In 1986, the U.S. Congress amended the qui tam provisions of the U.S. False Claims
act in a way to make it more probable that a private citizen could file and win a qui tam suit. This move to amend the complaint
was driven by the proliferation of news stories of companies defrauding the federal government, especially in the area of
national defense. Some of the improvements included the trebling of damages, expanding the role of the qui tam relator, guaranteeing
the relator a set percentage of the money that the government recovers, and the whistleblower protection clause.
By trebling the damages of the amount of fraud discovered, the qui tam relator
was in a better position to convince others, especially attorneys, that it was worth the costs involved to bring a suit. One
million dollars of fraud discovered could mean three million dollars back to the U.S. Treasury and a higher percentage of
money to the relator. The trebling of damages also encourages companies who have defrauded the government to settle the case
rather than to risk the trebling of damages found by a jury.
The role of the qui tam relator was expanded by the 1986 amendment because, before,
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 "shall have the right to continue as a party to the action." This
clause gives you and your attorney the right to watch the Justice Department's handling of the case before settlement and
allows you to go to the judge if you believe that the case is not being handled well or not in your best interests.
Before the 1986 amendment, the court could arbitrarily set the percentage of award
for the qui tam relator. The 1986 amendment guaranteed a minimum of 15 percent of the recovery and a maximum of 30 percent.
That was another help for the relator in finding an attorney willing to commit the time and money into a case.
The whistleblower protection clause is one of the strongest 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. In Section 3730(h), whistleblowers who have proven harassment 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 helps the relator keep their job if they
are still employed while the case is proceeding, but also makes a company think twice about harassing any employees who cooperate
with exposing the fraud. Unfortunately, this clause does not help subcontractors and independent contractors who want to cooperate
with the investigation.
The effect of the 1986 amendment has dramatically changed the way that attorneys
view whistleblowers. Before the False Claims Act was amended, attorneys had very little financial incentive to help whistleblowers
and 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 changed that by showing attorneys
that they could share in the recovery as a reward for fronting costs and taking risks on potentially complicated litigation.
The good news is that whistleblowers' complaints are now seen as valuable to both the government and the attorneys. The bad
news is that, as in any profession, there are attorneys that are willing to take unfair advantage of the whistleblower and
the whistleblower must be careful to make informed decisions about obtaining legal help.