OPINION
In this proper person appeal, we determine whether the district court properly granted summary judgment to the University and Community College System of Nevada (UCCSN) because, as a state entity, UCCSN is not subject to liability under Nevada’s False Claims Act (FCA).
We agree with the district court that UCCSN is a state entity and therefore not subject to FCA liability. Accordingly, we affirm the district court’s summary judgment. We further conclude, however, that the district court’s award of attorney fees as a sanction for having asserted a meritless claim is unsupportable under the circumstances. Thus, we reverse the portion of the order awarding UCCSN attorney fees.
Appellant Lane Simonian was a part-time instructor for Truckee Meadows Community College for several years. As a result of concerns that surfaced during his employment, Simonian instituted proceedings against respondent UCCSN on four notable occasions.
First, in 1999, Simonian filed a district court petition for extraordinary relief, challenging UCCSN’s alleged refusal to pay part-time instructors the entire salary amounts for which legislative appropriations had been made. Within a few months of petitioning the court and before any response had been filed, however, Simon-ian voluntarily dismissed the petition.
Second, that same year, Simonian requested a hearing with the Nevada Department of Personnel under NRS 281.641, which governs reprisals and retaliatory actions taken against state officer or employee whistleblowers.
Third, the following year, Simonian filed a second NRS 281.641 request, this time alleging that he had been retaliated against when he was dismissed as a part-time lecturer earlier that year. Simon-ian claimed that the dismissal resulted from his public complaints about “the false reporting of average new full-time instructors’ salaries.” The request was dismissed as untimely.
Finally, in 2001, Simonian instituted a false claims action against UCCSN. As a basis for relief, Simonian asserted that between 1987 and 2001, UCCSN had “presented to the Nevada State Legislature claims for $16 million in unpaid salaries for part-time instructors.” He requested that UCCSN be assessed treble damages, a civil penalty payable to the State, and $5,000 for his expenses, plus costs. The Attorney General, although statutorily permitted to intervene in the action, declined to do so.
DISCUSSION
This court reviews orders granting summary judgment de novo.
As, legally, state entities are not subject to FCA liability and no material factual disputes exist as to UCCSN’s state entity status, we conclude that the district court properly granted summary judgment on that basis. Consequently, we do not reach Simonian’s arguments regarding the district court’s alternative bases for summary judgment, that an entity’s budget request does not constitute a “claim” for FCA purposes and that the action was barred under the collateral estoppel doctrine.
State entities are not “persons” subject to FCA liability
Nevada’s FCA permits the Attorney General, or a private ‘ ‘qui tam” plaintiff acting on his own behalf and on that of the State, to maintain an action for treble damages against “a person” who, among other things, presents a false claim for payment or approval, uses a false record or statement to obtain payment or approval of a false claim, or is the beneficiary of and fails to disclose after discovery of, an inadvertent submission of a false claim.
Although the FCA does not likewise define the term “person,” a long-standing principle of statutory construction instructs that “ ‘person’ does not include the sovereign.”
While we acknowledge that this presumption is “not a ‘hard and fast rule of exclusion,’ ”
Moreover, this court has recognized that Nevada’s FCA is modeled after the federal FCA,
Part of the Supreme Court’s reasoning observes that the original federal FCA contained no express provision to overcome the presumption that states are not “persons” for purposes of qui tam liability, even though a separate federal FCA provision granting the Attorney General permission to instigate civil investigations with “any person” specifically defined “person” in that context to include states.
Correspondingly, because in drafting Nevada’s FCA the Nevada Legislature looked to the federal FCA, the Legislature necessarily examined the federal act’s definitions. Having thus considered the
UCCSN is a state entity
UCCSN is comprised of the system of universities, colleges, administrative services, research facilities, and departments within the public service division, and it is administered by the Board of Regents
Based on the decisional law of this state and other jurisdictions, UCCSN is a state entity. In Northern Nevada Association of Injured Workers v. SIIS,
For the foregoing reasons, we conclude that UCCSN is a state entity. Since state entities are not “persons” subject to FCA liability, the district court properly determined that UCCSN was entitled to judgment as a matter of law on Simonian’s FCA claim.
Sanctions
In addition to granting summary judgment, however, the district court also determined that Simonian’s “claim [was] not well-grounded in fact or in existing law.” Consequently, the court sanctioned Simonian, awarding $2,452.50 in attorney fees to UCCSN
Both NRCP 11 and NRS 357.180 sanctions are reviewed under an abuse of discretion standard.
As noted above, the FCA does not expressly state that a plaintiff may not sue the State or may not bring claims based on legislative budget requests. And no prior Nevada decisional law so interpreted the FCA. Thus, it cannot be said that Simonian’s false claims action was clearly frivolous.
According to UCCSN, the false claims action was not well-grounded in fact or law because Simonian had repeatedly asserted the same claim, under different names, and those proceedings were “either dismissed or . . . lost on the merits.” UCCSN asserts that the district court could have reasonably concluded that
The district court, however, made no findings of harassment. Moreover, Simonian’s writ petition was voluntarily dismissed, apparently before UCCSN responded or the petition’s merits were addressed. The second and third “claims” arose from allegations of retaliation by the community college, not of UCCSN misappropriation, the latter of which was also dismissed before its merits were reached. Thus, the merits of Simonian’s salary concerns were addressed only in his 1999 administrative retaliation proceeding against the community college. As a result, unless the 1999 hearing officer’s decision is sufficient to show that Simonian’s FCA claim was not well-grounded in fact and law, there exists no basis for the district court’s award of attorney fees.
The 1999 administrative decision
Because the hearing officer was not required to determine the merits of Simonian’s misappropriation allegations in the 1999 retaliation proceeding, and because those allegations were not purported to have arisen under the FCA, the administrative decision on Simonian’s retaliation hearing request may not be used to show that Simonian’s FCA claim was unfounded in fact or law.
As previously mentioned, Simonian’s 1999 retaliation claim was brought under a whistleblower protection statute, NRS 281.641. The declared public policy of NRS Chapter 281 ’s disclosure provisions is to encourage state and local officers and employees “to disclose, to the extent not expressly prohibited by law, improper governmental action, and it is the intent of the Legislature to protect the rights of [the person] who makes such a disclosure.”
By enacting NRS 281.641, the Legislature aimed to encourage persons to come forward with information of employer wrongdoing by affording them protection against retaliatory action by their employer.
Thus, with respect to an NRS 281.641(1) reprisal/retaliation claim, the hearing officer must only determine whether a state employee has engaged in protected activity, i.e., has disclosed information concerning alleged conduct that might constitute “improper governmental action.”
Further, Simonian’s FCA allegations pertain to false claims as defined under NRS Chapter 357, not to “improper governmental action,” as defined at NRS 281.611(1). While the two categories might overlap, they do not always necessarily do so. Thus, any finding that UCCSN’s conduct did not constitute “improper governmental action” does not support the conclusion that Simonian’s false claims action was therefore necessarily premised on unfounded grounds. Accordingly, the district court improperly awarded UCCSN attorney fees as sanctions against Simonian under NRCP 11 and NRS 357.180.
CONCLUSION
Because an FCA plaintiff, who sues on behalf of the State, may not pursue a false claims action against the State, we affirm the portion of the district court’s order granting summary judgment to UCCSN. As the district court never reached the merits of Simon-ian’s action and the record contains insufficient information to support the district court’s determination that Simonian’s false claim action was not well-grounded in fact or law, however, we reverse the district court’s award of attorney fees as sanctions against Simonian.
Notes
NRS Chapter 357.
NRS 281.641(1) provides, in relevant part, as follows:
If any reprisal or retaliatory action is taken against a state officer or employee who discloses information concerning improper governmental action within 2 years after the information is disclosed, the state officer or employee may file a written appeal with a hearing officer of the Department of Personnel for a determination of whether the action taken was a reprisal or retaliatory action.
Wood v. Safeway, Inc.,
Id.
NRS 357.040(1)(a), (b), (h); NRS 357.050; NRS 357.070; NRS 357.080; see also International Game Tech. v. Dist. Ct.,
NRS 357.020.
Vermont Agency of Natural Resources v. United States ex rel. Stevens,
Pittman v. Lower Court Counseling,
See Will,
Vermont Agency of Natural Resources,
NRS 357.200 to 357.230; see also Harris Assocs. v. Clark County Sch. Dist.,
International Game Tech., 122 Nev at 150,
Cook County v. United States ex rel. Chandler,
See generally Custom Cabinet Factory of N.Y. v. Dist. Ct., 119 Nev 51, 54,
See generally Edgington v. Edgington,
Vermont Agency of Natural Resources,
Id.
Id. at 781-82.
We reject Simonian’s argument that the Supreme Court’s decisions are inapplicable to this issue, but that instead, this court should adhere to the reasoning set forth in LeVine v. Weis,
NRS 396.020.
Nev. Const. art. 11, §§ 4, 7; see also University System v. DR Partners,
Nev. Const. art. 11, § 6.
Id.; NRS 396.370(2). Despite Simonian’s contention that UCCSN can use nonstate funds to reimburse the state, any judgment against UCCSN may implicate the state’s general fund. Nev. Const. art. 11, § 6; NRS 396.370(2); see also Meza v. Lee,
NRS 396.505.
NRS 396.120.
NRS 396.380; DR Partners,
See NRS 396.809-.885 (University Securities Law). In DR Partners,
Cf. Graham v. State,
Meza,
See, e.g., NRS 543.550(2) (providing, in the context of right-of-ways over public lands, for notice to be given to the Division of State Lands and “any other agency or entity of the state owning land in the area, including the [UCCSN]”); cf. DR Partners,
See DR Partners,
See Johnson,
See, e.g., Kashani v. Purdue University,
U.S. v. Regence Bluecross Blueshield of Utah,
Bergmann v. Boyce,
NRCP 11 (amended 2004).
Jordan v. State, Dep’t of Motor Vehicles,
Cf. Grynberg,
NRS 281.621.
See also NAC 281.315.
NRS 281.641(2).
McKay v. Bd. of Supervisors,
See Hearing on S.B. 293 Before the Senate Gov’t Affairs Comm., 66th Leg. (Nev., Apr. 8, 1991) (discussing the public policy of allowing for full disclosure, including to legislative bodies and the press, of improper governmental action, abuse of authority, and waste of money, and expressing a desire to protect public employees who wish “to be candid with the legislature and other concerned persons about information, needing this protection to feel free to testify before a legislative committee”); id. at Exs. C, D (explaining that proposed amendments, which contain the current language of NRS 281.641 and replaced the bill’s original language protecting from retaliation employees who provide information on matters warranting further investigation or “given in good faith,” as determined by an ethics commission, would protect employees who bring incidents of wrongdoing to the legislature and apparently would cure problems associated with the ethics commission’s lack of enthusiasm over the original proposal).
Compare NRS 281.611-.671, Hearing on S.B. 293 Before the Senate Gov’t Affairs Comm., 66th Leg. (Nev., Apr. 8, 1991), and Allum v. Valley Bank of Nevada,
