Posts Tagged ‘qui tam’

Michigan, D.C. consider bounties for turning in those who underpay taxes

While expanding year by year, the complex of federal and state False Claims Act/whistleblowing laws often has exempted tax filings from the broad incentive provided to denounce others for “false claims” made to the government, often in a contract or program administration context. But new bills sponsored in the District of Columbia by Councilwoman Mary Cheh and in Michigan by Senator Steven Bieda would apply the bounty system to the tax area, starting, at least, with larger taxpayers. [Stephen P. Kranz, Diann Smith, and Eric Carstens, McDermott, Will, & Emery] We’ve covered some of the problems with laws rewarding tax tipsters in states like New York and Illinois here and here. On the latter story, note an update: a court has denied fees to attorney Stephen Diamond in a case in which he was both the relator and relator’s attorney. “Diamond has served as relator in about 1,000 qui tam actions over the last 15 years. A recent investigation by Bloomberg BNA revealed Diamond has collected almost $12 million through this pattern of litigation.” [Michael Bologna, BNA Daily Tax Report]

May 10 roundup

  • Redistricting, transit farebox, Court of Appeals, decriminalizing barbers, and more in my latest Maryland policy roundup [Free State Notes] And I’m quoted on the highly unpersuasive “six-state compact” scheme, which amounts to an excuse for leaving gerrymandering in place [Danielle Gaines, Frederick News-Post]
  • After scandal over falsified safety records, fired track workers sue Washington’s Metro on claims of discrimination and hostile work environment [Martine Powers, Washington Post]
  • Chicago mulls ordering private shopkeepers to provide bathroom access to non-customers who say they’ve got an emergency need. Too bad its own CTA is no-go zone [Steve Chapman]
  • Says a lot about why Obama CPSC ignored pleas for CPSIA relief: “US Product Safety Regulator Sneers at ‘Fabricated Outrage’ Over Regulations” [C. Ryan Barber, National Law Journal on Elliot Kaye comments]
  • “Implied certification” theory, okayed by SCOTUS in Universal Health Services last year, enables False Claims Act suits hinging on controversial interpretations of regulation [Federalist Society podcast with Marcia Madsen and Brian D. Miller] “A Convincing Case for Judicial Stays of Discovery in False Claims Act Qui Tam Litigation” [Stephen A. Wood, WLF]
  • Judge signals reluctance to dismiss hospital’s suit against Kamala Harris over her actions as California AG on behalf of SEIU in merger case [Bianca Bruno, Courthouse News via Sean Higgins/Washington Examiner, earlier]

Liability roundup

  • Uphill battle in Congress for bill to “prohibit federal courts from issuing awards that consider the victim’s race or gender, among other demographic variables” [Kim Soffen, Washington Post on “Fair Calculations Act”]
  • Normalizing champerty, the Ann Arbor way: University of Michigan endowment to take stake in litigation finance fund [Janet Lorin, Bloomberg News]
  • Lawsuit Abuse Reduction Act (LARA), restoring sanctions for groundless litigation, cleared House committee vote last month [@HouseJudiciary]
  • “Lynch’s Doubling of False Claims Act Fines Could Be Bonanza for Trial Lawyers” [Joe Schoffstall, Washington Free Beacon]
  • “Katrina victims shocked by small payments in levee failure case they ‘won’ – $118 each, on average” [David Hammer, WWL-TV]
  • Advisory Committee on Civil Rules considers revising Rule 23 on class actions [Washington Legal Foundation comments]

Liability roundup

  • Recent easing of lawsuit crisis in U.S. owes much to rise of arbitration. Now organized litigation lobby is intent on taking that down, and Obama administration has helped with steps in labor law, consumer finance, and nursing-home care [James Copland, Manhattan Institute, related op-ed]
  • SCOTUS should grant certiorari to clarify lawyers’ obligation to clients in class settlement, argues Lester Brickman [amicus brief courtesy SCOTUSBlog; earlier on Blackman v. Gascho]
  • St. Louis, California, NYC asbestos litigation, south Florida and the Florida Supreme Court, and New Jersey are top five “winners” in latest annual “Judicial Hellholes” report, which also includes a focus on qui tam/whistleblower suits [American Tort Reform Association, report and executive summary]
  • Deep pocket lawsuits remain systemic problem in America for political branches to address [David Freddoso, Washington Examiner investigation]
  • Florida insurers struggle with secondhand suits under assignment of benefits doctrine [Insurance Journal]
  • Storm lawsuits in Texas: “All Hail Breaks Loose” [Mark Pulliam, City Journal]

Higher education roundup

  • Colleagues demand Oregon law prof resign over Hallowe’en costume [Paul Caron/TaxProf; Eugene Volokh (“We have reached a bad and dangerous place in American life, and in American university life in particular.”)] Title IX and expression: “What the feds have done to colleges and schools” [Hans Bader, Minding the Campus]
  • Institutional review boards (IRBs) “as a rule are incredibly difficult to study…. There is no public record of their decision or deliberations, they don’t, as a rule, invite scrutiny or allow themselves to be observed.” [Dr. Steven Joffe quoted by Tyler Cowen]
  • “An emphasis on intersectionality”: mandatory diversity course for first-years at AU now has course description [earlier] “U-M’s New ‘Chief Diversity Officer’ Will Collect $385,000 per Year” [Derek Draplin, Michigan Capitol Confidential]
  • “Plaintiffs’ Bar Steps Up Profitable False Claims Act Assault on Higher Education” [U.S. Chamber Institute for Legal Reform]
  • Notwithstanding initial wave of critical coverage, Will Creeley says PEN report on campus speech is actually pretty good [FIRE] “Student group at Cal State Northridge boasts of ‘shutting down’ speech by award-winning scholar” [Volokh; Armenian students vs. Ataturk lecture]
  • On question whether universities must treat student athletes as employees, NLRB “may be battling for field position” with future ruling in mind [Brennan Bolt, McGuire Woods]

Crime and punishment roundup

  • Quebec waiter arrested after seafood puts allergic customer in coma [CBC]
  • Two Black Lives Matter groupings have issued agendas, one zany leftism, the other directed at nuts-and-bolts criminal justice system reform. Media: “Door 1, please.” [Ed Krayewski]
  • Conservative lawprof Mike Rappaport on DEA’s “absurd,” “ridiculous” refusal to take marijuana off Schedule I [Law and Liberty] Recommended: Scott Greenfield and David Meyer-Lindenberg interview Julie Stewart of Families Against Mandatory Minimums, Cato Institute alum [Fault Lines]
  • “Criminal defense bar sides with business lobby in False Claims Act case” [Alison Frankel, Reuters on State Farm case before Supreme Court]
  • 6th Circuit: amendments to Michigan sex offender registry law impose retroactive, hence unconstitutional, punishment [Jonathan Adler, Scott Greenfield]
  • “Criminalizing Entrepreneurs: The regulatory state is also a prison state” [F.H. Buckley, American Conservative]

Supreme Court roundup

  • “Cato Batted .500 at the Supreme Court, Still Besting the Government” [Ilya Shapiro] “Obama Has Lost In The Supreme Court More Than Any Modern President” [same, The Federalist]
  • Scalia’s absence left a void this year, but (Friedrichs aside) not mostly on case outcomes [Shapiro, Forbes] Scalia’s legacy on criminal defense [Kevin Ring, Cato Daily Podcast]
  • “Supreme Court Session Promised Much, Delivered Little To Business” [Daniel Fisher]
  • Relevant to Sotomayor and Kagan dissents in the exclusionary rule case, Utah v. Strieff: outstanding warrants are neither infrequent not randomly distributed [Alex Tabarrok, Orin Kerr, Tim Lynch/Cato, Scott Greenfield]
  • Can Congress pass a statute whose effect is to dictate a result in one pending case? Should it matter whether the plaintiffs are sympathetic terror victims? [Michael Greve, Jonathan Adler, Daniel Fisher first and second on Bank Markavi v. Peterson]
  • Government contracting: high court corrects First Circuit’s implausibly pro-plaintiff reading of False Claims Act [Richard Samp, Washington Legal Foundation on Universal Health Services, Inc. v. United States ex rel. Escobar]

Liability roundup

June 1 roundup