Not a Lexis Advance subscriber? Try it out for free.

United States v. Acad. Mortg. Corp.

United States District Court for the Northern District of California

June 29, 2018, Decided; June 29, 2018, Filed

Case No. 16-cv-02120-EMC

Opinion

ORDER DENYING GOVERNMENT'S MOTION TO DISMISS AND DENYING AS MOOT RELATOR'S REQUEST FOR EVIDENTIARY HEARING

Docket Nos. 60, 68

I. INTRODUCTION

In this qui tam suit under the False Claims Act, the Relator alleged that Academy Mortgage defrauded the Government by falsely certifying [*2]  loans for government insurance. The Government declined to intervene on the initial complaint. Docket No. 10. But after the Relator amended, the Government moved to dismiss under 31 U.S.C. § 3730(c)(2)(A), arguing that proceeding with the suit would drain its resources. Docket No. 60 ("Mot."). The Relator objected to the motion and requested an evidentiary hearing on the Government's motion, see Docket No. 68, at 7, which the Government opposed. As this Court held, to obtain an evidentiary hearing, the Relator "must present 'some evidence' that the Government's decision to dismiss was unreasonable, not a result of a full investigation, or based on arbitrary or improper considerations." Docket No. 90, at 6 (citing U.S. ex rel. Sequoia Orange Co. v. Baird-Neece Packing Corp., 151 F.3d 1139, 1145 (9th Cir. 1998)). The Court invited the parties to submit evidence pursuant to this standard. Id.

The Relator's evidence showed that the Government performed only a limited investigation of the original complaint and appears not to have investigated the amended complaint at all. See Docket Nos. 92, 93. Despite this, the Government submitted no evidence in response to the Court's order. See Docket No. 94 ("Gov. Response"). Because the undisputed evidence shows that the Government did not perform a full investigation [*3]  of the amended complaint, its motion to dismiss is DENIED. Accordingly, the Relator's request for an evidentiary hearing is DENIED as moot.

II. DISCUSSION

Read The Full CaseNot a Lexis Advance subscriber? Try it out for free.

Full case includes Shepard's, Headnotes, Legal Analytics from Lex Machina, and more.

2018 U.S. Dist. LEXIS 109489 *; 2018 WL 3208157

UNITED STATES OF AMERICA, ET AL., Plaintiffs, v. ACADEMY MORTGAGE CORPORATION, Defendant.

Subsequent History: Appeal filed, 07/27/2018

Prior History: United States v. Acad. Mortg. Corp., 2018 U.S. Dist. LEXIS 70096 (N.D. Cal., Apr. 25, 2018)

CORE TERMS

amended complaint, motion to dismiss, seal, evidentiary hearing, investigated, full investigation, initial complaint, misconduct, allegations, intervene