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

2011-05-16
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Headline: Court rules that federal agency responses to Freedom of Information Act requests count as government “reports,” allowing many whistleblower False Claims Act suits to be blocked when based on those disclosures.

Holding:

Real World Impact:
  • Allows agencies' FOIA replies to block private whistleblower suits based on those records.
  • May make it harder for whistleblowers to bring cases relying on FOIA-obtained documents.
  • Leaves lower courts to decide whether a suit is actually based on those disclosures.
Topics: whistleblower lawsuits, FOIA requests, False Claims Act, government contracting

Summary

Background

A company that makes and services elevators faced a private suit brought by a former employee and Vietnam veteran who said the company filed alleged false government reports tied to federal contracting rules. The former employee used copies of the company’s filings that the Department of Labor sent in response to three FOIA requests to support his claims. Lower courts disagreed about whether those FOIA replies count as public “reports.”

Reasoning

The Court addressed whether a federal agency’s written reply to a FOIA request is a “report” for a rule that blocks whistleblower suits when the same allegations are already publicly disclosed. The Justices looked to the ordinary meaning of “report” and held that written FOIA responses and any records attached are “reports.” The Court rejected narrower readings and remanded to decide if this suit was actually based on those disclosures.

Real world impact

The decision means many private whistleblower suits that rely on documents obtained through FOIA responses can be barred before trial, because those responses count as public reports. That outcome affects whistleblowers, government contractors, and taxpayers by changing which cases courts will hear. The ruling is not a final judgment on Schindler’s guilt and the case returns to lower courts for further review.

Dissents or concurrances

Justice Ginsburg, joined by two colleagues, dissented, arguing FOIA replies are ministerial and do not synthesize information like an audit or investigation, and she would have left the Second Circuit’s narrower rule in place to protect whistleblowers’ cases.

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