Bass, Berry & Sims attorneys Taylor Chenery and Peter Rathmell authored an article for Bloomberg Law examining a federal district court ruling in Florida that deemed the False Claims Act’s (FCA) qui tam provision unconstitutional. The case is the first time the qui tam provision has been found to violate the Constitution.
In the Zafirov v. Florida Medical Associates case, the court held that the FCA’s qui tam provision was unconstitutional because relators who file cases on behalf of the United States pursuant to the provision are not appointed by the U.S. president, a head of an executive department, or a court. U.S. District Court Judge Kathryn Kimball Mizelle held that qui tam relators act as officers of United States because they are essentially self-appointed prosecutors who can recover damages against private parties for the federal government.
Currently, there is still considerable uncertainty related to the enforcement of the FCA’s qui tam provision as the government and the relator in Zafirov have appealed Judge Mizelle’s decision.
“If the US Court of Appeals for the Eleventh Circuit affirms the decision, it may reach the Supreme Court and present a fundamental question underlying the FCA,” said Taylor and Peter.
The full article, “False Claims Act Whistleblower Provision Is on Wobbly Ground,” was published by Bloomberg Law on November 29 and is available online (subscription may be required).