Supreme Court of the United States

United States ex rel. Polansky v. Executive Health Resources, Inc.

June 16, 2023599 U.S. 419

Summary

Justice Kagan’s opinion for an eight-Justice majority held that the Government may seek dismissal of a False Claims Act qui tam action over the relator’s objection only after intervening, but intervention may occur either during the initial seal period or later upon good cause. Federal Rule of Civil Procedure 41(a) governs dismissal, supplemented by the FCA’s notice-and-hearing requirement and consideration of the relator’s interests. The Government’s reasonable assessment that litigation burdens outweigh potential benefits receives substantial deference. The Court affirmed the Third Circuit’s judgment sustaining dismissal. Justice Kavanaugh, joined by Justice Barrett, concurred in full but urged consideration in an appropriate case of whether qui tam litigation violates Article II. Justice Thomas dissented, concluding that intervention after the seal period does not confer statutory authority to dismiss over the relator’s objection; he would vacate and remand for consideration of constitutional questions. Outside confirmation could not be performed with the resources available.

Holding

  • The Government’s authority to seek dismissal after declining initial intervention.. The Government must intervene before seeking dismissal under §3730(c)(2)(A), but intervention during the initial seal period and later intervention upon good cause confer the same dismissal authority.
  • The standard governing a Government motion to dismiss over a relator’s objection.. Federal Rule of Civil Procedure 41(a) governs the motion, subject to the FCA’s notice-and-hearing requirement. For post-answer motions, courts must consider the relator’s interests while giving substantial deference to the Government’s reasonable assessment of litigation costs and benefits.
  • Whether the Government was entitled to dismissal in this case.. Dismissal was proper, and the Third Circuit correctly upheld the District Court’s order under abuse-of-discretion review.

Docket 21-1052

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