United States Ex Rel. Stierli v. Shasta Services Inc.

Good Law
440 F. Supp. 2d 1108·2006 WL 1897109·2006 U.S. Dist. LEXIS 46861
United States District Court, Eastern District of CaliforniaJuly 11, 20062:04-CV-1955-MCE-PAN (JFM)California3,004 words

Opinion

Opinion

England, J.

MEMORANDUM AND ORDER

In filing the present lawsuit, Qui Tam Plaintiff Mike Stierli (“Stierli”) has attempted to invoke false claims provisions contained within both state and federal law. Stierli’s company, MDS Construction, Inc. (“MDS”), was an unsuccessful bidder for a California Department of Transportation (“CalTrans”) project, and Stierli has now sued the lowest bidder on the project in question, Shasta Services. Inc. dba Timberworks (“Timberworks”) on grounds that Timberworks’ bid was fraudulent and hence violated both the federal False Claims Act, 31 U.S.C. § 3729 , et seq., and its California counterpart, California Government Code § 12650, et seq. The United States of America (“United States”) and the State of California (“State”) now move to dismiss Stierli’s Complaint on grounds that no False Claims Act violation has occurred. In addition to those motions to dismiss, both Stierli and Timberworks have also filed Cross Motions for Summary Judgment requesting that this matter be adjudicated in their respective favors. As set forth below, the Court determines that dismissal is warranted as to Stierli’s state and federal claims.

BACKGROUND

On June 18, 2002, Timberworks…

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