U.S. ex rel. Sheet Metal Workers International Ass’n v. Horning Investments, LLC

Federal 7th Circuit Court
Civil Court
False Claims Act
Citation
Case Number: 
No. 15-1004
Decision Date: 
July 7, 2016
Federal District: 
S.D. Ind., Indianapolis Div.
Holding: 
Affirmed

Dist. Ct. did not err in granting defendant-employer’s motion for summary judgment in False Claim Act action by plaintiff-employee’s union, alleging that defendant made false statements to govt. when seeking payments for wages paid to employees for work done on federal project by certifying its compliance with prevailing wage standards set forth in Davis-Bacon Act. Record was ambiguous as to whether any Davis-Bacon violation occurred with respect to defendant’s flat $5.00 per hour deduction for certain fringe benefits for employees who were not eligible for said benefits, as well as defendant’s failure to compute health benefits in terms of how much in said benefits each employee used. As such, plaintiff could not show that defendant made knowingly false statements in its Davis-Bacon certifications. Ct., though, rejected Dist. Ct.’s finding that defendant’s claimed reliance on unspecified advice of its accountants when making instant certifications precluded plaintiff from establishing that defendant knew that its certifications were false.