United States ex rel. Marshall v. Woodward, Inc.

85 F. Supp. 3d 973, 2015 U.S. Dist. LEXIS 38859, 2015 WL 1506048
CourtDistrict Court, N.D. Illinois
DecidedMarch 27, 2015
Docket06 C 1746
StatusPublished
Cited by4 cases

This text of 85 F. Supp. 3d 973 (United States ex rel. Marshall v. Woodward, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois 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. Marshall v. Woodward, Inc., 85 F. Supp. 3d 973, 2015 U.S. Dist. LEXIS 38859, 2015 WL 1506048 (N.D. Ill. 2015).

Opinion

Memorandum Opinion and Order

Feinerman, United States District Judge

Relators Debra Marshall and Peggy Thurman brought this qui tarn suit on behalf of the United States, alleging that their former employer, Woodward, Inc., violated the False Claims Act (“FCA”), 31 U.S.C. § 3729 et seq., in connection with its manufacture and sale of military parts to General Electric and the Department of Defense. Doc. 1. Marshall and Thurman also brought retaliation claims on their own behalf under the FCA’s anti-retaliation provision and Illinois law, alleging that Woodward fired them for questioning its improper conduct. Ibid. Nearly six years later, the Chief Judge unsealed the complaint after the United States declined to intervene. Docs. Í7-19. Relators filed an amended complaint, Doc. 24, which survived a motion to strike, Doc. 49, and then filed a corrected amended complaint, Doc. 55. With the parties’ agreement, a three-week jury trial has been set for May 18, 2015. Doc.240.

Now before the court is Woodward’s motion for summary judgment, Doc. 197,. and Relators’ motions for leave to file a surreply brief, Docs. 224, 230. Relators’ motions are granted, and the court has considered their surreply in considering Woodward’s motion, which is granted as well.

Background

The facts are set forth as favorably to Relators as the record and Local Rule 56.1 permit. See Hanners v. Trent, 674 F.3d 683, 691 (7th Cir.2012). On summary judgment, the court must assume the truth of those facts, but does not vouch for them. See Smith v. Bray, 681 F.3d 888, 892 (7th Cir.2012).

A. The T2 Sensor

Woodward manufactures a device called the “T2 sensor” under contracts with General Electric (“GE”) and the United States Department of Defense (“DoD”). Doc. 204 at ¶¶ 2-3. The T2 sensor is a component of another device called the “T700 HMU,” which regulates fuel flow in the GE T700 engine that the military uses in Blackhawk and Apache helicopters. Ibid. Woodward sells T2 sensors to GE (to incorporate into T700 engines) and DoD (for spare and replacement parts). Id. at ¶ 3.

The T2 sensor has a “coil” end and a “bellows” end. Id. at ¶ 5. The two ends are connected by a “capillary tube” encased in a flexible “armor cable.” Ibid. A photo is here:

[976]*976[[Image here]]

Doc. 199 at ¶ 5. The coil end measures changes in air temperature. Doe. 204 at ¶¶ 5-6. Such changes cause alcohol in the capillary tube to expand or contract, which causes corresponding movement in the bellows end. Id. at ¶ 6. The T2 sensor communicates those changes in temperature to the T700 HMU, which then helps to set the optimal fuel ratio for the T700 engine. Id. at ¶¶ 2-3, 6.

B. The Grade A Joint and SP-865

Woodward’s “Engineering Drawings,” “Process Drawings,” and internal “Shop Procedures” govern its production of the T2 sensor. Id. at ¶¶ 8-9. Shop Procedure 865 (“SP-865”) describes the brazing procedure. Id. at ¶ 9. Brazing is a process that bonds two metal surfaces by heating both surfaces and a filler metal until the filler metal flows into a joint by capillary action. Id. at ¶ 14.

The T2 sensor’s “Grade A” joint connects the capillary tube to the “sensor head” at the bellows end. Id. at ¶ 18. To braze that joint, Woodward first applies a small amount of “stop-off’ that prevents filler metal from flowing into the. capillary tube. Id. at ¶ 19. Next, Woodward applies braze paste containing “flux” to enhance the flow of braze material. Ibid. The brazing process is completed in a furnace using an automated process. Id. at ¶ 16. The process creates two lines of brazing material along the edges of the joint — with only one being visible from the outside of the assembly — called “fillets.” Id. at ¶24. The T2 sensor undergoes several tests before shipment. , Id. at ¶¶ 30, 32, 35-39. Woodward completed a “Certificate of Conformance” with each shipment; the document states that Woodward “certifies] that such supplies were in the Quantities and of the Quality called for, and were in all respects in accord with the applicable specifications.” Id. at ¶ 143.

A few sections of SP-865 are pertinent here. Section 5.0 and Table 17.1.1 require “Class 1” joints to have a diametrical clearance (the area between the two pieces of metal being brazed) within a specific range. Id. at ¶¶50, 53. Sections 12.1.5 and 12.1.6 state that “[a]ll evidence of stopoff’ and “all evidence of flux must be removed.” Id. at ¶54. Section 6.1.1 requires a “visual inspection” for “filler material” of the Grade A joint’s “exposed edges” (the fillets), and if “evidence of braze flow is not apparent by visual inspection ... an alternate inspection method may be used [such as x-ray].” Id. at ¶ 56.

Before 1996, an engineering drawing for a predecessor part of the current T2 sensor did not call for an x-ray inspection. Id. at ¶ 26. In 1996, Woodward added an x-ray requirement, but later found that the sensor’s density and configuration prevented useful x-rays. Id. at ¶ 27. Woodward engineer Steve Krugler concluded that the x-ray inspection was unnecessary, and a 1997 revision to the engineering drawing deleted that requirement. Id. at ¶ 28.

In early 2004, Woodward received a shipment of capillary tubes that did not conform to specifications. Id. at ¶ 61. Although GE and DoD permitted Woodward to use nonconforming parts under certain circumstances, id. at ¶¶ 58-59, Woodward belatedly issued a nonconformance report informing GE that the capillary tubes were non-conforming but safe. Id. at ¶ 61. [977]*977Woodward Assembly and Test Leader Mark Meiehtry, who served as Relators’ supervisor, was disciplined for failing to timely notify GE. Ibid.

C. Relators’ Complaints and Woodward’s Investigation

While employed by Woodward, Relators worked on the T2 sensor. Id. at ¶ 63. In early 2005, Diedrich (the T700 project engineer) asked Materials Engineer Barb Swanson to investigate certain problems with the T2 sensor. Id. at ¶¶ 69-70. Marshall volunteered to examine the issue, id. at ¶ 70, and asked x-ray technician Mark Frutig to x-ray the joint, id. at ¶ 74. Based on her and Frutig’s assessment, Marshall concluded that the diametrical clearance' of the Grade A joint was too small, and that stop-off and flux were not removed, which risked contaminating the joint. Id. at ¶ 78. Marshall also concluded Woodward was using braze material for another T2 sensor joint (the “Grade D joint”) to “mask problems” with the Grade A joint by “creating] a secondary seal [over] the Grade A joint.” Id. at ¶ 68.

On April 6, 2005, Marshall conveyed her conclusions to two other Woodward employees, and she told Meiehtry (Relators’ supervisor) and Steven Gorman (Meich-tr/s supervisor) that Relators would cease working on the T2 sensor because of their concerns. Id. at ¶¶ 72, 81. Diedrich and Senior Engineer David Kunchinski investigated the issue. Id.

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Cite This Page — Counsel Stack

Bluebook (online)
85 F. Supp. 3d 973, 2015 U.S. Dist. LEXIS 38859, 2015 WL 1506048, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-ex-rel-marshall-v-woodward-inc-ilnd-2015.