The qui tam provision of the False Claims Act (FCA or Act), 31 U. S. C. §3730(b), permits, in certain circumstances, suits by private parties on behalf of the United States against anyone submitting a false claim to the Government. Prior to 1986, such suits were barred if the information on which they were based was already in the Government's possession. At issue in this case is whether a 1986 amendment to the FCA partially removing that bar applies retroactively to qui tam suits regarding allegedly false claims submitted prior to its enactment and, if so, whether this particular action meets the requirements of the amended Act. We hold that the 1986 amendment does not apply to this action and therefore that this action should have been dismissed, as required by the 1982 version of the Act.
In December 1981, the Northrop Corporation
awarded petitioner Hughes Aircraft Company a
subcontract to design and develop a radar system for the
B2 bomber, which Northrop was then constructing
under contract with the Air Force. Both Northrop's
subcontract with Hughes and the Air Force's contract
with Northrop were "cost-plus" contracts, which
provided that the subcontractor and the contractor,
respectively, were to be reimbursed for all costs properly
incurred plus a reasonable profit. Several months after
Hughes was awarded the B2 subcontract, the
McDonnell-Douglas Corporation awarded Hughes a
"fixed-price" subcontract to design and develop an
upgraded radar system for the F15 fighter aircraft,
which McDonnell-Douglas was then building for the Air
Force. (Under the fixed-price contract, Hughes was to
receive a set price, regardless of costs). When it became
apparent to Hughes that the projects overlapped in
significant respects, Hughes adopted two internal
"commonality agreements" allocating between its F15
and B2 divisions various costs that were common to the
two projects.
After costs in the B2 program escalated,
Northrop requested a Government audit of Hughes'
accounting practices to ascertain whether Hughes had
improperly shifted costs from the fixed-price F15
subcontract to the cost-plus B2 subcontract. The Air
Force initially concluded, in a June 1986 preliminary
classified audit report, that Hughes had improperly
billed the B2 program for certain development costs that
should have been charged solely to the F15 program.
Between October 1986 and September 1988, the Defense
Contract Audit Agency prepared a series of unclassified
audit reports similarly concluding that Hughes had
misallocated costs between the two programs, and also
concluding that Hughes had not adequately disclosed the
company's commonality accounting practices in a Cost
Accounting Standards report it had submitted to the
Government in 1984. Based on those audits, the
Government directed Northrop to withhold $15.4 million
in B2 contract payments from Hughes.
On January 20, 1989, respondent William J.
Schumer, formerly the Division Contracts Manager for
Hughes' B2 Division, commenced this action against
Hughes pursuant to 31 U. S. C. §3730(b), the qui tam
provision of the FCA that authorizes private individuals,
"relators," to bring claims on behalf of the United States
against any person who knowingly presented false or
fraudulent claims to the United States in violation of
§3729. Schumer's complaint alleged that Hughes
knowingly mischarged Northropand through it the
United Statesfor certain radar development costs that
should have been allocated to the fixed-price F15
subcontract with McDonnell-Douglas instead of to the
cost-plus B2 subcontract with Northrop. App. 7280.
Schumer's amended complaint alleged that Hughes'
accounting practices resulted in a $50 million net
overcharge, and sought treble damages in the amount of
$150 million. Id., at 102.
Hughes moved to dismiss Schumer's action,
contending that the 1986 FCA amendment was not
retroactive and that the qui tam provision in effect when
Hughes engaged in its allegedly wrongful conduct
precluded qui tam suits based on information already
possessed by the Government. See 31 U. S. C. §3730(b)(4)
(1982 ed.). Hughes argued in the alternative that the suit
was barred even under the 1986 version of the Act
because it was "based upon the public disclosure of
allegations . . . in a[n] . . . administrative . . . audit,"
within the meaning of 31 U. S. C. §3730(e)(4)(A). The
District Court denied Hughes' motion.
Hughes then moved for summary judgment
on the merits, contending that it had fully disclosed the
basis of its cost accounting system to all of its customers
and had complied with all applicable contractual and
regulatory requirements relating to cost allocation.
After full briefing, the District Court concluded that
Hughes had allocated some costs between the F15 and
B2 programs consistent with disclosures Hughes made
to Northrop, App. to Pet. for Cert. 46a, had allocated
other costs to the fixed-price F15 contract that could
have been charged to the cost-plus B2 contract alone
(thereby benefitting the Government), id., at 50a, and had
properly disclosed the contents of the commonality
agreements to Northrop and the Air Force, id., at
46a48a, 56a. Accordingly, the District Court held that
"Schumer has not shown that Hughes violated the False
Claims Act." Id., at 64a.
Schumer appealed from the grant of
summary judgment against him, and Hughes
cross-appealed from the denial of its motion to dismiss.
The Ninth Circuit rejected Hughes' cross-appeal,
holding that the 1986 amendment removing certain
defenses to qui tam suits should be applied retroactively
to suits based on pre-1986 conduct because the
amendment involved only the "subject matter
jurisdiction" of courts to hear qui tam claims and did not
affect the substantive liability of qui tam defendants. 63
F. 3d 1512, 1517 (1995). The court further determined that
the action was not barred under the 1986 version of the
Act because no "public disclosure" of information
possessed by the Government had been made. Id., at
1518. Finally, the court reversed in part and remanded
for further consideration on the merits, holding that a
material factual dispute existed as to whether Hughes
had made misleading and incomplete disclosures about
its commonality agreements, whether or not the
allegedly incomplete disclosures resulted in any harm to
the public fisc. Id., at 15221525.
We granted the petition for certiorari to consider whether the 1986 amendment is applicable to pre-1986 conduct and, if so, whether the Government's release of its audits to Hughes employees constituted a public disclosure bar under the 1986 amendment and whether harm to the public fisc is an essential element of a qui tam action under the amended Act. 519 U. S. ___ (1996). Because we conclude that the lower courts should not have applied the 1986 amendment and therefore that this action should have been dismissed, we express no opinion as to the Ninth Circuit's "public disclosure" and "public fisc" holdings, or as to the merits of respondent's factual contentions.
The allegedly false claims at issue in this
case were submitted by Hughes between 1982 and 1984.
At that time, the FCA required a district court to
"dismiss [a qui tam] action . . . based on evidence or
information the Government had when the action was
brought." 31 U. S. C. §3730(b)(4) (1982 ed.). The Ninth
Circuit accepted, and respondent does not dispute, that
because "the government was aware of [respondent's]
allegations before he filed his suit, the [1982 provision]
would bar his claim," were it applicable. 63 F. 3d, at
1517.
Congress amended the FCA in 1986,
however, to permit qui tam suits based on information in
the Government's possession, except where the suit was
based on information that had been publicly disclosed
and was not brought by an original source of the
information. See 31 U. S. C. §3730(e)(4)(A). Because the
1986 amendment became effective before this suit was
commenced, respondent contends that it, rather than the
1982 qui tam provision, controls. We disagree.
We have frequently noted, and just recently
reaffirmed, that there is a "presumption against
retroactive legislation [that] is deeply rooted in our
jurisprudence." Landgraf v. USI Film Products, 511 U.
S. 244, 265 (1994). "The `principle that the legal effect of
conduct should ordinarily be assessed under the law that
existed when the conduct took place has timeless and
universal appeal.'" Ibid. (quoting Kaiser Aluminum &
Chemical Corp. v. Bonjorno, 494 U. S. 827, 855 (1990)
(Scalia, J., concurring)). Accordingly, we apply this
time-honored presumption unless Congress has clearly
manifested its intent to the contrary. 511 U. S., at 268.
Nothing in the 1986 amendment evidences a
clear intent by Congress that it be applied retroactively,
and no one suggests otherwise. Thus, under the
analysis the Court adopted in Landgraf, if the 1986
amendment has a retroactive effect, then we presume it
will not apply to the conduct alleged in this case, which
occurred prior to its effective date.
Respondent argues that the 1986
amendment has no retroactive effect because it does not
fit within Justice Story's "influential definition" of
impermissibly retroactive legislation, which we quoted
with approval in Landgraf:
"`[E]very statute, which takes away or impairs vested
rights acquired under existing laws, or creates a
new obligation, imposes a new duty, or attaches a
new disability, in respect to transactions or
considerations already past, must be deemed
retrospective.'" 511 U. S., at 269 (quoting Society for
Propagation of the Gospel v. Wheeler, 22 F. Cas. 756,
767 (No. 13,156) (CC NH 1814) (Story, J.)).
To the extent respondent contends that only statutes with
one of these effects are subject to our presumption
against retroactivity, he simply misreads our opinion in
Landgraf. The language upon which he relies does not
purport to define the outer limit of impermissible
retroactivity. Rather, our opinion in Landgraf, like that
of Justice Story, merely described that any such effect
constituted a sufficient, rather than a necessary,
condition for invoking the presumption against
retroactivity. Indeed, we recognized that the Court has
used various formulations to describe the "functional
conceptio[n] of legislative `retroactivity,'" and made no
suggestion that Justice Story's formulation was the
exclusive definition of presumptively impermissible
retroactive legislation. 511 U. S., at 269.
In any event, even applying Justice Story's
formulation, we reject respondent's contention that the
1986 amendment lacks retroactive effect. Respondent
first argues that the 1986 amendment does not "`impose
new duties with respect to transactions already
completed'" because, since 1863, "the FCA has made it
unlawful to knowingly submit a false claim for payment
to the United States." Brief for Respondent 15 (quoting
Landgraf, supra, at 280). The same argument was
made, and rejected, in Landgraf. There, we noted that
the provision of the 1991 Civil Rights Act authorizing
compensatory damages "does not make unlawful
conduct that was lawful when it occurred," but we
"[n]onetheless" held that "the new compensatory
damages provision would operate `retrospectively' if it
were applied to conduct occurring before" its effective
date. 511 U. S., at 281282; see also Rivers v. Roadway
Express, Inc., 511 U. S. 298, 303 (1994) (holding that an
increase in monetary liability could not be applied
retroactively even though the "normative scope of Title
VII's prohibition on workplace discrimination" was not
altered).
Respondent next contends that "the 1986 Amendments
to the qui tam bar do not create a new cause of action
where there was none before, change the substance of
the extant cause of action, or alter a defendant's
exposure for a false claim by even a single penny . . .
[and] thus d[o] not `increase a party's liability for past
conduct.'" Brief for Respondent 15 (quoting Landgraf,
supra, at 280). See also Brief for United States as Amicus
Curiae 1314. Again, respondent is mistaken. While we
acknowledge that the monetary liability faced by an FCA
defendant is the same whether the action is brought by
the Government or by a qui tam relator, the 1986
amendment eliminates a defense to a qui tam
suitprior disclosure to the Governmentand therefore
changes the substance of the existing cause of action for
qui tam defendants by "`attach[ing] a new disability, in
respect to transactions or considerations already past.'"
Landgraf, supra, at 269 (quoting Wheeler, supra, at 767);
see also Brief for United States as Amicus Curiae 14, n. 6
("[P]roof that the government had the information when
suit was brought was . . . a jurisdictional defense to an
action brought by a qui tam relator") (internal quotation
marks omitted); cf. Collins v. Youngblood, 497 U. S. 37,
49 (1990) ("A law that abolishes an affirmative defense"
violates the Ex Post Facto Clause); Beazell v. Ohio, 269 U.
S. 167, 169170 (1925) ("any statute . . . which deprives
one charged with crime of any defense available
according to law at the time when the act was
committed, is prohibited as ex post facto").
Nor is it the case that the 1986 amendment does not
"create a new cause of action." As respondent himself
recognizes, "as a result of the 1986 Amendments, the
federal courts are open to an FCA action brought by a
private relator on behalf of the United States," whereas
"[p]rior to 1986, once the United States learned of a false
claim, only the Government could assert its rights under
the FCA against the false claimant." Brief for
Respondent 16; see also Brief for United States as
Amicus Curiae 14 (recognizing that the 1986 amendment
"expanded the circumstances under which qui tam
relators may pursue actions to enforce" a false
claimant's liability to the Government).
The extension of an FCA cause of action to private
parties in circumstances where the action was
previously foreclosed is not insignificant. As a class of
plaintiffs, qui tam relators are different in kind than the
Government. They are motivated primarily by prospects
of monetary reward rather than the public good. As we
have previously recognized:
"`[Qui tam statutes are] passed upon the theory,
based on experience as old as modern civilization,
that one of the least expensive and most effective
means of preventing frauds on the Treasury is to
make the perpetrators of them liable to actions by
private persons acting, if you please, under the
strong stimulus of personal ill will or the hope of
gain. Prosecutions conducted by such means
compare with the ordinary methods as the
enterprising privateer does to the slow-going public
vessel.'" United States ex rel. Marcus v. Hess, 317 U.
S. 537, 541, n. 5 (1943) (quoting United States v.
Griswold, 24 F. 361, 366 (D. Ore. 1885)).
Qui tam relators are thus less likely than is the
Government to forego an action arguably based on a
mere technical noncompliance with reporting
requirements that involved no harm to the public fisc.
In permitting actions by an expanded universe of
plaintiffs with different incentives, the 1986 amendment
essentially creates a new cause of action, not just an
increased likelihood that an existing cause of action will
be pursued. See, e.g., Winfree v. Northern Pacific R.
Co., 227 U. S. 296, 302 (1913). Prior to the 1986
amendment, respondent's qui tam action was completely
barred because of Hughes' disclosure to the Government
of information about its claim submissions. The 1986
amendment would revive that action, subjecting Hughes
to previously foreclosed qui tam litigation, much like
extending a statute of limitations after the pre-existing
period of limitations has expired impermissibly revives a
moribund cause of action, see, e.g., Chenault v. U. S.
Postal Service, 37 F. 3d 535, 537, 539 (CA9 1994) (relying
on Landgraf in concluding that "a newly enacted statute
that lengthens the applicable statute of limitations may
not be applied retroactively to revive a plaintiff's claim
that was otherwise barred under the old statutory
scheme because to do so would alter the substantive
rights of a party and increase a party's liability")
(internal quotation marks omitted). This is true even if a
cause of action remained open to some other party. It is
simply not the case that, as respondent asserts, the
elimination of a prior defense to qui tam actions does not
"create a new cause of action" or "change the substance
of the extant cause of action."
Finally, respondent contends that the 1986 amendment
is jurisdictional, and hence that it is an exception to the
general Landgraf presumption against retroactivity.
Indeed, the Ninth Circuit went further, holding that,
absent a clear statement of congressional intent, there is
a strong presumption in favor of retroactivity for
jurisdictional statutes. 63 F. 3d, at 1517. The Ninth
Circuit simply misread our decision in Landgraf, for the
only "presumption" mentioned in that opinion is a
general presumption against retroactivity. The fact that
courts often apply newly enacted jurisdiction-allocating
statutes to pending cases merely evidences certain
limited circumstances failing to meet the conditions for
our generally applicable presumption against
retroactivity, not an exception to the rule itself, as the
United States recognizes. See Brief for United States as
Amicus Curiae 15, and n. 8. As we stated in Landgraf:
"Application of a new jurisdictional rule usually
`takes away no substantive right but simply changes
the tribunal that is to hear the case.' Present law
normally governs in such situations because
jurisdictional statutes `speak to the power of the
court rather than to the rights or obligations of the
parties.'" 511 U. S., at 274 (emphasis added,
citations omitted).
Statutes merely addressing which court shall have
jurisdiction to entertain a particular cause of action can
fairly be said merely to regulate the secondary conduct of
litigation and not the underlying primary conduct of the
parties. Cf. id., at 275; id., at 291 (Scalia, J.,
concurring). Such statutes affect only where a suit may
be brought, not whether it may be brought at all. The
1986 amendment, however, does not merely allocate
jurisdiction among fora. Rather, it creates jurisdiction
where none previously existed; it thus speaks not just to
the power of a particular court but to the substantive
rights of the parties as well. Such a statute, even though
phrased in "jurisdictional" terms, is as much subject to
our presumption against retroactivity as any other.
In sum, whether we consider the relevant conduct to be Hughes' disclosure to the Government or its submission of the allegedly false claim, disclosure of information about the claim to the Government constituted a full defense to a qui tam action prior to 1986. If applied in this case, the legal effect of the 1986 amendment would be to deprive Hughes of that defense. Given the absence of a clear statutory expression of congressional intent to apply the 1986 amendment to conduct completed before its enactment, we apply our presumption against retroactivity and hold that, under the relevant 1982 version of the FCA, the District Court was obliged to dismiss this action because it was "based on evidence or information the Government had when the action was brought." 31 U. S. C. §3730(b)(4) (1982 ed.). We therefore vacate the judgment below, and remand for further proceedings consistent with this opinion.
It is so ordered.