ROY B. DALTON Jr., District Judge.
This cause is before the Court on the following:
Upon notification that the Defendants in this False Claims Act ("
Defendants now move the Court to reconsider the Order pursuant to Federal Rule of Civil Procedure 54(b). (Doc. 95 ("
Rule 54(b) permits the Court to revise interlocutory orders "at any time before the entry of a judgment adjudicating all the claims and all the parties' rights and liabilities." "While Rule 54(b) does not provide specific grounds for revision, a court has the inherent power to revise its orders in the interest of justice." CSX Transp., Inc. v. City of Pensacola, Fla., 936 F.Supp. 885, 889 (N.D. Fla. 1995).
Iqbal v. Dep't of Justice, No. 3:11-cv-369-J-37JBT, 2014 WL 169867, at *9 n.18 (M.D. Fla. Jan. 15, 2014).
Defendants maintain that reconsideration is necessary to prevent "manifest injustice." (Doc. 95.) Specifically, Defendants argue that the Suggestion of Bankruptcy was simply a notice to the Court and was not a request for relief; thus: (1) the Response should be construed as a motion seeking a determination of the scope of the Bankruptcy Code's automatic stay provision and requesting that the Court decline to stay the action; (2) the Reply should be construed as a response; and (3) and to satisfy due process, the Court should consider the Reply. (Id.) While the Court does not necessarily agree with Defendants' argument, in the interest of justice and to fully ensure Defendants are afforded due process, the Court finds that reconsideration is warranted. The Court, therefore, takes the Issue under advisement again.
After considering the arguments raised in the Reply, the Court reaches the same outcome—that a stay of the action is not warranted. First, Defendants concede that this Court has concurrent jurisdiction with the bankruptcy court to determine the Issue and that this Court is "considerably more competent" to do so. (Doc. 93, pp. 1-2.) Second, Defendants fail to cite any binding authority contradicting the persuasive rationale that FCA actions are exempt from the automatic stay through the entry of judgment.
Accordingly, it is hereby
The United States' indicated that Defendants' Bankruptcy Motions relied on In re Bicoastal Corporation, 118 B.R. 854 (M.D. Fla. 1990)—a case in which U.S. Bankruptcy Court Judge Alexander L. Paskey found that an FCA action brought by the Government was not exempt from the automatic stay provision. (See Doc. 98, p. 4.) The Court previously considered and declined to follow the holding of In re Bicoastal Corporation in light of the more persuasive rationale from the Eighth Circuit and Judge Paskey's subsequent and contrary ruling in In re Bilzerian.