Background
Air Force employees brought a qui tam action under the False Claims Act alleging that Jeremy Burton, the former deputy chief information officer of the Space and Missile Systems Center, coordinated with a defense contractor to steer contracts to it and share in profits, contrary to federal acquisition rules.
Burton moved to dismiss under 31 U.S.C. § 3730(e)(1), which removes jurisdiction over certain qui tam actions by present or former armed-forces members against other armed-forces members arising from service. The district court initially dismissed the claims against Burton, but later reconsidered, vacated that ruling, and concluded that he was a civilian employee rather than a member of the armed forces. Burton appealed before final judgment.
The Court’s Holding
The Ninth Circuit dismissed the appeal for lack of jurisdiction. An order denying dismissal ordinarily is not a final decision appealable under 28 U.S.C. § 1291, and Burton did not seek certification for an interlocutory appeal.
The collateral-order doctrine did not permit immediate review. Even assuming the district court conclusively resolved an issue separate from the merits, its ruling was reviewable after final judgment. Section 3730(e)(1) is a jurisdictional bar governing a court’s power, not an immunity from suit that protects a person from the burdens of litigation.
Key Takeaways
- A denial of a § 3730(e)(1) defense is not immediately appealable under the collateral-order doctrine.
- The statute’s armed-forces limitation is jurisdictional, not a personal immunity from trial.
- The court distinguished the Feres doctrine because False Claims Act suits target fraud against the government rather than service-related injuries.
Why It Matters
The decision reinforces the narrow scope of collateral-order review. A defendant who asserts that a False Claims Act suit is barred by § 3730(e)(1) generally must litigate to a final judgment before seeking appellate review.
It also confirms that labeling a defense as dispositive does not make it immediately appealable; the asserted right must be one that would be irretrievably lost by proceeding to trial.