Court Opinion

ID: 9445205
Source: CourtListenerOpinion
Date Created: 2023-08-03 21:22:43.133625+00
Date Added: 2024-06-11T17:30:10.067983
License: Public Domain

RIVES, Circuit Judge
(dissenting).
While I appreciate the logic and force of the majority opinion in this case and also of the majority opinion of the Third Circuit in United States v. Tieger, 234 *135F.2d 589, both seem to me to construe too narrowly the False Claims Act. That Act, I think, should be given “the fair meaning of its intendment”, which is “to provide protection against those who would ‘cheat the United States.’ ” United States ex rel. Marcus v. Hess, 317 U.S. 537, 542, 544, 63 S.Ct. 379, 383, 87 L.Ed. 443. It provides a civil remedial action for liquidated damages instead of a penalty. United States ex rel. Marcus v. Hess, supra, 317 U.S. at pages 548 et seq., 63 S.Ct. at page 386 et seq. Cf. Rex Trailer Co. v. United States, 350 U.S. 148, 152, et seq., 76 S.Ct. 219; United States v. Weaver, 5 Cir., 207 F. 2d 796, 798.1
Inducing the Government to pledge its credit by a false and fraudulent claim therefor seems to me as much within the False Claims Act as so inducing it to part with its money or property.2 True, the right to recover money from the Government is contingent on default on the loan, and a further claim upon the happening of that event might give rise to an additional right of action under the False Claims Act. When, as here, however, the fraud is discovered after the Government has approved the loan for insurance, but before default, the Government should not be forced to wait until the borrower defaults on the loan and causes the lender to make a further claim on the Government. Two separate claims may be involved, the first for the approval of the loan for insurance, the second for the payment of the insurance.
Chief Judge Biggs dissenting in United States v. Tieger, supra, has so well expressed the views which I entertain, that I forego further discussion.
I respectfully dissent.

. It follows that appellee’s claim of double jeopardy is without substance. United States ex rel. Marcus v. Hess, supra, 317 U.S. at page 548 et seq., 63 S.Ct. at page 386 et seq.; United States ex rel. Ostrager v. New Orleans Chapter, Associated General Contractors, 317 U.S. 562, 563, 63 S.Ct. 393, 87 L.Ed. 458; United States v. Grannis, 4 Cir., 172 F.2d 507, 511.

. Indeed the credit insurance constitutes intangible property. Burnet v. Wells, 289 U.S. 670, 679, 53 S.Ct. 761, 77 L.Ed. 1439; Vance on Insurance (2nd ed.), § 280, pp. 929-932 ; 29 Am.Jur., Insurance, § 126, pp. 142, 143, notes 13-18.