OCTOBER TERM 2010 · DECIDED MAY 16, 2011 · 5–3

563 U. S. 401 · No. 10-188 · Argued March 1, 2011

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Schindler Elevator Corp. v. United States ex rel. Kirk

Reversed and remandedFinal ruling
whistleblower lawsuitsgovernment contractor fraudFOIA requestsveterans employmentFalse Claims Act

Opinion of the Court by Justice Thomas, joined by Justices Roberts, Scalia, Kennedy, and Alito

The Supreme Court ruled that a federal agency's written response to a Freedom of Information Act request counts as a "report" under the False Claims Act's public disclosure bar, which can block whistleblower lawsuits based on already-public information.

The decision makes it harder for whistleblowers to use FOIA requests to gather corroborating evidence before suing government contractors for fraud, since doing so may now count as public disclosure that strips courts of jurisdiction over the resulting lawsuit.

How it got here: A federal trial court dismissed Kirk's suit as barred by public disclosure; the Second Circuit reversed; Schindler asked the Supreme Court to review that ruling.

The Case in Depth

What happened

Daniel Kirk, a Vietnam veteran, worked for Schindler Elevator Corporation, a company with federal contracts requiring it to report the number of veterans it employed. Suspecting Schindler was failing to file these reports accurately, Kirk had his wife file FOIA requests with the Department of Labor, which confirmed that Schindler had filed no information in some years and false information in others. Kirk then sued Schindler under the False Claims Act.

The question before the Court

If a government agency just mails back copies of records in response to a public records request, does that count as an official "report" that can block a whistleblower's fraud lawsuit?

The Court's answer

Yes — the Court ruled that a federal agency's written response to a FOIA request counts as a "report" under the False Claims Act's public disclosure bar. The Court reasoned that "report" carries its ordinary, broad dictionary meaning — anything that gives information or is an official statement of facts — not the narrower, investigation-focused meaning the Second Circuit had adopted. Because the Labor Department's written responses to Kirk's wife notified her of the results of her FOIA requests and included copies of Schindler's actual filings, they qualified as reports.

This means Kirk's lawsuit could be jurisdictionally barred to the extent it relies on those FOIA responses, unless he qualifies as an "original source" of the information. The Court sent the case back for the lower courts to sort out whether Kirk's suit was actually "based upon" those disclosures and whether the original-source exception applies.

Curious how the Court got there? See the step-by-step legal reasoning →

Why it matters

Employees and members of the public who suspect a government contractor is committing fraud often use FOIA requests to confirm their suspicions before filing a whistleblower lawsuit. This ruling means that doing so can now backfire: the FOIA response itself may count as a public disclosure that blocks the lawsuit, unless the person qualifies as an "original source" of the information.

What changes now

The case returns to the lower courts to decide whether Kirk's lawsuit was actually "based upon" the information disclosed in the FOIA responses, and whether Kirk might still qualify for the "original source" exception that would let his suit proceed despite the public disclosure bar. The Court left several related questions open, including whether FOIA-released records not attached to a written response are covered.

What this does not decide

The Court did not decide whether Kirk's suit was actually "based upon" the disclosed information, whether he qualifies as an "original source," whether FOIA-released records not attached to a written response are covered, or whether an agency's search process itself counts as an "investigation." These questions were left for the lower courts or future cases.

Concurrences and dissents

Dissent — Justice Ginsburg

Justice Ginsburg argued the Second Circuit was right that a routine FOIA response is not the kind of 'report' Congress meant to include, since it lacks the investigatory synthesis of information found in hearings, audits, and investigations. She warned the ruling weakens the False Claims Act by discouraging whistleblowers from using FOIA to corroborate their suspicions before filing heightened-pleading-standard lawsuits, and suggested Congress should revisit the issue.

How the Court got there

The legal reasoning, step by step

  1. The Court began with the text of the False Claims Act's public disclosure bar, which strips courts of jurisdiction over whistleblower lawsuits based on information already publicly disclosed through certain listed channels, including a 'report.'
  2. Because the statute does not define 'report,' the Court applied the word's ordinary dictionary meaning: something that gives information or an official statement of facts, rather than a narrower technical meaning requiring investigation or analysis.
  3. The Court read this broad meaning as consistent with the generally wide scope of the public disclosure bar, pointing to the inclusion of 'news media' among the listed sources as evidence that Congress intended broad coverage, not a narrow investigatory requirement.
  4. The Court rejected the lower court's use of the interpretive canon noscitur a sociis (the idea that a word takes meaning from the words surrounding it), finding that the appeals court applied the canon too narrowly by ignoring 'news media' as one of the surrounding terms, repeating an error the Court had corrected in a prior case.
  5. Applying this broad definition, the Court concluded that the Labor Department's written FOIA responses, along with any records attached to them, qualified as 'reports' because they were official statements that gave Kirk's wife information about Schindler's filings.

Doctrinal impact

Laws and provisions at issue

False Claims Act public disclosure bar, 31 U.S.C. § 3730(e)(4)(A)

Blocks whistleblower fraud lawsuits based on information already made public through certain listed sources.

Freedom of Information Act, 5 U.S.C. § 552

Lets the public request copies of government records.

Vietnam Era Veterans' Readjustment Assistance Act, 38 U.S.C. § 4212

Requires federal contractors to report how many veterans they employ.

Cases affected by this decision

Reaffirms Graham County Soil and Water Conservation Dist. v. United States ex rel. Wilson (559 U. S. 280)

The Court relied on this recent case's broad reading of the public disclosure bar and its rejection of narrow interpretive canons.

Supreme Court Opinion

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Schindler Elevator Corp. v. United States ex rel. Kirk | SCOTUS Reporter