BLOG: New Judicial Order Offers Clarity on Maryland Statutes of Limitations Impacted by COVID-19

Early during the COVID-19 pandemic, a number of state-level court systems, including Maryland’s courts, declared judicial emergencies and issued orders automatically tolling, or postponing, the expiration of statutes of limitations [1] for claims filed within those states. These orders offered plaintiffs a reprieve from the strict filing deadlines. Now, as Maryland begins the process of reopening its court systems to the public, the state’s highest court has issued an order offering clarity as to the new filing deadlines for the expiration of . . . Read More

BLOG: 5 Steps for Preserving and Preparing Your Miller Act Claim

As the United States economy continues to grapple with the unprecedented impact of the coronavirus pandemic, many contractors are concerned about making and receiving payment for work. The Miller Act provides the process for subcontractors to ensure they are paid for their work on federal construction projects, but they must be familiar with its requirements and deadlines to seek payment. This guide outlines five steps subcontractors and material suppliers should take to ensure they preserve their right to recover payment . . . Read More

BLOG: Judgment on the Pleadings: An Underutilized and Potentially Devastating Tool in the Litigator’s Pre-Trial Arsenal

Motions for judgment on the pleadings are an often misunderstood and underutilized tool in the litigator’s arsenal. A motion made under Federal Rule of Civil Procedure 12(c) (or a similar state rule of procedure where available) can be used to attack the sufficiency of an opponent’s pleadings and the viability of their underlying claims prior to trial. When prompted, most defense litigators will often identify pre-answer motions to dismiss or motions for summary judgment as the preferred pre-trial vehicles to . . . Read More

BLOG: “Constructive Demotion” Claim Under Title VII Gains Traction in 4th Circuit District Courts

While the viability of a claim of “constructive demotion” under Title VII of the Civil Rights Act of 1964 (Title VII) has yet to be determined by the Fourth Circuit, a series of cases in district courts within the Circuit suggest that such might not be the case for long. In one such recent case, Judge Conrad of the U.S. District Court for the Western District of Virginia denied a defendant truck driver training company’s motion to dismiss a constructive . . . Read More

BLOG: DOJ Inside Access Highlights 4 Things to Expect from the False Claims Act in 2020

Several weeks ago, my colleague Matt Feinberg highlighted “ 4 Issues That Defined the False Claims Act (FCA) in 2019 ” and made predictions about anticipated FCA trends for 2020. At the recent 2020 Advanced Forum on False Claims and Qui Tam Enforcement, Department of Justice (DOJ) Deputy Associate Attorney General Stephen Cox (AG Cox) offered inside access to DOJ’s prospective priorities in enforcing and reforming the FCA for 2020 . Below, we review the DOJ’s resolutions, which allow us to better anticipate and understand issues government contractors may face under the FCA moving forward. Continue qui tam Enforcement Efforts In 2019, we saw . . . Read More

BLOG: 4 Issues That Defined the False Claims Act in 2019

As I wrote two weeks ago, the Department of Justice (DOJ) recently released its annual fiscal year statistics on False Claims Act (FCA) and fraud matters. The report shows Fiscal Year 2019 was another big year for the FCA, as the number of new matters initiated and the amount of monetary recoveries obtained both increased over the previous year. 2019 also brought important FCA decisions from federal courts, including the Supreme Court; potential new avenues for FCA liability; and formal announcements from DOJ. These . . . Read More

BLOG: Liquidated Damages Clauses: Important Considerations for Business Owners

When drafting or negotiating any contract, businesses should give careful consideration to avenues of recovery in the event of a breach by the other party. At times, this determination is straight-forward, such as where a party fails to pay amounts owed.  But the analysis can become complicated in situations where damages aren’t readily quantifiable, such as where a trade secret is misappropriated or a former employee solicits a company client.  To simplify such issues, businesses include liquidated damages provisions in . . . Read More

BLOG: SCOTUS Clarifies Vague Arbitration Clauses Affecting Class Disputes for Growing Businesses

For most small to medium-sized businesses, the threat of a class action is not usually front-of-mind. However, as a business grows, the threat can increase depending on the number of employees and the nature of the work being performed.  Class actions are commonly thought of as involving hundreds, if not thousands, of individuals.  However, courts routinely consider much smaller groups of employees, including groups of approximately 40 individuals to be sufficient to establish a class action.  To reduce the risk . . . Read More

BLOG: Small Businesses and the FCA: Are More FCA Cases Against Small Businesses on the Horizon?

On August 20, 2019, the U.S. Department of Justice announced that it had reached a $20 million settlement with Luke Hillier (Hillier), the majority owner and former CEO of a Virginia-based defense contractor, ADS, Inc. (ADS), to resolve “allegations that he violated the False Claims Act (FCA) by fraudulently obtaining federal set-aside contracts reserved for small businesses that his company was ineligible to receive . . . .” The resolution of the claims against Hillier follows ADS’s payment of a . . . Read More

BLOG: Building Compliance: Construction Industry Concerns Under FCA

The Department of Justice (DOJ) has settled and obtained judgments in excess of $2.8 billion for false claims against the government last year. Over $2.1 billion of these cases arose from lawsuits filed under the qui tam provisions of the False Claims Act (FCA) which incentivizes whistleblowers to file claims. Government contractors in the construction industry – both primes and subs – face a higher risk of FCA liability because of the complicated nature of construction contracts and prevailing wage obligations. Below we . . . Read More