Supreme Court of the United States

United States v. Bornstein

January 14, 1976423 U.S. 303

Summary

The Supreme Court reversed and remanded the case, holding that a subcontractor is liable for three $2,000 forfeitures – one for each separately invoiced shipment that caused false claims – and that double damages must be calculated by doubling the Government's actual loss before any compensatory payments are deducted. Justice Rehnquist, joined by the Chief Justice and Justice White, concurred in part and dissented in part, agreeing with the double‑damages rule but proposing a broader forfeiture test based on proximate cause and foreseeability.

Holding

  • Whether the number of statutory forfeitures is measured by the number of causative acts of the subcontractor. United is liable for three forfeitures, one for each separately invoiced shipment that caused Model to submit false claims.
  • Whether double damages are to be computed before any deductions. The Government's actual damages are to be doubled before any compensatory payments are subtracted.

Docket 74-712

Cited authorities

  • CA10
  • 57 Stat. 608
  • 12 Stat. 696
  • 31 U.S.C. § 231
  • 35 Stat. 1153
  • 18 U.S.C. §§ 287
  • 12 Stat. 698

Cited by