High court: Whistle-blowers can bring independent suits
The U.S. Supreme Court last month narrowed the scope of the controversial False Claims Act by saying the federal law could not be used to accuse a state of cheating the federal government. The 7-2 ruling in the case of Vermont Agency of Natural Resources v. United States ex rel. Stevens, however, upheld the right of individuals to bring whistle-blower lawsuits on the government's behalf.
Lower courts have questioned whether whistle-blowers, seeking double and treble damages for false claims filed against the government, had a constitutional right to pursue their cases when the government itself declined to support the cases. The Supreme Court said such individuals do have standing, but left open the possibility that whistle-blower lawsuits pursued without the support of federal prosecutors could be challenged on different constitutional grounds.
"We express no view on the question whether qui tam lawsuits violate ... the appointments clause ... and the 'take care' clause" of the Constitution, Justice Antonin Scalia wrote. Those clauses could be read to mean that Congress cannot give prosecutorial powers to private citizens who act without oversight from the government.
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