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False Claims Penalty Assessed By Arbitrator Arbitration

Wednesday, March 09, 2005 01:13 pm

False Claims Penalty Assessed By Arbitrator Arbitration

A California court has ruled that an arbitrator could assess civil penalties against a contractor under the state False Claims Act even though the statute contemplates a court action.

The County of Solano awarded a contract to Lionsgate Corporation for the replacement of a bridge. The contract incorporated the Caltrans standard specifications which include a broad arbitration clause. The County later filed a demand for arbitration alleging that Lionsgate had breached the contract and violated the California False Claims Act, Cal. Gov. Code sections 12650 et se [...]

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