United States Ex Rel. Truong v. Northrop Corp.

In this action, plaintiffs allege that the officers, employees and agents of Northrop Corporation’s Advanced Systems Division conspired to obtain fraudulently, through the preparation of false records and statements and the collaborative omission and suppression of material facts, payments of false claims in connection with the design and manufacture of the “B-2” or “Stealth” bomber. The suit is brought under the False Claims Act (“the Act”), 31 U.S.C.A. §§ 3729 et seq. (West Supp.1988), by qui tam relators suing on behalf of the government. Northrop now moves to dismiss the action under F.R.Civ.P. 12(b)(1) on the ground that the qui tam provisions of the statute are unconstitutional under Article III, the separation of powers doctrine, and the Appointments Clause of Article II.

DISCUSSION

I. The Statute

The False Claims Act was originally enacted in 1863 and has been twice amended, first in 1943 and again in 1986. Under all versions of the Act, individuals have been authorized to “bring a civil action for a violation of [the Act] for the person and for the United States Government.” 31 U.S. C.A. § 3730(b)(1) (West Supp.1988).

Briefly stated, the statute as now amended…