State of NM ex rel Peterson v. Aramark Correctional Services, LLC

2014 NMCA 036, 5 N.M. 632
CourtNew Mexico Court of Appeals
DecidedJanuary 15, 2014
DocketDocket 32,128
StatusPublished
Cited by3 cases

This text of 2014 NMCA 036 (State of NM ex rel Peterson v. Aramark Correctional Services, LLC) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State of NM ex rel Peterson v. Aramark Correctional Services, LLC, 2014 NMCA 036, 5 N.M. 632 (N.M. Ct. App. 2014).

Opinion

OPINION

SUTIN, Judge.

{1} Qui Tam Plaintiff David Peterson (Plaintiff), on behalf of the State, sued Aramark Correctional Services, LLC (Aramark) in May 2010, claiming that Aramark violated the Fraud Against Taxpayers Act (the Act), NMSA 1978, §§ 44-9-1 to -14 (2007). See § 44-9-5(A) (stating that a person bringing an action under the Act, on behalf of the State, shall be referred to as the qui tam plaintiff). The lawsuit was based on allegations that Aramark, who was under contract to provide meals for inmates in the Western New Mexico Correctional Facility (the Facility) of the New Mexico Department of Corrections (the Department), failed and refused to comply with certain provisions of the contract and then sought payment under the contract based on false representations of compliance. Plaintiff filed the lawsuit in an effort “to recoup the moneys wrongfully paid to Aramark.”

{2} Aramark moved for summary judgment claiming that a lawsuit brought by Plaintiff in 2008 barred the present action on the bases of claim preclusion and issue preclusion. 1 Separately, Aramark moved to dismiss Plaintiffs claims that were based on conduct that occurred prior to the enactment of the Act so as to comply with the prohibition against the application of ex post facto laws. The district court granted summary judgment in favor of Aramark on the bases of claim and issue preclusion, and it also granted Aramark’s motion to dismiss Plaintiff’s claims for conduct that occurred before the enactment of the Act. Plaintiff appeals.

{3} We reverse the court’s summary judgment, holding that the doctrines of claim preclusion and issue preclusion do not apply in this case. We affirm the court’s dismissal of claims that were based on Aramark’s conduct that occurred prior to the enactment of the Act.

BACKGROUND

The Act

{4} The Act “tracks closely the longstanding federal False Claims Act[.]” State ex rel. Foy v. Austin Capital Mgmt., Ltd:, 2013-NMCA-043, ¶ 7, 297 P.3d 357, cert. granted, 2013-NMCERT-003, 300 P.3d 1181. In relevant part, Section 44-9-3 of the Act provides that:

A. A person shall not:
(1) knowingly present, or cause to be presented, to an employee, officer[,] or agent of the [Sjtate or to a contractor, granteef,]' or other recipient of state funds a false or fraudulent claim for payment or approval;
(2) knowingly make or use, or cause to be made or used, a false misleading[,j or fraudulent record or statement to obtain or support the approval of or the payment on a false or fraudulent claimf.j

Section 44-9-3(A)(l), (2). The Act provides that “[a] person may bring a civil action for a violation of [the Act’s prohibitions] on behalf of the person and the [S]tate[,]” which action “shall be brought in the name of the [Sjtate.” Section 44-9-5(A). When a complaint is filed by a qui tam plaintiff, the attorney general may intervene on behalf of the State and take over the action. See § 44-9-5(C). If the attorney general declines to take over, however, the qui tam plaintiff may proceed with the action. See § 44-9-5(D)(2). The court “may permit the attorney general to intervene at a later date upon a showing of good cause.” Section 44-9-6(F).

{5} A person who violates the Act’s prohibitions is liable for “three times the amount of damages sustained by the [S]tate because of the violation],] ... a civil penalty],] . . . the costs of a civil action broughtto recover damages or penalties],] and ... reasonable attorney fees];]” Section 44-9-3(C). Further, “]i]f the [S]tate does not proceed with an action brought by a qui tam plaintiff and the [S]tate prevails in the action, the qui tam plaintiff shall receive an amount that is not less than twenty-five percent or more than thirty percent of the proceeds of the action or settlement].]” Section 44-9-7(B). The remaining proceeds collected in an action or a settlement must be paid to the State. Section 44-9-7(E).

The Parties

{6} Plaintiff is an inmate at the Facility, in the custody and care of the Department. Aramark entered into a contract (the contract) with the State of New Mexico in 2004 to provide food services for a number of adult corrections facilities inNew Mexico including the Facility where Plaintiff resides.

The Contract Between Aramark and the State

{7} Pursuant to the contract, Aramark had an obligation to provide meals to inmates that were comprised of ingredients of a specific quality and met specific nutritional content requirements. Among the provisions of the contract was a requirement that Aramark provide food for religious diets for those inmates who ' had been approved by the Department to receive a religious diet. Also, Aramark was required to provide the State with monthly status reports that were to include a detailed invoice reflecting the number and type of meals served and the cost associated therewith. It was also required, biweekly, to submit a bill to the State to generate payment for meal services that it had provided.

Plaintiff’s 2008 Lawsuit

{8} At the outset, we note that a 2002 lawsuit filed by Plaintiff is not relevant to the issues in this appeal; thus, although it is mentioned in the record, it will not be discussed further in this Opinion.

{9} In 2008 Plaintiff, pro se, filed a lawsuit against Aramark, among others, claiming breach of duty, fraud, unfair practices, and violation of the New Mexico Religious Freedom Restoration Act, NMSA 1978, §§ 28-22-1 to -5 (2000), and seeking actual and punitive damages. Plaintiffs overarching claim in the 2008 lawsuit was that although he had been approved to receive a religious vegetarian diet, the defendants “refused to provide [him] with a nutritionally adequate vegetarian diet.”

{10} In relevant part, in the 2008 lawsuit, Plaintiff alleged thatthe “]c]ontract and prison policy require the [defendant [to] provide 3400 calories and 60 grams of high biological protein per day],]” but “[t]he [defendants provide . . . Plaintiff with between 1400 and 1900 calories per day[,]” and they provide Plaintiff “with between zero and [thirty] grams of high biological protein per day.” Plaintiff also stated that “[t]he . . . [Department], the prison],] and the taxpayers have paid the [defendants to provide . . . Plaintiff with a nutritionally adequate diet that complies with prison policy, state law, and the contract[.]” Yet, he alleged that “[t]he [defendants do not provide sufficient fresh fruit and fresh [vegetables] for a nutritionally adequate diet[,]” and they “proffered a vegetarian diet menu” but they “falsely claimfed]” that beans or legumes and peanut butter are high biological protein food sources. He further alleged that “[t]he [defendants provide a product that claims to be scrambled egg mix[, but which] does not comply with the [New Mexico] egg grading act nor the contract.”

{11} Based on the foregoing, Plaintiff claimed that the defendants “restrict [his] free exercise of religion by denying him a nutritionally adequate vegetarian diet”; “intentionally misappropriated and [took away] . . .

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State ex rel. Peterson v. Aramark Corr. Servs., LLC
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Bluebook (online)
2014 NMCA 036, 5 N.M. 632, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-of-nm-ex-rel-peterson-v-aramark-correctional-services-llc-nmctapp-2014.