|
No.
98-1828
SUPREME
COURT OF THE UNITED STATES
529
U.S. #765; 120 S. Ct. ##1858
November
29, 1999, Argued
May 22, 2000, Decided
PRIOR HISTORY: ON WRIT OF
CERTIORARI TO THE UNITED STATES COURT OF
APPEALS FOR THE SECOND CIRCUIT.
DISPOSITION: 162 F.3d
195, reversed.
COUNSEL:
J. Wallace Malley, Jr. argued the cause
for petitioner.
Edwin S. Kneedler argued the cause for the
United States.
Theodore B. Olson argued the cause for
respondent Jonathan Stevens.
JUDGES: SCALIA, J.,
delivered the opinion of the Court, in
which REHNQUIST, C. J., and O'CONNOR,
KENNEDY, THOMAS, and BREYER, JJ., joined.
BREYER, J., filed a concurring statement.
GINSBURG, J., filed an opinion concurring
in the judgment, in which BREYER, J.,
joined. STEVENS, J., filed a dissenting
opinion, in which SOUTER, J., joined.
OPINION: JUSTICE
SCALIA delivered the opinion of the
Court. [#768]
[##1860]
This case presents the question whether a
private individual may bring suit in
federal court on behalf of the United
States against a State (or state agency)
under the False Claims Act, 31 U.S.C. §§
3729-3733.
I
Originally
enacted in 1863, the False Claims Act (FCA)
is the most frequently used of a handful
of extant laws creating a form of civil
action known as qui tam. n1
As amended, the [#769]
FCA imposes civil liability upon "any
person" who, inter alia,
"knowingly presents, or causes to be
presented, to an officer or employee of
the United States Government . . . a false
or fraudulent claim for payment or
approval." 31 U.S.C. § 3729 (a). The
defendant is liable for up to treble
damages and a civil penalty of up to $
10,000 per claim. Ibid. An FCA
action may be commenced in one of two
ways. First, the Government itself may
bring a civil action against the alleged
false claimant. § 3730(a). Second, as is
relevant here, a private person (the
"relator") may bring a qui
tam civil action "for the person
and for the United States Government"
against the alleged false claimant,
"in the name of the Government."
§ 3730(b)(1).
------------------------------------------
n1 Qui tam is short for the Latin
phrase qui tam pro domino rege quam
pro se ipso in hac parte sequitur,
which means "who pursues this action
on our Lord the King's behalf as well as
his own." The phrase dates from at
least the time of Blackstone. See 3 W.
Blackstone, Commentaries 160.
Three other qui tam statutes, all
also enacted over a hundred years ago,
remain on the books. See 25 U.S.C. § 81
(providing cause of action and share of
recovery against a person contracting with
Indians in an unlawful manner); § 201
(providing cause of action and share of
recovery against a person violating Indian
protection laws); 35 U.S.C. § 292(b)
(providing cause of action and share of
recovery against a person falsely marking
patented articles); cf. 18 U.S.C. § 962
(providing for forfeiture to informer of
share of vessels privately armed against
friendly nations, but not expressly
authorizing suit by informer); 46 U.S.C.
§ 723 (providing for forfeiture to
informer of share of vessels removing
undersea treasure from the Florida coast
to foreign nations, but not expressly
authorizing suit by informer).
------------------------------------------
[##1861]
If a relator initiates the FCA action, he
must deliver a copy of the complaint, and
any supporting evidence, to the
Government, § 3730(b)(2), which then has
60 days to intervene in the action, §§
3730(b)(2), (4). If it does so, it assumes
primary responsibility for prosecuting the
action, § 3730(c)(1), though the relator
may continue to participate in the
litigation and is entitled to a hearing
before voluntary dismissal and to a court
determination of reasonableness before
settlement, § 3730(c)(2). If the
Government declines to intervene within
the 60-day period, the relator has the
exclusive right to conduct the action, §
3730(b)(4), and the Government may
subsequently intervene only on a showing
of "good cause," § 3730(c)(3).
The relator receives a share of any
proceeds from the action -- generally
ranging from 15 [#770]
to 25 percent if the Government intervenes
(depending upon the relator's contribution
to the prosecution), and from 25 to 30
percent if it does not (depending upon the
court's assessment of what is reasonable)
-- plus attorney's fees and costs. §§
3730(d)(1)-(2).
Respondent Jonathan Stevens brought this qui
tam action in the United States
District Court for the District of Vermont
against petitioner Vermont Agency of
Natural Resources, his former employer,
alleging that it had submitted false
claims to the Environmental Protection
Agency (EPA) in connection with various
federal grant programs administered by the
EPA. Specifically, he claimed that
petitioner had overstated the amount of
time spent by its employees on the
federally funded projects, thereby
inducing the Government to disburse more
grant money than petitioner was entitled
to receive. The United States declined to
intervene in the action. Petitioner then
moved to dismiss, arguing that a State (or
state agency) is not a "person"
subject to liability under the FCA and
that a qui tam action in federal
court against a State is barred by the
Eleventh Amendment. The District Court
denied the motion in an unpublished order.
App. to Pet. for Cert. 86-87. Petitioner
then filed an interlocutory appeal, n2 and
the District Court stayed proceedings
pending its outcome. Respondent United
States intervened in the appeal in support
of respondent Stevens. A divided panel of
the Second Circuit affirmed, 162 F.3d 195
(1998), and we granted certiorari, 527
U.S. 1034 (1999).
------------------------------------------
n2 The denial of a motion to dismiss based
on a claim of Eleventh Amendment immunity
is immediately appealable. See Puerto
Rico Aqueduct and Sewer Authority v. Metcalf
& Eddy, Inc., 506 U.S. 139, 121
L. Ed. 2d 605, 113 S. Ct. 684 (1993). The
Second Circuit exercised pendent appellate
jurisdiction over the statutory question.
See Swint v. Chambers County
Comm'n, 514 U.S. 35, 50-51, 131 L.
Ed. 2d 60, 115 S. Ct. 1203 (1995).
------------------------------------------
[#771]
II
We
first address the jurisdictional question
whether respondent Stevens has standing
under Article III of the Constitution to
maintain this suit. See Steel Co.
v. Citizens for Better Environment, 523
U.S. 83, 93-102, 140 L. Ed. 2d 210, 118 S.
Ct. 1003 (1998).
As we have frequently explained, a
plaintiff must meet three requirements in
order to establish Article III standing.
See, e.g., Friends of Earth,
Inc. v. Laidlaw Environmental
Services (TOC), Inc., 528 U.S.___,___
(2000) (slip op., at 9). First, he must
demonstrate "injury in fact" --
a harm that is both "concrete"
and "actual or imminent, not
conjectural or hypothetical." Whitmore
v. Arkansas, 495 U.S. 149, 155,
109 L. Ed. 2d 135, 110 S. Ct. 1717 (1990)
(internal quotation marks and citation
omitted). Second, he must establish
causation -- a "fairly . . .
traceable" connection between the
alleged injury in fact and the alleged
conduct of the defendant. Simon
v. Eastern Ky. Welfare Rights
Organization, 426 U.S. 26, 41, 48 L.
Ed. 2d 450, 96 S. Ct. 1917 (1976). And
third, he must demonstrate redressability
-- a "substantial likelihood"
[##1862] that the requested
relief will remedy the alleged injury in
fact. Id., at 45. These
requirements together constitute the
"irreducible constitutional
minimum" of standing, Lujan
v. Defenders of Wildlife, 504
U.S. 555, 560, 119 L. Ed. 2d 351, 112 S.
Ct. 2130 (1992), which is an
"essential and unchanging part"
of Article III's case-or-controversy
requirement, ibid., and a key
factor in dividing the power of government
between the courts and the two political
branches, see 504 U.S. at 559-560.
Respondent Stevens contends that he is
suing to remedy an injury in fact suffered
by the United States. It is beyond doubt
that the complaint asserts an injury to
the United States -- both the injury to
its sovereignty arising from violation of
its laws (which suffices to support a
criminal lawsuit by the Government) and
the proprietary injury resulting from the
alleged fraud. But "the Art. III
judicial power exists only to redress or
otherwise to protect against injury to
the complaining party." Warth
v. Seldin, 422 U.S. 490, 499,
[#772] 45 L. Ed. 2d
343, 95 S. Ct. 2197 (1975) (emphasis
added); see also Sierra Club v. Morton,
405 U.S. 727, 734-735, 31 L. Ed. 2d 636,
92 S. Ct. 1361 (1972). It would perhaps
suffice to say that the relator here is
simply the statutorily designated agent of
the United States, in whose name
(as the statute provides, see 31 U.S.C. §
3730(b)) the suit is brought -- and that
the relator's bounty is simply the fee he
receives out of the United States'
recovery for filing and/or
prosecuting a successful action on behalf
of the Government. This analysis is
precluded, however, by the fact that the
statute gives the relator himself an
interest in the lawsuit, and not
merely the right to retain a fee out of
the recovery. Thus, it provides that
"[a] person may bring a civil action
for a violation of section 3729 for
the person and for the United States
Government," § 3730(b)
(emphasis added); gives the relator
"the right to continue as a party to
the action" even when the Government
itself has assumed "primary
responsibility" for prosecuting it,
§ 3730(c)(1); entitles the relator to a
hearing before the Government's voluntary
dismissal of the suit, §3730(c)(2)(A);
and prohibits the Government from settling
the suit over the relator's objection
without a judicial determination of
"fairness, adequacy and
reasonableness," §3730(c)(2)(B). For
the portion of the recovery retained by
the relator, therefore, some explanation
of standing other than agency for the
Government must be identified.
There is no doubt, of course, that as to
this portion of the recovery -- the bounty
he will receive if the suit is successful
-- a qui tam relator has a
"concrete private interest in the
outcome of [the] suit." Lujan,
supra, at 573. But the same might
be said of someone who has placed a wager
upon the outcome. An interest unrelated to
injury in fact is insufficient to give a
plaintiff standing. See Valley Forge
Christian College v. Americans
United for Separation of Church and State,
Inc., 454 U.S. 464, 486, 70 L. Ed. 2d
700, 102 S. Ct. 752 (1982); Sierra
Club, 405 U.S. at 734-735. The
interest must consist of obtaining
compensation for, or preventing, the
violation of a legally protected [#773]
right. See Lujan, 504 U.S. at
560-561. A qui tam relator has
suffered no such invasion -- indeed, the
"right" he seeks to vindicate
does not even fully materialize until the
litigation is completed and the relator
prevails. n3 This is not to suggest that
Congress cannot define new legal rights,
which in turn will confer standing to
vindicate an injury caused to the
claimant. See Warth, supra,
at 500. [##1863] As we have
held in another context, however, an
interest that is merely a
"byproduct" of the suit itself
cannot give rise to a cognizable injury in
fact for Article III standing purposes.
See Steel Co., supra, at
107 ("[A] plaintiff cannot achieve
standing to litigate a substantive issue
by bringing suit for the cost of bringing
suit"); see also Diamond v. Charles,
476 U.S. 54, 69-71, 90 L. Ed. 2d 48, 106
S. Ct. 1697 (1986) (holding that
assessment of attorney's fees against a
party does not confer standing to pursue
the action on appeal).
------------------------------------------
n3 Blackstone noted, with regard to
English qui tam actions, that
"no particular person, A or B, has
any right, claim or demand, in or upon
[the bounty], till after action
brought," and that the bounty
constituted an "inchoate imperfect
degree of property . . . [which] is not
consummated till judgment." 2 W.
Blackstone, Commentaries 437.
------------------------------------------
We believe, however, that adequate basis
for the relator's suit for his bounty is
to be found in the doctrine that the
assignee of a claim has standing to assert
the injury in fact suffered by the
assignor. The FCA can reasonably be
regarded as effecting a partial assignment
of the Government's damages claim. n4
Although we have never expressly
recognized "representational
standing" on the part of assignees,
we have routinely entertained their suits,
see, e.g., [#774]
Poller v. Columbia
Broadcasting System, Inc., 368 U.S.
464, 465, 7 L. Ed. 2d 458, 82 S. Ct. 486
(1962); Automatic Radio Mfg. Co.
v. Hazeltine Research, Inc., 339
U.S. 827, 829, 94 L. Ed. 1312, 70 S. Ct.
894 (1950); Hubbard v. Tod,
171 U.S. 474, 475, 43 L. Ed. 246, 19 S.
Ct. 14 (1898) -- and also suits by
subrogees, who have been described as
"equitable assignees," L.
Simpson, Law of Suretyship 205 (1950),
see, e.g., Vimar Seguros y
Reaseguros, S. A. v. M/V Sky
Reefer, 515 U.S. 528, 531, 132 L. Ed.
2d 462, 115 S. Ct. 2322 (1995); Musick,
Peeler & Garrett v. Employers
Ins. of Wausau, 508 U.S. 286, 288,
124 L. Ed. 2d 194, 113 S. Ct. 2085 (1993).
We conclude, therefore, that the United
States' injury in fact suffices to confer
standing on respondent Stevens.
------------------------------------------
n4 In addressing the Eleventh Amendment
issue that we leave open today, the
dissent suggests that we are asserting
that a qui tam relator "is,
in effect, suing as an assignee of the
United States." Post, at 14;
see also post, at 8-9 (same).
More precisely, we are asserting that a qui
tam relator is, in effect, suing as a
partial assignee of the United
States.
------------------------------------------
We are confirmed in this conclusion by the
long tradition of qui tam actions
in England and the American Colonies. That
history is particularly relevant to the
constitutional standing inquiry since, as
we have said elsewhere, Article III's
restriction of the judicial power to
"Cases" and
"Controversies" is properly
understood to mean "cases and
controversies of the sort traditionally
amenable to, and resolved by, the judicial
process." Steel Co., 523
U.S. at 102; see also Coleman v. Miller,
307 U.S. 433, 460, 83 L. Ed. 1385, 59 S.
Ct. 972 (1939) (opinion of Frankfurter,
J.) (the Constitution established that
"judicial power could come into play
only in matters that were the traditional
concern of the courts at Westminster and
only if they arose in ways that to the
expert feel of lawyers constituted 'Cases'
or 'Controversies'").
Qui tam actions appear to have
originated around the end of the 13th
century, when private individuals who had
suffered injury began bringing actions in
the royal courts on both their own and the
Crown's behalf. See, e.g., Prior
of Lewes v. De Holt (1300),
reprinted in 48 Selden Society 198 (1931).
Suit in this dual capacity was a device
for getting their private claims into the
respected royal courts, which generally
entertained only matters involving the
Crown's interests. See Milsom, Trespass
from Henry III to Edward III, Part III:
More Special Writs and Conclusions, [#775]
74 L. Q. Rev. 561, 585 (1958). Starting in
the 14th century, as the royal courts
began to extend jurisdiction to suits
involving wholly private wrongs, the
common-law qui tam
action gradually fell into disuse,
although it seems to have remained
technically available for several
centuries. See 2 W. Hawkins, Pleas of the
Crown 369 (8th ed. 1824).
[##1864]
At about the same time, however,
Parliament began enacting statutes that
explicitly provided for qui tam
suits. These were of two types: those that
allowed injured parties to sue in
vindication of their own interests (as
well as the Crown's), see, e.g.,
Statute Providing a Remedy for Him Who Is
Wrongfully Pursued in the Court of
Admiralty, 2 Hen. IV, ch. 11 (1400), and
-- more relevant here -- those that
allowed informers to obtain a portion of
the penalty as a bounty for their
information, even if they had not suffered
an injury themselves, see, e.g.,
Statute Prohibiting the Sale of Wares
After the Close of Fair, 5 Edw. III, ch. 5
(1331); see generally Common Informers
Act, 14 & 15 Geo. VI, ch. 39, sched.
(1951) (listing informer statutes). Most,
though not all, of the informer statutes
expressly gave the informer a cause of
action, typically by bill, plaint,
information, or action of debt. See, e.g.,
Bill for Leases of Hospitals, Colleges,
and Other Corporations, 33 Hen. VIII, ch.
27 (1541); Act to Avoid Horse-Stealing, 31
Eliz. I, ch. 12, § 2 (1589); Act to
Prevent the Over-Charge of the People by
Stewards of Court-Leets and Court-Barons,
2 Jac. I, ch. 5 (1604).
For obvious reasons, the informer statutes
were highly subject to abuse, see M.
Davies, The Enforcement of English
Apprenticeship 58-61 (1956) --
particularly those relating to obsolete
offenses, see generally 3 E. Coke,
Institutes of the Laws of England 191 (4th
ed. 1797) (informer prosecutions under
obsolete statutes had been used to
"vex and entangle the subject").
Thus, many of the old enactments were
repealed, see Act for Continuing and
Reviving of Divers Statutes and Repeal of
Divers Others, 21 Jac. I, ch. 28, § 11
[#776] (1623), and
statutes were passed deterring and
penalizing vexatious informers, limiting
the locations in which informer suits
could be brought, and subjecting such
suits to relatively short statutes of
limitation, see Act to Redress Disorders
in Common Informers, 18 Eliz. I, ch. 5
(1576); Act Concerning Informers, 31 Eliz.
I, ch. 5 (1589); see generally Davies, supra,
at 63-76. Nevertheless, laws allowing qui
tam suits by informers continued to
exist in England until 1951, when all of
the remaining ones were repealed. See
Note, The History and Development of Qui
Tam, 1972 Wash. U. L. Q. 81, 88, and n. 44
(citing Common Informers Act, 14 & 15
Geo. VI, ch. 39 (1951)).
Qui tam actions appear to have
been as prevalent in America as in
England, at least in the period
immediately before and after the framing
of the Constitution. Although there is no
evidence that the Colonies allowed
common-law qui tam actions
(which, as we have noted, were dying out
in England by that time), they did pass
several informer statutes expressly
authorizing qui tam suits. See, e.g.,
Act for the Restraining and Punishing of
Privateers and Pirates, 1st Assembly, 4th
Sess. (N. Y. 1692), reprinted in 1
Colonial Laws of New York 279, 281 (1894)
(allowing informers to sue for, and
receive share of, fine imposed upon
officers who neglect their duty to pursue
privateers and pirates). Moreover,
immediately after the framing, the First
Congress enacted a considerable number of
informer statutes. n5 Like their English
counterparts, some of them [#777]
provided both a bounty and an express
cause of action; n6 [##1865]
others provided a bounty only. n7
------------------------------------------
n5 In addition, the First Congress passed
one statute allowing injured parties to
sue for damages on both their own and the
United States' behalf. See Act of May 31,
1790, ch. 15, § 2, 1 Stat. 124-125
(allowing author or proprietor to sue for
and receive half of penalty for violation
of copyright); cf. Act of Mar. 1, 1790, ch.
2, § 6, 1 Stat. 103 (allowing census
taker to sue for and receive half of
penalty for failure to cooperate in
census); Act of July 5, 1790, ch. 25, §
1, 1 Stat. 129 (extending same to Rhode
Island).
n6 See Act of Mar. 1, 1790, ch. 2, § 3, 1
Stat. 102 (allowing informer to sue for,
and receive half of fine for, failure to
file census return); Act of July 5, 1790,
ch. 25, § 1, 1 Stat. 129 (extending same
to Rhode Island); Act of July 20, 1790, ch.
29, §§ 1, 4, 1 Stat. 131, 133 (allowing
private individual to sue for, and receive
half of fine for, carriage of seamen
without contract or illegal harboring of
runaway seamen); Act of July 22, 1790, ch.
33, § 3, 1 Stat. 137-138 (allowing
private individual to sue for, and receive
half of goods forfeited for, unlicensed
trading with Indian tribes); Act of Mar.
3, 1791, ch. 15, § 44, 1 Stat. 209
(allowing person who discovers violation
of spirits duties, or officer who seizes
contraband spirits, to sue for and receive
half of penalty and forfeiture, along with
costs, in action of debt); cf. Act of Apr.
30, 1790, ch. 9, §§ 16, 17, 1 Stat. 116
(allowing informer to conduct prosecution,
and receive half of fine, for criminal
larceny or receipt of stolen goods).
n7 See Act of July 31, 1789, ch. 5, § 29,
1 Stat. 44-45 (giving informer full
penalty paid by customs official for
failing to post fee schedule); Act of Aug.
4, 1790, ch. 35, § 55, 1 Stat. 173
(same); Act of July 31, 1789, ch. 5, §
38, 1 Stat. 48 (giving informer quarter of
penalties, fines, and forfeitures
authorized under a customs law); Act of
Sept. 1, 1789, ch. 11, § 21, 1 Stat. 60
(same under a maritime law); Act of Aug.
4, 1790, ch. 35, § 69, 1 Stat. 177 (same
under another customs law); Act of Sept.
2, 1789, ch. 12, § 8, 1 Stat. 67
(providing informer half of penalty upon
conviction for violation of
conflict-of-interest and bribery
provisions in Act establishing Treasury
Department); Act of Mar. 3, 1791, ch. 8,
§ 1, 1 Stat. 215 (extending same to
additional Treasury employees); Act of
Feb. 25, 1791, ch. 10, §§ 8, 9, 1 Stat.
195-196 (providing informer half or fifth
of fines resulting from improper trading
or lending by agents of Bank of United
States); cf. Act of Aug. 4, 1790, ch. 35,
§ 4, 1 Stat. 153 (apportioning half of
penalty for failing to deposit ship
manifest to official who should have
received manifest, and half to collector
in port of destination).
We have suggested, in dictum, that
"statutes providing for a reward to
informers which do not specifically either
authorize or forbid the informer to
institute the action are construed to
authorize him to sue." United
States ex rel. Marcus v. Hess,
317 U.S. 537, 541, n. 4, 87 L. Ed. 443, 63
S. Ct. 379 (1943).
------------------------------------------
We think this history well nigh conclusive
with respect to the question before us
here: whether qui tam actions
were "cases and controversies of the
sort traditionally amenable to, and
resolved by, the judicial process." Steel
Co., 523 U.S. at 102. [#778]
When combined with the theoretical
justification for relator standing
discussed earlier, it leaves no room for
doubt that a qui tam relator
under the FCA has Article III standing. n8
We turn, then, to the merits.
------------------------------------------
n8 In so concluding, we express no view on
the question whether qui tam
suits violate Article II, in particular
the Appointments Clause of § 2 and the
"take Care" Clause of § 3.
Petitioner does not challenge the qui
tam mechanism under either of those
provisions, nor is the validity of qui
tam suits under those provisions a
jurisdictional issue that we must resolve
here. See Steel Co. v. Citizens
for Better Environment, 523 U.S. 83,
102, n. 4, 140 L. Ed. 2d 210, 118 S. Ct.
1003 (1998) ("Our standing
jurisprudence, . . . though it may
sometimes have an impact on Presidential
powers, derives from Article III and not
Article II"); see also Lujan
v. Defenders of Wildlife, 504
U.S. 555, 576-578, 119 L. Ed. 2d 351, 112
S. Ct. 2130 (1992).
The dissent implicitly attacks us for
"introducing [this question] sua
sponte." Post, at 14.
We raise the question, however, only to
make clear that it is not at issue in this
case. It is only the dissent that proceeds
to volunteer an answer. See post,
at 13-14.
------------------------------------------
III
Petitioner
makes two contentions: (1) that a State
(or state agency) is not a
"person" subject to qui tam liability
under the FCA; and (2) that if it is, the
Eleventh Amendment bars such a suit. The
Courts of Appeals have disagreed as to the
order in which these statutory and
Eleventh Amendment immunity questions
should be addressed. Compare United
States ex rel. Long v. SCS
Business & Technical Institute, Inc.,
335 U.S. App. D.C. 351, 173 F.3d 890,
893-898 (CADC 1999) (statutory question
first), with United States ex rel.
Foulds v. Texas Tech Univ.,
171 F.3d 279, 285-288 (CA5 1999) (Eleventh
Amendment immunity question first).
Questions of jurisdiction, of course,
should be given priority -- since if there
is no jurisdiction there is no authority
to sit in judgment of anything else. See Steel
Co., 523 U.S. at 93-102.
"Jurisdiction is power to declare the
law, and when it ceases to exist, the only
function remaining to the court is that of
announcing [##1866] the fact
and dismissing the [#779]
cause." Ex parte McCardle,
74 U.S. 506, 7 Wall. 506, 514, 19 L. Ed.
264 (1869). Even jurisdiction over the
person (as opposed to subject-matter
jurisdiction) "is 'an essential
element of the jurisdiction of a district
. . . court,' without which the court is
'powerless to proceed to an
adjudication.'" Ruhrgas AG
v. Marathon Oil Co., 526 U.S.
574, 584, 143 L. Ed. 2d 760, 119 S. Ct.
1563 (1999) (quoting Employers
Reinsurance Corp. v. Bryant,
299 U.S. 374, 382, 81 L. Ed. 289, 57 S.
Ct. 273 (1937)).
We nonetheless have routinely addressed before
the question whether the Eleventh
Amendment forbids a particular statutory
cause of action to be asserted against
States, the question whether the statute
itself permits the cause of
action it creates to be asserted against
States (which it can do only by clearly
expressing such an intent). See, e.g.,
Kimel v. Florida Bd. of
Regents, 528 U.S. ___ , ___ (2000)
(slip op., at 8-13); Seminole Tribe of
Fla. v. Florida, 517 U.S.
44, 55-57, 134 L. Ed. 2d 252, 116 S. Ct.
1114 (1996); cf. Hafer v. Melo,
502 U.S. 21, 25-31, 116 L. Ed. 2d 301, 112
S. Ct. 358 (1991); Mt. Healthy City
Bd. of Ed. v. Doyle, 429
U.S. 274, 277-281, 50 L. Ed. 2d 471, 97 S.
Ct. 568 (1977). When these two questions
are at issue, not only is the statutory
question "logically antecedent to the
existence of " the Eleventh Amendment
question, Amchem Products, Inc.
v. Windsor, 521 U.S. 591, 612,
138 L. Ed. 2d 689, 117 S. Ct. 2231 (1997),
but also there is no realistic possibility
that addressing the statutory question
will expand the Court's power beyond the
limits that the jurisdictional restriction
has imposed. The question whether the
statute provides for suits against the
States (as opposed, for example, to the
broader question whether the statute
creates any private cause of action
whatever, or the question whether the
facts alleged make out a "false
claim" under the statute) does not,
as a practical matter, permit the court to
pronounce upon any issue, or upon the
rights of any person, beyond the issues
and persons that would be reached under
the Eleventh Amendment inquiry anyway. The
ultimate issue in the statutory inquiry is
whether States can be sued under this
statute; and the ultimate issue in the
Eleventh Amendment inquiry is whether
unconsenting States can be sued under this
statute. This combination of logical
priority [#780] and
virtual coincidence of scope makes it
possible, and indeed appropriate, to
decide the statutory issue first. We
therefore begin (and will end) with the
statutory question.
The relevant provision of the FCA, 31
U.S.C. § 3729(a), subjects to liability
"any person" who, inter alia,
"knowingly presents, or causes to be
presented, to an officer or employee of
the United States Government . . . a false
or fraudulent claim for payment or
approval." We must apply to this text
our longstanding interpretive presumption
that "person" does not include
the sovereign. See United States
v. Cooper Corp., 312 U.S. 600,
604, 85 L. Ed. 1071, 61 S. Ct. 742 (1941);
United States v. Mine
Workers, 330 U.S. 258, 275, 91 L. Ed.
884, 67 S. Ct. 677 (1947). n9 The [#781]
presumption is "particularly
[##1867] applicable where it
is claimed that Congress has subjected the
States to liability to which they had not
been subject before." Will
v. Michigan Dept. of State Police,
491 U.S. 58, 64, 105 L. Ed. 2d 45, 109 S.
Ct. 2304 (1989); Wilson v. Omaha
Tribe, 442 U.S. 653, 667, 61 L. Ed.
2d 153, 99 S. Ct. 2529 (1979). The
presumption is, of course, not a
"hard and fast rule of
exclusion," Cooper Corp.,
312 U.S. at 604-605, but it may be
disregarded only upon some affirmative
showing of statutory intent to the
contrary. See International Primate
Protection League v. Administrators
of Tulane Ed. Fund, 500 U.S. 72, 83,
114 L. Ed. 2d 134, 111 S. Ct. 1700 (1991).
------------------------------------------
n9 The dissent claims that, "although
general statutory references to 'persons'
are not normally construed to apply to the
enacting sovereign, when Congress uses
that word in federal statutes enforceable
by the Federal Government or by a federal
agency, it applies to States and state
agencies as well as to private individuals
and corporations." Post, at
2 (citation omitted). The dissent cites
three cases in support of this assertion.
None of them, however, involved a
statutory provision authorizing private
suit against a State. California
v. United States, 320 U.S. 577,
88 L. Ed. 322, 64 S. Ct. 352 (1944),
disregarded the presumption in a case
brought against a State by the Federal
Government (and under a statutory
provision authorizing suit only
by the Federal Government). See 320 U.S.
at 585-586. United States v. California,
297 U.S. 175, 80 L. Ed. 567, 56 S. Ct. 421
(1936), found the presumption overcome in
similar circumstances -- and with regard
to a statute that used not the word
"person," but rather the phrase
"common carrier." See 297 U.S.
at 186-187. And Georgia v. Evans,
316 U.S. 159, 86 L. Ed. 1346, 62 S. Ct.
972 (1942), held that the presumption was
overcome when, if a State were not
regarded as a "person" for
purposes of bringing an action
under § 7 of the Sherman Act, it would be
left "without any redress for
injuries resulting from practices outlawed
by that Act." 316 U.S. at 162.
The dissent contends that "the reason
for presuming that an enacting sovereign
does not intend to authorize litigation
against itself simply does not apply to
federal statutes that apply equally to
state agencies and private entities."
Post, at 10. That is true enough,
but in the American system there is a
different reason, equally valid. While the
States do not have the immunity against
federally authorized suit that
international law has traditionally
accorded foreign sovereigns, see National
City Bank of N. Y. v. Republic of
China, 348 U.S. 356, 358-359, 99 L.
Ed. 389, 75 S. Ct. 423 (1955), they are
sovereigns nonetheless, and both comity
and respect for our federal system demand
that something more than mere use of the
word "person" demonstrate the
federal intent to authorize unconsented
private suit against them. In any event,
JUSTICE STEVENS fought and lost this
battle in Will v. Michigan
Dept. of State Police, 491 U.S. 58,
105 L. Ed. 2d 45, 109 S. Ct. 2304 (1989),
in which the Court applied the presumption
to a federal statute when the
"person" at issue was a State.
See id., at 64; but see id.,
at 73 (Brennan, J., dissenting, joined by
Marshall, Blackmun, and STEVENS, JJ.).
Moreover, JUSTICE STEVENS actually joined
the Court's opinion in Wilson v. Omaha
Tribe, 442 U.S. 653, 61 L. Ed. 2d
153, 99 S. Ct. 2529 (1979), in which the
Court likewise applied the presumption to
a federal statute in a case involving a
State. See id., at 667. (Wilson
is omitted from the dissent's discussion
of "cases decided before 1986,"
which it claims "uniformly
support" its reading of the statute. Post,
at 2.)
------------------------------------------
As the historical context makes clear, and
as we have often observed, the FCA was
enacted in 1863 with the principal goal of
"stopping the massive frauds
perpetrated by large [private] contractors
during the Civil War." United
States v. Bornstein, 423
U.S. 303, 309, 46 L. Ed. 2d 514, 96 S. Ct.
523 (1976); see also United States ex
rel. Marcus v. Hess, 317
U.S. 537, 547, 87 L. Ed. 443, 63 S. Ct.
379 (1943). n10 Its [#782]
liability provision -- the precursor to
today's § 3729(a) -- bore no indication
that States were subject to its penalties.
Indeed, far from indicating that States
were covered, it did not even make clear
that private corporations were,
since it applied only to "any person
not in the military or naval forces of the
United States, nor in the militia called
into or actually employed in the service
of the United States," and imposed
criminal penalties that included
imprisonment. n11 Act of Mar. 2, 1863, ch.
67, § 3, 12 Stat. 698. We do not suggest
that these features directed only at
natural persons cast doubt upon the
courts' assumption that § 3729(a) extends
to corporations, [##1868] see,
e.g., United States ex rel.
Woodard v. Country View Care
Center, Inc., 797 F.2d 888, 890 (CA10
1986) -- but that is because the
presumption with regard to corporations is
just the opposite of the one governing
here: they are presumptively covered
by the term "person," see 1
U.S.C. § 1. But the text of the original
statute does less than nothing to overcome
the presumption that States are not
covered.
------------------------------------------
n10 The dissent contends that the FCA was
"intended to cover the full range of
fraudulent acts, including those
perpetrated by States." Post,
at 4-5, and n. 2 (quoting United
States v. Neifert-White Co.,
390 U.S. 228, 232, 19 L. Ed. 2d 1061, 88
S. Ct. 959 (1968); Rainwater v. United
States, 356 U.S. 590, 592, 2 L. Ed.
2d 996, 78 S. Ct. 946 (1958); H. R. Rep.
No. 99-660, p. 18 (1985)). The sources the
dissent quotes, however, support its
contention only as far as the comma. They
stand for the unobjectionable proposition
(codified in § 3729(c)) that the FCA was
intended to cover all types of fraud,
not for the additional proposition that
the FCA was intended to cover all types of
fraudsters, including States.
n11 The criminal provision remains on the
books and is currently codified
separately, as amended, at 18 U.S.C. §
287.
------------------------------------------
Although the liability provision of the
original FCA has undergone various
changes, none of them suggests a
broadening of the term "person"
to include States. In 1982, Congress made
a housekeeping change, replacing the
phrase "any person not in the
military or naval forces of the United
States, nor in the militia called into or
actually employed in the service of the
United States" with the phrase
"[a] person not a member of an armed
force of the United States," thereby
incorporating the term of art "member
of an armed force" used throughout
Title 10 of the United States Code. 31
U.S.C. § 3729 (1982 ed.). And in 1986,
Congress eliminated the blanket exemption
for members of the Armed Forces, replacing
the phrase "[a] person not a member
of an [#783] armed
force of the United States" with the
current "any person." 31 U.S.C.
§ 3729(a). n12
------------------------------------------
n12 The dissent claims that "the term
'person' in § 3729(a) that we are
interpreting today was enacted by the 1986
Congress, not by the 1863 Congress." Post,
at 6, n. 5. But the term
"person" has remained in the
statute unchanged since 1863; the 1986
amendment merely changed the modifier
"[a]" to "any." This
no more caused the word "person"
to include States than did the replacement
of the word "any" with
"[a]" four years earlier. The
dissent's sole basis for giving the change
from "[a]" to "any"
this precise and unusual consequence is a
single sentence of legislative history
from the 1986 Congress. That would be
unequal to the task in any event, but as
it happens the sentence was not even
describing the consequence of the proposed
revision, but was setting forth a Senate
Committee's (erroneous) understanding of
the meaning of the statutory term enacted
some 123 years earlier. The paragraph in
which the sentence appears discusses the
FCA "in its present," i.e.,
pre-1986, "form." S. Rep. No.
99-345, p. 8 (1986).
The dissent contradicts its contention
that the "intent" of the 1986
Congress, rather than that of the 1863
Congress, controls here, by relying
heavily on a House Committee Report from
1862. Post, at 3-4 (citing H. R.
Rep. No. 2, 37th Cong., 2d Sess., pt.
ii-a, pp. XXXVIII-XXXIX (1862)). Even for
those disposed to allow the meaning of a
statute to be determined by a single
committee, that Report is utterly
irrelevant, since it was not prepared in
connection with the 1863 Act, or indeed in
connection with any proposed false claims
legislation. In repeating the Second
Circuit's unsupported assertion that
Congress must have had this Report in mind
a year later when it enacted the FCA, the
dissent asks us to indulge even a greater
suspension of disbelief than legislative
history normally requires. And finally,
this irrelevant committee Report does not
provide the promised support for the view
that "the False Claims Act is . . .
as capable of being violated by State as
by individual action," post,
at 3. The cited portion details a single
incident of fraud by a state official
against a State, not an incident
of fraud by a State against the Federal
Government.
------------------------------------------
Several features of the current statutory
scheme further support the conclusion that
States are not subject to qui tam
liability. First, another section of the
FCA, 31 U.S.C. § 3733, which enables the
Attorney General to issue civil
investigative demands to "any person
. . . possessing information relevant to a
false claims law investigation," §
3733(a)(1), [#784]
contains a provision expressly defining
"person," "for purposes of
this section," to include States, §
3733(l)(4). n13 The presence of
such a definitional [##1869]
provision in § 3733, together with the
absence of such a provision from the
definitional provisions contained in §
3729, see §§ 3729(b)-(c), suggests that
States are not "persons" for
purposes of qui tam liability
under § 3729. n14
------------------------------------------
n13 The dissent points out that the
definition of "person" in §
3733(l)(4) also applies to §
3733(l)(2), a definitional
provision which defines the phrase
"false claims law investigation"
as "any inquiry conducted by any
false claims law investigator for the
purpose of ascertaining whether any person
is or has been engaged in any violation of
a false claims law." See post,
at 1, 7-8. But the effect of assuming a
State to be a "person" for
purposes of that definitional section is not
to embrace investigations of States within
the definition. A "false claims
investigation" will still
not include an investigation of a State,
since whether a "person" (however
broadly defined) "is or has been
engaged in any violation of a false claims
law" depends on whether that person
is subject to the "false
claims law," which refers us back to
§ 3729, to which § 3733(l)(4)'s
definition of "person" is
explicitly made inapplicable. What the
application of § 3733(l)(4) to
§ 3733(l)(2) does
achieve is to subject States, not
to qui tam liability, but to
civil investigative demands. That is
entirely appropriate, since States will
often be able to provide useful evidence
in investigations of private contractors.
n14 The dissent contends that our argument
"proves too much," since the
definition of "person" in §
3733(l)(4) includes not just
States, but also "any natural person,
partnership, corporation, association, or
other legal entity"; under our
reasoning, it contends, all of those
entities would also be excluded
from the definition of "person"
under § 3729. Post, at 11. That
is not so. Unlike States, all of those
entities are presumptively covered
by the term "person." See 1
U.S.C. § 1. The addition of
States to 31 U.S.C. § 3733, and the
failure to add States to § 3729, suggests
that States are not subject to qui tam
liability under § 3729.
The dissent attempts to explain the
absence of a definitional provision in §
3729 by suggesting that Congress
"simply saw no need to add a
definition of 'person' in § 3729 because
. . . the meaning of the term 'person' was
already well understood." Post,
at 11. If that were so, and if the
"understanding" included States,
there would have been no need to include a
definition of "person" in §
3733.
------------------------------------------
Second, the current version of the FCA
imposes damages that are essentially
punitive in nature, which would be
inconsistent [#785]
with state qui tam liability in
light of the presumption against
imposition of punitive damages on
governmental entities. See, e.g.,
Newport v. Fact Concerts,
Inc., 453 U.S. 247, 262-263, 69 L.
Ed. 2d 616, 101 S. Ct. 2748 (1981). n15
Although this Court suggested that damages
under an earlier version of the FCA were
remedial rather than punitive, see Bornstein,
423 U.S. at 315; but see Smith v.
Wade, 461 U.S. 30, 85, 75 L. Ed.
2d 632, 103 S. Ct. 1625 (1983) (REHNQUIST,
J., dissenting), that version of the
statute imposed only double damages and a
civil penalty of $ 2,000 per claim, see 31
U.S.C. § 231 (1976 ed.); the current
version, by contrast, generally imposes
treble damages and a civil penalty of up
to $ 10,000 per claim, see 31 U.S.C. §
3729(a). n16 Cf. Marcus, 317 U.S.
at 550 (noting that double damages in
[#786] original FCA
were not punitive, but suggesting that
treble damages, such as those in the
antitrust laws, would [##1870]
have been). "The very idea of treble
damages reveals an intent to punish past,
and to deter future, unlawful conduct, not
to ameliorate the liability of
wrongdoers." Texas Industries,
Inc. v. Radcliff Materials, Inc.,
451 U.S. 630, 639, 68 L. Ed. 2d 500, 101
S. Ct. 2061 (1981).
------------------------------------------
n15 The dissent attempts to
distinguish Newport on the basis of a
single sentence in that opinion stating
that "courts view punitive damages
[against governmental bodies] as contrary
to sound public policy, because such
awards would burden the very taxpayers and
citizens for whose benefit the wrongdoer
was being chastised." Newport
v. Fact Concerts, Inc., 453 U.S.
247, 263, 69 L. Ed. 2d 616, 101 S. Ct.
2748 (1981). The dissent contends that Newport
is inapplicable where, as here, "the
taxpaying 'citizens for whose benefit' the
[statute] is designed are the citizens of
the United States, not the citizens of any
individual State that might violate the
[statute]." Post, at 13. The
problem with this is that 42 U.S.C. §
1983 -- the statute at issue in Newport
-- is, like the FCA, a federal law
designed to benefit "the citizens of
the United States, not the citizens of any
individual State that might violate the
[statute]." A better reading of Newport
is that we were concerned with
imposing punitive damages on taxpayers
under any circumstances. "'[Punitive
damages], being evidently vindictive,
cannot, in our opinion, be sanctioned by
this court, as they are to be borne by
widows, orphans, aged men and women, and
strangers, who, admitting that they must
repair the injury inflicted by the Mayor
on the plaintiff, cannot be bound beyond
that amount, which will be sufficient for
her indemnification.'" Newport,
supra, at 261 (quoting McGary
v. President & Council of City of
Lafayette, 12 Rob. 668, 677 (La.
1846)).
n16 As the dissent correctly points out,
see post, at 13, n. 11, treble
damages may be reduced to double damages
in certain cases, see § 3729(a). This
exception, however, applies only in some
of those (presumably few) cases involving
defendants who provide information
concerning the violation before they have
knowledge that an investigation is
underway. See ibid.
------------------------------------------
Third, the Program Fraud Civil Remedies
Act of 1986 (PFCRA), a sister scheme
creating administrative remedies for false
claims -- and enacted just before the FCA
was amended in 1986 -- contains (unlike
the FCA) a definition of
"persons" subject to liability,
and that definition does not include
States. See 31 U.S.C. § 3801(a)(6)
(defining "person" as "any
individual, partnership, corporation,
association, or private
organization"). It would be most
peculiar to subject States to treble
damages and civil penalties in qui tam
actions under the FCA, but exempt them
from the relatively smaller damages
provided under the PFCRA. See §
3802(a)(1). n17
------------------------------------------
n17 The dissent attempts to distinguish
the PFCRA on the ground that it is a
separate and subsequently enacted statute.
See post, at 11-12, and n. 10.
But it is well established that a court
can, and should, interpret the text of one
statute in the light of text of
surrounding statutes, even those
subsequently enacted. See FDA v. Brown
& Williamson Tobacco Corp., 529
U.S. ___ , ___ (2000) (slip op., at 9-10);
United States v. Fausto,
484 U.S. 439, 453, 98 L. Ed. 2d 830, 108
S. Ct. 668 (1988). Moreover, there is no
question that the PFCRA was designed to
operate in tandem with the FCA. Not only
was it enacted at virtually the same time
as the FCA was amended in 1986, but its
scope is virtually identical to that of
the FCA. Compare § 3729(a) (FCA)
("Any person who . . . knowingly
presents, or causes to be presented, to an
officer or employee of the United States
Government . . . a false or fraudulent
claim for payment or approval . . .
") with § 3802(a)(1) (PFCRA)
("Any person who makes, presents, or
submits, or causes to be made, presented,
or submitted, a claim that the person
knows or has reason to know . . . is
false, fictitious, or fraudulent . . .
"). The dissent would, in any event,
subject States to suit under the PFCRA no
less than under the FCA -- despite its
detailed definition of "person"
that does not include States. In
justification of this the dissent again
cites California v. United
States, 320 U.S. at 585, and Evans,
316 U.S. at 160. In addition to being
inapposite because they did not authorize
suits against States by private parties,
see n. 9, supra, the definitions
of "person" in the statutes at
issue in those cases were not as detailed
as that of the PFCRA, and set forth what
the term "person" included,
rather than, as the PFCRA does, what the
term "person" "means,"
see 31 U.S.C. § 3801(a)(6) (emphasis
added).
------------------------------------------
[#787]
In sum, we believe that various features
of the FCA, both as originally enacted and
as amended, far from providing the
requisite affirmative indications that the
term "person" included States
for purposes of qui tam
liability, indicate quite the contrary.
Our conclusion is buttressed by two other
considerations that we think it
unnecessary to discuss at any length:
first, "the ordinary rule of
statutory construction" that "if
Congress intends to alter the usual
constitutional balance between States and
the Federal Government, it must make its
intention to do so unmistakably clear in
the language of the statute," Will,
491 U.S. at 65 (internal quotation marks
and citation omitted); see also Gregory
v. Ashcroft, 501 U.S. 452,
460-461, 115 L. Ed. 2d 410, 111 S. Ct.
2395 (1991); United States v. Bass,
404 U.S. 336, 349, 30 L. Ed. 2d 488, 92 S.
Ct. 515 (1971), and second, the doctrine
that statutes should be construed so as to
avoid difficult constitutional questions.
We of course express no view on the
question whether an action in federal
court by a qui tam relator
against a State would run afoul of the
Eleventh Amendment, but we note that there
is "a serious doubt" on that
score. Ashwander v. TVA,
297 U.S. 288, 348, 80 L. Ed. 688, 56 S.
Ct. 466 (1936) (Brandeis, J., concurring)
(internal quotation marks and citation
omitted). n18
------------------------------------------
n18 Although the dissent concludes that
States can be "persons" for
purposes of commencing an FCA qui
tam action under § 3730(b), see post,
at 6-7, we need not resolve that question
here, and therefore leave it open.
------------------------------------------
* * * [##1871]
We hold that a private individual has
standing to bring suit in federal court on
behalf of the United States under the
False Claims Act, 31 U.S.C. §§
3729-3733, but that the [#788]
False Claims Act does not subject a State
(or state agency) to liability in such
actions. The judgment of the Second
Circuit is reversed.
It is so ordered.
CONCURRENCES BY: BREYER;
GINSBURG
CONCUR: JUSTICE BREYER,
concurring.
I join the opinion of the Court in full. I
also join the opinion of JUSTICE GINSBURG.
CONCUR:
JUSTICE
GINSBURG, with whom JUSTICE BREYER joins,
concurring in the judgment.
I join the Court's judgment and here state
the extent to which I subscribe to the
Court's opinion.
I agree with the Court that the qui
tam relator is properly regarded as
an assignee of a portion of the
Government's claim for damages. See ante,
at 6. And I agree, most vitally, that
"Article III's restriction of the
judicial power to 'Cases' and
'Controversies' is properly understood to
mean 'cases and controversies of the sort
traditionally amenable to, and resolved
by, the judicial process.'" Ante,
at 7. On that key matter, I again agree
that history's pages place the qui tam
suit safely within the "case" or
"controversy" category. See ante,
at 7-11.
In Steel Co. v. Citizens for
Better Environment, 523 U.S. 83, 140
L. Ed. 2d 210, 118 S. Ct. 1003 (1998), I
reasoned that if Congress did not
authorize a citizen suit, a court should
dismiss the citizen suitor's complaint
without opining "on the
constitutionality of what Congress might
have done, but did not do." Id.,
at 134 (opinion concurring in judgment). I
therefore agree that the Court properly
turns first to the statutory question here
presented: Did Congress authorize qui
tam suits against the States.
Concluding that Congress did not authorize
such suits, the Court has no cause to
engage in an Eleventh Amendment inquiry,
and appropriately leaves that issue open.
I do not find in the False Claims Act any
clear statement subjecting the States to qui
tam suits brought by private [#789]
parties, and therefore concur in the
Court's resolution of the statutory
question. See ante, at 21. I
note, however, that the clear statement
rule applied to private suits against a
State has not been applied when the United
States is the plaintiff. See, e.g.,
Sims v. United States,
359 U.S. 108, 112, 3 L. Ed. 2d 667, 79 S.
Ct. 641 (1959) (state agency ranks as a
"person" subject to suit by the
United States under federal tax levy
provision); United States v. California,
297 U.S. 175, 186-187, 80 L. Ed. 567, 56
S. Ct. 421 (1936) (state-owned railway
ranks as a "common carrier"
under Federal Safety Appliance Act subject
suit for penalties by the United States).
I read the Court's decision to leave open
the question whether the word
"person" encompasses States when
the United States itself sues under the
False Claims Act.
DISSENT BY: STEVENS
DISSENT: JUSTICE STEVENS,
with whom JUSTICE SOUTER joins,
dissenting.
In 1986, Congress amended the False Claims
Act (FCA or Act) to create a new procedure
known as a "civil investigative
demand," which allows the Attorney
General to obtain documentary evidence
"for the purpose of ascertaining
whether any person is or has been engaged
in" a violation of the Act --
including a violation of 31 U.S.C. §
3729. The 1986 amendments also declare
that a "person" who could engage
in a violation of § 3729 -- thereby
triggering the civil investigative demand
provision -- includes "any State or
political subdivision of a State."
See § 6(a), 100 Stat. 3168 (codified at
31 U.S.C. §§ 3733(l)(1)(A),
(2), (4)). In my view, this statutory text
makes it perfectly clear that Congress
intended the term "person" in §
3729 to include States. This understanding
[##1872] is supported by the
legislative history of the 1986
amendments, and is fully consistent with
this Court's construction of federal
statutes in cases decided before those
amendments were enacted.
Since the FCA was amended in 1986,
however, the Court has decided a series of
cases that cloak the States with an
increasingly protective mantle of
"sovereign immunity" from [#790]
liability for violating federal laws. It
is through the lens of those post-1986
cases that the Court has chosen to
construe the statute at issue in this
case. To explain my disagreement with the
Court, I shall comment on pre-1986 cases,
the legislative history of the 1986
amendments, and the statutory text of the
FCA -- all of which support the view that
Congress understood States to be included
within the meaning of the word
"person" in § 3729. I shall
then briefly explain why the State's
constitutional defenses fail, even under
the Court's post-1986 construction of the
doctrine of sovereign immunity.
I
Cases
decided before 1986 uniformly support the
proposition that the broad language used
in the False Claims Act means what it
says. Although general statutory
references to "persons" are not
normally construed to apply to the
enacting sovereign, United States
v. Mine Workers, 330 U.S. 258,
275, 91 L. Ed. 884, 67 S. Ct. 677 (1947),
when Congress uses that word in federal
statutes enforceable by the Federal
Government or by a federal agency, it
applies to States and state agencies as
well as to private individuals and
corporations. Thus, for example, the word
"person" in the Sherman Act does
not include the sovereign that enacted the
statute (the Federal Government), United
States v. Cooper Corp., 312
U.S. 600, 85 L. Ed. 1071, 61 S. Ct. 742
(1941), but it does include the States, Georgia
v. Evans, 316 U.S. 159, 86 L. Ed.
1346, 62 S. Ct. 972 (1942). Similarly,
States are subject to regulation as a
"person" within the meaning of
the Shipping Act of 1916, California
v. United States, 320 U.S. 577,
88 L. Ed. 322, 64 S. Ct. 352 (1944), and
as a "common carrier" within the
meaning of the Safety Appliance Act, United
States v. California, 297
U.S. 175, 80 L. Ed. 567, 56 S. Ct. 421
(1936). In the latter case, the State of
California "invoked the canon of
construction that a sovereign is
presumptively not intended to be
bound" by a statute unless the act
expressly declares that to be the case. Id.,
at 186. We rejected the applicability of
that canon, stating: [#791]
"We
can perceive no reason for extending it
so as to exempt a business carried on by
a state from the otherwise applicable
provisions of a |