United States v. Sprint Communications, Inc.

855 F.3d 985, 97 Fed. R. Serv. 3d 872, 2017 WL 1526316, 2017 U.S. App. LEXIS 7552
CourtCourt of Appeals for the Ninth Circuit
DecidedApril 28, 2017
Docket14-17434
StatusPublished
Cited by15 cases

This text of 855 F.3d 985 (United States v. Sprint Communications, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Sprint Communications, Inc., 855 F.3d 985, 97 Fed. R. Serv. 3d 872, 2017 WL 1526316, 2017 U.S. App. LEXIS 7552 (9th Cir. 2017).

Opinion

OPINION

BERZON, Circuit Judge:

John C. Prather sought to intervene as of right in a False Claims Act (“FCA”) suit brought by the United States (“Government”) against Sprint Communications, 'Inc. (“Sprint”). Whether Prather had the significantly protectable interest required to support his motion to intervene depends on whether he would have been entitled to any recovery if the Government had intervened in his 2009 qui tarn FCA action. See Fed. R. Civ. P. 24(a)(2); Prather v. AT&T, 847 F.3d 1097 (9th Cir. 2017) (“Prather I”). We conclude that Government intervention in Prather’s qui tam action could not have secured him any right to a share of the proceeds from that action and therefore affirm the district court’s order.

*988 BACKGROUND

In 2009, Prather filed a qui tam FCA action against Sprint and four other telecommunications companies, alleging that the companies were defrauding federal and state governments by overcharging them for electronic surveillance services. The Government elected not to intervene in Prather’s qui tam action. In November 2013, the district court concluded that Prather could not show he was an “original source” of publicly disclosed information regarding the telecommunications companies’ allegedly fraudulent activities and dismissed Prather’s qui tam suit for lack of jurisdiction. We recently affirmed the district court’s dismissal of Prather’s qui tam action. Prather I, 847 F.3d at 1108.

While Prather’s appeal of Prather I was pending, the Government filed its own FCA suit against Sprint. That action was transferred to the same district judge who had dismissed Prather’s case. Prather moved to intervene in the Government’s FCA action, maintaining that (1) the Government was pursuing an “alternate remedy” to Prather’s qui tam action by filing its own FCA action instead of intervening in his earlier FCA suit; (2) under the FCA, he had the “same rights” in the Government’s “alternate remedy” proceeding as he would have had in his qui tam action; and (3) he therefore had a right to a share of the proceeds from any award or settlement in this litigation. See 31 U.S.C. § 3730(c)(5) (2006). 1

The district court denied Prather’s motion to intervene on the basis of its dismissal of Prather’s qui tam action. Because Prather could not bring a successful qui tam action on related claims, the district court concluded, he had no standing to intervene in the Government’s action. Prather timely appealed the district court’s order.

DISCUSSION

Under the FCA, private individuals with information about fraud against the Government may bring qui tam actions on behalf of the United States. The Government may elect to (1) intervene in such an action and take over its prosecution, 31 U.S.C. § 3730(b)(2); (2) “pursue its claim through any alternate remedy available to the Government,” instead, id. § 3730(c)(5); or (3) decide not to take any action, allowing the private individual, known as the “relator,” to pursue the claim to completion, id. § 3730(c)(3). In any of those scenarios, the relator who brought the qui tam action generally has a right to a share of any proceeds from the action. Id. § 3730(d). If the Government pursues an alternate remedy, the relator “shall have the same rights in such proceeding as [he] would have had if’ the Government had intervened in the qui tam action. Id. § 3730(c)(5).

Prather asserts that the Government’s own action against Sprint is an “alternate *989 remedy” pursued in lieu of intervention in his earlier qui tam action. He maintains that he is therefore entitled to the same share of the Government’s proceeds resulting from this action against Sprint as he would have obtained if his qui tam action had gone forward. See id. On that basis, he contends, he was entitled to intervene as of right. See Sw. Ctr. for Biological Diversity v. Berg, 268 F.3d 810, 817 (9th Cir. 2001) (“Southwest Center”) (setting out the four-prong test for Federal Rule of Civil Procedure Rule 24(a) intervention as of right).

After the district court’s denial of Prather’s motion to intervene, the Government and Sprint reached a settlement, and the district court accordingly dismissed the case. Before turning to the merits of Prather’s appeal, we consider whether this appeal is now moot.

I

The parties have not raised the mootness issue. Nonetheless we address the issue sua sponte, because, if “events change such that the appellate court can no longer grant ‘any effectual relief whatever to the prevailing party,’ any resulting opinion would be merely advisory,” and the court would lack subject matter jurisdiction. Shell Offshore Inc. v. Greenpeace, Inc., 815 F.3d 623, 628 (9th Cir. 2016) (quoting City of Erie v. Pap’s A.M., 529 U.S. 277, 287, 120 S.Ct. 1382, 146 L.Ed.2d 265 (2000)). Here, we consider the effect of the settlement and voluntary dismissal of the case in which Prather sought to intervene.

In some situations, the entry of final judgment in a case moots a putative-inter-venor’s appeal from the denial of his motion to intervene. West Coast Seafood Processors Ass’n v. NRDC, 643 F.3d 701 (9th Cir. 2011), for example, held that this court could not grant the appellant “any ‘effective relief by allowing it to intervene” “in a case that the district court ha[d] since decided, through [an] Order on Remedy and the subsequent final judgment, from which neither party ha[d] appealed.” Id. at 704. In other circumstances, however, an intervention controversy can remain live even after final judgment is entered in the underlying case. DBSI/TRI TV Ltd. Partnership v. United States, 465 F.3d 1031 (9th Cir.

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855 F.3d 985, 97 Fed. R. Serv. 3d 872, 2017 WL 1526316, 2017 U.S. App. LEXIS 7552, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-sprint-communications-inc-ca9-2017.