OPINION OF THE COURT
SCHINDLER ELEVATOR CORP. V. UNITED STATESEX REL. KIRK
563 U. S. ____ (2011)
SUPREME COURT OF THE UNITED STATES
NO. 10-188
SCHINDLER ELEVATOR CORPORATION, PETI-TIONER
v. UNITED STATES ex rel. DANIEL KIRK
on writ of certiorari to the united states court of
appeals for the second circuit
[May 16, 2011]
Justice Thomas delivered the
opinion of the Court.
The False Claims Act (FCA), 31 U.
S. C. §§3729–3733, prohibits submitting false or fraudulent
claims for payment to the United States, §3729(a), and authorizes
qui tam suits, in which private parties bring civil
actions in the Government’s name, §3730(b)(1). This case concerns
the FCA’s public disclosure bar, which generally forecloses
qui
tam suits that are “based upon the public disclosure of
allegations or transactions … in a congressional, administrative,
or Government Accounting Office report, hearing, audit, or
investigation.” §3730(e)(4)(A) (footnote omitted).[
Footnote 1] We must decide whether a federal
agency’s written response to a request for records under the
Freedom of Information Act (FOIA), 5 U. S. C. §552,
constitutes a “report” within the meaning of the public disclosure
bar. We hold that it does.
I
Petitioner Schindler Elevator
Corporation manufactures, installs, and services elevators and
escalators.[
Footnote 2] In
1989, Schindler acquired Millar Elevator Industries, Inc., and the
two companies merged in 2002.
Since 1999, Schindler and the
United States have entered into hundreds of contracts that are
subject to the Vietnam Era Veterans’ Readjustment Assistance Act of
1972 (VEVRAA). That Act requires contractors like Schindler to
report certain information to the Secretary of Labor, including how
many of its employees are “qualified covered veterans” under the
statute. 38 U. S. C. §4212(d)(1). VEVRAA regulations required
Schindler to agree in each of its contracts that it would “submit
VETS–100 Reports no later than September 30 of each year.” 48 CFR
§52.222–37(c) (2008); see also §22.1310(b).
Respondent Daniel Kirk, a United States Army
veteran who served in Vietnam, was employed by Millar and Schindler
from 1978 until 2003. In August 2003, Kirk resigned from Schindler
in response to what he saw as Schindler’s efforts to force him
out.[
Footnote 3]
In March 2005, Kirk filed this action against
Schindler under the False Claims Act, which imposes civil penalties
and treble damages on persons who submit false or fraudulent claims
for payment to the United States. 31 U. S. C. §3729(a). The
FCA authorizes both civil actions by the Attorney General and
private
qui tam actions to enforce its provisions. §3730.
When, as here, the Government chooses not to intervene in a
qui
tam action, the private relator stands to receive between 25%
and 30% of the proceeds of the action. §3730(d)(2).
In an amended complaint filed in June 2007,
Kirk alleged that Schindler had submitted hundreds of false claims
for payment under its Government contracts. According to Kirk,
Schindler had violated VEVRAA’s reporting requirements by failing
to file certain required VETS–100 reports and including false
information in those it did file. The company’s claims for payment
were false, Kirk alleged, because Schindler had falsely certified
its compliance with VEVRAA. Kirk did not specify the amount of
damages he sought on behalf of the United States, but he asserted
that the value of Schindler’s VEVRAA-covered contracts exceeded
$100 million.
To support his allegations, Kirk pointed to
information his wife, Linda Kirk, received from the Department of
Labor (DOL) in response to three FOIA requests. Mrs. Kirk had
sought all VETS–100 reports filed by Schindler for the years 1998
through 2006. The DOL responded by letter or e-mail to each request
with information about the records found for each year, including
years for which no responsive records were located. The DOL
informed Mrs. Kirk that it found no VETS–100 reports filed by
Schindler in 1998, 1999, 2000, 2002, or 2003. For the other years,
the DOL provided Mrs. Kirk with copies of the reports filed by
Schindler, 99 in all.
Schindler moved to dismiss on a number of
grounds, including that the FCA’s public disclosure bar deprived
the District Court of jurisdiction. See §3730(e)(4)(A). The
District Court granted the motion, concluding that most of Kirk’s
allegations failed to state a claim and that the remainder were
based upon the public disclosure of alle-gations or transactions in
an administrative “report” or “investigation.” 606 F. Supp. 2d
448 (SDNY 2009).
The Court of Appeals for the Second Circuit
vacated and remanded. 601 F. 3d 94 (2010). The court
effectively held that an agency’s response to a FOIA request is
neither a “report” nor an “investigation” within the meaning of the
FCA’s public disclosure bar. See
id., at 103–111 (agreeing
with
United States ex rel. Haight v.
Catholic
Healthcare West, 445 F. 3d 1147 (CA9 2006), and
disagreeing with
United States ex rel. Mistick PBT v.
Housing Auth. of Pittsburgh, 186 F. 3d 376 (CA3
1999)). We granted certiorari, 561 U. S. ___ (2010), and now
reverse and remand.
II
Schindler argues that “report” in
the FCA’s public disclosure bar carries its ordinary meaning and
that the DOL’s written responses to Mrs. Kirk’s FOIA requests are
therefore “reports.” We agree.[
Footnote 4]
A
1
Adopted in 1986, the FCA’s public
disclosure bar provides:
“No court shall have jurisdiction over an action
under this section based upon the public disclosure of allegations
or transactions in a criminal, civil, or administrative hearing, in
a congressional, administrative, or Government Accounting Office
report, hearing, audit, or investigation, or from the news media,
unless the action is brought by the Attorney General or the person
bringing the action is an original source of the information.” 31
U. S. C. §3730(e)(4)(A) (footnote omitted).
Because the statute does not
define “report,” we look first to the word’s ordinary meaning. See
Gross v.
FBL Financial Services, Inc., 557 U. S.
___, ___ (2009) (slip op., at 7) (“Statutory construction must
begin with the language employed by Congress and the assumption
that the ordinary meaning of that language accurately expresses the
legislative purpose” (internal quotation marks omitted));
Asgrow Seed Co. v.
Winterboer,
513 U. S. 179, 187
(1995) (“When terms used in a statute are undefined, we give them
their ordinary meaning”). A “report” is “something that gives
information” or a “notification,” Webster’s Third New International
Dictionary 1925 (1986), or “[a]n official or formal statement of
facts or proceedings,” Black’s Law Dictionary 1300 (6th ed. 1990).
See also 13 Oxford English Dictionary 650 (2d ed. 1989) (“[a]n
account brought by one person to another”); American Heritage
Dictionary 1103 (1981) (“[a]n account or announcement that is
prepared, presented, or delivered, usually in formal or organized
form”); Random House Dictionary 1634 (2d ed. 1987) (“an account or
statement describing in detail an event, situation, or the
like”).
This broad ordinary meaning of “report” is
consistent with the generally broad scope of the FCA’s public
disclosure bar. As we explained last Term, to determine the meaning
of one word in the public disclosure bar, we must consider the
provision’s “entire text,” read as an “integrated whole.”
Graham County Soil and Water Conservation Dist. v.
United States ex rel. Wilson, 559 U. S. ___, ___, ___,
n. 12 (2010) (slip op., at 8, 12, n. 12); see also
Tyler v.
Cain,
533 U. S. 656, 662
(2001) (“We do not … construe the meaning of statutory terms in a
vacuum”). The other sources of public disclosure in §3730(e)(4)(A),
especially “news media,” suggest that the public disclosure bar
provides “a broa[d] sweep.”
Graham County,
supra,
at ___ (slip op., at 8). The statute also mentions “administrative
hearings” twice, reflecting intent to avoid underinclusiveness even
at the risk of redundancy.
The phrase “allegations or transactions” in
§3730(e) (4)(A) additionally suggests a wide-reaching public
disclosure bar. Congress covered not only the disclosure of
“allegations” but also “transactions,” a term that courts have
recognized as having a broad meaning. See,
e.g.,
Moore v.
New York Cotton Exchange,
270 U. S. 593, 610
(1926) (“ ‘Transaction’ is a word of flexible meaning”);
Hamilton v.
United Healthcare of La., Inc., 310
F. 3d 385, 391 (CA5 2002) (“[T]he ordinary meaning of the term
‘transaction’ is a broad reference to many different types of
business dealings between parties”).
2
Nor is there any textual basis
for adopting a narrower definition of “report.” The Court of
Appeals, in holding that FOIA responses were not “reports,” looked
to the words “hearing, audit, or investigation,” and the phrase
“criminal, civil, [and] administrative hearings.” It concluded that
all of these sources “connote the synthesis of information in an
investigatory context” to “serve some end of the government.” 601
F. 3d, at 107; cf. Brief for Respondent 30, n. 15 (“Each
is part of the government’s ongoing effort to fight fraud”).
Applying the
noscitur a sociis canon, the Court of Appeals
then determined that these “ ‘neighboring words’ ”
mandated a narrower meaning for “report” than its ordinary meaning.
601 F. 3d, at 107.
The Court of Appeals committed
the very error we reversed in
Graham County. Like the
Fourth Circuit in that case, the Second Circuit here applied the
noscitur a sociis canon only to the immediately
surrounding words, to the exclusion of the rest of the statute. See
601 F. 3d, at 107, n. 6. We emphasized in
Graham
County that “
all of the sources [of public
disclosure] listed in §3730(e)(4)(A) provide interpretive
guidance.” 559 U. S., at ___ (slip op., at 8). When all of the
sources are considered, the reference to “news media”—which the
Court of Appeals did not consider—suggests a much broader scope.
Ibid.
The Government similarly errs by focusing only
on the adjectives “congressional, administrative, or
[GAO],”[
Footnote 5] which
precede “report.” Brief for United States as
Amicus Curiae
18. It contends that these adjectives suggest that the public
disclosure bar applies only to agency reports “analogous to those
that Congress and the GAO would issue or conduct.”
Ibid.
As we explained in
Graham County, however, those three
adjectives tell us nothing more than that a “report” must be
governmental. See 559 U. S.
, at ___, n. 7 (slip op.,
at 7, n. 7). The governmental nature of the FOIA responses at
issue is not disputed.
Finally, applying the ordinary meaning of
“report” does not render superfluous the other sources of public
disclosure in §3730(e)(4)(A). Kirk argues that reading “report” to
mean “something that gives information” would subsume the other
words in the phrase “report, hearing, audit, or investigation.”
Brief for Respondent 23. But Kirk admits that hearings, audits, and
investigations are processes “to
obtain information.”
Ibid. (emphasis added). Those processes are thus clearly
different from “something that
gives information.”
Moreover, the statute contemplates some redundancy: An “audit,” for
example, will often be a type of “investigation.”
We are not persuaded that we should adopt a
“different, somewhat special meaning” of “report” over the word’s
“primary meaning.”
Muscarello v.
United States,
524 U. S. 125,
130, 128 (1998). Indeed, we have cautioned recently against
interpreting the public disclosure bar in a way inconsistent with a
plain reading of its text. In
Graham County, we rejected
several arguments for construing the statute narrowly, twice
emphasizing that the sole “touchstone” in the statutory text is
“public disclosure.” 559 U. S.
, at ___, ___ (slip op., at
11, 19). We chose in that case simply to give the text its “most
natura[l] read[ing],”
id., at ___ (slip op., at 5), and we
do so again here.
B
A written agency response to a
FOIA request falls within the ordinary meaning of “report.” FOIA
requires each agency receiving a request to “notify the person
making such request of [its] determination and the reasons
therefor.” 5 U. S. C. §552(a)(6)(A)(i). When an agency denies
a request in whole or in part, it must additionally “set forth the
names and titles or positions of each person responsible for the
denial,” “make a reasonable effort to estimate the volume of any
[denied] matter,” and “provide any such estimate to the person
making the request.” §§552(a)(6)(C)(i), (F). The DOL has adopted
more detailed regulations implementing FOIA and mandating a
response in writing. See 29 CFR §70.21(a) (2009) (requiring written
notice of the grant of a FOIA request and a description of the
manner in which records will be disclosed); §§70.21(b)–(c)
(requiring a “brief statement of the reason or reasons for [a]
denial,” as well as written notification if a record “cannot be
located or has been destroyed” (italics deleted)). So, too, have
other federal agencies. See,
e.g., 28 CFR §16.6 (2010)
(Dept. of Justice); 43 CFR §2.21 (2009) (Dept. of Interior); 7 CFR
§1.7 (2010) (Dept. of Agriculture). Such an agency response plainly
is “something that gives information,” a “notification,” and an
“official or formal statement of facts.”
Any records the agency produces
along with its written FOIA response are part of that response,
“just as if they had been reproduced as an appendix to a printed
report.”
Mistick, 186 F. 3d, at 384, n. 5.
Nothing in the public disclosure bar suggests that a document and
its attachments must be disaggregated and evaluated individually.
If an allegation or transaction is disclosed in a record attached
to a FOIA response, it is disclosed “in” that FOIA response and,
therefore, disclosed “in” a report for the purposes of the public
disclosure bar.[
Footnote 6]
The DOL’s three written FOIA responses to Mrs.
Kirk, along with their attached records, are thus reports within
the meaning of the public disclosure bar. Each response was an
“official or formal statement” that “[gave] information” and
“notif[ied]” Mrs. Kirk of the agency’s resolution of her FOIA
request.
III
A
In interpreting a statute, “[o]ur
inquiry must cease if the statutory language is unambiguous,” as we
have found, and “ ‘the statutory scheme is coherent and
consistent.’ ”
Robinson v.
Shell Oil Co.,
519 U. S. 337,
340 (1997) (quoting
United States v.
Ron Pair
Enterprises, Inc.,
489 U. S. 235, 240
(1989)). We are not persuaded by assertions that it would be
anomalous to read the public disclosure bar to encompass written
FOIA responses.
1
The drafting history of the
public disclosure bar does not contradict our holding. As
originally enacted in 1863, the FCA placed no restriction on the
sources from which a
qui tam relator could acquire
information on which to base a lawsuit. See
Graham County,
559 U. S., at ___ (slip op., at 12). Accordingly, this Court upheld
the recovery of a relator, even though the Government claimed that
he had discovered the basis for his lawsuit by reading a federal
criminal indictment. See
United States ex rel. Marcus v.
Hess,
317
U. S. 537 (1943). In response, Congress amended the statute to
preclude such “parasitic”
qui tam actions based on
“evidence or information in the possession of the United States …
at the time such suit was brought.” 559 U. S.
, at ___
(slip op., at 12–13) (internal quotation marks omitted). Then, in
1986, Congress replaced the so-called Government knowledge bar with
the narrower public disclosure bar.
Id., at ___ (slip op.,
at 13).
The Court of Appeals concluded
that it would be inconsistent with this drafting history to hold
that written FOIA responses are reports. The court reasoned that
doing so would “essentially resurrect, in a significant subset of
cases, the government possession standard … repudiated in 1986.”
601 F. 3d, at 109.
We disagree with the Court of Appeals’
conclusion. As a threshold matter, “the drafting history of the
public disclosure bar raises more questions than it answers.”
Graham County, supra, at ___ (slip op., at 14).
In any event, it is hardly inconsistent with the drafting history
to read the public disclosure bar as operating similarly to the
Government knowledge bar in a “subset of cases.” 601 F. 3d, at
109. As we have observed, “[r]ather than simply repeal the
Government knowledge bar,” the public disclosure bar was “an effort
to strike
a balance between encouraging private persons to
root out fraud and stifling parasitic lawsuits.” 559 U.
S.
, at ___ (slip op., at 13) (emphasis added).
If anything, the drafting history supports our
holding. The sort of case that Kirk has brought seems to us a
classic example of the “opportunistic” litigation that the public
disclosure bar is designed to discourage.
Ibid. (internal
quotation marks omitted). Although Kirk alleges that he became
suspicious from his own experiences as a veteran working at
Schindler, anyone could have filed the same FOIA requests and then
filed the same suit. Similarly, anyone could identify a few
regulatory filing and certification requirements, submit FOIA
requests until he discovers a federal contractor who is out of
compliance, and potentially reap a windfall in a
qui tam
action under the FCA. See Brief for Chamber of Commerce of the
United States of America et al. as
Amici Curiae 20
(“Government contractors … are required to submit certifications
related to everything from how they dispose of hazardous materials
to their affirmative action plans” (citing 40 U. S. C. §3142
and 29 U. S. C. §793)).[
Footnote 7]
2
Nor will extending the public
disclosure bar to written FOIA responses necessarily lead to
unusual consequences. FOIA requires agencies to release some
records even absent a request. See 5 U. S. C. §§552(a)(1),
(2). Kirk argues that it would be strange that two relators could
obtain copies of the same document but that only the relator who
got the document in response to a FOIA request would find his case
barred.
This argument assumes that
records released under FOIA, but not attached to a written FOIA
response, do not fall within the public disclosure bar. We do not
decide that question. But even assuming, as Kirk does, that such
records are not covered by the public disclosure bar, we are not
troubled by the different treatment. By its plain terms, the public
disclosure bar applies to some meth- ods of public disclosure and
not to others. See
Graham County, supra, at ___
(slip op., at 4) (“[T]he FCA’s public disclosure bar … deprives
courts of jurisdiction over
qui tam suits when the
relevant information has already entered the public domain through
certain channels” (emphasis added)). It would not be
anomalous if some methods of FOIA disclosure fell within the scope
of the public disclosure bar and some did not.
We also are not concerned that potential
defendants will now insulate themselves from liability by making a
FOIA request for incriminating documents. This argument assumes
that the public disclosure of information in a written FOIA
response forever taints that information for purposes of the public
disclosure bar. But it may be that a relator who comes by that
information from a different source has a legitimate argument that
his lawsuit is not “based upon” the initial public disclosure. 31
U. S. C. §3730(e)(4)(A). That question has divided the Courts
of Appeals, and we do not resolve it here. See
Glaser v.
Wound Care Consultants, Inc., 570 F. 3d 907, 915 (CA7
2009) (describing the split in authority). It may also be that such
a relator qualifies for the “original source” exception.[
Footnote 8]
In any event, the notion that potential
defendants will make FOIA requests to insulate themselves from
liability is pure speculation. Cf.
Graham County, 559 U.
S., at ___ (slip op., at 19) (rejecting as “strained speculation”
an argument that local governments will manipulate the public
disclosure bar to escape liability). There is no suggestion that
this has occurred in those Circuits that have long held that FOIA
responses are “reports” within the meaning of the public disclosure
bar.
B
Even if we accepted these
extratextual arguments, Kirk and his
amici have provided
no principled way to define “report” to exclude FOIA responses
without excluding other documents that are indisputably reports.
The Government, for example, struggled to settle on a single
definition. Compare Brief for United States as
Amicus
Curiae 19 (“report” must be read to “reflect a focus on
situations in which the government is conducting, or has completed,
some focused inquiry or analysis concerning the relevant facts”)
with
id., at 21 (“A FOIA response is not a ‘report’ …
because the federal agency is not charged with uncovering the truth
of any matter”), and Tr. of Oral Arg. 33 (“[T]he way to think about
it is whether or not the agency … is engaging in a substantive
inquiry into and a substantive analysis of information”). It is
difficult to see how the Department of Justice’s “Annual Report” of
FOIA statistics—something that is indisputably a Government
report—would qualify under the latter two definitions. See Dept. of
Justice, Freedom of Information Act An- nual Report, Fiscal Year
2010, http://www.justice.gov/oip/ annual_report/2010/cover.htm (as
visited May 12, 2011, and available in Clerk of Court’s case file);
see also Tr. of Oral Arg. 19 (Kirk conceding that the DOJ annual
report is a report). And even if the first definition arguably
encompasses that report, it would seem also to include FOIA
responses, which convey the results of a Government agency’s
“focused inquiry.”
Kirk also was unable to
articulate a workable definition. His various proposed definitions
suffer the same deficiencies as the Government’s. Compare Brief for
Respondent 27 and Tr. of Oral Arg. 17–18 with Brief for Respondent
34–39 and Tr. of Oral Arg. 23. Kirk’s first suggestion would
exclude “a lot of things that are labeled … report,”
id.,
at 22, and the second—the definition advanced by the Court of
Appeals—would seem to include written FOIA responses,
id.,
at 28–29. In the end, it appears that the “only argument is that
FOIA is a different kind of mission”—“a special case.”
Id., at 31
. We see no basis for that distinction
and adhere to the principle that undefined statutory terms carry
their ordinary meaning.
* * *
The DOL’s three written FOIA
responses in this case, along with the accompanying records
produced to Mrs. Kirk, are reports within the meaning of the public
dis-closure bar. Whether Kirk’s suit is “based upon … allegations
or transactions” disclosed in those reports is a question for the
Court of Appeals to resolve on remand. The judgment of the United
States Court of Appeals for the Second Circuit is reversed, and the
case is remanded for further proceedings consistent with this
opinion.
It is so ordered.
Justice Kagan took no part in the
consideration or decision of this case.
Footnote 1
During the pendency of this case, the Patient
Protection and Affordable Care Act, 124 Stat. 119, amended the
public disclosure bar. Because the amendments are not applicable to
pending cases,
Graham County Soil and Water Conservation
Dist. v.
United States ex rel. Wilson, 559 U. S. ___,
___, n. 1 (2010) (slip op., at 1, n. 1), this opinion
refers to the statute as it existed when the suit was filed.
Footnote 2
The facts in this Part, which we must accept
as true, are taken from the amended complaint and the filings
submitted in opposition to Schindler’s motion to dismiss.
Footnote 3
Kirk filed a complaint with the Department of
Labor’s Office of Federal Contract Compliance Programs (OFCCP),
claiming that he had been “improperly demoted and constructively
terminated by Schindler despite his status as a Vietnam era
veteran.” App. 23a. The OFCCP investigated Schindler’s compliance
with VEVRAA and found insufficient evidence to support Kirk’s
claim. In November 2009, the Department of Labor affirmed the
OFCCP’s finding. 601 F. 3d 94, 99 (CA2 2010).
Footnote 4
Because we conclude that a written response
to a FOIA request qualifies as a “report” within the meaning of the
public disclosure bar, we need not address whether an agency’s
search in response to a FOIA request also qualifies as an
“investigation.”
Footnote 5
Although the statute refers to the
“Government Accounting Office,” it is undisputed that Congress
meant the General Accounting Office, also known as GAO and now
renamed the Government Accountability Office. See
Graham
County, 559 U. S., at ___, n. 6 (slip op., at 6,
n. 6).
Footnote 6
It is irrelevant whether a particular record
is itself a report. The attached records do not “becom[e]” reports,
601 F. 3d, at 109, but simply are part of a report.
Footnote 7
There is no merit to the suggestion that the
public disclosure bar is intended only to exclude
qui tam
suits that “ride the investigatory coattails of the government’s
own processes.” Brief for Taxpayers Against Fraud Education Fund as
Amicus Curiae 25, 26; see
Graham County, 559 U.
S., at ___ (slip op., at 19) (rejecting the argument that the
public disclosure bar applies only to allegations or transactions
that “have landed on the desk of a DOJ lawyer”).
Footnote 8
An “original source” is “an individual who
has direct and independent knowledge of the information on which
the allegations are based and has voluntarily provided the
information to the Government before filing an action under this
section which is based on the information.” §3730(e)(4)(B). Some
Courts of Appeals have narrowly construed the exception to limit
“original sources” to those who were the cause of the public
disclosure, while others have been more generous. See
United
States ex rel. Duxbury v.
Ortho Biotech Prods., L.
P., 579 F. 3d 13, 22 (CA1 2009) (describing a three-way
split among the Courts of Appeals). That question is not before us,
and we do not decide it.
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