United States ex rel. Ivanov v. Exelis, Inc.

41 F. Supp. 3d 50, 2014 WL 1903289, 2014 U.S. Dist. LEXIS 65469
CourtCourt of Appeals for the D.C. Circuit
DecidedMay 13, 2014
DocketCivil Action No. 10-1619 (RCL)
StatusPublished
Cited by3 cases

This text of 41 F. Supp. 3d 50 (United States ex rel. Ivanov v. Exelis, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States ex rel. Ivanov v. Exelis, Inc., 41 F. Supp. 3d 50, 2014 WL 1903289, 2014 U.S. Dist. LEXIS 65469 (D.C. Cir. 2014).

Opinion

MEMORANDUM OPINION

Royce C. Lamberth, U.S. District Judge

Before the Court is defendant Exelis, Inc.’s motion [39] to dismiss relator Ivanov’s first amended complaint. After having considered the motion, the opposition and reply thereto, and the record herein, the Court has granted Exelis’s motion to dismiss.

I. Background

Relator Ivanov worked as a test engineer for defendant Exelis, Inc. from 2007 until Exelis terminated his employment in 2010. He was assigned to work on the SBS Contract, a best-efforts contract Ex-elis had with the Federal Aviation Administration “for the development, testing, installation, and deployment of the ground-based system for the United States’ new air traffic control system.” Def.’s Mot. 1. Alleging fraudulent testing in his 127-page Complaint, Ivanov brought this action under the False Claims Act (FCA). Exelis sought dismissal of his first amended complaint.

II. Legal Standard

a. Rule 12(b)(6)

To survive a motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6), “a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’ ” Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, 1948, 173 L.Ed.2d 868 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)). A plaintiff must furnish “more than labels and conclusions” or “a formulaic recitation of the elements of a cause of action.” Bell Atl. Corp. v. Twombly, 550 U.S. at 555, 127 S.Ct. 1955. Instead, the complaint’s “[fjactual allegations must be enough to raise a right to relief above the speculative level, on the assumption that all the allegations in the complaint are true (even if doubtful in fact).” Id. (internal citations omitted).

b. Rule 9(b)

Federal Rule of Civil Procedure 9(b) applies to FCA actions. United States v. Toyobo Co., Ltd., 811 F.Supp.2d 37, 44 (D.D.C.2011) (citing United States ex rel. Totten v. Bombardier Corp., 286 F.3d 542, 551-52 (D.C.Cir.2002)). An FCA plaintiff “must state with particularity the circumstances surrounding the defendants’ allegedly false claims, as required by Rule 9(b) of the Federal Rules of Civil Procedure. He must also aver that the defendants actually submitted false demands for payment, rather than merely non-conforming goods.” Totten, 286 F.3d at 544. The “time, place, and contents of the false representations” must be pleaded with specificity, as these are the “elements of fraud about which the rule is chiefly concerned.” Id. (citing 5 Charles Alan Wright & Arthur [53]*53Miller, Federal Practice and Procedure § 1297 (2d ed.1990); accord United States v. Kellogg Brown & Root Sevs., Inc. (“KBR”), 800 F.Supp.2d 148, 152 (D.D.C 2011) (“the pleader must state the time, place and content of the false misrepresentations, the fact misrepresented and what was retained or given up as a consequence of the fraud.”) (internal quotations and citations omitted).

c. FCA Retaliation Claims

The FCA’s whistleblower protection provision entitles an employee who, inter alia, is discharged or discriminated against in the terms and conditions of his employment, as the result of engaging in protected activity, “to all relief necessary to make the employee whole.” 31 U.S.C. § 3730(h) (2009). To prevail on an FCA whistleblower claim, an employee must demonstrate that:

(1) he engaged in protected activity, that is, “acts done ... in furtherance of an action under this section”; and (2) he was discriminated against “because of’ that activity. To establish the second element, the employee must in turn make two further showings. The employee must show that: (a) “the employer had knowledge the employee was engaged in protected activity”; (b) “the retaliation was motivated, at least in part, by the employee’s engaging in [that] protected activity.”

United States ex rel. Williams v. Martin-Baker Aircraft Co., Ltd., 389 F.3d 1251, 1260 (D.C.Cir.2004) (alteration in original) (quoting United States ex rel. Yesudian v. Howard Univ., 153 F.3d 731, 736 (D.C.Cir.1998)); accord Shekoyan v. Sibley Int’l, 409 F.3d 414, 422 (D.C.Cir.2005). Regarding the first element of a whistleblower retaliation claim, “[m]ere dissatisfaction with one’s treatment on the job is not ... enough. Nor is an employee’s investigation of nothing more than his employer’s noncompliance with federal or state regulations.” Shekoyan, 409 F.3d at 423 (alteration in original) (citing Yesudian, 153 F.3d at 741). Regarding the second element, “[u]nless the employer is aware that the employee is investigating fraud, ... the employer could not possess the retaliatory intent necessary to establish a violation of § .” Williams, 389 F.3d at 1260-61 (second alteration in original) (quoting Yesudian, 153 F.3d at 744). Plaintiffs who allege that “performance of their normal job responsibilities constitutes protected activity must ‘overcome the presumption that they are merely acting in accordance with their employment obligations’ to put their employers on notice.” Id. at 1261 (quoting Yuhasz v. Brush Wellman, Inc., 341 F.3d 559, 568 (6th Cir.2003)).

III. Analysis

a. Counts I and II do- not state claims upon which relief may be granted.

Rather than responding to Elexis’s arguments point by point, Ivanov seems to cross his arms, stamp his feet, and cry, “It’s just not fair!” That is not enough to survive a 12(b)(6) motion, notwithstanding the assumption that all of Ivanov’s allegations are true.

Exelis’s principal argument proceeds as follows: First, there was no express certification of work that had not been done. See Def.’s Mot. 12. Therefore, an FCA violation is possible in this case only with implied certification, which in turn requires that certification was a prerequisite to government action (i.e.payment). Id.; United States v. Sci. Applications Int’l Corp., 626 F.3d 1257 (D.C.Cir.2010). Here, certification was not a prerequisite because of the cost-plus-incentive-fee nature of the contract. See id. at 13-14. Specifically, the SBS Contract is a best-[54]*54efforts contract, see FAA Clauses 3.3.1-12(a) &

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Cite This Page — Counsel Stack

Bluebook (online)
41 F. Supp. 3d 50, 2014 WL 1903289, 2014 U.S. Dist. LEXIS 65469, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-ex-rel-ivanov-v-exelis-inc-cadc-2014.