who pays attorney fees in qui tam lawsuit

by Alphonso Mueller II 8 min read

defendant

Can a qui tam lawsuit be filed separately?

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.

How does a whistleblower file a qui tam case?

Feb 04, 2022 · Friday, February 4, 2022. Last week, a panel of the Sixth Circuit unanimously greenlighted an award of attorney fees for multiple qui tam relators who had entered into a settlement agreement with ...

What are the benefits of a qui tam case?

Jan 19, 2016 · Posted on January 19, 2016 by Mike Bothwell. If you’re wondering how whistleblower attorney fees work, and how much a qui tam lawsuit might cost you, the short answer is virtually nothing. While we can’t say it will never cost you anything, there is no initial charge to bring a case. In the event you do need to pay costs, it usually comes ...

Can a whistleblower relator seek attorney's fees?

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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.

How much does a whistleblower get in a qui tam case?

If the government intervenes, the qui tam whistleblower is 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 contributed to the prosecution of the action. The Senate factors provided by the legislative history of Section 3730 and the Department of Justice (“DOJ”) Guidelines both provide factors, which courts may take into account when determining the qui tam whistleblower’s share.

How to increase 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 Government; 3) the qui tam filing or investigation caused the defendant to stop the fraudulent practices; 4) the complaint warned the Government of a safety issue; 5) the complaint exposed a nationwide practice; 6) qui tam whistleblower provided extensive, first-hand details of the fraud to the Government; 7) the Government had no previous knowledge of the fraud; 8) qui tam whistleblower provided substantial assistance during the investigation and pretrial phases of the case; 9) excellent quality of qui tam whistleblower’s witness testimony; 10) qui tam whistleblower’s counsel provided substantial assistance to the Government; 11) qui tam whistleblower and counsel supported and cooperated with the Government during the entire proceeding; 12) the case went to trial; 13) the FCA recovery was relatively small; and 14) there was a substantial, adverse impact on qui tam whistleblower as a result of filing the complaint.

Can a whistleblower recover attorney fees?

Furthermore, the general rule is that these fees are paid to the qui tam whistleblower not the qui tam whistleblower’ s attorney. A qui tam whistleblower may not request fees unless there is an attorney-client relationship, even if the qui tam whistleblower is an attorney.

Can the government pursue an alternate remedy?

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 ...

What are the Senate Factors?

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.

Can a whistleblower request a fee?

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 ,” published by Law Journal Press (2010).

The Start: Filing a False Claims Act Case

The costs to get started on an FCA or qui tam case are relatively small, including a small federal filing fee and possible administrative expenses. However, when you file a qui tam case, your lawyer is likely to ask you to agree to something called a contingent fee arrangement.

Government Intervention: Whether Uncle Sam Decides to Join Your Case

FCA claims are a bit different than the normal court case or civil litigation. When you file, you inform the government of your case, but not the defendant. You must inform them of the particular facts surrounding your case, so the government can investigate the claims.

More Questions on Whistleblower Attorney Fees?

No problem! Contact the skilled attorneys at Bothwell Law Group by calling 770.643.1606, and ask about how we handle whistleblower attorney fees.

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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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