Cook County v. United States ex rel. Chandler, 538 U.S. 119, 4 (2003)

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122

COOK COUNTY v. UNITED STATES ex rel. CHANDLER

Opinion of the Court

Justice Souter delivered the opinion of the Court.

In Vermont Agency of Natural Resources v. United States ex rel. Stevens, 529 U. S. 765 (2000), we held that States are not "persons" subject to qui tam actions under the False Claims Act (FCA), 31 U. S. C. §§ 3729-3733. Here, the question is whether local governments are amenable to such suits, and we hold that they are.

I

Stevens, supra, at 768-770, explains in some detail how the FCA currently provides for civil penalties against "[a]ny person" who (so far as it concerns us here) "knowingly presents, or causes to be presented, to an officer or employee of the United States Government . . . a false or fraudulent claim for payment or approval." § 3729(a)(1). Although the Attorney General may sue under the FCA, so may a private person, known as a relator, in a qui tam action brought "in the name of the Government," but with the hope of sharing in any recovery. § 3730(b). The relator must inform the Department of Justice of her intentions and keep the pleadings under seal for 60 days while the Government decides whether to intervene and do its own litigating. § 3730(b)(2); see also § 3730(c). If the claim succeeds, the defendant is liable to the Government for a civil penalty between $5,000 and $10,000 for each violation, treble damages (reducible to double damages for cooperative defendants), and costs.

Health Systems et al. by Charles Luband; and by the Texas Association of School Boards Legal Assistance Fund et al. by William J. Boyce and Warren S. Huang.

Briefs of amici curiae urging affirmance were filed for K & R Limited Partnership et al. by Carl A. S. Coan III and Regina D. Poserina; and for Taxpayers Against Fraud, the False Claims Act Legal Center, by Charles J. Cooper, Brian Stuart Koukoutchos, and James Moorman.

Michael P. Dignazio and Francis X. Crowley filed a brief as amicus curiae for the County of Delaware, Pennsylvania.

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