Opinion
CIVIL ACTION NO: 97-3353, SECTION: "R" (3).
December 20, 1999
ORDER AND REASONS
Before the Court is defendant Interim Healthcare's motion to dismiss, or alternatively, to stay proceedings pending the outcome of the Fifth Circuit's en banc rehearing of Riley v. St. Luke's Episcopal Hospital, ___ F.3d ___, 1999 WL 1034213 (5th Cir. Nov. 15, 1999).
In this case, plaintiff, a former employee of Interim Healthcare, asserts that Interim violated the False Claims Act by engaging in premature billing of the Medicare and Medicaid programs. He does not allege that he has been personally injured by defendant's alleged actions, but only that the United States government has been harmed. The government has not intervened in this case. In Riley, a majority of the Fifth Circuit panel held that qui tam actions brought by uninjured relators in which the government does not intervene violate the Take Care Clause of Article II of the Constitution and the constitutional separation of powers doctrine. See Riley, 1999 WL 1034213 at *9-12. On November 15, 1999, the Fifth Circuit granted rehearing en banc of the Riley decision. See 1999 WL 1034216 (5th Cir. Nov. 15, 1999).
Plaintiff requests that if the Court is inclined to dismiss its claims, that, instead, it stay this matter until the Fifth Circuit renders its opinion. This Court has the inherent power to stay any matter pending before it in the interest of justice and "economy of time and effort for itself, for counsel and for litigants." Laitram Machinery, Inc. v. Carnitech A/S, 908 F. Supp. 384, 387 (E.D. La. 1995), quoting Landis v. North American Co., 299 U.S. 248, 254, 57 S.Ct. 163, 166 (1936). Here, a stay would not prejudice either party. The en banc Riley decision may obviate the need for a trial, at which time the defendant can move to dismiss plaintiff's claims. On the other hand, if the Fifth Circuit reverses its previous decision, the parties can continue the litigation in which they have already invested time and resources. This Court concludes that a stay in this matter is appropriate. Thus, Interim's motion to dismiss is denied without prejudice to its right to refile it after the Fifth Circuit renders its en banc opinion, and its motion to stay this matter until the Fifth Circuit issues its opinion in Riley is granted.