The Role of Qui Tam Actions in Environmental Enforcement

Qui tam cases involving environmental regulation present significant challenges for the federal government, especially since they often involve substantial amounts of federal funds. One reason why the government faces this hardship is that many violations of environmental statutes and regulations are difficult or prohibitively expensive for the government to detect, making a qui tam action a vital tool in uncovering these violations.

The enforcement arms of federal and state environmental agencies are often underfunded and understaffed. Moreover, there are also political concerns about enforcement. False Claims Act liability in the environmental arena does not arise from a violation of an environmental regulation alone, but from certifications that require the government contractor to follow certain statutes, rules and regulations under qui tam law. A qui tam whistleblower is often the one who brings these violations to light through a qui tam action.

False Claims Act Liability in Environmental Cases

The qui tam lawsuit cases in this area typically involve the liability of government contractors who fail to comply with or report misconduct in connection with environmental regulations. For example, a qui tam relator—one who acts as whistleblower—claimed that a company failed to comply with environmental requirements as outlined in its contracts with the Department of Defense.

Examples of Environmental Qui Tam Lawsuits

These contracts required all work to be performed in accordance with applicable federal, state, and local environmental laws and regulations. Specifically the company was required to follow regulations relating to the handling and disposal of hazardous material, such as metal sledges and spent solvents, and to comply with the Clean Water Act and the Clean Air Act.

In deciding a motion to dismiss, the court held that the qui tam whistleblowers stated a claim under the False Claims Act since the qui tam whistleblowers alleged that the contracts expressly required compliance with environmental regulations and that company knowingly failed to comply with such regulations and falsely certified that it had complied with the contract requirements in order to induce payments under the contracts. The court held that since the False Claims Act is aimed at providing a remedy for all fraudulent attempts to cause the government to pay a claim, the allegations fell squarely within the statutory and contractual prohibitions.

These qui tam lawsuit cases are influential in keeping companies accountable for violating environmental laws, especially when it involves a fraudulent claim that harms the environment and misuses federal funds.

The Importance of Whistleblowers in Environmental Fraud Cases

Whistleblowers play a big role in exposing fraud, and without their actions, many of these violations would remain undetected. This is why the qui tam provision of the False Claims Act is so vital in environmental enforcement.

Notice

This website is designed to provide general information only. This information is not and should not be construed to be legal advice. The transmission of the information found on this website also does not result in the formation of a lawyer-client relationship.

You should be aware that qui tam claims are subject to a Statute of Limitations. The area of limitations periods is complex. There are also first to file rules, public disclosure bars, original source issues, and varying limitations in pursuing retaliation claims. If you wish to pursue your claims, you should promptly seek the opinion of an attorney regarding the merits of your qui tam claim and the applicable statute of limitations.