545 U. S. ____ (2005)
545 U. S. ____ (2005)
545 U. S. ____ (2005)
SUPREME COURT OF THE UNITED STATES
NO. 04-169
GRAHAM COUNTY SOIL & WATER CONSERVATION
DISTRICT, et al., PETITIONERS
v. UNITED STATES ex
rel. KAREN T. WILSON
on writ of certiorari to the united states court of
appeals for the fourth circuit
[June 20, 2005]
Justice Thomas delivered the
opinion of the Court.*
This case presents the question
whether the 6-year statute of limitations in the False Claims Act
(FCA), see 31 U. S. C. §3731(b)(1), governs FCA civil actions
for retaliation, see §3730(h). We hold that it does not and
therefore conclude that the most closely analogous state
limitations period applies.
I
The FCA prohibits any person from
making false or fraudulent claims for payment to the United States.
§3729(a). Persons who do so are liable for civil penalties of up to
$10,000 per claim and treble damages.
Ibid. The Act sets
forth two principal enforcement mechanisms for policing this
proscription. First, the Attorney General may sue to remedy
violations of §3729. §3730(a). Second, private individuals may
bring
qui tam actions in the Government’s name for §3729
violations. §3730(b)(1); see
Vermont Agency of Natural
Resources v.
United States ex rel. Stevens, 529 U. S. 765, 769–772
(2000). The
qui tam relator must give the Government
notice of the action, and the Government is entitled to intervene
in the suit. §3730(b)(2). The relator receives up to 30 percent of
the proceeds of the action, in addition to attorney’s fees and
costs. §§3730(d)(1), (2).
The 1986 amendments to the FCA
created a third enforcement mechanism: a private cause of action
for an individual retaliated against by his employer for assisting
an FCA investigation or proceeding. §3730(h). Section 3730(h)
provides in relevant part that
“[a]ny employee who is discharged, demoted,
suspended, threatened, harassed, or in any other manner
discriminated against in the terms and conditions of employment by
his or her employer because of lawful acts done by the employee on
behalf of the employee or others in furtherance of an action under
this section, including investigation for, initiation of, testimony
for, or assistance in an action filed or to be filed under this
section, shall be entitled to all relief necessary to make the
employee whole.”
Remedies for retaliation include reinstatement, two
times the amount of backpay plus interest, special damages,
litigation costs, and attorney’s fees.
Ibid.
The 1986 amendments also revised the language
of the 6-year statute of limitations applicable to FCA actions. The
previous version of the statute provided that “[a] civil action
under section 3730 of this title must be brought within 6 years
from the date the violation is committed.” §3731(b) (1982 ed.). The
1986 amendments revised this provision to read:
“(b) A civil action under section
3730 may not be brought—
“(1) more than 6 years after the date on which
the violation of section 3729 is committed, or
“(2) more than 3 years after the date when
facts material to the right of action are known or reasonably
should have been known by the official of the United States charged
with responsibility to act in the circumstances, but in no event
more than 10 years after the date on which the violation is
committed … .” §3731.
In January 2001, respondent Karen
T. Wilson brought an FCA
qui tam and retaliation action
against petitioners. Petitioners Graham County Soil and Water
Conservation District and Cherokee County Soil and Water
Conservation District are special-purpose local government
entities; the other petitioners are various local and federal
officials. Graham County District employed Wilson as a secretary.
Wilson alleged that petitioners made numerous false claims for
payment to the United States in connection with a federal disaster
relief program, the Emergency Watershed Protection Program, App.
17–20, and in connection with agricultural programs administered by
North Carolina but funded by the Federal Government,
id.,
at 17–24.
Wilson contended, in addition, that Graham
County District officials retaliated against her for aiding federal
officials in their investigation of these false claims.
Id., at 25–30. Wilson alerted federal officials to
petitioners’ suspected fraudulent activities in December 1995 and
cooperated with the ensuing investigation.
Id., at 26–27.
Because of her cooperation, the complaint alleged, Graham County
District officials repeatedly harassed her from 1996 to 1997,
eventually inducing her to resign in March 1997.
Id., at
28–30.
Petitioners successfully moved to dismiss
Wilson’s retaliation action as untimely. They argued that the
6-year limitations period provided in §3731(b)(1) did not apply to
Wilson’s retaliation action. Absent an applicable federal
limitations period, they asked the District Court to borrow North
Carolina’s 3-year statute of limitations for retaliatory-discharge
actions. The District Court agreed and dismissed the retaliation
claim, since Wilson filed it more than three years after her March
1997 discharge. App. to Pet. for Cert. 67a–70a. The court certified
that ruling for interlocutory appeal. 224 F. Supp. 2d 1042,
1050–1051 (WDNC 2002).
On interlocutory appeal, a divided panel of
the Court of Appeals for the Fourth Circuit reversed. In the
majority’s view, the plain language of §3731(b)(1) supplies a
limitations period for retaliation actions, making it unnecessary
to borrow one from North Carolina law. The court reasoned that
§3731(b)(1) governs §3730(h) retaliation actions, because it
applies its 6-year limitations period to “[a] civil action under
section 3730.” 367 F. 3d 245, 251 (2004) (brackets in
original).
We granted certiorari to resolve a
disagreement among the Courts of Appeals regarding whether
§3731(b)(1)’s 6-year statute of limitations applies to §3730(h)
retaliation actions or whether, instead, the most closely analogous
state limitations period governs. 543 U. S. ___ (2005). Compare
Neal v.
Honeywell Inc., 33 F. 3d 860,
865–866 (CA7 1994) (holding that FCA 6-year period applies), with
United States ex rel. Lujan v.
Hughes Aircraft
Co., 162 F. 3d 1027, 1034–1035 (CA9 1998) (holding that
most closely analogous state limitations period governs).
II
To determine the applicable
statute of limitations for a cause of action created by a federal
statute, we first ask whether the statute expressly supplies a
limitations period. If it does not, we generally “borrow” the most
closely analogous state limitations period. See
North Star
Steel Co. v.
Thomas, 515 U. S. 29, 33–34
(1995);
Reed v.
Transportation Union, 488 U. S. 319, 324
(1989);
Agency Holding Corp. v.
Malley-Duff &
Associates, Inc., 483 U. S. 143, 157–165
(1987) (Scalia, J., concurring in judgment) (tracing history of
borrowing state limitations periods). In the rare case, we have
even borrowed analogous federal limitations periods in the absence
of an expressly applicable one, see,
e.g., id.,
at 150–157, but no party points to a reason why we should do so
here, and we can think of none. The only arguably applicable
express statute of limitations is the 6-year limit set forth in
§3731(b)(1). The question, then, is whether §3731(b)(1) applies by
its terms to retaliation actions under §3730(h); if it does not,
our cases dictate that the most closely analogous state limitations
period applies.
Under §3731(b)(1), “[a] civil
action under section 3730 may not be brought … more than 6 years
after the date on which the violation of section 3729 is
committed.” Following the Court of Appeals’ lead and supported by
the United States appearing as
amicus curiae, Wilson
argues that this language unambiguously applies to FCA retaliation
actions. She points out that §3731(b)(1) applies a 6-year
limitations period to “a civil action under section 3730,” and that
§3730(h) actions arise under §3730; hence, they claim, the 6-year
period governs §3730(h) actions. See
Neal,
supra,
at 865–866 (arguing same). We think the statute is more complex
than this argument supposes. Statutory language has meaning only in
context, see,
e.g., Leocal v.
Ashcroft,
543 U. S. ___, ___ (2004) (slip op., at 7), and §3731(b)(1), read
in its proper context, does not govern §3730(h) actions for
retaliation.
Section 3731(b)(1) is ambiguous, rather than
clear, about whether a §3730(h) retaliation action is “a civil
action under section 3730.” Another reasonable reading is that it
applies only to actions arising under §§3730(a) and (b), not to
§3730(h) retaliation actions. That reading is suggested by the
language in §3731(b)(1) tying the start of the time limit to “the
date on which the violation of section 3729 is committed.” In other
words, the time limit begins to run on the date the defendant
submitted a false claim for payment. See
supra, at 1. This
language casts doubt on whether §3731(b)(1) specifies a limitations
period for retaliation actions. For even a well-pleaded retaliation
complaint need not allege that the defendant submitted a false
claim, leaving the limitations period without a starting point if
§3731(b)(1) is applicable. A retaliation plaintiff, instead, need
prove only that the defendant retaliated against him for engaging
in “lawful acts done … in furtherance of” an FCA “action filed or
to be filed,” §3730(h), language that protects an employee’s
conduct even if the target of an investigation or action to be
filed was innocent.[
Footnote 1]
Applying §3731(b)(1) to FCA retaliation actions, then, sits
uneasily with §3731(b)(1)’s language, which assumes that
well-pleaded “action[s] under section 3730” to which it is
applicable include a “violation of section 3729” certain from which
to start the time running. Section 3731(b)(1), by contrast,
naturally applies to well-pleaded §§3730(a) and (b) actions. They
require the plaintiff to plead that the defendant submitted a false
claim for payment, and therefore necessarily specify when
§3731(b)(1)’s time limit begins. This textual anomaly, at a
minimum, shows that §3731(b)(1) is ambiguous about whether “action
under section 3730” means all actions under §3730, or only
§§3730(a) and (b) actions.
Wilson and the United States dispute that the
statute contains this anomaly, and instead urge that it clearly
applies by its terms to all §3730 actions. They point out that
every §3730(h) action requires the plaintiff to prove that he
engaged in protected conduct related to at least a
suspected violation of §3729, and argue that §3731(b)(1)’s
limitations period simply begins to run on the date of the
suspected violation. Assuming, without deciding, that §3730(h)
retaliation actions have as an element a suspected violation of
§3729, their interpretation indeed removes the anomaly, but only at
the cost of reading into the statute the word “suspected” before
the phrase “violation of section 3729.” Section 3731(b)(1) speaks
of “violation[s] of section 3729”—
actual, not
suspected, ones. Wilson and the United States answer that
this argument proves too much, because even §§3730(a) and (b)
actions involve only “suspected” violations of §3729 at the
pleading stage of litigation; but this response misses the point.
Every §3730(a) or (b) plaintiff who states or proves a valid claim
for relief must allege or prove an actual violation of §3729;
retaliation plaintiffs need only allege or prove a suspected
violation of §3729 (or so we are willing to assume). The point is
that §3731(b)(1)’s language applies naturally to all successfully
pleaded or proved retaliation actions only if one reads “suspected”
into its terms, as the dissent essentially concedes. See
post, at 4 (opinion of Breyer, J.).
Section §3731(b)(1)’s literal text, then, is
ambiguous. Wilson and the Government ask us to read it as if it
said “the [suspected or actual] violation of section 3729.”
Petitioners ask us to read §3731(b) as if it said “civil action
under section 3730[(a) or (b)].”
Two considerations convince us that the better
way to resolve this ambiguity is to read the 6-year period to
govern only §§3730(a) and (b) actions, and not §3730(h) retaliation
actions. First, the very next subsection of the statute, §3731(c),
also uses the similarly unqualified phrase “action brought under
section 3730” to refer only to §§3730(a) and (b) actions. Section
3731(c) provides that “[i]n any action brought under section 3730,
the United States shall be required to prove all essential elements
of the cause of action, including damages, by a preponderance of
the evidence.” As Wilson and the United States concede, the context
of this provision implies that the phrase “any action brought under
section 3730” is limited to §3730(a) actions brought by the United
States and §3730(b) actions in which the United States intervenes
as a party, as those are the types of §3730 actions in which the
United States necessarily participates. Otherwise, the United
States would be “required to prove all essential elements of the
cause of action,” §3731(c), in all §3730 actions, regardless of
whether it participated in the action (a consequence the dissent
implicitly embraces by claiming that “any action brought under
section 3730” in §3731(c) means all §3730 actions, see
post, at 2 (opinion of Breyer, J.)). This implicit
limitation of the phrase “action under section 3730” shows that
Congress used the term “action under section 3730” imprecisely in
§3731 and, in particular, that Congress sometimes used the term to
refer only to a subset of §3730 actions. It is reasonable to read
the same language in §3731(b)(1) to be likewise limited.
Second, reading §3731(b)(1) to apply only to
§§3730(a) and (b) actions is in keeping with the default rule that
Congress generally drafts statutes of limitations to begin when the
cause of action accrues. We have repeatedly recognized that
Congress legislates against the “standard rule that the limitations
period commences when the plaintiff has a complete and present
cause of action.”
Bay Area Laundry and Dry Cleaning Pension
Trust Fund v.
Ferbar Corp. of Cal., 522 U. S. 192, 201
(1997) (internal quotation marks omitted); see also
Johnson v.
United States, 544 U. S. ___, ___
(2005) (slip op., at 9) (calling it “highly doubtful” that Congress
intended a time limit on pursuing a claim to expire before the
claim arose);
Reiter v.
Cooper, 507 U. S. 258, 267
(1993) (declining to countenance the “odd result” that a federal
cause of action and statute of limitations arise at different times
“absen[t] … any such indication in the statute”);
TRW Inc.
v.
Andrews, 534 U. S. 19, 37 (2001)
(Scalia, J., concurring in judgment) (“Absent other indication, a
statute of limitations begins to run at the time the plaintiff has
the right to apply to the court for relief” (internal quotation
marks omitted)). Therefore, where, as the case is here, there are
two plausible constructions of a statute of limitations, we should
adopt the construction that starts the time limit running when the
cause of action (here retaliation) accrues.[
Footnote 2]
This approach resolves the ambiguity in
§3731(b)(1) in petitioners’ favor. On the one hand, reading
§3731(b)(1) to exclude retaliation actions will generally start the
limitations period running when the cause of action accrues. If
§3731(b)(1) excludes retaliation actions, then no express time
limit applies to §3730(h) actions, and we borrow the most closely
analogous state time limit absent an expressly applicable one. See
supra, at 4–5. The likely analogous state statutes of
limitations virtually all start to run when the cause of action
accrues—in retaliation actions, when the retaliatory action
occurs.[
Footnote 3]
The interpretation favored by Wilson and the
Government, on the other hand, is in tension with this rule of
construction. Under their reading, the statute of limitations for
FCA retaliation actions begins to run, at best, on the date the
actual or suspected FCA violation occurred. Because that date will
precede the retaliatory conduct, their reading starts the time
limit running before the retaliation action accrues. Even more
oddly, their reading allows a retaliation action to be time barred
before it ever accrues—for example, if the employer discovers more
than six years after the suspected violation of §3729 that an
employee aided in investigating that fraud, then retaliates. As we
have discussed, §3731(b)(1)’s text permits a construction that
avoids these counterintuitive results—that “civil action under
section 3730” means only those civil actions under §3730 that have
as an element a “violation of section 3729,” that is, §§3730(a) and
(b) actions.
Granted, other textual evidence cuts against
this reading of §3731(b)(1). In particular, Congress used the
phrase “brought under subsection (a) or (b) of section 3730” in
§3731(d); this, it is argued, shows that Congress could have been
similarly precise in §3731(b)(1) if it wished. In the context of
this statute, however, that argument proves too much, since the
same could be said of §3731(c), which all agree uses the phrase
“action under section 3730” in more limited, and less precise,
fashion. See
supra, at 8. We do not doubt that Congress
could have drafted §3731(b)(1) with more precision than it did, but
the presence of the same inexact wording in §3731(c) means that the
more precise language in §3731(d) casts little doubt on our reading
of the statute.
***
For the reasons we have
discussed, the FCA’s express limitations period does not apply to
§3730(h) actions. The most closely analogous state statute of
limitations therefore applies. Judge Wilkinson, in his dissenting
opinion below, concluded that the most closely analogous state
statute of limitations in this case is North Carolina’s 3-year
statute of limitations governing wrongful-discharge claims. See 367
F. 3d, at 261–262. The appropriate state statute of
limitations to borrow, however, is not within the scope of the
question we granted certiorari to decide, and the Court of Appeals
did not pass on the point. We therefore leave that issue for
remand. The judgment of the Court of Appeals is reversed, and the
case is remanded for further proceedings consistent with this
opinion.
It is so ordered.
* Justice Souter joins all but
footnote 2 of this opinion.
Footnote 1
See
United States ex rel. Karvelas
v.
Melrose-Wakefield Hospital, 360 F. 3d 220, 236
(CA1 2004) (holding that protected conduct is “conduct that
reasonably could lead to a viable FCA action”);
United States
ex rel. Yesudian v.
Howard Univ., 153 F. 3d 731,
740 (CADC 1998) (same);
Childree v.
UAP/GA AG CHEM,
Inc., 92 F. 3d 1140, 1146 (CA11 1996) (holding that
disclosure to employer of possible FCA violation protected conduct
where litigation is a “distinct possibility” at the time of the
disclosure);
Fanslow v.
Chicago Mfg. Center,
Inc., 384 F. 3d 469, 480 (CA7 2004) (protected conduct is
where employee had reasonable, good-faith belief that the employer
is committing fraud against the United States);
Wilkins v.
St. Louis Housing Auth., 314 F. 3d 927, 933 (CA8
2002) (same);
Moore v.
California Inst. of Tech. Jet
Propulsion Lab., 275 F. 3d 838, 845–846 (CA9 2002)
(same). We endorse none of these formulations; we note only that
all of them have properly recognized that proving a violation of
§3729 is not an element of a §3730(h) cause of action.
Footnote 2
Justice Stevens, we believe, misapplies this
interpretive rule.
Post, p. 1 (opinion concurring in
judgment). He argues that §3731(b)(1) does not govern §3730(h)
actions because “it is so unlikely that a legislature would
actually intend” to start the statute of limitations running before
the cause of action accrues that he “would presume that the anomaly
was the product of a drafting error” regardless of whether the text
is ambiguous.
Dodd v.
United States,
ante, at __, n. 1 (Stevens, J., dissenting). This is not
the proper analysis. Section 3731(b)(1) is ambiguous because its
text, literally read, admits of two plausible interpretations.
Supra, at 5–7. We apply the rule that Congress generally
drafts statutes of limitations to begin when the cause of action
accrues to resolve that ambiguity, not to create it in the first
instance.
Footnote 3
Ala. Code §6–2–38 (West 1993) (catchall for
tort actions not otherwise enumerated); §36–26A–4(a) (West 2001)
(retaliation action for whistle-blowers); Alaska Stat. §09.10.070
(Lexis 2004) (catchall); Ariz. Rev. Stat. Ann. §12–541 (West 2003)
(wrongful termination); Ark. Code Ann. §16–56–115 (Lexis 1987)
(catchall); §21–1–604 (Lexis 2004) (retaliation action for
whistle-blowers); Cal. Civ. Proc. Code Ann. §335.1 (West Supp.
2005) (personal injuries); §343 (West 1982) (catchall); Colo. Rev.
Stat. §13–80–102(1)(g) (Lexis 2004) (catchall); Conn. Gen. Stat.
§§52–577, 31–51m (2005) (catchall for tort actions; retaliation
action for whistle-blowers); Del. Code Ann., Tit. 10, §8119 (Lexis
1999) (personal injuries); Tit. 29, §5115 (Lexis 2003) (retaliation
action for whistle-blowers); D. C. Code §12–301(8) (West Supp.
2004) (catchall); Fla. Stat. §§112.3187(8)(a), 448.103 (2003)
(whistle-blower actions); Ga. Code Ann. §9–3–33 (Lexis 1982)
(personal injuries); Haw. Rev. Stat. §378–63(a) (Supp. 2004)
(retaliation action for whistle-blowers); Idaho Code §§5–224,
6–2105(2) (Lexis 1998) (catchall; retaliation action for
whistle-blowers); Ill. Comp. Stat. Ann., ch. 735, §5/13–202 (West
2003) (personal injuries); Ind. Code §34–11–2–4 (2004) (personal
injuries); Iowa Code §614.1 (2003) (personal injuries); Kan. Stat.
Ann. §§60–513, 75–2973(h) (Supp. 2003) (catchall; retaliation
action for whistle-blowers); Ky. Rev. Stat. Ann. §413.120(7) (Lexis
Supp. 2004) (catchall); §61.103(2) (Lexis 2004) (retaliation action
for whistle-blowers); La. Civ. Code Ann., Art. 3492 (West 1994)
(“[d]elictual actions”; starts running on day injury or damage
sustained, which is when the cause of action generally accrues for
retaliatory actions); Me. Rev. Stat. Ann., Tit. 14, §752 (West
1980) (catchall); Md. Cts. & Jud. Proc. Code Ann. §5–101 (Lexis
2002) (catchall for civil actions at law); Mass. Gen. Laws, ch.
260, §2A, ch. 149, §185(d) (West 2004) (catchall for tort actions
for personal injuries; retaliation action for whistle-blowers);
Mich. Comp. Laws Ann. §15.363(1) (West 2004) (retaliation action
for whistle-blowers); Minn. Stat. §541.07 (2004) (personal
injuries); Miss. Code. Ann. §15–1–49 (Lexis 2003) (catchall); Mo.
Rev. Stat. §516.120 (2000) (catchall); Mont. Code Ann. §39–2–911(1)
(2003) (wrongful discharge); Neb. Rev. Stat. §§25–207, 25–212
(1995) (catchall); Nev. Rev. Stat. §11.190.4(e) (2003) (personal
injuries); N. H. Rev. Stat. Ann. §508:4 (West 1997) (personal
actions other than slander or libel); N. J. Stat. Ann.
§§2A:14–1, 34:19–5 (West 2000) (catchall; retaliation action for
whistle-blowers); §2A:14–2(a) (West Supp. 2005) (personal
injuries); N. M. Stat. Ann. §37–1–4 (1990) (catchall);
N. Y. Civ. Prac. Law Ann. §215.4 (West 2003) (“action to
enforce” a statute “given wholly or partly to any person who will
prosecute”); N. Y. Lab. Law Ann. §740.4(a) (West 2002)
(retaliation action for whistle-blowers); N. C. Gen. Stat.
§§1–52, 126–86 (Lexis 2003) (catchall; retaliation action for
whistle-blowers); N. D. Cent. Code §28–01–16 (Lexis 1991)
(catchall); §34–01–20.3 (Lexis 2004) (retaliation actions for
whistle-blowers); Ohio Rev. Code Ann. §2305.09 (Lexis Supp. 2003)
(catchall for torts); §4113.52(D) (Lexis 2001) (retaliation action
for whistle-blowers); Okla. Stat. Ann., Tit. 12, §95 (West Supp.
2005) (catchall); Ore. Rev. Stat. §12.110(1) (2003) (catchall); 42
Pa. Cons. Stat. §5524(7) (2002) (catchall); Pa. Stat. Ann., Tit.
43, §1424(a) (Purdon 1991) (retaliation action for
whistle-blowers); R. I. Gen. Laws §9–1–14(a) (Lexis 1997)
(injuries to the person); §28–50–4 (Lexis 2003) (retaliation action
for whistle-blowers); S. C. Code Ann. §15–3–530 (West 2005)
(catchall); §8–27–30(B) (West Supp. 2004) (retaliation action for
whistle-blowers); S. D. Codified Laws §15–2–14(3) (West 2004)
(action for personal injury); Tenn. Code Ann. §28–3–104(a)(1)
(Lexis 2000) (personal injuries); Tex. Civ. Prac. & Rem. Code
Ann. §16.003 (West 2002) (personal injuries); Tex. Govt. Code Ann.
§554.005 (West 2004) (retaliation action for whistle-blowers); Utah
Code Ann. §§78–12–29(1), (2) (Lexis 2002) (liability created by
statute of foreign state; liability created by statute);
§67–21–4(2) (Lexis 2004) (retaliation action for whistle-blowers);
Vt. Stat. Ann., Tit. 12, §511 (Lexis 2002) (catchall); Va. Code
Ann. §§8.01–243(A), 8.01–248 (Lexis 2000) (personal injuries;
catchall); Wash. Rev. Code §4.16.080(2) (2004) (catchall for
injuries to person); W. Va. Code §55–2–12 (Lexis 2000)
(catchall); §6C–1–4(a) (Lexis 2003) (retaliation action for
whistle-blowers); Wis. Stat. §893.57 (2003–2004) (intentional
torts); Wyo. Stat. §§1–3–105(a)(iv)(C), 9–11–103(c) (2003)
(catchall; retaliation action for whistle-blowers). But see Vt.
Stat. Ann., Tit. 12, §512 (Lexis 2002) (personal injury statute of
limitations starts on the date of the discovery of the injury);
D. C. Code §1–615.54 (West 2001) (whistle-blower action may be
brought within one year of the time the employee learns of the
retaliation). We stress that these are only the likely candidates
for analogous state statutes of limitations; it may well not be an
exhaustive or authoritative list of the possibilities.
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