United States Ex Rel. Stillwell v. Hughes Helicopters, Inc.

This matter is before the Court on defendants McDonnell Douglas Helicopter Company and Parker Hannifin Corporation’s motions to dismiss this action for lack of subject matter jurisdiction under Fed.R. Civ.P. 12(b)(1). The defendants ask this Court to declare the 1986 amendments to the qui tam sections of the False Claims Act, see 31 U.S.C.A. section 3730 (West Supp.1988), unconstitutional.

The defendants assert three bases for this challenge. First, they contend that the 1986 amendments violate the separation of powers doctrine because the new provisions confer litigative discretion on private plaintiffs and the judiciary, thus encroaching on the constitutional power of the executive branch to “take Care that the Laws be faithfully executed.” U.S. Const, art. II, section 3. Second, the defendants urge that the amended False Claims Act violates the Appointments Clause, U.S. Const, art. II, section 2, because Congress “appoints” relators to prosecute qui tam actions, a power that is exclusively vested in the executive branch. Finally, the defendants contest the congressional grant of standing to bring a qui tam action to a private party. They argue that a relator cannot allege the…