Client Alerts & Newsletters

Fourth Circuit Accepts "Implied Certification" Theory When Contractual Requirement Is Unambiguous and Material


On January 8, 2015, the Fourth Circuit, in U.S. ex rel. Badr v. Triple Canopy, Inc., reversed the district court's dismissal of allegations that the contractor had submitted false claims by invoicing for security guards who had failed to pass the marksmanship proficiency test even though the contractor never affirmatively certified to the guard's shooting proficiency or presented to the government the false test cards allegedly created to hide the deficiency. The Court noted that the implied certification theory was "prone to abuse" and that it had previously "guarded against turning what is essentially a breach of contract into an FCA violation," but concluded the best manner for drawing the line was by "strict enforcement of the Act's materiality and scienter requirements" and, here, the marksmanship requirement was an objective criterion and its materiality demonstrated by the contractor's alleged falsification of the scoring cards which were required to be maintained under the contract.

For more information, please contact the professional(s) listed below, or your regular Crowell & Moring contact.

Alan W. H. Gourley
Partner – Washington, D.C.
Phone: +1 202.624.2561

Mark R. Troy
Senior Counsel – Los Angeles
Phone: +1 213.443.5576

Brian Tully McLaughlin
Partner – Washington, D.C.
Phone: +1 202.624.2628

Crowell & Moring LLP is an international law firm with approximately 550 lawyers representing clients in litigation and arbitration, regulatory and policy, and transactional matters. The firm is internationally recognized for its representation of Fortune 500 companies in high-stakes litigation, as well as its ongoing commitment to pro bono service and diversity, equity and inclusion. The firm has offices in Brussels, Doha, London, Los Angeles, New York, Orange County, San Francisco, Shanghai, and Washington, D.C.

View Desktop Site | Mobile Sitemap |

Contact | Subscribe | Terms of Use | Privacy Statement | Alumni

© Crowell & Moring LLP 2021
Attorney advertising - prior results do not guarantee a similar outcome.