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Supreme Court Decides New Haven Employment Case

In a case that will have both practical and political reverberations, the U.S. Supreme Court has ruled against the City of New Haven Connecticut in a reverse discrimination suit. The case, known commonly as "New Haven Firefighters," has political impact as well, due to the fact that Supreme Court nominee, Judge Sonya Sotomayor, participated in the appeals court ruling that has now been overturned by the Court. What does the ruling potentially mean for you, your business or organization?

Well, the New York Times reports that:
The ruling could alter employment practices nationwide, potentially limiting the circumstances in which employers can be held liable for decisions when there is no evidence of intentional discrimination against minorities.
The fact that this was a 5-4 decision indicates that even at the highest level, judges remain split on the application of employment law to the facts raised by the New Haven case. In particular, the case asked whether the city of New Haven Connecticut erred in throwing out the results of a promotion examination because minority test takers were unlikely to receive promotions based on the results of the exam.

Writing for the majority, Justice Kennedy states:
"Fear of litigation alone cannot justify an employer's reliance on race to the detriment of individuals who passed the examinations and qualified for promotions,"
Kennedy was joined by Chief Justice Roberts and Justices Scalia, Alito and Thomas.

The dissenting Justices were Ginsburg, Souter, Bryer and Stevens:
In dissent, Justice Ruth Bader Ginsburg said the white firefighters "understandably attract this court's sympathy. But they had no vested right to promotion. Nor have other persons received promotions in preference to them."
Undoubtedly, labor and employment lawyers will be busy crafting new rules for employers to follow in employment testing situations. Employers will be wise to review their employment practices for compliance with the New Haven ruling and to consult with an employment lawyer to understand the issues raised by the case in application to their own organization's practices and policies.

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How do Whistleblower Lawsuits Work?

Two big whistleblower lawsuits netted the plaintiffs almost $100 Million combined in the past month. What are these David vs. Golliath lawsuits, also called qui-tam, and how might you someday be affected by them?

So called "whistleblower," or "qui-tam" suits are filed under the False Claims Act, a federal law that empowers people to file lawsuits against federal contractors claiming fraud against the government. Successful whistleblowers can receive a portion (often 15-25 percent) of the damages recovered. Thus, whistleblowers can serve to help reduce fraud against the government, ultimately saving taxpayer money. Whistleblowers with insider knowledge of false claims involving health care, military, and other government spending programs have brought suits under the Act for decades.

As reported by the Wall Street Journal's Law Blog, April 2009 has seen two of the biggest whistleblower settlements in history:

A few weeks ago, we blogged on a huge whistleblower settlement involving Northrop Grumman, one in which pocketed the plaintiff/whistleblower nearly $49 million. It was the largest whistleblower — or qui tam — settlement ever involving alleged military-procurement fraud.

Today, we open the papers to news of another whopper of a qui-tam settlement, one which will net the plaintiff/whistleblower about $45 million.

The case involved Quest Diagnostics and its Nichols Institute Diagnostics unit. The pair agreed to pay $302 million to resolve criminal and civil allegations regarding various diagnostic test kits manufactured and sold until 2006, prosecutors said Wednesday. The diagnostic tests allegedly provided inaccurate and unreliable results, prosecutors said. Under the arrangement, the duo will pay $262 million plus interest to resolve the claims. More...

If you know of instances of fraud against the government, you may be able to file and prevail in a whistleblower, or qui-tam case. Remember, in a qui-tam case, as the plaintiff (the person bringing the suit), you can receive a part of the ultimate settlement yourself. This right to share in the settlement has for centuries (qui-tam cases date back hundreds of years through both english common law and the American courts) encouraged citizens to act a watchdogs against fraud, waste and abuse in government contracting.

The first thing to do is to find a lawyer who specializes in whistleblower cases and knows what do to. In most cases, the lawyer will give you a free consultation to help you understand your rights. Thereafter, the lawyer will counsel you on how best to proceed, if at all with your whistleblower action. Many, if not most lawyers who work in whistleblower cases can also help you to understand your rights if you are retaliated against by your employer who may be involved in the subject matter of your case.

Find a whistleblower (qui-tam) lawyer

Attorney Alix Rubin
Entwisle & Cappucci LLP


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