Bibby v. Mortgage Investors Corp., No. 19-12736 (11th Cir. 2021)Annotate this Case
The Eleventh Circuit vacated its previous opinion and replaced it with the following opinion.
Relators filed a qui tam action against MIC under the False Claims Act (FCA), seeking to recover the money the VA had paid when borrowers defaulted on MIC-originated loans. Relators then amended the complaint, adding a state law fraudulent transfer claim against MIC executive William L. Edwards, as well as a corporate veil-piercing theory of liability, which made Edwards a defendant to the FCA claim. The district court granted Edwards's motion to dismiss the fraudulent transfer claim based on lack of standing and granted MIC's motion for summary judgment on the FCA claim.
The court concluded that summary judgment was improper on relators' FCA claim because genuine issues of material fact remain as to whether MIC's alleged false certifications were material. The court agreed with the district court that relators' claim is not barred by previous public disclosure. The court held that the district court has personal jurisdiction over Edwards. Finally, the court held that relators lack standing on the fraudulent transfer claim because their pre-judgment interest in preventing a fraudulent transfer is a mere byproduct of their FCA claim and cannot give rise to an Article III injury in fact.
This opinion or order relates to an opinion or order originally issued on January 15, 2021.