Government Contracting -- 2017



United States ex rel. Harman v. Trinity Industries, Inc.   (5th Circuit)

FCA liability despite compliance with federal requirements

The NAM filed an amicus brief in a product liability suit in the U.S. Court of Appeals for the Fifth Circuit urging the court to reverse a $663 million lower court judgement against Trinity Industries for allegedly defrauding the federal government despite the government’s determination that Trinity’s product had consistently complied with the applicable federal requirements. This case is important to manufacturers as NAM members contract directly and indirectly with the government. The NAM’s brief argued that 1) the claim was not a False Claims Act (FCA) claim because the government expressly disagreed the claim was false and 2) the decision created uncertainty and devastating consequences for businesses both in terms of financial costs and in reputational harm from an unwarranted FCA suit. In a win for manufacturers, the Fifth Circuit overturned the lower court’s ruling, thus lessening the likelihood that a business would be held liable under the FCA after relying on authoritative assurance of compliance from the government.


Related Documents:
NAM amicus brief  (March 28, 2016)