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A former employee can sue the Danville Redevelopment & Housing Authority for retaliation under the federal False Claims Act, the U.S. District Court for the Western District of Virginia has held in denying a motion to dismiss.
Plaintiff Nancy Larissa Deedrich was an agency director who resigned after reporting a suspected fraudulent payment scheme. She then sued, claiming retaliation under the federal False Claims Act and the state’s anti-retaliation statute, breach of contract, violation of the Virginia Wage Payment Act and constructive discharge.
The defendant moved to dismiss, arguing that sovereign immunity barred the FCA claim.
Judge James P. Jones rejected that claim, finding that while the agency accepts federal funds for affordable housing initiatives and operates with a board appointed by local government entities, it also maintains control over its projects and operates more in line with a private entity in the housing market.
“DRHA is essentially a landlord; thus, it engages in proprietary, not governmental functions,” he wrote.
Further, Jones said that the plaintiff didn’t need to prove that a False Claims Act violation had occurred for her retaliation claim to succeed. Instead, “she need only show an objectively reasonable belief that a violation occurred.”
The judge also allowed the constructive discharge and breach of contract claims to proceed.
The 17-page opinion is Deedrich v. Danville Redevelopment & Housing Authority (VLW...
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