Justia U.S. Federal Circuit Court of Appeals Opinion Summaries

The 2010 ACA (Patient Protection and Affordable Care Act; Health Care and Education Reconciliation Act) created a three-year Risk Corridors program with the creation of new health-insurance marketplaces, which presented uncertain risks for participating health-insurance companies. Qualified health-plan issuers (QHP issuers) that offered their products in the new marketplaces were entitled to payments from HHS if they suffered sufficient losses, 42 U.S.C. 18062(b).The government failed to make those payments. QHP issuers sued under the Tucker Act, 28 U.S.C. 1491(a)(1). In two such lawsuits, the Quinn law firm was lead counsel for classes of QHP issuers seeking payments. In the opt-in notices sent to potential class members with court approval, Quinn represented that it would seek attorney’s fees out of any recovery, that it would seek no more than 5% of any judgment or settlement, and that the Claims Court would determine the exact amount by considering how many issuers participated, the amount at issue, and a “lodestar cross-check” (based on hours actually worked). Meanwhile, the Supreme Court, in other cases, held that QHP issuers were entitled to collect ACA-promised payments.The Claims Court entered judgments in favor of the classes, totaling about $3.7 billion, then awarded Quinn 5% of the common funds, rejecting objections. The total fee was about $185 million. The Federal Circuit vacated. The Claims Court’s analysis was inconsistent with the class opt-in notices and did not adequately justify the extraordinarily high award. View "Health Republic Insurance Co. v. United States" on Justia Law

Government agencies can issue Indefinite Delivery, Indefinite Quantity Multiple Award (IDIQ) contracts to multiple companies, which then compete for subsequent task orders. The Army solicited proposals for the RS3 IDIQ Contract. The solicitation was not set aside for small businesses but allowed the Army to restrict task orders to small businesses. In 2019, the Army awarded Century an RS3 IDIQ contract. In 2015, when Century submitted its proposal, it was a small business. A 2020 Task Order Request for Proposals required a contractor submitting a bid to represent whether it was a small business for purposes of the task order. Century was no longer a small business but represented that it had been a small business at the time of its original RS3 IDIQ proposal. The Army issued the task order to Century, Other companies filed size protests. The Small Business Association found that Century was “other-than-small” for purposes of the Task Order. The Office of Hearings and Appeals (OHA) affirmed. The Army terminated the award.Century filed a Tucker Act, 28 U.S.C. 1491(b)(1), bid protest. The Federal Circuit affirmed the dismissal of the suit. OHA’s size determination was made in connection with the issuance of a task order, so the Federal Acquisition Streamlining Act of 1994, 10 U.S.C. 3406(f), barred the Claims Court from exercising jurisdiction. A claim based on improper contract termination falls under the Contract Disputes Act, 41 U.S.C. 7101–09; Century failed to present its claim to the contracting officer as required by that statute. View "22nd Century Technologies, Inc. v. United States" on Justia Law

Raytheon has cost-reimbursement government contracts. Raytheon’s Government Relations Department engaged in information gathering, internal discussions on lobbying strategies, attending meals with contractors and Congresspeople or staff, meeting with internal Raytheon customers, attending political fundraisers, administering Raytheon’s Political Action Committee, interfacing with the legislative branch, responding to requests from Congressional staffers, and similar activities. Raytheon instructed employees to record all compensated time spent on lobbying activities. Accounting personnel withdrew costs associated with that time from Raytheon’s incurred-cost submissions. Raytheon’s employees considered time worked outside of regular hours part of their regular work duties, yet Raytheon’s policy instructed them not to report “[t]ime spent on lobby activity after the scheduled working day.” Raytheon’s Corporate Development Department worked with Raytheon’s business units, including internal investment, research and development, intellectual property licensing, partnerships, or acquisitions. Corporate Development had rules establishing when employees begin recording their time on acquisitions and divestitures.In 2007-2008, Raytheon charged the government for roughly half of the salary costs of its Government Relations and Corporate Development Departments. The Defense Contract Audit Agency audited both departments, determined that Raytheon’s incurred-cost submissions for those departments included unallowable costs, and demanded reimbursement and penalties. The Armed Services Board of Contract Appeals ruled in favor of Raytheon. The Federal Circuit reversed. The Board erred in interpreting Raytheon’s corporate practices and policies, which are inconsistent with the Federal Acquisition Regulation and led Raytheon to charge the government for unallowable costs. View "Secretary of Defense v. Raytheon Co." on Justia Law

DiMasi, then a 47-year-old nurse-practitioner student, received an influenza vaccine on December 4, 2012. She was admitted to the hospital on December 5, 2012, released the next day, and then readmitted on December 8. Almost three years later, DiMasi sought compensation under 42 U.S.C. 300aa-10 to -34 (Vaccine Act). In 2019, a special master denied compensation, noting that the parties agreed on the post-vaccination conditions at issue, ultimately diagnosed in 2016 and 2017: “small fiber neuropathy” and “postural tachycardia syndrome” (POTS), which are related. He also noted that no claim of significant aggravation of a preexisting condition had been presented and found that the vaccine was not the cause in fact of the conditions. DiMasi had 30 days to seek Claims Court review.On September 15, 2020, within a year of the final judgment, DiMasi sent the special master a letter, with medical records and other attachments, requesting that she be allowed to proceed pro se and that her case be reopened. The special master allowed DiMasi to proceed pro se and construed her request to reopen her case as a motion for relief from judgment under Claims Court Rule 60. The special master ultimately vacated the denial. The Federal Circuit appointed counsel for DiMasi and requested additional briefing, noting that it had “more questions than answers” about the findings and proceedings concerning DiMasi’s former counsel’s submissions and choices. View "DiMasi v. Secretary of Health & Human Services" on Justia Law

In 2011, Cranford, on active duty in the Army, was charged with possessing and using Spice, an unregulated intoxicant, in violation of a lawful general order. Captain Lease recommended that Cranford be tried by general court-martial and forwarded the charges. Cranford requested to be discharged in lieu of trial by court-martial, acknowledging that the Uniform Code of Military Justice authorized the imposition of a bad conduct or dishonorable discharge for the charge. Cranford admitted guilt and acknowledged that he would qualify for an “other than honorable” (OTH) discharge, potentially barring him from receiving benefits. Cranford received an OTH discharge. Cranford later requested VA benefits. The regional office denied that request, reasoning that Cranford’s discharge status barred him from receiving benefits. The Board of Veterans’ Appeals affirmed the denial, applying 38 C.F.R. 3.12(d)(1), to conclude that Cranford had been discharged under dishonorable conditions and was ineligible for benefits as a non-veteran under 38 U.S.C. 101(2).The Veterans Court and Federal Circuit affirmed, rejecting arguments that the Board mischaracterized his discharge as being “in lieu of a general court-martial,” instead of a summary court-martial and that section 3.12(d)(1) did not apply to him because he had accepted an OTH discharge, not an “undesirable discharge.” An OTH discharge accepted in lieu of a general court-martial is equivalent to an undesirable discharge—despite the military service departments’ shift in terminology. View "Cranford v. McDonough" on Justia Law

The Department of Energy (DOE) issued a solicitation for Technical Security, Communications Security, Cyber, Analysis, and Security Administration, designated as a small business set-aside. The size limit for interested businesses was a maximum of $20.5 million in average annual receipts. Obsidian submitted a bid proposal and self-certified as a small business based on its five-year average of annual receipts ($17.5 million). DOE notified Obsidian that it was the apparent successful offeror but submitted a request to the Small Business Administration (SBA) to confirm Obsidian’s size status before making the award. The SBA determined Obsidian did not qualify as a small business. Rather than use the five-year average of receipts, the SBA used Obsidian’s three-year average (roughly $21.8 million)The Office of Hearings and Appeals affirmed. Obsidian filed a bid protest under the Tucker Act, 28 U.S.C. 1491(b), arguing that the BA was required to start using five years of annual receipts. Obsidian cited the Runway Extension Act (REA), an amendment to the Small Business Act (15 U.S.C. 632(a)(2)), including a requirement to use a five-year average of receipts for purposes of size determinations. The Federal Circuit affirmed judgment on the administrative record in favor of the government. The REA unambiguously did not apply to the SBA. There are two subsections discussing size factors. The SBA has its own, broader limitations on establishing size standards than other agencies. View "Obsidian Solutions Group, LLC v. United States" on Justia Law

Dr. Edenfield is a VAMC anesthesiologist. VAMC physicians had obtained informed consent for endoscopic procedures on the day of the procedure. A 2016 policy allowed mid-level practitioners (nurse practitioners, physician assistants) to obtain informed consent from patients. The change was approved by the National Center for Ethics in Health Care, the Credentialing Committee (several Quillen VAMC service chiefs), the Medical Executive Board (20 physicians), the Medical Center Director, and the regional Veteran Integrated Service Network. Edenfield argued that it was against VA policy for midlevel practitioners to obtain informed consent for endoscopic procedures, quoting the Veterans Health Administration Handbook. Edenfield resigned as the supervisor of the Pre-Operative Clinic. Two years later, although his supervisor recommended that Edenfield receive a pay increase, a VAMC panel denied him a raise. Edenfield alleged retaliation and resigned as Chief of Anesthesiology, then filed an unsuccessful complaint with the Office of Special Counsel, citing the Whistleblower Protection Act. The Merit Systems Protection Board denied Edenfield’s request for corrective action, finding that his statements were not protected disclosures under 5 U.S.C. 2302(b)(8).The Federal Circuit reversed. Edenfield’s interpretation reflected an ambiguity In the Handbook and was reasonable; the Board erred in holding that Edenfield did not have a reasonable belief that he was making a protected disclosure and erred by relying on information that would not have been readily ascertainable by a disinterested observer. Such information cannot support a finding that Edenfield’s belief was unreasonable. View "Edenfield v. Department of Veterans Affairs" on Justia Law

From December 22, 2018, to January 25, 2019, the federal government partially shut down because of a lapse in appropriations. Plaintiffs continued to work as “excepted employees” who work on “emergencies involving the safety of human life or the protection of property” and whom the government can “require[] to perform work during a covered lapse in appropriations,” 31 U.S.C. 1341(c)(2), 1342. During the shutdown, the government was barred from paying wages to excepted employees by the Anti-Deficiency Act, which prohibits the government from “authoriz[ing] an expenditure or obligation exceeding an amount available in an appropriation or fund for the expenditure or obligation.” The government paid their accrued wages after the shutdown ended. Plaintiffs sued under the Fair Labor Standards Act (FLSA) for failure “to timely pay their earned overtime and regular wages,” 29 U.S.C. 260; any employer who does not timely pay minimum or overtime wages is liable for liquidated damages equal to the amount of the untimely paid wages. The Claims Court has the discretion to award no liquidated damages if the employer shows “reasonable grounds for believing that [the] act was not a violation of the Act.”The Federal Circuit ordered the dismissal of the case. As a matter of law, the government does not violate the FLSA when it pays excepted employees for work performed during a government shutdown at the earliest date possible after a lapse in appropriations ends, View "Avalos v. United States" on Justia Law

From December 22, 2018, to January 25, 2019, the government partially shut down because of a lapse in appropriations. Border Patrol Agents continued to work as “excepted employees” who work on “emergencies involving the safety of human life or the protection of property” and whom the government can “require[] to perform work during a covered lapse in appropriations,” 31 U.S.C. 1341(c)(2), 1342. During the shutdown, the government was barred from paying wages to excepted employees by the Anti-Deficiency Act, which prohibits the government from “authoriz[ing] an expenditure or obligation exceeding an amount available in an appropriation or fund for the expenditure or obligation.” The government paid their accrued wages after the shutdown ended. The agents sued, alleging that the government violated the Border Patrol Agent Pay Reform Act (BPAPRA), 5 U.S.C. 5550, by not paying their wages on their regularly scheduled payday” for work they performed during the shutdown and that the late payments were unjustified personnel actions under the Back Pay Act, section 5596(b)); they sought interest and attorney fees.The Federal Circuit ordered the dismissal of the case. The government does not violate any implicit timely payment obligation in the BPAPRA and Back Pay Act when, as required by the Anti-Deficiency Act, it defers payments to excepted employees until after a lapse in appropriations ends. View "Abrantes v. United States" on Justia Law

McIntosh, employed by the Department of Defense, was responsible for approving travel expenses for government contracts. McIntosh, on several occasions refused to approve invoices and refused to provide contract information to her coworkers. Her supervisor, Boswell, informed McIntosh that her actions amounted to a “refus[al] to perform [her] job requirements.” McIntosh filed grievances, alleging that she was being forced to disclose unauthorized information and was harassed. The agency investigated and denied McIntosh’s grievances. McIntosh took sick leave for the day of her scheduled performance review, before Boswell’s retirement. Boswell requested medical documentation. McIntosh returned to work after Boswell retired. Cohen became her supervisor. Upon her return, McIntosh submitted a letter from her doctor, stating that she “should be excused from work due to illness from 3/22/2017 through 3/24/2017.” Employee Relation determined that the documentation was not acceptable. McIntosh never provided additional documentation but reiterated her grievances and requested reassignment. She declined to speak to Cohen and went home. Cohen placed McIntosh on paid leave and issued a Notice of Proposed Removal. The deciding official, Van Winkle, sustained the removal.The Merit Systems Protection Board affirmed, finding that the Department would have removed McIntosh even absent her protected whistleblowing activity. The Federal Circuit affirmed, rejecting arguments that the Board’s administrative judges are improperly appointed principal officers under the Appointments Clause and that substantial evidence did not support the Board’s decision. View "McIntosh v. Department of Defense" on Justia Law