Thursday, April 29, 2004

Six-year statute applies to actions under False Claims Act

In U.S. v. Graham County Soil & Water Conservation Dist., the Fourth Circuit in an opinion by Judge Duncan, joined by Judge Michael with Judge Wilkinson dissenting, held that the statute of limitations applicable to the plaintiff's retaliation claim under the False Claims Act, 31 U.S.C. 3730(h), was the six-year statute of 31 U.S.C. 3731(b), and the trial court erred in dismissing the case as untimely under a shorter state law limitations period. Judge Wilkinson in dissent concluded that amendments to the statute broke the connection between section 3730 retaliation claims and the limitations rule stated in section 3731(b).

The majority opinion notes that "[t]he proper interpretation of these provisions has divided both our sister circuits and courts within this circuit." Perhaps the case will be reheard and taken up all the way to the U.S. Supreme Court.

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