US/Nevada ex rel. Welch v. My Left Foot Children's Therapy, LLC, No. 16-16070 (9th Cir. 2017)
Annotate this CaseAfter relator alleged that her former employer violated the federal False Claims Act (FCA), 31 U.S.C. 3730(a), (b), and Nevada FCA, the United States and Nevada declined to intervene. The employer then moved to compel arbitration under the Federal Arbitration Act (FAA), 9 U.S.C. 1 et seq. The Ninth Circuit affirmed the district court's denial of the motion to compel arbitration on an alternate ground, holding that the plain text of relator's arbitration agreement did not encompass the FCA case.
Court Description: False Claims Act. The panel affirmed the district court’s denial of the defendants’ motion to compel arbitration on the alternate ground that relator Mary Kay Welch’s False Claims Act claims did not fall within the scope of the arbitration agreement with Welch’s former employer, defendant My Left Foot Children’s Therapy, LLC. Welch alleged that her former employer violated the federal and Nevada False Claims Acts by presenting fraudulent Medicaid claims. The United States and Nevada declined to intervene in the case and her employer moved to compel arbitration under the Federal Arbitration Act. The panel held that this lawsuit was not arbitrable because the plain text of Welch’s arbitration agreement that she signed when she applied for employment with My Left Foot did not encompass this False Claims Act case.
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