Supreme Court of the United States
United States v. Bornstein
January 14, 1976423 U.S. 303
Summary
The Supreme Court reversed the lower courts, holding that United is liable for three $2,000 forfeitures—one for each shipment that caused false claims—and that double damages must be calculated by doubling the Government’s actual loss before any offsets, then remanding for further proceedings. Justice Rehnquist, joined by Chief Justice and Justice White, concurred in part and dissented in part, arguing for a broader forfeiture measure based on foreseeability.
Holding
- Whether the number of statutory forfeitures is measured by the number of false claims submitted or by the number of causative acts of the subcontractor. United is liable for three forfeitures, one for each of the three separately invoiced shipments that caused Model to submit false claims
- How double damages are to be computed when the Government has already recovered compensatory payments. The Government’s actual damages must be doubled before any compensatory payments are deducted
Docket 74-712
Cited authorities
- CA10
- 12 Stat. 696
- 31 U.S.C. § 231
- 35 Stat. 1153
- 18 U.S.C. §§287
- 12 Stat. 698
- 57 Stat. 608