MEMORANDUM OPINION
This matter came before the Court on Relator Benjamin Carter’s (“Relator”) Motion for Reconsideration of this Court’s November 12, 2015 Memorandum Opinion (“November 12 Opinion”). [Dkt. 129.] Relator argues that an intervening change in law indicates that the False Claims Act’s first-to-file bar would not apply to his amended complaint. Additionally, Relator seeks clarification on whether the Court would deny leave to amend based on three arguments that were raised, but not addressed, in the November 12 Opinion. As described below, those alternative arguments would not preclude amendment, but the first-to-file bar continues to make amendment futile.
I. Background
The Court’s many prior opinions describe the facts and procedural history of this case in full. That background is presumed known and repeated here only to the extent necessary to resolve the current motion.
On October 15, 2015, this Court held a hearing on how this case should proceed on remand from the Court of Appeals for the Fourth Circuit and the United States Supreme Court. Defendants moved to dismiss the case with prejudice, arguing that the False Claims Act’s first-to-file bar requires dismissal and the statutes of limitations and
Relator motioned for the Court to reconsider its denial of leave to amend,
II. Standard of Review
Amending a judgment “is an extraordinary remedy that should be applied sparingly.” Mayfield v. NASCAR, Inc.,
With those principles in mind, the Court turns now to Relator’s arguments that a change in law and the need to prevent manifest injustice support reconsideration in this case.
III. Analysis
A. Intervening Change in Law
The Court fust addresses Relator’s argument that the First Circuit opinion in United States ex rel. Gadbois v. PharMerica Corp.,
As an initial and dispositive point, Gadbois is not “controlling law” for this Court. Rule 59(e)’s “controlling law” prong “refers specifically to binding precedent only.” McNamara v. Royal Bank of Scotland Grp, PLC, No. 11-cv-2137,
Furthermore, even considering Gad-bois, the Court would have denied Relator’s motion to amend due to the first-to-file bar. In Gadbois, the First Circuit found that an FCA relator could avoid the first-to-file bar
Despite its virtues, the Gadbois decision does not directly address many of the concerns that influenced this Court’s interpretation of the first-to-file bar. First, Gadbois referred to Kellogg as part of a shifting of “tectonic plates” regarding the first-to-file bar. Id. at 3. The court’s assessment of Kellogg, however, was very brief and failed to consider the context of the Supreme Court’s analysis. By contrast, this Court’s November 12 Opinion relied upon the nature of the circuit split motivating the Kellogg decision, the Supreme Court’s statement of the issues before it, and the law of this case and this circuit. Second, Gadbois did not give sufficient weight to the plain language of 31 U.S.C. § 3730(b)(5), which the Fourth Circuit has emphasized and this Court considered dispositive. Compare Gadbois,
B. Manifest Injustice
Relator also argues that failing to address Defendants’ alternative arguments for denying amendment results in a manifest injustice and justifies reconsideration or clarification. Specifically, Relator contends that leaving these alternative arguments unresolved would provoke additional motions practice on remand if he successfully appeals to the Fourth Circuit. For reasons that are unique to this ease, the Court agrees and will take this opportunity to clarify its November 12 Opinion.
Before discussing Defendants’ alternative arguments for denying amendment, the Court must explain why it is taking this extraordinary step. First, the Court notes that it is regular and proper to leave alternative arguments unresolved after a court finds a dispositive basis for resolving an issue. See, e.g., Mueller v. AT&T Techs., Inc.,
In March 2010, this case had completed discovery and was poised for trial when the Government informed the Court of an earlier pending case similar to Relator’s case. Thus, after proceeding through two motions to dismiss, two amended complaints, and a contentious and protracted discovery period, the Court granted Defendants’ third motion to dismiss. That dismissal occurred on May 10, 2010. Since that time, the case has undergone what the Supreme Court described as “a remarkable sequence of dismissals and filings.” Kellogg,
The Court also notes that resolving the alternative arguments for denying amendment does not prejudice either party. The issues analyzed below were orally argued and fully briefed in the memoranda on Defendants’ motion to dismiss and Relator’s motion to amend. Therefore, the Court will now clarify its November 12 Opinion by addressing Defendants’ alternative arguments for denying leave to amend.
C. Amendment Under Rule 15(a)(2)
Federal Rule of Civil Procedure 15(a)(2) requires courts to “freely give leave [to amend] when justice so requires.” Fed. R. Civ. P. 15(a)(2). “This liberal rule gives effect to the federal policy in favor of resolving eases on their merits instead of disposing of them on technicalities.” Laber v. Harvey,
Defendants argue that prejudice and futility prevent amendment in this case. The Court agrees that the first-to-file bar renders amendment futile. The Court’s November 12 Opinion, however, did not address whether the statutes of limitations and repose also make amendment futile. The Court also did not address whether the amendment is prejudicial. The Court turns to those issues now.
1. Prejudice
Although Relator substantially delayed in bringing this motion, the prejudice from that delay does not justify denying leave to amend. If this case’s age is marked by the months and years that have passed since the filing of the original complaint, then the motion indeed comes late in this case’s life. Over four and a half years ticked away before Relator motioned to amend. But the passage of time seems a poor indicator of the prejudice caused by permitting an amendment. Cf. Scott v. Family Dollar Stores, Inc.,
Furthermore, the substance of Relator’s amendments should not surprise Defendants or undermine the many judicial opinions shaping the scope of this case. The amendments provide details about award fee presentations Defendants allegedly made in March and July 2005 and corresponding award payments of $55,846,736 and $21,168,998 received in April and August 2005, respectively. (Am. Compl. ¶¶ 144-49, 161-79.) These presentations allegedly incorporated information about Defendants’ “excellent work purifying water at the bases in Ar Ramdi and Al Asad.” (Id. ¶ 145.) Similar allegations of award fees related to these water purification tasks are plainly present in the Original Complaint, where Relator described the award fee process at length, (Compl. ¶¶ 140-49), noted that fraudulent time recording can inflate the fee award, (id. ¶ 154), alleged that Defendants’ fraudulent claims resulted in “an enhanced award fee under the contract,” (id. ¶ 167(e)), and even claimed that Defendants “received $120 million in LogCAP award fees” in 2006 alone, (id. ¶ 148). In a prior opinion, this Court interpreted the Original Complaint to allege a connection between Defendants’ false claims and the award fees cited in the Amended Complaint. See U.S. ex rel. Carter, No. 1:08cv1162,
2. Futility
Turning to futility, Defendants argue that the Amended Complaint is time barred by the statute of limitations and will not relate back to the Original Complaint. Additionally, Defendants contend that the FCA’s ten-year statute of repose bars the Amended Complaint and statutes of repose are categorically not subject to relation back under Rule 15(c). For the following reasons, the Court finds that these arguments do not render amendment futile.
a) Relation Back of Statute of Limitations
A claim barred by the applicable statute of limitations is futile, and an untimely amendment can be denied on that basis. See United States v. Pittman,
As described above, the amendments have a strong factual nexus to the Original Complaint. It is well recognized that “amendments that do no more than restate the original claim with greater particularly or amplify the details of the transaction alleged in the proceeding fall within Rule 16(c)(1)(B).” 6A Charles Alan Wright, Arthur R. Miller & Mary Kay Kane, Federal Practice and Procedure, § 1497 (3d ed. 2016). Although Relator’s amendments might do slightly more than add particularly, the facts in the Amended Complaint are directly referenced or clearly alluded to in the Original Complaint.
Additionally, Defendants were on notice that Relator would include portions of the award fees within its claims for damages. The Original Complaint stated explicitly that Defendants’ “fraudulent claims resulted in.. .an enhanced award fee under the contract.” (Compl. ¶ 167(e).) In 2009, this Court interpreted these allegations to mean that as “a further result of these allegedly false time cards and invoices, the government also paid Defendants greater indirect costs, a higher base fee, and a higher award fee.” Carter,
The relation-back doctrine, however, is not without limitations. Relation back may only save a claim that would have been timely raised within the original complaint. See Williams v. Lampe,
b) Effect of the Statute of Repose
Defendants next argue that amendment is futile because relation back cannot apply to the FCA’s ten-year statute of repose. Defendants cite several cases supporting their interpretation of Rule 15(c).
Before diving into this issue, the Court will briefly note the differences between a statute of limitations and a statute of repose. The Fourth Circuit has described statutes of limitations as “primarily instruments of public policy and of court management,” and aimed at the “prevention of stale claims,” Goad v. Celotex Corp.,
The Court finds little guidance from federal courts of appeals as to whether a statute of repose may be avoided through relation back.
Left to consider the issue as a matter of first instance, district courts have reached conflicting opinions about the application of Rule 15(c) to a statute of repose. See Acierno v. New Castle County, No. C.A. 92-385,
Starting with the text of Rule 15(c), the rule makes no distinction between statutes of limitations and statutes of repose. The Rule merely states that an “amendment to a pleading relates back to the date of the original pleading when the amendment asserts a claim or defense that arose out of the conduct, transaction, or occurrence set out— or attempted to be set out — in the original pleading.” Fed. R, Civ. P. 15(c)(1)(B). As other courts have found, the absence of limiting language within Rule 15(c) indicates that it applies to statutes of limitations and repose alike. See Chumney,
Furthermore, Defendants’ strict interpretation of Rule 15(c) would have anomalous results. Under Defendants’ interpretation, an expired statute of repose would preclude all amendments, regardless of the substance of the amendment. Thus, an amendment that does nothing more than add specificity or clarify a complaint would not relate back. Similarly, an amendment that removed a cause of action would not relate back to the original complaint. These results strike the Court as illogical and contrary to Rule 15(c)’s liberal policy of resolving issues on the merits. See Acierno,
Lastly, the application of Rule 15(c) in this case does not violate the Rules Enabling Act’s prohibition on rules that “abridge, en
In summary, the Court finds no basis to reconsider its November 12, 2015 holding that the first-to-file bar applies to Relator’s current Complaint and would continue to apply to Relator’s Amended Complaint, Therefore, amendment is denied as futile and Relator’s case is dismissed without prejudice. Despite that holding, the Court finds it would cause a manifest injustice to leave unresolved the alternative grounds for denying amendment. Accordingly, the foregoing discussion modifies the Court’s November 12 Opinion to clarify that neither prejudice, the statute of limitations, nor the statute of repose defeat Relator’s motion to amend. Therefore, if the first-to-file bar did not to apply, Relator could amend.
IY. Conclusion
For the foregoing reasons, the Court will deny Relator’s request for reconsideration. But, the Court modifies its November 12 Opinion as described above. Relator’s case remains dismissed without prejudice.
An appropriate order will issue.
Notes
. Relator supplemented the motion to reconsider on December 18, 2015, based on the First Circuit’s opinion in United States ex rel. Gadbois v. Pharmerica Corp.,
. Federal Rule of Civil Procedure 15(d) permits "a party to serve a supplemental pleading setting out any transaction, occurrence, or event that happened after the date of the pleading to be supplemented.” Additionally, "[t]he court may permit supplementation even though the original pleading is defective in stating a claim or defense.” Fed. R. Civ. P. 15(d).
. The additional circumstances for relation back in Rule 15(c) are not applicable to this case.
. Defendants cite the following cases: Police & Fire Ret. Sys. of City of Detroit v. IndyMac MBS, Inc.,
. Compare Jenkins v. Novartis Pharm. Corp., No. 3:11-cv-342,
. Nothing herein should be read to prevent Defendants from motioning to dismiss the Amended Complaint for reasons not inconsistent with this Opinion, should the Fourth Circuit remand with instructions to amend.
