3d 914, 919 (CA9 2006) (“The fear [of self-insulating disclosures] is unfounded in general because it is unlikely that an agency trying to cover up its fraud would
Our conclusion is buttressed by the fact that Congress carefully preserved the rights of the most deserving qui tam plaintiffs: those whistle-blowers who qualify as original sources. Notwithstanding public disclosure of the allegations made by a qui tam plaintiff, her case may go forward if she is “an original source of the information.”
VI
Respondent and the Solicitor General have given numerous reasons why they believe their reading of the FCA
The judgment of the Court of Appeals is reversed, and the case is remanded for further proceedings consistent with this opinion.
It is so ordered.
JUSTICE SCALIA, concurring in part and concurring in the judgment.
I join Parts I–III and V–VI of the Court‘s opinion. As for Part IV, I agree that the stray snippets of legislative history respondent, the Solicitor General, and the dissent have collected prove nothing at all about Congress‘s purpose in enacting
The False Claims Act (FCA) divests federal courts of jurisdiction to hear qui tam lawsuits based on allegations or transactions publicly disclosed in a “congressional, administrative, or Government Accounting Office [(GAO)] report, hearing, audit, or investigation,” unless the qui tam relator is an “original source” of the information.
I
Section
Like the Court of Appeals, I view Congress’ choice of two “clearly federal terms [to] bookend the not-so-clearly federal term” as a “very strong contextual cue about the meaning of ‘administrative.‘” 528 F. 3d 292, 302 (CA4 2008). “The maxim noscitur a sociis, . . . while not an inescapable rule, is often wisely applied where a word is capable of many meanings in order to avoid the giving of unintended breadth to the Acts of Congress.” Gutierrez v. Ada, 528 U. S. 250, 255 (2000) (quoting Jarecki v. G. D. Searle & Co., 367 U. S. 303, 307 (1961)). Here, the immediate proximity of “congressional” and “[GAO]” suggests that “administrative” should be read, like its neighbors, as referring to Federal Government sources. If Congress had intended to include state or local government administrative materials, it could have said so, for instance by referring generically to “governmental” sources. See 528 F. 3d, at 304–305.
The Court applies the logic that underlies the noscitur a sociis canon in concluding that “administrative” does not refer to private entities because of the meaning suggested by the slightly more distant neighbors “report, hearing, audit, or investigation.” See ante, at 286–287. I agree
Despite its own implicit reliance on the canon, the Court nevertheless rejects the Court of Appeals’ application of noscitur a sociis to interpret the three terms in Category 2, concluding that “[a] list of three items, each quite distinct from the other no matter how construed, is too short to be particularly illuminating.” Ante, at 288. The three terms in Category 2, the Court concludes, are “too few and too disparate” to justify invocation of noscitur a sociis. Ante, at 289. We have not previously constrained the canon in this way, and I would not do so here.
To take just one example, in Jarecki we construed the statutory term “‘abnormal income,‘” which the statute defined to include income resulting from “‘exploration, discovery, or prospecting.‘” 367 U. S., at 304–305 (quoting
The Court draws additional support for its conclusion from reference to the provision‘s “larger scheme,” ante, at 289—i. e., the sources enumerated in Categories 1 and 3. Although the scope of Category 1 is not before us today (and although this Court has never addressed that question), the Court believes that reading Category 2 as limited to Federal Government sources would be inconsistent with decisions of lower
Finally, the Court also views “news media” as “distinctly nonfederal in nature.” Ante, at 290. But “news media” does not seem particularly illuminating in this context. As the Court of Appeals observed, although media sources may be national or local in scope, that distinction is not analogous to the difference between federal and state government sources. 528 F. 3d, at 304.
II
In my view, the statutory context and legislative history are also less “opaque,” cf. ante, at 298, and more supportive of the reading adopted by the Court of Appeals, than the majority today acknowledges. While the legislative record is concededly incomplete, it does provide reason to exercise caution before giving the statutory text its broadest possible meaning—i. e., to encompass not only federal, but also state and local, government sources.
Three points are particularly salient. First, prior to the 1986 amendments, the “Government knowledge” bar unquestionably referred only to information in the possession of the
Second, there is more support than the Court recognizes for the proposition that Congress sought in the 1986 amendments to broaden the availability of qui tam relief. The Senate Report characterized the reform effort as intended to “enhance the Government‘s ability to recover losses sustained as a result of fraud against the Government” and dwelt at length on the “severe” and “growing” problem of “fraud in Federal programs.” S. Rep., at 1–2; accord, H. R.
Consistent with these expressed views, the enacted legislation was replete with provisions encouraging qui tam actions. By replacing the Government knowledge bar with the current text of
To be sure, Congress was also concerned in 1986, as in 1943, with guarding against purely opportunistic, “parasitic” qui tam relators. See S. Rep., at 10–11 (describing history of parasitic suits and the 1943 amendments); ante, at 293–295. Lower courts have viewed the 1986 amendments as striking a balance between the “twin goals of rejecting suits which the government is capable of pursuing itself, while promoting those which the government is not equipped to bring on its own.” United States ex rel. Springfield Terminal R. Co. v. Quinn, 14 F. 3d 645, 651 (CADC 1994). But evidence that Congress sought to balance two competing goals supports moderation in interpreting an arguably am-
The Court fairly observes that the addition of “news media” to the jurisdictional bar undercuts attributing to Congress a “single-minded” intent to expand the availability of qui tam relief. Ante, at 300. But neither does that provision support reading Category 2 to its broadest possible extent. Moreover, barring suits based on “news media” disclosures may not have constituted a particularly significant expansion of existing law. Courts had applied the pre-1986 Government knowledge bar to dismiss actions based on information reported in the news media. In United States ex rel. Thompson v. Hays, 432 F. Supp. 253, 256, 255 (DC 1976), the court dismissed a suit based on evidence “gleaned from sources in the news media which received widespread public attention [alleging fraud by a Member of Congress],” when the Department of Justice “first obtained information regarding the claims . . . as a result of [a] Washington Post article.” Similarly, the court in United States v. Burmah Oil Co., 558 F. 2d 43, 46, n. 1 (CA2 1977) (per curiam) characterized the Government knowledge bar as “discourag[ing] the filing of actions by parties having no information of their own to contribute, but who merely plagiarized information in indictments returned in the courts, newspaper stories or congressional investigations.” Congress could have reasonably assumed in 1986 that news media would report on the kinds of high-profile frauds that would naturally—perhaps as a result of the reporting—come to the Government‘s attention, and thus would already have been covered under existing law.
Third, the legislative record “‘contains no hint of any intention‘” to bar suits based on disclosures from state or local government sources. Brief for United States as Amicus Curiae 20 (quoting United States ex rel. Anti-Discrimination Center of Metro N. Y., Inc. v. Westchester Cty., 495 F. Supp. 2d 375, 383 (SDNY 2007)). Inclusion of state or local government sources would have constituted a significant departure from the Federal Government knowledge bar that had existed for four decades by 1986. But neither the initial bills reported by the Senate and House Committees nor statements by individual Members of Congress about subsequent versions of the legislation suggest any consideration or debate about expanding the pre-1986 bar to apply to state or local government sources.8
crete reason to believe otherwise, I would not so readily dismiss the formal representation of the Executive Branch entity with responsibility for, and practical experience in, litigating FCA claims on behalf of the United States.
In sum, the statute‘s plain text, evidence of Congress’ intent to expand qui tam actions, and practical consequences of a more expansive interpretation together suggest Category 2 is most reasonably read to encompass federal, but not state or local, government sources.11
* * *
For the reasons given above, I would affirm the judgment of the Court of Appeals, and respectfully dissent.
