Pettis ex rel. United States v. Morrison-Knudsen Co

In Pettis ex rel. United States v. Morrison-Knudsen Co., 577 F.2d 668 (9th Cir.1978), the Court interpreted 31 U.S.C. 232(C), the predecessor to 3730(e)(4)(A), which provided that the court "shall have no jurisdiction to proceed with any such suit ... whenever it shall appear that such suit was based upon evidence or information in the possession of the United States ... at the time such suit was brought." Id. at 670-71. The relator was an engineer on a project financed by the United States. After observing practices he thought to be fraudulent, the relator informed government officials, which led to two audits of the project. The relator also informed a senator, which resulted in an investigation by the General Accounting Office ("GAO"). Two weeks after the GAO released its report, the relator filed his qui tam action. This court upheld the district court's ruling that the relator's suit was barred because it was based upon evidence already known to the government. Id. at 673. Thus, although the relator did not derive his suit from evidence in the possession of the government, his claim was based upon such evidence.