Friday, November 20, 2009

Will I Qualify For A Lawsuit Loan If I File A Qui Tam (Whistleblower) Action?

By Dr. Tom Rhudy

Qui tam, according to the Qui Tam Information Center, is a provision of the Federal Civil False Claims Act (1863) that allows private citizens to file a lawsuit in the name of the United States government. These claims allege fraud by government contractors and/or others who either received or abused government funds, and allows those private citizens to share in the monies recovered.

In Law, the term qui tam connotes whistleblower protection laws. Such protection is provided to individuals who notify the government of their suspicions that entities have engaged in fraud and/or abuse. The etymology of the term is a Latin expression, viz., "qui tam pro domino rege quam pro se ipse." The phrase actually means "he who sues the king as for himself."

Whistle-blowing frequently occurs in situations in which employees expose fraud and abuse. The federal law that legitimated the concept of the whistle-blower, the False Claims Act (1863, revised'86) was originally enacted to combat fraud in which suppliers to the federal government engaged during the Civil War. Due to the benefits the government derives from such actions, whistle-blowers can receive a percentage of any money recovered or damages identified by the government in the fraud they expose.

It is private citizens who generally file such actions on behalf of the government. The intended purpose is to prevent fraud and abuse. A lawsuit loan may be required to assist such individuals in pursuing the litigation against the entity engaging in the fraud.

An individual who brings such a suit is also known as a relator. It is significant to note that the relator need not have been personally harmed by the conduct in which the defendant has engaged. It is also significant to note that, under the False Claims Act, the relator is entitled to 15-30% of the monies recovered, in addition to attorney's fees.

This is a very effective tool in combating fraud and abuse. It provides private citizens the knowledge and resources they need to combat such egregious acts. Unfortunately, many of the individuals who bring such actions are persecuted by the entity against which the action is filed. These individuals should be commended for their courage in speaking out against fraud and abuse, and admired for performing their civic duty.

These actions are unique, in that the government may elect to pursue an action against these entities on its own. If so, the individual who initially brings the action to the government's attention, would serve as an aid to the government in its prosecution, but would not bear the legal expenses incurred with bringing such an action. If this situation occurs, a lawsuit loan would not be required, due to the fact that the government is prosecuting the case.

However, if the government elects not to prosecute the case, individual bringing the situation to the government's attention may still be able to pursue a claim against the abusers, if that is the case, a lawsuit loan is often required to assist the individual in handling the legal expenses incurred.

It should also be recalled that a myriad of expenses arise once the claim is filed. While it is true that the whistleblower does have protection under the law from wrongful termination, employers often initially ignored this provision. During such times, relator's resources often quickly vanish.

Congress enacted this law in order to effectively identify and prosecute government waste and abuse, and to address issues related to fraudulent activity in which government-related entities may be involved. The issue of whether a lawsuit loan would be required in such instances involves an investigation of myriad factors. While awaiting the government's decision and action, the individual filing such a claim continues to have expenses, not to mention impediments that often occur with employment.

Under the Act, whistle-blowers also receive protection from wrongful termination. Additionally, the Act allows for reinstatement with seniority, double back pay, interest on back pay, compensation for discriminatory treatment, and reasonable legal expenses. Once again, it is the delay between the date on which the wrongful termination occurred and the date on which reinstatement is achieved that creates a tremendous financial burden on the claimant. It is during this interval that a lawsuit loan may be required.

To bar reprisals against those who expose government fraud and abuse, Congress adopted this legislation in'78. Unfortunately, due to the widespread harassment and wrongful termination of employees who reported such fraud and abuse against their employers, it was necessary for Congress to strengthen its position to protect whistleblowers in'89. Following the enhanced protection, many states have adopted specific employment laws addressing the issue of discrimination against such employees.

Due to expenses incurred, it is often necessary to obtain a lawsuit loan to avoid being buried under your financial obligations. If you do find yourself in such a situation, do your homework in obtaining settlement funding designed to suit your needs. - 30462

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