Contractor Not Liable Under False Claims Act
On April 5, we covered an issue that seems to be gaining momentum -- counterclaims by the public owner under the False Claims Act for damages caused by falsely submitted claims for extra compensation.
This new case from the U.S. Court of Federal Claims is another example of this trend. The decision contains useful guidance on two key issues -- (1) what constitutes a "false" claim and (2) what conduct by the contractor rises to the level of prosecuting the claim with "reckless disregard" of its falsity.
Copy of decision also available here Download file