United States ex rel. Sutton v. Double Day Office Services, Inc.

Richard Sutton brings a qui tam False Claims Act action against Double Day Office Services, Inc., his former employer, alleging that Double Day fraudulently reported to the United States that it was in compliance with the Service Contract Act. Sutton appeals the district court’s holding that he lacks standing because his claim is effectively an SCA claim and the SCA bars private rights of action.

The district court had jurisdiction pursuant to 31 U.S.C. § 3732 (a) and 28 U.S.C. § 1331 . We have jurisdiction pursuant to 28 U.S.C. § 1291 , and reverse.

*533 BACKGROUND

Richard Sutton was employed by Double Day Office Services, Inc., a moving company that had contracts with the United States for moving federal employees. Sutton brought a qui tarn relator False Claims Act action on behalf of the United States against Double Day and its officers alleging that Double Day: executed contracts with the federal government that required the payment of prevailing wages; made false statements regarding the services rendered with the purpose of creating the impression that prevailing wages were paid to service employees; had knowledge of the falsity of the statements; and received payment for…