McGuire v. Estate of Robert Cunningham

In this dispute over who was the first-to-file relator in a case brought under the False Claims Act (FCA), 31 U.S.C. 3729 et seq., the First Circuit reversed the judgment of the district court ruling that the first-to-file rule was jurisdictional, holding, for the first time in this circuit, that the first-to-file rule is not jurisdictional and that the Court had jurisdiction over Mark McGuire's crossclaim. The FCA's first-to-file rule prohibits relators other than the first to file from bringing a related action based on the facts underlying the pending action. In this case, the government successfully intervened in several qui tam suits against Millennium Health. Millennium settled with the government, setting aside fifteen percent of the settlement proceeds as a relator's share. McGuire brought a crossclaim for declaratory judgment that he was the first to file and was thus entitled to the fifteen-percent share. The district court dismissed the crossclaim for lack of subject-matter jurisdiction, finding that the first-to-file rule was jurisdictional. The First Circuit reversed, holding (1) the first-to-file rule is not jurisdictional, and therefore, the district court had subject-matter jurisdiction over McGuire's crossclaim; and (2) McGuire was the first-to-file relator and has stated a claim that he is entitled to the relator's share of the settlement. View "McGuire v. Estate of Robert Cunningham" on Justia Law