United States ex rel. Saaf v. Lehman Bros.

Relator Richard Saaf appeals the district court’s dismissal of his qui tam action under the False Claims Act (“FCA”), 31 U.S.C. § 3729 et seq., on statute of limitations grounds. Based on the principles enunciated in United States ex rel. Hyatt v. Northrop Corp., 91 F.3d 1211 (9th Cir.1996), we reverse and remand.

I

We review de novo a district court’s dismissal of an action on statute of limitations grounds. Torres v. City of Santa Ana, 108 F.3d 224, 226 (9th Cir.1997). The district court dismissed Saaf s complaint as violative of the FCA’s statute of limitations. The district court held that the tolling provision of 31 U.S.C. § 3731 (b)(2) applies only to *1308 the government and not to private individuals who bring qui tam actions under the FCA, relying entirely upon Hyatt v. Northrop Corp., 883 F.Supp. 484 (C.D.Cal.1995). We reversed Hyatt on this point after the district court decision in this case, holding that (1) the tolling provision of 31 U.S.C. § 3731 (b)(2) applies both to the government and to qui tam plaintiffs and (2) as to qui tam plaintiffs, the statute of limitations begins to run when the plaintiff knew or should have discovered the facts underlying the…