Royalty and Royalty Interests: Qui lam Action

摘要

In 1997 and 1998, relator Jack Grynberg brought a number of qui tarn suits against natural gas pipeline companies and their affiliates for alleged underpayment of royalties in violation of 31 U.S.C. § 3729(a)(7) of the False Claims Act ("FCA"). Seven of these suits alleged that the defendants had underpaid royalties on the carbon dioxide ("CO[2]") they produced from federal and Indian lands by paying based on an artificially deflated value rather than the actual market value of CO[2]. The district court found these suits jurisdictionally barred by the first-to-file rule of 31 U.S.C. § 3730(b)(5) because a 1996 suit had alleged the same essential facts. That prior suit had named as defendants two of Mr. Grynberg's current defendants, mentioned three of the current defendants by name but without joining them as parties, and had not mentioned two of the current defendants at all. The district court held that a prior action does not have to be against a party in order to bar a subsequent action under the first-to-file bar, so long as the party is "readily identifiable" from the prior action. Mr. Grynberg appeals the district court's dismissal only with regard to the five defendants who were not parties to the prior action. We reverse.