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In the Courts
Seventh Circuit: Military Government Contractor's FCA Summary Judgment Upheld for Lack of Materiality, Knowledge
On Dec. 11, 2015, the U.S. Court of Appeals for the Seventh Circuit announced its decision in United States ex rel. Debra Marshall v. Woodward, Inc., No. 15-1866, 2015 WL 5895976 (7th Cir. Dec. 11, 2015), in which Woodward, a designer, manufacturer and service provider of control systems in the aerospace and energy markets, was accused of violating the False Claims Act (FCA) based both on its sale of certified helicopter engine parts and the termination of two employees (also the whistleblowers in the lawsuit). The District Court for the Northern District of Illinois granted the defendant's motion for summary judgment in March 2015, and found that Woodward's actions did not violate the FCA (or Illinois law).
The engine part at issue ' the T2 sensor, which helps regulate fuel flow in aircraft based on air temperature ' was sold by Woodward to General Electric and the Department of Defense. Proper function of the T2 sensor is dependent on the proper amount of alcohol being present, allowing the sensor to expand or contract, controlling the flow of fuel to the engine. The alcohol is contained by eight “sealing joints,” one of which, the plaintiffs alleged, was improperly joined and not in compliance with the strict set of quality requirements.
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