Opinion
Civil Action No. 97-WM-2191
September 27, 2001
ORDER ON RECOMMENDATION OF MAGISTRATE JUDGE
This matter is before me on the recommendation of Magistrate Judge Patricia A. Coan, issued August 7, 2001, that the United States's motion to dismiss be granted, that claims one and two of the second amended complaint be dismissed with prejudice, and that defendants be directed to file an answer or other response to claim three of the second amended complaint within twenty days of this order. Relators filed a timely objection to the recommendation. 28 U.S.C. § 636(b).
I have reviewed de novo the pertinent portions of the record in this case, including the government's motion, the parties' briefs thereon, the recommendation, relators' objections, and the government's responses to those objections. I have not read a transcript of the evidentiary hearing held by Magistrate Judge Coan, because relators failed to provide such a transcript. Fed.R.Civ.P. 72(b). I have, however, considered the parties' descriptions of the testimony and evidence presented at the hearing. Based upon this review, I conclude the recommendation should be accepted.
Defendants also filed responses to the relators' objections. Because relators have objected to defendants' involvement in the evidentiary hearing held by Magistrate Judge Coan and because defendants' responses are not necessary to the resolution of the issues presented in the recommendation, I have not considered those responses here.
In my January 17, 2001 order, I agreed with Magistrate Judge Coan, over relators' objection, that the standard for dismissal by the government of this qui tam action is whether that dismissal is rationally related to a legitimate government purpose. United States ex rel. Sequoia Orange Co. v. Baird-Neece Packing Corp., 151 F.3d 1139, 1145 (9th Cir. 1998), cert. denied, 119 S.Ct. 794 (1999). The recommendation properly follows the two-step analysis of the Sequoia case, addressing first whether the government identified a legitimate governmental purpose and second whether it demonstrated a rational relationship between dismissal and the accomplishment of that purpose. After concluding the government had met its burden (that dismissal was rationally related to protection of national security interests and also to protection against delay in the closing of the Rocky Flats Environmental Technology Site (Rocky Flats)), Magistrate Judge Coan considered whether the relators had carried their burden of showing that the dismissal was fraudulent, arbitrary and capricious, or illegal. 151 F.3d at 1145.
Relators concede two parts of the government's case: that the protection of national security is a legitimate governmental interest, and that (in the abstract) the timely closure of Rocky Flats is a legitimate governmental interest. They contend, however, that the government failed to prove dismissal of the complaint is rationally related to these interests. Further, they argue the recommendation improperly shifted the burden to them to prove their case without using classified material and to prove they could prevail without delaying the scheduled closure of Rocky Flats. They point to alleged weaknesses in Magistrate Judge Coan's conclusions as evidence that the government did not prove its case.
For instance, on the issue of whether the use of classified documents in this case would present national security risks, relators claim the government did not prove whether the relevant documents could be declassified or redacted or whether the risk of inadvertent disclosure of classified documents (if not declassified or redacted) would be significant. On the issue of the timely closure of Rocky Flats, relators contend the government failed to show, with credible evidence, that the alleged diversion of security and management personnel would actually occur or, if it did occur, would actually cause delay.
Relators incorrectly interpret the rational relation standard of review. "[T]he government's power to dismiss or settle [a qui tam] action is broad." Sequoia, 151 F.3d at 1144. The Sequoia standard merely requires that the government justify its motion to dismiss by identifying a valid government purpose and showing a rational relation between dismissal and that purpose. Id. at 1145. There is no requirement that the government prove conclusively that, absent dismissal, the identified government interests will be adversely affected. See id. at 1146-47 (evidence that problems with lemon marketing were "potentially as pervasive" as those in orange industry was sufficient to extend dismissal to lemon industry action) (emphasis added).
The Sequoia standard is similar to the rational basis review of administrative action or statutory classification. See, e.g., Romer v. Evans, 116 S.Ct. 1620, 1627 (1996) ("if a law neither burdens a fundamental right nor targets a suspect class, we will uphold the legislative classification so long as it bears a rational relation to some legitimate end"). In the context of review of county-imposed limitations on land use, the Tenth Circuit has held that a constitutional challenge to such limitations can prevail "only if the alleged purpose behind the state action has no conceivable rational relationship to the [state's asserted interest or power]." Crider v. Board of County Comm'rs of Boulder County, 246 F.3d 1285, 1289 (10th Cir. 2001) (emphasis added), petition for cert. filed (July 17, 2001). The actual purpose of the state action at the time of the action is irrelevant for rational basis analysis. Id. at 1289-90. See also Federal Communications Comm'n v. Beach Communications, Inc., 113 S.Ct. 2096, 2101 (1993) (statutory classification that does not infringe fundamental constitutional rights or follow suspect lines survives equal protection challenge "if there is any reasonably conceivable state of facts that could provide a rational basis for the classification").
As these cases demonstrate, the government here met its burden under the rational relationship standard when it identified legitimate government interests and showed that there was a rational (even if not certain) relationship between accomplishment of those purposes and dismissal. Accordingly, relators' objections on this issue are overruled.
Relators also argue Magistrate Judge Coan erroneously found they had not met their burden of proof that the government's motion to dismiss was fraudulent, arbitrary and capricious, or illegal. Sequoia, 151 F.3d at 1145. I agree with the recommendation on this issue. Relators failed to negate every conceivable basis that could support the government's decision to dismiss, Beach Communications, 113 S.Ct. at 2101, or to show that fraudulent or illegal purposes were the true motivations behind that decision.
Relators' remaining objections are without merit.
Accordingly, it is ordered:
1. The recommendation issued by Magistrate Judge Coan on August 7, 2001, is accepted.
2. The motion to dismiss filed by the United States on August 21, 2000, is granted.
3. Claims one and two of the second amended complaint (alleging violations of 31 U.S.C. § 3729(a)(1), (a)(2), and (a)(3)) are dismissed with prejudice.
4. Defendants shall file an answer or other response to claim three of the second amended complaint (alleging constructive discharge) within twenty days of this order.
BY THE COURT.