United States of America, ex rel. Pragathi Gogineni and Ravindra Gogineni v. Fargo Pacific Inc.

District Court, D. Guam·Decided July 21, 2023·No. 1:17-cv-00096·Unknown

Opinion

UNITED STATES OF AMERICA, ex rel. and ) CIVIL CASE NO. 17-00096 RAVINDRA GOGINENI, ) ) ) Plaintiffs/Relator, ) ) REPORT & RECOMMENDATION vs. ) to Deny Relator’s Motion for Summary ) Judgment re Applicability of the Presumed FARGO PACIFIC INC., EDGAR L. ) Loss Rule (ECF No. 91) MCCONNELL, and JAY S.H. PARK, ) ) Defendants. ) ) This is an action brought under the False Claims Act, 31 U.S.C. § 3729 et seq. Ravindra Gogineni (the “Relator”) alleges that defendants Fargo Pacific Inc. (“Fargo”), Edgar L. McConnell and Jay S.H. Park (collectively the “Defendants”) defrauded the United States by entering into secret agreements that made Fargo ineligible for the government roofing contracts it was awarded as part of the Small Business Administration’s (“SBA’s”) 8(a) development program. Now pending before the court is the Relator’s motion for partial summary judgment1 with regard to the applicability of the presumed loss rule set forth in 15 U.S.C. § 632(w) to the Relator’s claims alleged in Counts Three and Four of the Second Amended Complaint (“SAC”).2 See ECF No. 91. Having reviewed 1 The Defendants moved for summary judgment, see ECF Nos. 88 and 94, and on April 5, 2023, the court granted in part and denied said motions, with summary judgment being granted for the Defendants as to Count One. See Opinion and Order, ECF No. 163. 2 Counts Three and Four of the SAC involve the 2009 IDIQ Contract. Specifically, Count Three asserts a claim under the promissory fraud theory in that the Defendants fraudulently obtained the 2009 IDIQ Contract by failing to disclose to the Navy and the SBA the existence of the 2007 Consulting Agreement and the First Amended Agreement. Count Four of the SAC asserts an the parties’ filings and relevant case law, the court now issues this Report and Recommendation to deny the Relator’s motion. FINDINGS OF FACT3 In a letter dated September 17, 2009, the U.S. Navy notified Jay Park, the President and General Manager of Fargo, that Fargo had been awarded the 2009 Indefinite Delivery/Indefinite Quantity contract (the “2009 IDIQ Contract”). See Decl. Joyce C.H. Tang, Ex. A at 2,4 ECF No. 92- 1. The 2009 IDIQ Contract had a base period of 12 months, with four 12-month options the government could exercise for a total maximum duration of 60 months. Id. at 30.5 The 2009 IDIQ Contract was “set-aside for 8(a) firms certified for participation in the 8(a) program serviced by the 8(a) Hawaii District Office.” Id. at 1.6 A total of 46 task orders were issued under the 2009 IDIQ Contract. See Decl. Joyce C.H. Tang, Exs. B-D, ECF Nos. 92-2 to 92-4. Fargo was awarded Task Order 12 on March 15, 2011, id., Ex. B at 3,7 ECF No. 92-2, with the remaining task orders awarded thereafter. Id., Exs. B and C, ECF Nos. 92-2 and 92-3. Fargo submitted 152 Contractor’s Invoices for payment under the 2009 IDIQ Contract task orders on or after September 27, 2010. Id., Ex. H, ECF No. 92-8. A motion for summary judgment shall be granted when there is no genuine issue as to any implied false certification claim against the Defendants based on claims for payment they submitted under the 2009 IDIQ Contract. 3 Much of the facts have already been discussed in the court’s previous Report and Recommendation. See R. & R., ECF No. 146. The court sets forth only the additional limited facts that are relevant to the issue before the court. 4 The page reference here is to the page number in the CM-ECF electronically generated footer. 5 The pinpoint reference here is to the internal page number of the 2009 IDIQ Solicitation, Offer, and Award as noted on the upper right corner of Exhibit A. 6 The pinpoint reference here is to the internal page number of the 2009 IDIQ Solicitation, Offer, and Award as noted on the upper right corner of Exhibit A. 7 This page reference is to the page number in the CM-ECF electronically generated footer. material fact and the moving party is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(a); Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-48 (1986). Generally, the burden is on the moving party to demonstrate that it is entitled to summary judgment. Margolis v. Ryan, 140 F.3d 850, 852 (9th Cir. 1988). “The moving party may produce evidence negating an essential element of the nonmoving party’s case, or . . . . show that the nonmoving party does not have enough evidence of an essential element of its claim or defense to carry its ultimate burden of persuasion at trial.” Nissan Fire & Marine Ins. Co. v. Fritz Companies, Inc., 210 F.3d 1099, 1106 (9th Cir. 2000) (reconciling Adickes v. S.H. Kress & Co., 398 U.S. 144 (1970) and Celotex Corp. v. Catrett, 477 U.S. 317 (1986)). The nonmoving party must then “do more than simply show that there is some metaphysical doubt as to the material facts” but must show specific facts which raise a genuine issue for trial. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586 (1986). A genuine issue of material fact will exist “if the evidence is such that a reasonable jury could return a verdict for the non-moving party.” Anderson, 477 U.S. at 248. In ruling on a motion for summary judgment, a court construes the evidence in the light most favorable to the non-moving party. Barlow v. Ground, 943 F.2d 1132, 1135 (9th Cir. 1991). “[T]he judge’s function is not to weigh the evidence and determine the truth of the matter but to determine whether there is a genuine issue for trial.” Anderson, 477 U.S. at 249. The issues raised in the Relator’s Motion for Partial Summary Judgment are narrow. The Relator specifically requests “partial summary judgment that the presumed loss rule, 15 U.S.C. § 632(w), and the ‘deemed certifications’ under § 632(w)(2)(A) apply to the Relator’s claims alleged in Counts Three and Four of the SAC.” Mot. Partial Summ. J. at 20, ECF No. 91. If the presumed loss rule applies, the Relator further requests that the court find that “the value of the goods or services received by the government are neither deducted in determining damages nor can such evidence be used to rebut the presumption that the loss is the total amount the government expended on the contract.” Id. On September 27, 2010, the Small Business Jobs Act of 2010 was signed into law. See Pub. L. No. 111-240, 124 Stat. 2504 (2010). This new law amended the Small Business Act to include the “presumed loss rule,” codified at 15 U.S.C. §632(w), which provides: [i]n every contract, subcontract, cooperative agreement, cooperative research and development agreement, or grant which is set aside, reserved, or otherwise classified as intended for award to small business concerns, there shall be a presumption of loss to the United States based on the total amount expended on the contract, subcontract, cooperative agreement, cooperative research and development agreement, or grant whenever it is established that a business concern other than a small business concern willfu

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United States of America, ex rel. Pragathi Gogineni and Ravindra Gogineni v. Fargo Pacific Inc., (gud 2023).

United States of America, ex rel. Pragathi Gogineni and Ravindra Gogineni v. Fargo Pacific Inc. (United States of America, ex rel. Pragathi Gogineni and Ravindra Gogineni v. Fargo Pacific Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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