N O T FO R PUB L ICAT IO N UNITED STATES C OUR T OF APPEALS FOR THE NINTH C IR C UIT
UNITED STATES e x re l. M ARK M C G R ATH, Pla i ntiff-Appe lla

nt,
v. M IC R O SEM I C ORPOR

ATION; W HITE ELEC T R ONIC DESIGNS C ORPOR ATION, DB A M ic rose m i Powe r and Ele c tronic s Group,

De fe nda n ts-Appe lle e s. No. 15-17206 D.C . No. 2:13-c v-00864-DJH
M EM O R ANDUM *

M ARK M C GR

ATH, e x re l. Unite d Stat e s of Am e ric a , Pla i ntiff-Appe lla nt,
v. M IC R O SEM I C ORPOR

ATION; W HITE ELEC T R ONIC DESIGNS C ORPOR ATION, DB A M ic rose m i Powe r and Ele c tronic s Group,

De fe nda n ts-Appe lle e s. No. 15-17478 D.C . No. 2:13-c v-00864-DJH



# FIL ED
M AY05 2017 M OLLY C. DW Y ER, CLERK U
. S. CO URT O F APPEALS

* This disposition is not a ppropria te for public at ion a

nd is not pre c e de nt e xc e pt a s provide d

by Ninth C irc uit R

ule 36-3.Appe a l from the Unite d

Stat e s Distric t C ourt for the Distric t of Ariz o na D ia ne J. Hum e te wa , Distric t

Judge , Pre siding Argue d a nd Subm itte d April 18, 2017 San Fran c isc o , C a lifornia B e fore : D.W . NELSON a nd IKUTA, C irc uit Judge s, a nd B UR GESS, ** C hie f Distric t Judge
. M ark M c G ra t

h , on be ha l f of the Unite d State s of Am e ric a , a ppe a ls the distric t c o urt’ s orde r dism issing his qui ta m c om pla i nt unde r R

ule s 8(a ) an d 9(b) of the Fe de ra l R

ule s of C ivil Proc e dure and de ny i ng le ave to a m e nd. W e have jurisdic tion unde r 28 U.S.C
. § 1291. M c Gra th’ s c om

pla int fa ile d to sta

te a fa lse c e rtific ation c la im

unde r the Fa lse C la im s Ac t (FC A), 31 U.S.C . §§ 3729–3733, be c a use the c om

pla int fa ile d to ple a d fa c t s pla

usibly a lle ging tha

t c om plia n c e with theInte rnationa l Tra ffic in Arm s R e g ulations (ITAR ) wa s m ate ria l to theGove rnm e nt’ s de c ision to pa y White Ele c tronic De signs C o rporation a nd M ic rose m i C orporation (c olle c tive ly ,

“ M ic rose m i” ). Univ e rsal He alth Se rv s., Inc
. v . Unite d State

s e x re l. Esc obar , 136 S. C t. 1989, 2002–03 (2016). M ore ove r, e ve n a ssum ing tha t the sta te m e nt “ ITAR
c ontrolle d” on M ic rose m i’ s re c e ipts c onstitute d a fa lse re pre se ntation tha

t

* * The Honora

ble Tim othy

M . B urge ss, Unite d State s C hie f Distric t Judge for the Distric t of Ala ska , sitting by de signa t ion. 2M ic rose m i wa s in c o m plia nc e with ITAR , the c om

pla int c a nnot ple a d fa c ts suffic i e nt to support a

n infe re nc e tha

t M ic rose m i kne w it ha d fa ile d to c om ply with ITAR at the tim e of the re p re se ntation be c a use M ic rose m i’ s good fa i th inte rpre tation of thete rm

“ disc lose ” in 22 C
. F.R . § 120.17 a t tha t tim e wa s
re a s ona ble
. Se eSafe c o Ins. C

o. of Am. v . Burr , 551 U.S. 47, 70 n.20 (2007). B e c a use M c Gra th c annot e sta

blish M ic rose m i’ s sc ie nte r a s a m atte r of la

w , a nd ha s not indic a te d wha

t fa c ts he c ould a dd to thec om pla i nt to e sta

blish tha t M ic rose m i’ s a lle ge d ITAR viola tion wa s m ate ria l to the Gove rnm e nt’ s pa ym e nt de c ision, the distric t c ourt did not err in de ny ing le ave to a m e nd. Se eid. ; Hilde

s v . Arthur Ande rse n LLP , 734 F.3d 854, 859 (9th C ir. 2013). Fina lly , M c Gra th wa ive d his a rgum e nt tha

t M i c rose m i provide d the Gove rnm e nt worthle ss produc t s by fa i ling to ra ise it in his ope ning brie f. Martine z -Se rrano v . I.N

.S. , 94 F.3d 1256, 1259 (9th C ir. 1996). To the e x te nt M c G ra th is now ra ising them odifie d argum e n t tha

t M ic rose m i knowingly de m ande d pa

ym e n t for produc ts tha

t ha d lost va lue due to M ic rose m i’ s fa ilure to

3c om

ply with ITAR , suc h a

c la im fa ils for the sa

m e re a sons a s his fa lse c e rtific ation
c la im
. 1 AFFIRM E D
.

1 M c Gra th fa i le d to ra ise his FC A c la im for fraud in theinduc e m e nt be fore the d istric t c o urt. W e the re fore de c line to a d dre ss this issue on a ppe a l. Bolk

e r v . C omm’r of Inte r

nal Re v e nue , 760 F.2d 1039, 1042 (9th C ir. 1985). 4