United States Ex Rel. Meyer v. Horizon Health Corp.

Opinion by Judge MYRON H. BRIGHT; Dissent by Judge REINHARDT

In this appeal, qui tarn relators Michael M. Meyer and Patricia J. Szerlip contend that the district court erred by granting a motion to dismiss for lack of subject-matter jurisdiction brought by Horizon Health Corporation, Summit Medical Center, and Dr. Sukhdeep Grewal (collectively “appellees”). The principal issues on appeal relate to whether relators’ fraud allegations are based on a public disclosure, and, if so, whether the relators were the original *1198 source of those allegations. Having jurisdiction under 28 U.S.C. § 1291 , we affirm.

FACTS AND PROCEDURAL HISTORY

In 2000, relators Meyer, Szerlip, and Vicki Weatherford sued appellees, asserting claims under the qui tam provisions of the False Claims Act, 31 U.S.C. §§ 3729-3733 (“the Act”). Meyer and Szerlip were psychiatric nurses employed by Summit; Weatherford was employed by Horizon as the “Senior Bridges” program director. The Senior Bridges program was a geropsychiatric unit managed by Horizon at a facility owned by Summit.

The gravamen of relators’ allegations assert that appellees fraudulently billed Medicare for patient services. Specifically,…

dissenting:

I agree with the majority that the Weatherford suit constituted a public disclosure, thereby triggering the requirement that the relators be “original sources” in order to proceed with their qui tarn suit. I disagree, however, with the majority’s assessment of the record, and conclude that Szerlip has met her burden of showing “original source” status, thereby establishing jurisdiction, by a preponderance of the evidence. 1

As the majority correctly states, a qui tarn relator is an “original source” of the action if she “[1] has direct and independent knowledge of the information on which the allegations are based and [2] has voluntarily provided the information to the *1204 Government before filing an action under this section which is based on the information.” 31 U.S.C. § 3730 (e)(4)(B). In addition, our circuit requires that the relator has “had a hand in the public disclosure of allegations that are a part of ... [the] suit.” United States ex. rel. Devlin v. State of California, 84 F.3d 358 , 360 n. 3 (9th Cir.1996) (internal quotations omitted). This third requirement is satisfied, however, where the relator discloses her allegations to the government before…

Sarah S. Wright, San Rafael, CA, and John A. McGuinn, San Francisco, CA, for the plaintiffs-appellants.

Thomas M. Brown, Kenneth P. White, George P. Schiavelli, Teresa Cespedes Ellis, and Amber Finch, Los Angeles, CA, for defendant-appellee Horizon Health Corporation.

Gregory M. Luce, Washington, D.C., and Shawn Hanson and Tracy M. Strong, San Francisco, CA, for defendant-appellee Summit Medical Center.

Robert R. Moore and Michael J. Betz, San Francisco, CA, for defendant-appellee Sukhdeep Grewal, M.D.

Before: MYRON H. BRIGHT, [*] STEPHEN REINHARDT, and A. WALLACE TASHIMA, Circuit Judges.

Opinion by Judge MYRON H. BRIGHT; Dissent by Judge REINHARDT

BRIGHT, Circuit Judge:

In this appeal, qui tam relators Michael M. Meyer and Patricia J. Szerlip contend that the district court erred by granting a motion to dismiss for lack of subject-matter jurisdiction brought by Horizon Health Corporation, Summit Medical Center, and Dr. Sukhdeep Grewal (collectively "appellees"). The principal issues on appeal relate to whether relators' fraud allegations are based on a public disclosure, and, if so, whether the relators were the original source of those allegations. Having jurisdiction…