Allison Engine Co. v. United States ex rel. Sanders

Two former employees of General Tool, Roger L. Sanders and Roger L. Thacker, filed suit in the Southern District of Ohio under the False Claims Act, alleging that Allison, General Tool, and other subcontractors had knowingly submitted invoices to the shipyards for work which did not meet the Navy requirements, and that the contractors had issued false certificates of compliance with those specifications.

The contractor defendants moved for judgment on the grounds that the plaintiffs had not introduced any evidence of any false claims made to the Federal government.

Totten v. Bombardier Corp.,[4] finding (contrary to the Sixth Circuit) that intent for the false claim to be paid by the government was an essential element of §3729(a)(2).

In their briefs to the Supreme Court, the petitioners argued that a §3729(a)(2) action must include the element of presentment: that the false claim must be made directly to the government.

[2]This has the effect of reversing the Supreme Court's decision by eliminating the specific language on which Allison Engine was decided, and thereby cease "allowing subcontractors and non-governmental entities to escape responsibility for proven frauds".