Supreme Court rules on Wartime Suspension of Limitations Act News
Supreme Court rules on Wartime Suspension of Limitations Act

[JURIST] The US Supreme Court [official website] ruled [opinion, PDF] unanimously Tuesday in Kellogg Brown & Root Services, Inc. v. United States ex rel. Carter [SCOTUSblog materials] that the Wartime Suspension of Limitations Act (WSLA) [18 USC § 3287] applies only to criminal offenses, and that its first-to-file bars claims related to others already filed only as long as the related claims are alive. The WSLA suspends “the running of any statute of limitations applicable to any offense” involving fraud against the federal government at times of war. Previously undecided was how narrowly the WSLA was to be interpreted, specifically whether it applied to both civil and criminal law, or only criminal. In 2005, Benjamin Carter, formerly an employee of contracting firm Kellogg Brown & Root (KBR), filed a qui tam action against his former employer for making a fraudulent claim for payment to the United States. Carter’s first two complaints were dismissed as barred by first-to-file, as other such claims were already made. Upon dismissal of those claims, Carter filed a third time in 2011, but was barred by the statute of limitations, as such an action must generally be brought within six years of the violation. The US Court of Appeals for the Fourth Circuit [official website] held [opinion] that the WSLA applied to civil claims and that the first-to-file bar ended when related claims ceased. The Supreme Court reversed in part and affirmed in part, ruling that the statute of limitations on Carter’s claims was not tolled by the WSLA. Reviewing the structure, text and history of the act, the Supreme Court held that the WSLA applies only to criminal offenses. The court further held that the first-to-file bar only prevents claims that relate to other active claims, but does not bar claims that relate to other claims already dismissed. Thus, although Carter’s third claim was not barred by first-to-file, it was barred by the statute of limitations as the WSLA does not apply.

The Supreme Court granted certiorari [JURIST report] in July. The court heard arguments [JURIST report] in January on the questions [OYEZ report]: “does the first-to-file requirement act as a once-case-at-a-time rule, allowing as many related claims to be filed as long as no prior claim is pending?” and “can the Wartime Enforcement of Fraud’s statute of limitations tolling provision be applied to civil claims brought by private citizens?”