Arce v. Honeywell International Inc.

CourtCourt of Appeals for the Ninth Circuit
DecidedDecember 12, 2025
Docket24-1220
StatusUnpublished

This text of Arce v. Honeywell International Inc. (Arce v. Honeywell International Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arce v. Honeywell International Inc., (9th Cir. 2025).

Opinion

NOT FOR PUBLICATION FILED UNITED STATES COURT OF APPEALS DEC 12 2025 MOLLY C. DWYER, CLERK U.S. COURT OF APPEALS FOR THE NINTH CIRCUIT

LINDA ARCE, No. 24-1220 D.C. No. Plaintiff - Appellant, 2:21-cv-00768-GMS v. MEMORANDUM*

HONEYWELL INTERNATIONAL INC., a Delaware for-profit corporation,

Defendant - Appellee.

Appeal from the United States District Court for the District of Arizona G. Murray Snow, District Judge, Presiding

Argued and Submitted March 24, 2025 Phoenix, Arizona

Before: BERZON and BENNETT, Circuit Judges, and TUNHEIM, District Judge.**

Plaintiff-Appellant Linda Arce appeals the district court’s grant of summary

judgment in favor of her former employer, Defendant-Appellee Honeywell

* This disposition is not appropriate for publication and is not precedent except as provided by Ninth Circuit Rule 36-3. ** The Honorable John R. Tunheim, United States District Judge for the District of Minnesota, sitting by designation. International Inc. (“Honeywell”), on Arce’s claim for retaliation under the False

Claims Act (“FCA”), 31 U.S.C. § 3730(h), and wrongful interference under the

Family and Medical Leave Act (“FMLA”), 29 U.S.C. § 2615(a). As a product

development quality assurance engineer, Arce reported regulatory compliance

concerns about avionic software for Boeing aircraft that was supplied to the United

States Department of Defense. After Arce failed to return to work after a series of

FMLA and unpaid leaves, Honeywell terminated her employment. Arce then

initiated this action. At summary judgment, the district court found that Arce had

not engaged in conduct protected by the FCA and that there was no wrongful

interference with her FMLA rights. On appeal, Arce challenges the district court’s

grant of summary judgment to Honeywell and denial of her request for additional

discovery. We review a grant of summary judgment de novo under the same

standard used by the district court. Schnidrig v. Columbia Mach., Inc., 80 F.3d 1406,

1408 (9th Cir. 1996). We review for abuse of discretion a denial of a request to defer

a summary judgment ruling for additional discovery. Inteliclear, LLC v. ETC Glob.

Holdings, Inc., 978 F.3d 653, 661 (9th Cir. 2020). We have jurisdiction pursuant to

28 U.S.C. § 1291, and we affirm.

The FCA prohibits any person from “knowingly present[ing], or caus[ing] to

be presented, a false or fraudulent claim for payment or approval” to the United

States government and protects employees who engage in “efforts to stop 1 or more

2 24-1220 violations of [the FCA]” from retaliation by their employer. 31 U.S.C. §§

3729(a)(1)(A), 3730(h)(1). A prima facie case for FCA retaliation has three

elements: (1) the employee engaged in conduct that is protected under the Act, (2)

the employer knew that the employee engaged in protected conduct, and (3) the

employer discriminated against the employee because she engaged in protected

conduct. United States ex rel. Hopper v. Anton, 91 F.3d 1261, 1269 (9th Cir. 1996).

“[A]n employee engages in protected activity where (1) the employee in good

faith believes, and (2) a reasonable employee in the same or similar circumstances

might believe, that the employer is possibly committing fraud against the

government.” Moore v. Cal. Inst. of Tech. Jet Propulsion Lab’y, 275 F.3d 838, 845

(9th Cir. 2002); see also Mooney v. Fife, 118 F.4th 1081, 1091–92 (9th Cir. 2024)

(holding this test continues to apply after the 2009 amendment to the FCA). Efforts

to stop an FCA violation—even if they do not include an investigation of “matters

which are calculated, or reasonably could lead, to a viable FCA action”—can qualify

as protected conduct. Mooney, 118 F.4th at 1092 (quoting Hopper, 91 F.3d at 1269).

1. The district court correctly determined that Arce did not engage in

protected conduct under the FCA.

First, there is insufficient evidence Arce subjectively believed Honeywell was

possibly committing fraud against the government. Rather, the evidence suggests

that Arce wanted to ensure the avionic software was safe for the public.

3 24-1220 Second, no reasonable employee in the same or similar circumstances would

believe that Honeywell was possibly defrauding the government. Arce’s job duties

required her to ensure that Honeywell software complied with industry guidelines

and Honeywell-defined standards. Her job did not involve reviewing Honeywell’s

submissions for payment to Boeing or assuring that Boeing’s submissions to the

government for payment were improper. Her refusal to sign off on the software

disrupted Honeywell and Boeing’s deadlines, impacting Honeywell’s payment from

Boeing, which in turn was paid through government contracts. Arce could not have

reasonably believed that the likely result of acceding to requests to certify

compliance with applicable standards was that any errors in the software likely

would not be caught by Boeing. Nor could Arce have reasonably believed that

Honeywell’s actions had resulted or would likely result in the submission by Boeing

of a knowingly false claim of regulatory compliance to the government in connection

with a submission for payment. In fact, Arce stated in an email to a human resources

manager that “Boeing quality continues to issue Honeywell supplier corrective

action which places Honeywell on notice that can potentially stop product being

delivered to Boeing if all problems outlined in nonconformities aren’t resolved.” So,

though “false certification of compliance . . . creates liability when certification is a

prerequisite to obtaining a government benefit,” Hopper, 91 F.3d at 1266, the

distance between Honeywell’s software certification and Boeing’s certifications to

4 24-1220 and payment from the government is too attenuated for a reasonable employee to

have believed that Honeywell was possibly committing fraud against the

government.

Because Arce has not established the first element of her prima facie claim,

we affirm the district court’s grant of summary judgment in favor of Honeywell on

the FCA claim.

2. The district court also correctly determined that Arce’s FMLA claims

for leave taken in 2018 and 2019 fail.

Arce’s FMLA claim for the 2018 leave is time-barred. The FMLA has a two-

year statute of limitations that is extended to three years for “willful” violations. 29

U.S.C. § 2617(c)(1)–(2). Arce did not commence this action until April 30, 2021—

more than two years after taking her 2018 leave. She forfeited any argument that

Honeywell willfully interfered with her FMLA rights by failing to raise such an

argument before the district court. Whittaker Corp. v. Execuair Corp., 953 F.2d 510,

515 (9th Cir. 1992). Even if Arce had not forfeited a willfulness argument, there is

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