what is the avergage attorney fees in qui tam lawsuits

by Lilliana Russel 7 min read

How much do you get for a successful qui tam case?

Feb 14, 2020 · When you file a qui tam lawsuit, you are actually filing on behalf of the government. After filing, you will need to tell the government the facts of the case. If they decide to intervene at that point, you will likely not need to pay any attorney fees because your attorney is no longer trying the case; the government is.

Can a qui tam lawsuit be filed separately?

Qui tam is a provision of the False Claims Act – it is a type of lawsuit that protects and rewards whistleblowers who report fraud to the U.S. Government so that they may try and recover funds lost as a result of fraud. United States citizens and foreigners of other countries may file a claim, however must do so with an attorney.

What is the whistleblower reward for qui tam cases?

A qui tam whistleblower may not request fees unless there is an attorney-client relationship, even if the qui tam whistleblower is an attorney. For more information and case citations, please see Androphy “ Federal False Claims Act and Qui Tam Litigation …

What is the FCA’s “Qui tam whistleblower limit”?

Under the False Claims Act, there is a federal filing fee, as well as minor administrative expenses. Some whistleblower reward laws do not require such a fee. Usually, when you file a qui tam case, your DC lawyer will ask you to agree to a contingent fee arrangement. That means if you win, your qui tam lawyer will get a share of whatever you recover and take expenses from that recovery …

What is the FCA in qui tam?

The FCA provides that whistleblowers may be eligible to recover legal costs from the defendant in addition to the reward itself. These expenses can include attorney fees and other costs associated with trying the case.

What does a whistleblower attorney do?

A whistleblower attorney usually performs an initial review of a case for free. Once the attorney decides to take the case, you can retain the attorney on a contingency basis. This arrangement means that you will pay the attorney only if the case is successful and you receive a reward from the government. An attorney who works on a contingency basis pays all expenses needed to represent you. These expenses include the costs of hiring expert witnesses, traveling, and completing documentation. They are also entitled to seek reimbursement of these expenses from the defendant if the case is successful.

What happens if the government doesn't intervene?

If the Government Does Not Intervene. The government can always decide not to intervene in the case. In this instance, you may incur some costs once the case is over, but if you win, you will also receive a larger award because the government decided not to be a part of it.

Is a consultation free?

When you meet with an attorney for the first time to review your case, that consultation will usually be free. This consultation is simply to determine if your case has merit. If it does not, you are not charged anything for that meeting. If it does, the attorney will likely take the case on a contingency fee basis.

Do you have to pay out of pocket for a contingency fee?

This means that when the case is over, the attorney will receive a percentage of the compensation you are awarded. You do not have to pay for anything out of pocket.

Do you have to pay attorney fees for qui tam?

After filing, you will need to tell the government the facts of the case. If they decide to intervene at that point, you will likely not need to pay any attorney fees because your attorney is no longer trying the case; the government is.

Can a whistleblower recover attorney fees?

Both the federal False Claims Act and the California False Claims Act have provisions that allow whistleblowers to recover their attorney’s fees and other expenses. This means if you are successful, the defendant, or the person or company you blew the whistle on, is responsible for paying your attorney’s fees.

What is a qui tam lawsuit?

Qui tam is a lawsuit that allows persons and entities with evidence of fraud against federal programs or government contracts to sue the wrongdoer on behalf of the United States Government. The federal False Claims Act qui tam provision incentivizes whistleblowers, also known as “relators,” to give ...

Can whistleblowers file a qui tam lawsuit?

Until the court orders the “seal” removed, whistleblowers must keep the fact that they filed a False Claims Act case strictly confidential. The False Claims Act has strict rules and technical procedures for filing a qui tam lawsuit or a request for a whistleblower reward.

What is Section 3729?

Section 3729 sets forth anti-fraud requirements of the Act, and Section 3730 includes the provisions related to filing a qui tam lawsuit by a whistleblower.

What is the purpose of the Qui Tam?

The federal False Claims Act qui tam provision incentivizes whistleblowers, also known as “relators,” to give the government substantial evidence related to the biggest frauds. Those who succeed in their case are entitled to an award of between 15% and 30% of the total recovery the U.S. gets from the defendant.

How much can a whistleblower get from a false claim?

A False Claims Act whistleblower can receive between 15 and 30 percent of the total recovery the U .S. gets from the defendant.

Can you file a claim for discrimination in federal court?

Section 3730 (h) of the False Claims Act states that any employee who is discharged, demoted, harassed, or otherwise retaliated against for taking actions to promote the purposes behind the FCA, can file an employment discrimination claim in federal court.

What is the False Claims Act?

The False Claims Act protects whistleblowers who report fraud on the government and pays rewards to those who are successful in assisting the government in recovering funds lost to fraud. Additionally, a majority of the states have their own False Claims Act laws, which prohibit fraud against state government agencies.

The Legislative History

Usually, the awarding of fees in litigation is governed by the so-called “American rule” which holds that each party bears the cost of its own attorneys’ fees.

Parsing the Language

It is important to remember that § 3730 (d) (1) & (2) provides for the mandatory award of three categories of expenses. The very language of the provision makes it clear that it is addressing three separate categories of expenditures. See United States ex rel. Lidenthal v. General Dynamics Corp., 61 F.3d 1402, 1413-14 (9th Cir. 1995), cert.

Key Points Established in the Case Law

The best way to appreciate the intricacies of § 3730 (d) (1) & (2) is to dip into the pertinent case authority. Cases interpreting the section, while not extensive at this point, address those issues that would typically arise in litigation. Among the central principles established in the current case holdings are the following:

Conclusions

Whenever defense counsel is facing a qui tam complaint, he should at the outset fully brief the client on the potential additional liability that attaches as a result of § 3730 (d) (1) & (2). Depending upon the nature and complexity of the case, this additional liability may well substantially impact the client’s strategy.

Starting a False Claims Act Case

First of all, to initiate a False Claims Act case or another kind of whistleblower reward case, the expenses are relatively small. Under the False Claims Act, there is a federal filing fee, as well as minor administrative expenses. Some whistleblower reward laws do not require such a fee.

Government Intervention in a Whistleblower Case

False Claims Act procedure is unique under U.S. law, and you should discuss the special procedures involved with your DC whistleblower lawyer. For instance, these laws require that when you file your case, you have to inform the government about the facts of your case so the government can conduct an investigation of your claims.

Consult an Attorney to Discuss How Much a False Claims Act Case May Cost

For more information about whistleblowers, whistleblower laws, and how much a False Claims Act case might cost, click here.

What is whistleblower reward?

Whistleblowers (known as “relators” in qui tam lawsuits) are awarded a whistleblower reward based on a percentage of the money recovered by the government when those recoveries are due to a qui tam lawsuit or claims made under the SEC, CFTC or IRS whistleblower programs.

How much does a whistleblower get in a False Claims Act case?

Whistleblower rewards under the False Claims Act. The whistleblower (known as the “relator” in qui tam cases) may receive a reward of 15 percent to 25 percent of what the government recovers, if the government joins the qui tam case. If the government declines to join the qui tam lawsuit and the whistleblower proceeds against the defendant anyway, ...

Impact of Settlement Before Trial

  • Courts differ on the precise impact that settling a qui tam case should have on the qui tam whistleblower’s share. For example, one court, noting that Section 3730(d) makes no distinction for whether the case is settled or tried, awarded the qui tam whistleblower the maximum thirty percent share. In contrast, another court stated that the full share should rarely …
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Impact of Government Intervention

  • If the government intervenes, the qui tam whistlebloweris entitled to receive fifteen to twenty-five percent of the proceeds in a qui tam case, subject to the qui tam whistleblower’s noninvolvement in the alleged wrongdoing and lack of public disclosure issues. The amount the qui tam whistleblower receives depends upon the extent to which the person substantially contribut…
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Senate Factors

  • Congress set out three guidelines, known as “Senate Factors,” as a guide for the judiciary to use when determining qui tam whistleblower recovery. The “Senate Factors” are: 1) the significance of the information; 2) the contribution of the person bringing the action to the result obtained; and 3) whether the information was previously known to the government.
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Department of Justice Guidelines

  • The DOJ Guidelines suggest factors to consider both in favor of increasing and decreasing the qui tam whistleblower’s share. The following factors are recommended to increase the qui tam whistleblower’s share: 1) qui tam whistleblower reported the fraud promptly; 2) upon learning of the fraud, the qui tam whistleblower attempted to stop it, or reported it to a supervisor or the Go…
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Impact of Public Disclosure

  • The FCA limits the qui tamwhistleblower’s share to no more than ten percent if the court finds that the qui tam action is based primarily on publicly available information.
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Effect of Government Non-Intervention

  • In a case where the Government does not intervene, Section 3730(d)(2) provides the qui tam whistleblower with twenty-five to thirty percent of the proceeds; the actual amount within this range is left to the court’s discretion. When determining the final amount of the qui tam whistleblower’s share, courts consider the same type of factors as those considered when the G…
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Effect of Qui Tam Whistleblower Involvement in The Wrongdoing

  • If the court finds the qui tam action was brought by a person who planned and initiated the alleged violation, the court may reduce the amount of the qui tam whistleblower’s share to the extent it considers appropriate. This reduction applies whether or not the government intervened in the action. In determining the appropriate reduction, the FCA requires the court to take into ac…
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Qui Tam Whistleblower’S Share If The Government Pursues Alternative Remedies

  • The Government may pursue an alternate remedy even if it declines to intervene in the qui tam whistleblower’s action. The FCA provides that if the Government chooses to seek an alternate remedy for its losses instead of proceeding under the FCA. The qui tam whistleblower who originally brought the action is entitled to the same rights as if the Government had proceeded w…
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Attorney Fees, Costs, and Expenses

  • In addition to a share of the recovery, the FCA provides that a qui tam whistleblower may recover attorney fees, costs, and expenses. The qui tam whistleblower, not the qui tam whistleblower’s counsel, has standing to request attorneys’ fees under the FCA. Furthermore, the general rule is that these fees are paid to the qui tam whistleblower not the qui tam whistleblower’s attorney. A …
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The Legislative History

  • Usually, the awarding of fees in litigation is governed by the so-called “American rule” which holds that each party bears the cost of its own attorneys’ fees. For example, Federal Rule of Civil Procedure 54(d) specifically exempts attorneys’ fees from the district court’s authority to otherwise impose costs on the losing party “[e]xcept when express provision therefore is made e…
See more on fcaexpert.com

Parsing The Language

  • It is important to remember that § 3730(d)(1) & (2) provides for the mandatory award of three categories of expenses. The very language of the provision makes it clear that it is addressing three separate categories of expenditures.See United States ex rel. Lidenthal v. General Dynamics Corp., 61 F.3d 1402, 1413-14 (9th Cir. 1995), cert. denied, 517 U.S. 1104 (1996). Most important, …
See more on fcaexpert.com

Key Points Established in The Case Law

  • The best way to appreciate the intricacies of § 3730(d)(1) & (2) is to dip into the pertinent case authority. Cases interpreting the section, while not extensive at this point, address those issues that would typically arise in litigation. Among the central principles established in the current case holdings are the following: 1. The award of fees, costs and expenses is mandatory, and not a ma…
See more on fcaexpert.com

Conclusions

  • Whenever defense counsel is facing a qui tamcomplaint, he should at the outset fully brief the client on the potential additional liability that attaches as a result of § 3730(d)(1) & (2). Depending upon the nature and complexity of the case, this additional liability may well substantially impact the client’s strategy. Moreover, whenever a qui tamdefendant is contemplating possible resoluti…
See more on fcaexpert.com