CLAY D. LAND, District Judge.
In this qui tam action, Relators claim that University of Georgia ("UGA") researchers violated the False Claims Act ("FCA"), 31 U.S.C. §§ 3729-33, by making false statements in a June 1999 grant application to the United States Environmental Protection Agency ("EPA").
Presently pending before the Court are the following motions: Motion for Summary Judgment filed by John Walker, Ph. D., Robert B. Brobst, Robert K. Bastian, and Charles E. Gross ("EPA Defendants") (ECF No. 131), Motion for Summary Judgment filed by Julia Gaskin, William P. Miller, E. William Tollner, and L. Mark Risse ("UGA Defendants") (ECF No. 132), and the Motion for Summary Judgment filed by Dr. Joe L. Key and the University of Georgia Research Foundation, Inc. ("Foundation") (ECF No. 134).
The Court previously denied Defendants' motions to dismiss in this matter, concluding that Relators alleged sufficient facts to demonstrate that their claims are not based on publicly disclosed information.
Defendants seek summary judgment contending that no genuine issues of material fact exist to be tried and that they are entitled to judgment as a matter of law. See Fed.R.Civ.P. 56(c)(2). However, the Court must first determine whether it has jurisdiction over the subject matter of this action before it addresses the merits. Since the present motions for summary judgment address the issue of subject matter jurisdiction by relying on matters beyond the face of the Complaint, the subject matter jurisdiction analysis is similar to the summary judgment analysis. Cf. Lawrence v. Dunbar, 919 F.2d 1525, 1530 (11th Cir.1990) (adopting summary judgment standard in evaluating Rule 12(b)(1) motions that also implicate the merits of a claim). The Court must determine whether genuine issues of material fact exist on the narrow issue of jurisdiction. Id. In determining whether a genuine issue of material fact exists, the evidence is viewed in the light most favorable to the party opposing the motion, drawing all justifiable inferences in the opposing party's favor. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). A fact is material if it is relevant or necessary to the outcome of the issue. Id. at 248, 106 S.Ct. 2505. A factual dispute is genuine if the evidence would allow a reasonable factfinder to find in favor of the nonmoving party. Id.
The evidence viewed in the light most favorable to Relators reveals the following.
As the Court has previously noted, the present action is the latest in a series of lawsuits involving Relators McElmurray and Boyce, two dairy farmers, and Relator Lewis, a research microbiologist, regarding the application of treated sewage sludge to Georgia farmlands. Walker, 2007 WL 2713018, at *1-*2; see also McElmurray v. Consol. Gov't of Augusta-Richmond Cnty., 501 F.3d 1244, 1247-50 (11th Cir.2007) (discussing separate litigation involving same Relators regarding sewage sludge application program); United States ex rel. McElmurray v. Consol. Gov't of Augusta-Richmond Cnty., 464 F.Supp.2d 1327, 1328-40 (N.D.Ga.2006) (same). This action relates to a $12,274 grant that the UGA Defendants received from the EPA in 1999 to study whether there were elevated metal concentrations in the soil and hay of fields that received treated sewage sludge compared with fields that received commercial fertilizer or other amendments. Relators contend that Defendants worked together to submit the EPA grant application, which, for various reasons, they claim was materially false. They argue that this "false claim" is actionable under the FCA.
The evidence in support of Relators' claims consists chiefly of two types of information: (1) the grant application, which Relators contend contains misrepresentations regarding the study for which the EPA grant was sought and misrepresentations regarding the EPA Defendants' involvement in the grant application process, and (2) correspondence to, from, and among Defendants in this case, which Relators argue contains the truth regarding the study and the EPA Defendants' involvement. Relators concede that they obtained the grant application using open records act requests pursuant to the federal Freedom of Information Act ("FOIA"),
Relators filed this qui tam action in the name of the United States under the FCA on February 17, 2006. As required by the FCA, the case was initially filed under seal. 31 U.S.C. § 3730(b)(2); accord Cooper v. Blue Cross & Blue Shield of Fla., Inc., 19 F.3d 562, 567 n. 8. The United States declined to intervene in the action on October 20, 2006, at which time the Court unsealed the Complaint, and Relators were permitted to pursue this action.
Under 31 U.S.C. § 3729(a)(1), the FCA imposed liability on any person who "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[.]" 31 U.S.C. § 3729(a)(1) (2006).
The FCA "was first passed by Congress in 1863, at the request of President Lincoln, in an effort to combat profiteering by Union Army suppliers during the Civil War." United States ex rel. Williams v. NEC Corp., 931 F.2d 1493, 1497 (11th Cir. 1991). "The purpose of the qui tam provision, then as now, was to aid in the effort to root out fraud against the government" by encouraging "private individuals who are aware of fraud being perpetrated against the Government to bring such information forward." E.g., id. (internal
The FCA's public disclosure bar "deprives courts of jurisdiction over qui tam suits when the relevant information has already entered the public domain through certain channels." Graham Cnty. Soil & Water Conservation Dist. v. United States ex rel. Wilson, ___ U.S. ___, 130 S.Ct. 1396, 1401, 176 L.Ed.2d 225 (2010). Specifically, a relator may not bring a claim under the FCA when the claim is "based on" information that has been "publicly disclosed" within the meaning of the FCA unless the relator is the "original source" of the information. E.g., McElmurray, 501 F.3d at 1251 (citing 31 U.S.C. § 3730(e)(4) (A) (West 2007)).
The FCA does not bar all actions that rely on publicly disclosed information. It "bars actions based upon information that is publicly disclosed only in certain enumerated instances." Williams, 931 F.2d at 1499. Those enumerated instances are: "public disclosure of allegations or transactions in a criminal, civil, or administrative hearing, in a congressional, administrative, or [General] Accounting Office report, hearing, audit, or investigation, or from the news media[.]" 31 U.S.C. § 3730(e)(4)(A) (2006); accord Williams, 931 F.2d at 1499 (finding that "methods of `public disclosure' set forth in section 3730(e)(4)(A) are exclusive of the types of public disclosure that would defeat jurisdiction under that section"). The Eleventh Circuit Court of Appeals uses a three-part inquiry to determine jurisdiction over an FCA claim based on information that is allegedly publicly disclosed: "`(1) have the allegations made by the plaintiff been publicly disclosed; (2) if so, is the disclosed
A qui tam action is "based on" a public disclosure if it is "supported by" publicly disclosed information. The "language [of the FCA] is most naturally read to preclude suits based in any part on publically disclosed information." Cooper, 19 F.3d at 567. In Cooper, for example, the Eleventh Circuit concluded that the relator's claim was "based on" information that was publicly disclosed in a United States House of Representatives subcommittee hearing that took place five weeks before the relator filed his qui tam action, even though the record showed that the relator had gathered "much evidence on his own." Id. at 567-68. In the present action, Relators cannot seriously dispute that their allegations are "based on" (1) the grant application, which Relators contend contains misrepresentations regarding the study for which the EPA grant was sought and misrepresentations regarding the EPA Defendants' involvement in the grant application process, and (2) correspondence to, from, and among Defendants, which Relators argue contains the true state of facts regarding the study and the EPA Defendants' involvement. The question, therefore, is whether this information was publicly disclosed within the meaning of the FCA.
Defendants contend that the grant application and the correspondence between Defendants was publicly disclosed because Relators obtained them in response to open records act requests pursuant to FOIA and/or GORA.
The majority of circuits that have decided the issue have determined that a government agency's response to an open records act request is a publicly disclosed "administrative report" regardless of what kind of document is produced in response to the request. E.g., United States ex rel. Ondis v. City of Woonsocket, 587 F.3d 49, 56 (1st Cir.2009); United States ex rel. Grynberg v. Praxair, Inc., 389 F.3d 1038, 1051 (10th Cir.2004); United States ex rel. Reagan v. E. Tex. Med. Ctr. Reg'l Healthcare Sys., 384 F.3d 168, 175-76 (5th Cir. 2004); United States v. A.D. Roe Co., 186 F.3d 717, 723-24 & n. 6 (6th Cir.1999); United States ex rel. Mistick PBT v. Hous. Auth. of Pittsburgh, 186 F.3d 376, 383 (3d Cir.1999) (Alito, J.); see also United States ex rel. Fried v. W. Indep. Sch. Dist., 527 F.3d 439, 442 (5th Cir.2008) (finding that information relator received pursuant to state open records act request was a "public disclosure"). In contrast, the Second and Ninth Circuits have determined that an open records act response is only an "administrative report" within the meaning of the FCA public disclosure bar when the document produced in response to the request is itself a congressional, administrative, or GAO report, hearing, audit, or investigation. United States ex rel. Kirk v. Schindler Elevator Corp., 601 F.3d 94, 104-11 (2d Cir.2010); United States v. Catholic Healthcare W., 445 F.3d 1147, 1152-56 (9th Cir.2006).
Under both approaches, the courts agree that disclosure of information in response to an open records act request is a "public disclosure" because "information produced in response to [an open records request] becomes public once it is received by the requester." Kirk, 601 F.3d at 104; accord Mistick, 186 F.3d at 383. The courts disagree, however, on whether open records act materials qualify as an "enumerated" source under the FCA. The majority rule treats an open records act response as an "administrative" action because the response is an official government action.
In contrast, the Second and Ninth Circuits interpret "report" to require "work product that represents governmental analysis or leg-work rather than the mechanistic production of documents that follows upon a FOIA request." Kirk, 601 F.3d at 106. Thus, under the Second and Ninth Circuits' interpretation, the determination of whether a document obtained through an open records act request "is an enumerated source within the meaning of § 3730(e)(4)(A) depends on the nature of the document itself." Id. at 107. In support of this interpretation, the Second and Ninth Circuits rely on the "company of `neighboring words'" and the FCA's legislative history and conclude that, in the context of the FCA's public disclosure bar, the term "report" "connotes the compilation or analysis of information with the aim of synthesizing that information in order to serve some end of the government." Id. at 107-09. According to the Second and Ninth Circuits, an agency does not, in response to an open records act request, "synthesize the documents or their contents with the aim of itself gleaning any insight or information." Id. at 108. To further bolster their interpretation, these courts caution that a broad interpretation of the term "administrative report" would resurrect the pre-1986 "government possession" jurisdictional bar. Id. at 109.
The Court is not persuaded by the rationale of the Second and Ninth Circuits. First, the FCA itself does not narrow the definition of the word "report"— which is "typically defined as `something that gives information.'" Ondis, 587 F.3d at 56 (quoting Webster's 3d New Int'l Dict. 1925 (2002)). Second, as the Ondis court observed, "[j]ust as transmittal of the [open records act] response to the relator constitutes an act of public disclosure, the end product of the government's search (locating and compiling the requested documents) independently constitutes an administrative report—and this is so regardless of the character of the underlying documents." Id. Third, the Court notes that while a chief concern of
For all of these reasons, the Court concludes that Relators' action is based on information that was publicly disclosed within the meaning of the FCA.
Having concluded that Relators' claims are based on publicly disclosed information, the Court must determine whether Relators are an "original source" of the information. The Court finds that they are not.
To qualify as an original source within the meaning of the FCA, a relator must have "direct and independent knowledge of the information on which the allegations are based." 31 U.S.C. § 3730(e)(4)(B) (2006); accord Rockwell Int'l Corp. v. United States, 549 U.S. 457, 470, 127 S.Ct. 1397, 167 L.Ed.2d 190 (2007). The Supreme Court clarified that this means that a relator must have direct and independent knowledge of the information on which the relator's allegations are based. Rockwell Int'l Corp., 549 U.S. at 470-72, 127 S.Ct. 1397. "The `original source' exception was intended to ensure that qui tam actions based solely on public disclosures could not be brought by individuals that had no direct or independent knowledge of the information, or those who were not an original source to the entity that disclosed the fraud." Cooper, 19 F.3d at 568 n. 10.
Here, Relators do not have "direct and independent knowledge" of the representations made in the grant application; they are aware of the contents of the grant application only because they received a copy of the application in response to their FOIA and/or GORA requests. Likewise, Relators also do not have "direct and independent knowledge" of the correspondence between the Defendants regarding the EPA application; they are aware of the correspondence because they received a copy of it in response to their FOIA and/or GORA requests or through discovery in prior litigation. The Court notes that, given the background of this case, Relators were skeptical of Defendants' motives, and when they learned that an EPA grant was a source of funding for the UGA Defendants' research, Relators suspected that they might find problems with the grant application if they could get a copy of it. However, this type of speculation does not qualify as direct and independent knowledge within the meaning of the FCA. Cf. Rockwell, 549 U.S. at 475-76, 127 S.Ct. 1397 (holding that relator's failed prediction regarding the defendant's waste disposal method did not qualify as direct and independent knowledge of a waste disposal problem that was allegedly misrepresented to the government). Moreover, the fact that Relators had background knowledge that "enabled them to understand the significance of the information they acquired" in other litigation and via FOIA and GORA requests "does not mean that they had knowledge independent of the publicly disclosed information as to the [representations] alleged to be false." McElmurray, 501 F.3d at 1254; accord Reagan, 384 F.3d at 179 (noting that "the investigation or experience of the relator either must translate into some additional compelling fact, or must demonstrate a new and undisclosed relationship between disclosed facts, that puts a government agency `on the trail' of fraud, where that fraud might otherwise go unnoticed").
Relators nonetheless contend that they should be considered an original source of the information supporting their claims because they "are the origin of all actions that have taken place in this lawsuit" since,
For the reasons set forth above, the Court finds that no genuine issues of material fact exist as to whether the information relied on by Relators was "publicly disclosed" information and whether Relators were an "original source" of that information. Since Relators' action relies on publicly disclosed information for which Relators were not an original source, it must be dismissed for lack of subject matter jurisdiction. Accordingly, this action is hereby dismissed, and all other pending motions are rendered moot.
Relators ask the Court to reconsider its September 8, 2010 Order dismissing Relators' claims for lack of subject matter jurisdiction. See United States ex rel. Lewis v. Walker, No. 3:06-cv-16 (CDL), 738 F.Supp.2d 1284, 2010 WL 3614144 (M.D.Ga. Sept. 8, 2010). Presently pending before the Court is Relators' Motion for Reconsideration (ECF No. 184). As discussed below, Relators' Motion is denied.
Local Rule 7.6 authorizes a motion for reconsideration when "absolutely necessary." M.D. Ga. R. 7.6. "Reconsideration is `absolutely necessary' only where the movant demonstrates that (1) there was an intervening development or change in controlling law, (2) new evidence has been discovered, or (3) the court made a clear error of law or fact." Rhodes v. MacDonald, 670 F.Supp.2d 1363, 1378 (M.D.Ga.2009) (internal quotation marks omitted). Here, Relators have not pointed to any change in the law, newly discovered evidence, or clear error of law or fact. Rather, Relators attempt to reargue the issues the Court has already determined.
In this qui tam action, Relators claim that University of Georgia ("UGA") researchers violated the False Claims Act ("FCA"), 31 U.S.C. §§ 3729-33, by making false statements in a June 1999 grant application to the United States Environmental Protection Agency ("EPA"). The Court concluded that Relators' claims were based on publicly disclosed information. Walker, 738 F.Supp.2d at 1289-95, 2010 WL 3614144, at *3-*7. The Court further concluded that Relators were not an original source of that publicly disclosed information. Id. at 1294-96, at *7-*8. Accordingly, the Court found that Relators' claims were barred by the FCA's public disclosure bar.
Relators also note in their Motion for Reconsideration that the Court "did not comment upon whether Defendants' use of the [Journal of Environmental Quality] article, which contained fabricated data, to obtain additional federal funding constituted a false claim." Pls.' Mot. for Recons. 2-3. The reason for this omission is simple: Relators told the Court that they were not bringing a FCA claim based on the JEQ article, and they pointed to no evidence that the JEQ article was submitted to the federal government for a claim of payment. Rather, Relators represented that the JEQ article was "not [itself] submitted to the federal government for a claim of payment. The Grant Application is the document that was submitted to the government for payment and contained the false claims enumerated herein." Pls.' Resp. to Mot. for Summ. J. of Walker, Brobst, Bastian & Gross 25, ECF No. 170. Relators have presented no basis for reconsidering this issue.
For all of these reasons, Relators' Motion for Reconsideration (ECF No. 184) is denied.