Mendiondo v. Centinela Hosp. Med. Ctr.

FALSE CLAIMS ACT RETALIATION

Mendiondo v. Centinela Hosp. Med. Ctr., No. 06-55981 (9th Cir. Apr. 1, 2008)

The United States Court of Appeals for the Ninth Circuit reversed and remanded the lower court’s dismissal of a claim brought by a nurse against a hospital for wrongful termination under the False Claims Act (“FCA”) and California False Claims Act. In making this decision, the court held that such a claim must only meet the notice pleading standards of the Federal Rules of Civil Procedure 8(a) and not the heightened pleading standards of rule 9(b).

The court observed that the notice pleading standard applies to all civil claims except those containing averments of “fraud or mistake.” Since a retaliation claim, unlike a substantive claim under the FCA, does not require a showing of fraud or mistake, the notice pleading standard applies. Furthermore, the court found that the nurse’s complaint met the notice pleading standard because it contained examples of potentially false billing and reimbursement practices and substandard care, indicated that she complained to the hospital’s CEO and her supervisor about these issues, and alleged that the hospital terminated her because of the complaints. Furthermore, the court found that the nurse’s complaint gave the hospital sufficient notice of the factual basis for her retaliation and wrongful termination claims.