Riddle v. Dyncorp International Inc.

666 F.3d 940, 33 I.E.R. Cas. (BNA) 327, 2012 WL 19794, 2012 U.S. App. LEXIS 323
CourtCourt of Appeals for the Fifth Circuit
DecidedJanuary 5, 2012
Docket11-10155
StatusPublished
Cited by16 cases

This text of 666 F.3d 940 (Riddle v. Dyncorp International Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Riddle v. Dyncorp International Inc., 666 F.3d 940, 33 I.E.R. Cas. (BNA) 327, 2012 WL 19794, 2012 U.S. App. LEXIS 323 (5th Cir. 2012).

Opinion

E. GRADY JOLLY, Circuit Judge:

The appellant brought a retaliation action against his former employer under the Federal False Claims Act 178 days after his termination. The district court, applying a 90-day limitations period borrowed from Texas state law, held that the appellant’s suit was untimely. We REVERSE the district court’s judgment and REMAND the case for further proceedings.

I.

Michael Riddle once served as a senior employment manager for Dyncorp International, Incorporated (“Dyncorp”). He alleges that Dyncorp contracted to create a database for the United States government, but took no meaningful steps toward fulfilling its obligations. He further alleges that when he protested Dyncorp’s inaction on the database project, he was marginalized at work and eventually terminated, on September 21, 2009.

Riddle filed a complaint against Dyncorp and three Dyncorp employees on March 18, 2010, asserting a retaliation claim under the Federal False Claims Act (the “FCA”). Dyncorp and two other defendants moved to dismiss the complaint, arguing that a 90-day limitations period, borrowed from a Texas statute, applied to Riddle’s FCA claim, and that his complaint was therefore time-barred. The district court granted the motion on August 19, 2010, and entered judgment the next day. This appeal timely followed.

II.

The FCA prohibits making fraudulent claims for payment to the United States. 31 U.S.C. § 3729(a). To enforce this prohibition, the FCA creates a cause of action for any person retaliated against by his employer for attempting to prevent an FCA violation. 31 U.S.C. § 3730(h). At the time Riddle filed his complaint, the FCA contained no statute of limitations for this cause of action. See Graham Cnty. Soil & Water Conservation Dist. v. United States ex rel. Wilson, 545 U.S. 409, 422, 125 S.Ct. 2444,162 L.Ed.2d 390 (2005). In the absence of an express limitations period, courts have applied the “most closely analogous state statute of limitations.” Id. The Supreme Court has indicated that the *942 most closely analogous statute of limitations in Texas is likely either the period contained in the Texas Whistleblower Act (the “TWA”) or the period applied to Texas personal injury claims. See id. at 419 n. 3, 125 S.Ct. 2444.

In dismissing the complaint, the district court applied the limitations period contained in the TWA, which creates a cause of action for public employees who are retaliated against for reporting unlawful conduct by their employer or other public employees. Tex. Gov’t Code Ann. § 554.002. That limitations period is 90 days, starting from the retaliatory event. Id. § 554.005.

We review de novo the district court’s dismissal on statute of limitations grounds. United States ex. rel Mathews v. HealthSouth Corp., 332 F.3d 293, 294-95 (5th Cir.2003).

A.

We begin with the relevant substantive provisions on which the district court based its analogy between the TWA and FCA. The FCA provides, in pertinent part:

Any employee, contractor, or agent shall be entitled to all relief necessary to make that employee, contractor, or agent whole, if that employee, contractor, or agent is discharged, demoted, suspended, threatened, harassed, or in any other manner discriminated against in the terms and conditions of employment because of lawful acts done by the employee, contractor, agent or associated others in furtherance of an action under this section or other efforts to stop 1 or more violations of this sub-chapter.

31 U.S.C. § 3730(h)(1). The TWA provides as follows:

A state or local governmental entity may not suspend or terminate the employment of, or take other adverse personnel action against, a public employee who in good faith reports a violation of law by the employing governmental entity or another public employee to an appropriate law enforcement authority.

Tex. Gov’t Code Ann. § 554.002(a).

The district court held that the TWA is the closest analogue to the FCA because, like the FCA, it protects whistleblowers from retaliation. The appellees contend that the FCA and TWA are analogous for this same reason, and also because they offer similar remedies — injunctions, damages, litigation costs, and attorney’s fees. Compare 31 U.S.C. § 3730(h)(2) with Tex. Gov’t Code Ann. § 554.003.

Although we acknowledge the similar purposes animating the TWA and FCA, the dissimilarities between the statutes are, ultimately, fatal to the district court’s reasoning.

First, the TWA creates a cause of action available only to public employees. Riddle, who does not work in state or local government in Texas, could not bring an action under the TWA. This fact is especially noteworthy because the Texas Legislature has enacted numerous whistle-blower statutes, the applicability of which depend on the status, specifically the employment field, of the whistleblower. See Austin v. HealthTrust, Inc. —The Hosp. Co., 967 S.W.2d 400, 401-02 (Tex.1998) (listing various Texas whistleblower statutes). In the light of Texas’s status-based whistleblower regime, it makes no more sense to borrow from the statute for public employees than it would to borrow from the statute for hospital employees, physicians, nursing home employees, agricultural laborers, or handlers of hazardous chemicals. Each of these employment fields benefits from a different Texas whis *943 tleblower statute. See id. Riddle does not possess the status, that of public employee, that would make a TWA claim clearly analogous to his FCA claim, and the presence of many different whistle-blower statutes further muddies the analogy-

Second, this defect in status is magnified by the provision requiring public employees to pursue an administrative remedy before suing under the TWA. The limitations period for a TWA action is often longer than 90 days because of the effect of required administrative proceedings. Tex. Gov’t Code Ann. § 554.006. Before a public employee files a lawsuit based on the TWA, he must “initiate action under the grievance ... procedures of the employing state or local governmental entity relating to suspension or termination of employment or adverse personnel action .... ” Id. § 554.006(a). The running of the limitations period is suspended while the administrative proceedings are pending. Id. § 554.006(c).

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666 F.3d 940, 33 I.E.R. Cas. (BNA) 327, 2012 WL 19794, 2012 U.S. App. LEXIS 323, Counsel Stack Legal Research, https://law.counselstack.com/opinion/riddle-v-dyncorp-international-inc-ca5-2012.