Source: http://openjurist.org/91/f3d/1211
Timestamp: 2015-11-28 11:30:23
Document Index: 527220014

Matched Legal Cases: ['§ 3729', '§ 3730', '§ 3731', '§ 3731', '§ 3730', '§ 3730', '§ 3731']

91 F3d 1211 United States Hyatt v. Northrop Corporation | OpenJurist
91 F. 3d 1211 - United States Hyatt v. Northrop Corporation HomeFederal Reporter, Third Series 91 F.3d
91 F3d 1211 United States Hyatt v. Northrop Corporation 91 F.3d 1211
65 USLW 2097, 11 IER Cases 1713, 96Cal. Daily Op. Serv. 5510,96 Daily Journal D.A.R. 9024
UNITED STATES, ex rel., Michael A. (Brian) HYATT, Plaintiff-Appellant,v.NORTHROP CORPORATION, a Delaware corporation; KuliteSemiconductor Products, Inc., a business organization, formUnknown; Kulite, a business organization, form Unknown;Solid State Devices, Inc., a California corporation;Cal-Doran Metallurgical Services, Inc., a Californiacorporation, d/b/a Cal-Doran Heat Treating Company of LosAngeles, d/b/a Southern California Aluminum Heat TreatingCompany; Cal-Doran Heat Treating Company, a businessorganization, form Unknown; Southern California AluminumHeat Treating Company, a business organization, formUnknown, Defendants-Appellees.
No. 95-55175.
Argued and Submitted June 3, 1996.Decided July 26, 1996.
Phillip E. Benson, Law Offices of Phillip E. Benson, Newport Beach, California, and Linda R. Maclean, Claremont, California, for plaintiff-appellant.
Marc A. Becker, Munger, Tolles & Olson, Los Angeles, California; Richard C. Goodman, Stradling, Yocca, Carlson & Rauth, Newport Beach, California; Peter B. Jones, Jones & Donovan, Irvine, California; Aurora Cassirer, Parker, Chapin, Flattau & Klimple, New York City, for defendants-appellees.
Appeal from the United States District Court for the Central District of California, David V. Kenyon, District Judge, Presiding. D.C. No. CV-93-02529-KN.
This appeal presents the question of whether the equitable tolling provision of the False Claims Act statute of limitations applies to a qui tam plaintiff as well as to the government. We conclude that it does, but that for the qui tam plaintiff the limitations period runs from the date the plaintiff knew or reasonably should have known of the facts material to the right of action. Thus, we affirm the district court's dismissal, albeit on different grounds.
Qui tam plaintiff Michael A. Hyatt ("Hyatt") worked as an engineer at Northrop Corporation ("Northrop") from August of 1981 to May 13, 1986. In late 1982, Hyatt reported to his superiors his concerns that the Inertial Measurement Unit used in the Peacekeeper ("MX") missile program was defective in its design, development and manufacture. He alleges that soon thereafter he began to suffer harassment in retaliation for his report. Northrop terminated Hyatt on May 13, 1986.
Hyatt filed his first complaint against Northrop on October 3, 1986 (" Hyatt I ") asserting, among other claims, a qui tam action under the False Claims Act, 31 U.S.C. §§ 3729 et seq. ("FCA" or "Act"). Included in the complaint was an allegation that Northrop used defective components in a variety of projects, including the MX missile and the B-1B bomber. The district court dismissed the qui tam action on March 31, 1988 for lack of jurisdiction.1
Hyatt filed his second complaint against Northrop on October 15, 1987 (" Hyatt II "). This complaint also asserted a qui tam action for FCA violations in connection with the MX missile program. The district court dismissed most of Hyatt's allegations. The remaining claims settled.
Hyatt filed this, his third complaint against Northrop, on April 30, 1993 (" Hyatt III "). The complaint again asserted a qui tam action for FCA violations concerning the MX missile and B-1B bomber programs. Northrop moved to dismiss the complaint on numerous grounds, including res judicata, statute of limitations, and 31 U.S.C. § 3730(b)(5), which bars qui tam actions which are based on facts underlying a previously filed qui tam action. Hyatt thereafter filed a first amended complaint on July 11, 1994, which added Kulite Semiconductor Products, Cal-Doran Metallurgical Services ("Cal-Doran") and Solid State Devices as defendants. The amended complaint contained allegations concerning the Blue Laser, MX missile, and B-1B bomber programs. Hyatt later voluntarily dismissed his MX missile and Blue Laser claims against Northrop. Remaining are claims against Kulite Semiconductor Products and Solid State Devices in connection with the MX missile program and against Northrop and Cal-Doran concerning the B-1B bomber program.
The Hyatt III Defendants moved to dismiss the first amended complaint on several grounds, including expiration of the statute of limitations. The district court granted the motion based on the statute of limitations only, holding that while the tolling provision in 31 U.S.C. § 3731(b)(2), added to the FCA in 1986, applies retrospectively to this action, that provision by its terms applies only to suits brought by the government and not to qui tam suits. Hyatt v. Northrop Corp., 883 F.Supp. 484 (C.D.Cal.1995). Hyatt timely appealed from this decision.
The district court's interpretation of a statute is a question of law reviewed de novo. Viceroy Gold Corp. v. Aubry, 75 F.3d 482, 488 (9th Cir.1996). In statutory interpretation, the starting point is always the language of the statute itself. Queen of Angels/Hollywood Presbyterian Medical Ctr. v. Shalala, 65 F.3d 1472, 1477 (9th Cir.1995).
The statute at issue, 31 U.S.C. § 3731(b), provides:
The Act creates two types of civil actions. The first, under § 3730(a), is brought by the Attorney General on behalf of the United States. The other, under § 3730(b), is a qui tam action brought by private plaintiffs, called relators, also on behalf of the United States.
The Hyatt III Defendants argue that the plain meaning of the statute shows that the tolling provision of § 3731(b)(2) was not intended to apply to qui tam plaintiffs.2 On the contrary, the clear and unambiguous statutory language leads to the opposite conclusion. Section 3731(b) delineates the stat