Frivolous Claim Under False Claim Act Entitles Employee To Attorney Fees.

Kern county sued an employee under the False Claim Act (Government Code section12650 ff.) after the employee sought reimbursement for classes taken. The court found that the action under the False Claims Act was frivolous and was filed in retaliation for a federal suit against the county filed by the employee. The court awarded attorney fees to the employee and the Court of Appeal affirmed. County of Kern v. Jadwin (Cal. App. Second Dist., Div. 6; July 5, 2011) 197 Cal.App.4th 65, [127 Cal.Rptr.3d 837, 2011 DJDAR 9991].

What Is A Violation of The False Claim Act?

Liability under the federal False Claim Act occurs where a defendant  (1) knowingly presents (or causes to be presented)  a false or fraudulent claim for payment; (2) knowingly makes, uses, or causes to be made or used, a false record or statement material to a false or fraudulent claim; (3) conspires with others to commit a violation of the False Claims Act (4) knowingly makes, uses, or causes to be made or used, a false record or statement to conceal, avoid, or decrease an obligation to pay money or transmit property to the Federal Government.

A broad array of scenarios can constitute False Claims Act violations. Healthcare Fraud False Claim Act cases, include coding false claims, Medicare kickbacks, outpatient PPS false claims fraud, Stark law violations, DME fraud and DRG fraud, are brought by whistleblowers, who typically have previously attempted to call attention to the problem within their company. Qui tam, which is a feature of the False Claims Act, is a unique mechanism that allows persons and entities with evidence of fraud against federal programs to sue the wrongdoer on behalf of the government. Currently, qui tam provisions include strong financial incentives to file a lawsuit on behalf of the federal government.