![]()
As part of the 1986 amendments, Congress enhanced the Qui Tam provisions of the FCA to increase the likelihood that a private citizen could file and win a Qui Tam suit. The improvements that most benefited whistleblowers included trebling damages, expanding the role of the Qui Tam relator (whistleblower), guaranteeing the relator a set percentage of the money that the government recovers, along with a provision known as the whistleblower protection clause.The trebling, or tripling of damage awards places the qui tam relator in a better position to convince others, especially attorneys, that a Qui Tam suit can be beneficial. One million dollars of fraud discovered could mean a three million dollar damage award, restoring the U.S. Treasury's coffers and providing a larger reward for the relator. The trebling of damages also encourages companies who have defrauded the government to settle cases rather than to risk the trebling of damages found by a jury.
The 1986 amendment expanded the role of the Qui Tam relator by allowing him or her to remain a party to the case, even if the government intervenes. Before 1986, the relator did not have the right to play a role once the government intervened in the case. Although the government has the primary role if they intervene in the case, the relator can continue as a party to the action. This gives the relator the right to watch the Justice Department's handling of the case before settlement and allows the relator to go to the judge if he or she believes that the Justice Department is not handling the case well, or in a manner detrimental to the relator.
In addition, before the 1986 amendment, a court could arbitrarily set the percentage of award for the Qui Tam relator. The 1986 amendment guaranteed a minimum of 15 percent and a maximum of 30 percent of the recovery. While encouraging potential relators with more certain rewards, the amendment also made it easier for potential relators to find attorneys willing to commit the time and money to a particular case.
Perhaps the most important change to the FCA as a result of the 1986 amendments comes in the form of the whistleblower protection clause. The whistleblower protection clause represents one of the strongest and most aggressive protection clauses in federal law. It not only protects the relator but anyone who investigates, initiates, testifies in furtherance of, or assists in a case. Under the FCA, whistleblowers who prove harassment as a result of their activity in exposing an employers fraud are entitled to "all necessary relief necessary to make the employee whole" including "reinstatement with the same seniority status... two times the amount of back pay, interest on any back pay, and compensation for any special damages." This clause not only protects the relator's job security if they are still employed while the case is proceeding, but also gives pause to companies that might otherwise harass or intimidate employees who cooperate with exposing the fraud. The whistleblower protection clause is limited to employer-employee relationships. The clause does not protect subcontractors or independent contractors who cooperate with a fraud investigation.
The 1986 amendment has dramatically changed the way that attorneys view whistleblowers. Before the amendments, attorneys had very little incentive to help whistleblowers. Most legal help for whistleblowers consisted of attorneys helping whistleblowers protect their rights pro bono (for free) or through long, painful and personal wrongful discharge suits. The amended Qui Tam provisions provide for damage awards that make it financial feasible for attorneys to front costs and take risks on potentially complicated litigation.
Confidential Contact | False Claims Reform Act | History of Qui Tam | Types of Whistleblower Cases
How Qui Tam Works | Qui Tam Whistleblower Lawsuits | Home