Subcontractor False Claims Suit Properly Dismissed Where Suit Based on Public Information

On July 22, 2011 the California Court of Appeal confirmed that a subcontractor could not bring an action against a general contractor alleging that the general contractor submitted a claim to a public entity in violation of the California False Claims Act (Government Code Section 12650 et seq.).  In the case, the subcontractor attempted to bring the suit in the name of the State of California as a so-called "qui tam" plaintiff, who can receive a substantial payout of litigation proceeds if the case is successful.  However, the subcontractor was out of luck because it relied on publicly-available information, rather than "ferreting out" the information.  The entire case, State of California ex rel. Standard Elevator Co. v. West Bay Builders, Inc. is available here.