United States Ex Rel. Wilson v. Graham County Soil & Water Conservation District

367 F.3d 245
CourtCourt of Appeals for the Fourth Circuit
DecidedMay 25, 2004
Docket03-1122
StatusPublished
Cited by16 cases

This text of 367 F.3d 245 (United States Ex Rel. Wilson v. Graham County Soil & Water Conservation District) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth 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. Wilson v. Graham County Soil & Water Conservation District, 367 F.3d 245 (4th Cir. 2004).

Opinions

[247]*247Vacated and remanded by published opinion. Judge Duncan wrote the opinion, in which Judge Michael joined. Judge Wilkinson wrote a dissenting opinion.

OPINION

DUNCAN, Circuit Judge:

Karen Wilson brought a qui tam action under the Federal False Claims Act, 31 U.S.C. §§ 3729-3733 (2000) (“the FCA” or “the Act”), alleging that her coworkers had submitted false claims to the federal government in violation of the FCA and that she was constructively discharged in retaliation for reporting these activities. Deciding that the six-year limitations period of the FCA did not apply to the retaliation claim, the district court applied North Carolina’s three-year limitations period for wrongful discharge actions and dismissed Wilson’s claim as untimely. Because we conclude that the six-year limitations period of the FCA does apply to retaliation claims under the Act, we reverse the district court’s dismissal and remand for further proceedings.

I.

Wilson is a former part-time secretary at the Graham County Soil & Water Conservation District (“the Conservation District”). On January 25, 2001, Wilson filed a qui tam action pursuant to § 3730(b) of the FCA, alleging that several of her former coworkers at the Conservation District had intentionally submitted false claims for reimbursement from three programs created or funded by the federal government. Wilson’s complaint further alleged that after she reported her concerns in a letter to federal authorities, her supervisors and coworkers initiated a pattern of harassment that precipitated her resignation on March 7,1997.

The Appellees moved to dismiss Wilson’s claims under Federal Rule of Civil Procedure 12(b)(6). The Appellees argued that the FCA’s statute of limitations did not apply to retaliation, and thus the timeliness of Wilson’s claim should be controlled by North Carolina’s three-year statute of limitations for wrongful discharge. The district court concluded that applying the FCA’s limitations provision to retaliation claims could lead to absurd results, and that the timeliness of Wilson’s claim should be controlled by North Carolina law. Agreeing with the Appellees that the closest analogous limitations period was the three-year period applicable to claims of wrongful discharge, see N.C. Gen.Stat. § 1-52(5) (1999), the district court concluded that the retaliation claim in Wilson’s complaint of January 25, 2001, based on her constructive discharge of March 7,1997, was untimely.

Wilson filed a motion for reconsideration of the statute of limitations issue. The district court denied Wilson’s request for reconsideration, but certified its order for interlocutory appeal pursuant to 28 U.S.C. § 1292(b) (2000). We granted Wilson’s timely petition for authorization to pursue this appeal.

II.

We review de novo the district court’s order granting the Appellees’ Rule 12(b)(6) motion to dismiss, Franks v. Ross, 313 F.3d 184, 192 (4th Cir.2002), as well as its statutory construction of the FCA, see United States v. Jefferson-Pilot Life Ins. Co., 49 F.3d 1020, 1021 (4th Cir.1995). It is axiomatic that when interpreting a statute, the starting point is the language employed by Congress, Am. Tobacco Co. v. Patterson, 456 U.S. 63, 68, 102 S.Ct. 1534, 71 L.Ed.2d 748 (1982), and where “the statute’s language is plain, ‘the sole function of the courts is to enforce it according to its terms,’ ” United States v. Ron Pair [248]*248Enter., Inc., 489 U.S. 235, 241, 109 S.Ct. 1026, 103 L.Ed.2d 290 (1989) (quoting Caminetti v. United States, 242 U.S. 470, 485, 37 S.Ct. 192, 61 L.Ed. 442 (1917)). In determining whether the language is plain, courts must look' to “ ‘the language itself, the specific context in which that language is used, and the broader context of the statute as a whole.’ ” Robinson v. Shell Oil Co., 519 U.S. 337, 341, 117 S.Ct. 843, 136 L.Ed.2d 808 (1997). If the language of the statute is ambiguous, in that it lends itself to more than one reasonable interpretation, our obligation is “to find that interpretation which can most fairly be said to be imbedded in the statute, in the sense of being most harmonious with its scheme and with the general purposes that Congress manifested.” Comm’r v. Engle, 464 U.S. 206, 217, 104 S.Ct. 597, 78 L.Ed.2d 420 (1984) (internal quotation omitted). A departure from the literal text of a statute is also appropriate if “a literal application would frustrate the statute’s purpose or lead to an absurd result.” Nat’l Coalition for Students with Disabilities Educ. & Legal Def. Fund v. Allen, 152 F.3d 283, 288 (4th Cir.1998) (quoting Robinson, 519 U.S. at 340, 117 S.Ct. 843).

Three sections of the FCA determine whether the timeliness of Wilson’s retaliation claim is governed by the Act itself or state law. The FCA’s limitations period, § 3731(b), provides that

[a] civil action under section 3730 may not be brought—
(1) more than 6 years after the date on which the violation of section 3729 is committed....

§ 3731(b)(1).1 Section 3730 creates three causes of action arising under the FCA: an action for compensation filed by the Attorney General, see § 3730(a); a qui tarn action filed by an individual, see § 3730(b); and an action for retaliatory conduct predicated on identified protected activity, see § 3730(h). Section § 3729 creates and defines the parameters of liability for presenting a false claim to the Government. Hence, the effect of the language as written is to provide that an action under § 3730, which necessarily includes an action for retaliation under § 3730(h), may be brought no more than six years after the date on which the underlying violation was committed.

Both the retaliation provision of § 3730(h) and the limitations provision of § 3731(b)(1) are relatively recent additions to the FCA. Prior to 1986, the FCA did not specifically include a cause of action for retaliation. Section § 3731(b) stated simply that “ ‘a civil action under Section 3730 of this title must be brought within six years from the date the violation is committed.’ ” United States ex rel. Lujan v. Hughes Aircraft Co., 162 F.3d 1027, 1034 (9th Cir.1998) (discussing the 1986 amendments). Congress’s stated intent in amending the FCA was “not only to provide the Government’s law enforcers with more effective tools, but to encourage any individual knowing of Government fraud to bring that information forward.” S.Rep. [249]*249No. 99-345, at 1-2 (1986) (hereinafter “S. Rep”), reprinted in 1986 U.S.C.C.A.N. 5266, 5267. Toward that end, Congress also added § 3730(h),2

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367 F.3d 245, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-ex-rel-wilson-v-graham-county-soil-water-conservation-ca4-2004.