United States v. Malcolm S. McLeod and Eunice McLeod His Wife

The district court held that appellant McLeod’s conduct constituted a common law conversion under Washington state law and a violation of the civil portion of the False Claims Act, 31 U.S.C.A. § 3729 (1983). The judgment entered against McLeod included an award of prejudgment interest. McLeod seeks reversal of the court’s finding that he knowingly made false claims against the United States. In addition, McLeod seeks reversal of the court’s rulings applying a six-year statute of limitations and denying his motion to implead Christian Palzer. Finally, he seeks reversal of the court’s award of prejudgment interest. The United States seeks reversal of the court’s refusal to award double damages under the False Claims Act.

FACTS

In 1952, The Bureau of Indian Affairs (BIA) contracted with Rayonier, Inc. (Rayo-nier) to cut and log various timber parcels within the Quinault Indian Reservation in the State of Washington. Under the contract, the BIA would receive the timber sale proceeds and then distribute the funds to the owners of the various parcels.

This case involves a 40-acre timber parcel acquired by McLeod in 1959. In April 1973, he sold his interest in the parcel to Christian…