1 stuart f. delery assistant attorney general … lobbying...joint stipulation of dismsisal - 1 1...

JOINT STIPULATION OF DISMSISAL - 1

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STUART F. DELERY Acting Assistant Attorney General DANIEL HUGO FRUCHTER Trial Attorney Commercial Litigation Branch, Civil Division United States Department of Justice 601 D Street, N.W. Washington, DC 20004 Phone: (202) 305-2035 Fax: (202) 616-4286 MICHAEL C. ORMSBY United States Attorney TYLER H.L. TORNABENE Assistant United States Attorney Post Office Box 1494 Spokane, WA 99210-1494 Telephone: (509) 353-2767 Fax: (509) 835-6397 Attorneys for United States of America

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF WASHINGTON

UNITED STATES OF AMERICA, ex rel., RAMBO,

Plaintiff,

vs. FLUOR CORPORATION; FLUOR HANFORD LLC, et al.,

Defendants.

NO. CV-11-5037-WFN JOINT STIPULATION OF DISMISSAL

Pursuant to F. R. Civ. P. 41 and the False Claims Act, 31 U.S.C. § 3730(b)(1),

the United States, the defendants, Fluor Corporation and Fluor Hanford, Inc., and

the relator, Loydene Rambo, (collectively the Parties) through their undersigned

attorneys, hereby stipulate to the dismissal of the above-captioned action.

Case 2:11-cv-05037-WFN Document 26 Filed 04/12/13


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The Parties have reached an agreement to settle this litigation. The settlement

agreement is attached hereto as Exhibit A. The relator and defendants have also

reached a separate agreement to resolve claims of the relator for attorneys’ fees and

costs pursuant to 31 U.S.C. § 3730(d)(1) and for retaliation under 31 U.S.C.

§ 3730(h).

The Parties agree that the Court will retain jurisdiction over the parties to

enforce the terms of the settlement agreements. The Parties agree that except as

specifically set forth in the settlement agreement between the relator and

defendants, the Parties will each bear their own costs, expenses, and attorneys’ fees.

Accordingly, the Parties hereby request that the Court enter the attached order

dismissing this matter with prejudice as to relators, with prejudice as to the United

States to the extent of the “Covered Conduct” in the Settlement Agreement attached

as Exhibit A, and without prejudice as to the United States on all other claims.

Respectfully submitted this 12th Day of April, 2013. STUART F. DELERY Acting Assistant Attorney General MICHAEL C. ORMSBY United States Attorney /s/ Daniel Hugo Fruchter MICHAEL D. GRANSTON SARA MCLEAN DANIEL HUGO FRUCHTER



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/s/ Tyler H.L. Tornabene TYLER H.L. TORNABENE Assistant United States Attorney United States Attorney's Office for the Eastern District of Washington

Attorneys for Plaintiff United States

/s/ Glenn V. Whitaker GLENN V. WHITAKER VORYS, SATER, SEYMOUR & PEASE LLP 301 East Fourth Street

Suite 3500, Great American Tower, Cincinnati, Ohio 45202 (513) 723-4608

Attorneys for Defendants Fluor Corporation and Fluor Hanford, Inc. /s/ Geoffrey Bestor GEOFFREY BESTOR THE BESTOR LAW FIRM 5335 Wisconsin Avenue, NW

Suite 440 Washington, D.C. 20015 (240) 463-8503

Attorney for Relator Loydene Rambo



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CERTIFICATE OF SERVICE

I hereby certify that on April 12, 2013, I electronically filed forgoing with the

Clerk of the Court using the CM/ECF System which sent notification of such filing

to the following participant(s):

Geoffrey Bestor: [email protected] Stephani Lynn Ayers:[email protected] s/Tyler H.L. Tornabene TYLER H.L. TORNABENE Assistant U.S. Attorney Eastern District of Washington Attorneys for Plaintiff United States


EXHIBIT A FINAL SETTLEMENT

Case 2:11-cv-05037-WFN Document 26-1 Filed 04/12/13

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JOINT STIPULATION OF DISMISSAL - 5

sEl'IT,EIrrtEIYr++gRBEXvmIT

This Settlement Agrcemcnt (Agrecnrcnt) is entcred int aorong tha United Statos

ofAmcrioa, ac'ting through the United States Departncnt of Justioe snd on bohalf of tho

UniEd Stst€s Dqsrfrnent ofEncrgy (DOf)(colleotively the 'Unltsd SEns"), Fluor

lhnford, Ino. (EHI) and Fluor Corporation (oo[ectiwly Flnor), and Loydone Rambo

(hereafter collectively refened to as the Parttes'), through thetr urthorlzod

rcpresentativrs.

RECTTAIS

A. FHI is incorporated in the State of Washington and is a subsidiary of Fluor

Enterprises, Inc. and Fluc Corporation, which is incorporated in the Stats of Delstvffo.

Beturcen January 2005 and September 2009, f[II had a DOE contraot to plan, integrate,

rnsnsgp, rnd srecute cleanup cffotts atDOE'sHanfordNuolsar Sitc in southcm

Washinglon State, Contract No. DE.AC0646RI13200 (hereinafor "0re Hsnford

Conraof).

B. Pafi of FHI's designated soopc ofwork underthc Hanbrd Contraot was o

oprate the Hazardous lvlaterials MBnagement and Emergoncy Re4onsc (IIAMMER)

Ccnter. Tho IIAMIvIER Centcr ig a federally-funded fEcility est&blishcd b bsin Hsnford

site lvontm, as well as first rasponders and law srfomemont perconnol, in tho areas of

homEland 8€ourity, em€rgency prcparcdness and rcsponse, ud hazardous waete

managetnent. DOE receivcd authorization from Congter to make IIAMMER availablo

to fedeml, stab, and locsl cntitics thatwould bencfit ftrom IIAMMER's taining

cepabilities, aod to collect user fees from those entities for thcir uae of the facility.


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C. In Febnrary 2011, laydene Rsmbo frled tqui ta n action in ths Unitod

Stacs District Court forthe BasEo Dlsfrict of Woshington capioncd llnitedftahs *rpt, Rutbov. Flwr llo{or{elal, CaeeNo. ov-ll-5037,pursrnntto ttre qui tarn

provisions ofthe False Claims Act, 3l U.S.C. $ 3730(b) (tlrc Civil Actior). Thc relatorrs

complaint allegod that EHI violated the False Claims Ast whcn it sought and reaeivod

reirnbutreurent ftrom DOE on the llan$rd Contract frr o<Penses incurred in aficmpting to

influence members of Congrcss and other federol offisisls regarding the HAMMER

Conter. The United Statee inemcned in the Civil Aotim on October 31,2012,

D. Thc United Statcs cont€nds ttEt it hss certain civil claims againS Fluor

for, betwoen April 2005 and S€ptcmbw2009, $$mitting or causing b bc submitted frlse

claims b DOE undcr the tlanford Confaot for qxpcnsGs of lobbying and/or influenoing

rncmbcrs of Congrcss and other fedoral officids on betralf ofths HAMMBR Centcr, in

violdion ofthe Byrd Amen&nent 3l U.S.C. $ 1352, thc HEnford Contraat, and Fcderal

Aoquisition Rcgulation clauses 52,2U3-12afld3l205a2. That conduct is rcferred to

bslow asthe Covsed Conduct

E. Fluor denies €ngpging in the Covcrcd Condust. This Agrccment is neitlrcr

an admission of liability by Fluor, nor a concession by the United States &at is clrims

arenotwell fotuded.

F. Rolator elaims ontitlemEut rmder 3l U.S.C. $ 3730(d) to e shEI€ of the

poceeds of this $etlsment Agreemcnt and to Relator's roasonablo orp€noos, sfromoys'

fccs snd costs.


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To avoid the delay, uncqtainty, inconvenience, urd o<penee ofproEaotcd

litig*ion of tfto above claimr, and in coruidc,ration ofthe muhur pomiscs and

obligations ofthis SottlementAgrcemont, 8re parties agrce as follows:

TERIVISI AtlD COIIDITIONq

l. Fluor shall pay to the United Sates $1,10O000 (the ScttlementAmount)

within five days of the effective date of this Scfitenrcnt Agrecnreng purcuant to wrlten

instnrctions to be provided bytheUnitod Ststcs.

2. C.onditioned upon the Unitcd Sutcs rcooiving the Settleruent Amount firom

Fluor and as $)on as feasible afrer reccip! thc unitcd states shalr pay $200,000 to

Relator.

3. subject to the o<ceptions in paragraph 5 (oonceming excluded craims)

bolow, rrd conditionsd upon Fluor's firtl payment of the settlement Amou4 fie united

stuer releases FHI and Fluor cotporation, togcther with thcir attiomeys, aEents,

eraphyce* oilficers, directors, and sharcholdcro, ourtent and formcr parent mrporations;

dir€st and indirect subsidiaries; divigions; current or formor oumers; and their sucsessorc

and assigns fiom any oivil or adminishative monetary claim ttre United Sates has for tho

covorcd conduoturdorthe False claims Act, 3l u.s.c. $$ 3729ar3; the prognm

Fraud Civil Remodie.s Ao[ 3l U,S.C. gg 3801-3312; thc Byrd Amendrnerq 3l U,S.C,

$ 1352; the conract Disputes Act, 4l u.s.c. gg 710!-?1091 or the oornmon lsq, ftsoriss

of breach of oontraoq paFoent by mistake, unjut enriohment, and fiaud.

4, Subject to the exccptions in Paragaph 5 bolow, and coaditioned upon

Fluor's firll paymcnt of thc settlementAmounf Relator, for himselflherself and for

his/her hoirs, suscegsorc, attomeyg, agpnls, and assigns, reloases EHI and Fluor


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Coryoration togrther with their efiomeys, agents, ernployees, offie,ers, direstors' and

sharclroldcrs, curtart and formcr parcrt copordions; direot and indirect srubsidlaries;

divisionq ouncnt or forsrer orrrners, and their succeesors and assisls fitm any oivil

monEtary olaim the relCorhas on behatf of the United Stdcs for the Covered Conduct

r:nder thc False Claims Act, 3l U.S.C. $$ 3?29.3733. Any claim of Relator for

retaliation rurder 3l U.S.C. $ 3730(h), or fon *pcnsos, attomcy fces and oosts pursurnt to

3l U.S.C. $ 3730(0(1), hotvwcr, is notr€lsased by this SottletnentAgreememt

5. Notwithsunding tho releases given in paragrqph 3 and 4 of this

Apcrnent, or any othor tcrm ofthis AgteomGnt, the fullowing claime of theUnited

Statcs are speoifioally resenred and are not roleased:

a- Any liability uising undcr Title 26, U.S. Codc (Intcmsl Rsvemrc

Code);

b. Anycriminalliability;

c. Erccpt as explicitly stated in the AgeemenL any administrative

liability, including tho suspension and debarmmt dghs of any

fedetal agstrcy;

d. Any liability to the Unitcd States (or its sgonoies) for any conduct

other than tho Covered Condust;

6. Any liability bamd upon obtig*ions creatod by this Agrcement;

f, Any liabilfty for expross u implicd warranty claims or other

c,ldms for dcfeotive or delioient products or scrvio€s, including

quality ofgoods and sorviccs;

g. Any liability for failurs to deliver goodu or eervicee due;


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lL fuiy liability for penonal iqiury or Propcrty dEmagE or for other

consequcntial damages arising frorn the Covsrcd Conduct; or

i. Arry liability of individuals (inoluding anrrant or former dircctors,

officerq ernplopesr sgcnts, or shareholders ofFHI orFluor

Corporation) who rcseivo writtcn notifroation thd.lhcy rro the

target of a criminal investigation (as definod in fte United Stares

Atorneys' Manual), are indictod or charged, or who srter into a

plea agrcemeirt, rclatod to thc Covcred Conduol

6. Rclator and her heirg susoEsoors' aftomeys, agenB' and assips shall not

object b this Agttcnront but agrec and confitm that this Agrcement is frir, sdequa,te, ard

reasonablo undcr all the circumstanoes, pursuurt to 3l U'S.C. 0 3730(cM(B).

Conditioncd upon Relator's rcceipt of the payment dcscfibod in Puagraph 2, Relator ard

her hehs, suocessors, attomeys, sgoNtts, and aseigns fully and finally releas€,lvBivc, snd

ftrwerdiscfiargethe Unibd Stst€s, its egencies, officut, sgpnts, employees, and

s6trvarrB, from any claims arising fiom the filing of ttre Civil Action or under 3l U.S.C.

$ 3730, s$d fiofir ury olairns to a shrrc of &e prcceods of ttris Agreoment and/sr $e Civil

Actiom.

7. Fluor waiveE and shall not ass€tt any de&nses they rnay have to any

criminal pmsecution or administrative action rulating to the Covered Conduct that mry be

based in ulhole or in part on a oontention that, rmdor the Double Jeopardy Cluse in tlp

Fifth Amandment of the Co4stiurtion, or urdertho ExcqBsive Fincs Clauss in thc EigMt

Amemdrrcqt ofths Constitutiom, this Agreement bars a runedy souglrt in suah sriminal

prosecution or adminisnative aotion. Nothing in this peragraph or any other proviaion of


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this Agrecment conetiEtos an agreelncrt by thc Unitod Stabs concming the

characterization of tho SotrlsmontAmountforpurposos of ttre Intemal Revenue laws,

Title 26 0fthe unitcd $taEs cod8.

E. Fluor fully and ftrally releascs ths uniEd saEs, its agpmcies, offtcas,

agcmts, mployeas, and servant& from any olaims (includingattoraey's foes, oost8, glrd

arpcnses of wcry kind und howevor denominaed) thnt Fluor hss asserb4 could havo

asserte{ ormsy assgrt in the future againstthe United Sta!6, its agenoies, officcrg,

agen6, emptopcg and senrants, rel*ed to thc Covcred Conduct end thc Unitsd Sbtes'

inrrcstigation md prosccution trrsof'

g, a. unallowble cG,re Dcfmed: All co$s (as defincd in thc FederEl

Aoquisition Rcaulatio,n, 48 C.FR. $ 31:05-47) incuned by or on behalf of Flum

Corporatiom, and theirprewat or former officcrs, dirgtor:s, employCes, sharcltoldErs, and

sg€nts in cmnestion with:

(l) tho mdters covered by &is Agresmsnt;

@ thoUnited States' audits and sivil and criminal

lnvestigptions of the mgtcrs oovcrtd by this Agecmen$

(3) Ftuor's irwestigdion, defcnsq rd corrcotive actions

undcrtalcsr in responsc to the Unitcd States' ardi(s) ard

civil and criminal invostigatim(s) in aonnection with 0rc

mstte$ oovercd by this Agreemelrt Gncluding attorney'o

f*);(4) tho nogotiation and performanca of thia Agttanent;


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(f) thc poymurtFluormakes to ttro Unitsd Statrsptrsuantto

16lgreanmt andany palmenb thatFluor may malceto

Rplator, including coste and attomcya' fces,

rc unallxrabtc costs for gwemm€fit contrasting Putposos (hercinafter refbmi to as

Unallowsble Costs).

b. Frrturc Tlcatrffit of Undlowable Costs: Unallowable Cosb will

be ryara6ly detcrnined and secountcd for by Fluor, and Fluor shall not ohatgc such

Unallov,rable Costs direatly or indireotly to eny contsaot with the Unitsd Statcs.

c. Theatnerrtof Unallowable Coats Prpviously Submittcd for

paynent lltithin 90 days of the Effestive Date of this Agreernurt, Pluor shallidsttify

rnd rcpay by adjustrneilt to ftt5c ctaims fur paynent or otftgfiiso any Unallounblo

CosB inahdod in paymerts previously souglt byFluor or any of its subsidiaries or

affiliatls furn ths United Sates. Fluor agreea that the UniEd Statos, at a minimum, shall

be entitled to rGooup fiom Fluor any ovoeaym€nt plus applicable interest and penalties

as arcsultof the inclusion of suoh Unallowuble Costs on previourly-eubmittcd rcquostr

for payment. The Unitod Statcs, including tho Eqartrnent of Justiee mdorthe affected

agencie+ icasrves its rights to urdi! oraminq or 1t'oramine Fluor's books and rccords

and to disagrtc with any catsulations nrbmited by Fluor or any of ib subsidisries or

affiliafs regarding any Unallowable Cosm inaludad in payments prwiously sought by

Flum, m fte effect of any such Unallowable Costs on thc amount of such pa;T aents

I O. This Agreement is intended to be for the beneft of the Parties only, Ttto

Partics do not rclease any claims against any otlrcr psr€on or entity.


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1 1. Upon rrceipt of &e full Settlement Amormt as dcscribed in Paragraph [,

above,tho Parties ahall promptly sign and file in ths Civil Action a Joint tltipulrtion of

Dismissal of Fluor from the Civil Aof,ion prusuant to Rulc 4l (a[l). Ths disnissal shall

be with prejudice as to thc Uniled Ststes b the Ecent ofthc Covcred Conduct rs defined

abovs.

lL Each Party shall bearits oum legal and othcr coets inouned in oonneotion

with this mattor, inoluding thopreparation and pcrformance ofthis Agrccment.

13. Each party and sigrratory to this Agrecmentrtpresents that it fteely and

volunarily qrtcrs in todris fursanentwithoutany degrcc of durcss moompulsion

14. This Agroomcnt is governod by the laws of the Unitod StBEs. Ilts

arclusive juridiction and vcnue for ury dispute relating to this Agrccnrent is the United

ShtEB Dishict Cornt for the Eastem Distict of Slashin$on. For purposes of construing

this Agrccment, this Agreement shdl be desnsd to have be€o draftEd by all Puties to

Eris Agreameirt rnd shatl not thercftre, be constnred againsturyPaay forthatrtason in

any subnoqucnt dispute.

15. This Agreemfitconstitrtcs the compleb a8tresment betwe€st tho Panies.

This Agreanent may not be urended except by written consent of the Parties.

16. The undersigrrod counsel represent andwrmnt that they are ftlly

urthorizcd b cxecute tris Agreenrcnt on behalf of ths persons and entitieg indiorted

below.

17 - This Agrwment may be €rtcclfiod in counbrparts, each of rvtich

oonstitrtcs an original and all of which constituts onc andthe samc Agreemenl

18. ThisAgrcement is bindingon Fluor's sucoessorc, transferces, and assigrs.


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19. This Agrocrncnt is blndlng on Relator's suooGs8ors, tansfete8s, heirs, and

sssiglls.

20. All partios consent to 6e Unitcd StatEE' disolosure of this Agrcemcn! and

informcion about this Agrocment, to lhc public.

21, This Agrcement ie eftctive on the date of sigraturc of the last signatory to

the furwnrent @ffeotive Dsts of tttis Agr€etnont). Faoeimiles of signaturtc shall

constiue arccpable, binding sigratures fupurposes of this Agreanent.

DArED: lllersTrial AtornoyUnitod Ststs Dcpaftneirt ofJustice

DATED:

Eastem District of Washittgton

FLUORHANFOBp. Ugg

oerro, {frlrr. BY:

TylcH.L. Tomabine

Fluor Hanford, Inc.


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oaED,#rJq

oot- I | (,>

DA,ED: al, l,l

;"m,-f'1,ffi,:n*":m*

DATE):

DAIB 4/Ll201"3

BY:

REI,ATOR

LoydooeRmboRclstor

Counsel br Rclator LoYdeire Rambo

ELUoR coRPoRATroN

BY:

Glenn V. Whiffi-JoW, Sater, Soymour & pcasc LLpuounsel for FluorHanbrd. Inc.

GeoffrcyBesmr

10


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DATED:

-__-

BY:

DATED:BY:

DATED;BY:

DATED:

ctstnv.m]"tn Sa&r. Se-vmour& paa$U.pCourel for Fhor ttanforU, fnc.

carlos lrd.I{Aum--$gr.licc freidaru Ortcf r-esat Ofiocr

rnd Sccrqa^, v"twr'RuorCorpomiion

btnriiv.ufrffi---'-Y*l* Satcr. Sqymour & pate I.I-p(]ouncel for Flrrn Hanftml Inc.

G.offrey BcfiorThe Be*nr l.nv t.irmCormscl lor Rclrror loydctre Rambo

BY:

IJOR. CORPC,RATION

Rela*or

r0


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[PROPOSED] ORDER - 1

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STUART F. DELERY Acting Assistant Attorney General DANIEL HUGO FRUCHTER Trial Attorney Commercial Litigation Branch, Civil Division United States Department of Justice 601 D Street, N.W. Washington, DC 20004 Phone: (202) 305-2035 Fax: (202) 616-4286 MICHAEL C. ORMSBY United States Attorney TYLER H.L. TORNABENE Assistant United States Attorney Post Office Box 1494 Spokane, WA 99210-1494 Telephone: (509) 353-2767 Fax: (509) 835-6397 Attorneys for United States of America

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF WASHINGTON

UNITED STATES OF AMERICA, ex rel., RAMBO,

Plaintiff,

vs. FLUOR CORPORATION; FLUOR HANFORD LLC, et al.,

Defendants.

NO. CV-11-5037-WFN [PROPOSED] ORDER

Pursuant to Fed. R. Civ. P. 41 and the False Claims Act, 31 U.S.C.

§ 3730(b)(1), the United States, defendants Fluor Corporation and Fluor Hanford,

Inc. (collectively Fluor), and the relator, Loydene Rambo, (collectively the Parties)

have stipulated to the dismissal of the above-captioned action.


[PROPOSED] ORDER - 2

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The Parties have reached an agreement to settle this litigation. The United

States and Fluor agree that each will bear its own costs, expenses and

attorneys’ fees. Accordingly, in light of the Stipulation of Dismissal and Settlement

Agreement, the Court rules as follows:

IT IS ORDERED that the case is DISMISSED with prejudice as to the relator

and with prejudice as to the United States to the extent of the "Covered Conduct" in

the Settlement Agreement between the United States and Fluor, and otherwise

without prejudice as to the United States. The Court retains jurisdiction over this

matter to enforce the terms of the Settlement Agreement. The United States and

Fluor each will bear their own costs, expenses, and attorneys’ fees.

IT IS SO ORDERED this ___ day of April, 2013. ________________________________________ HONORABLE WM. FREMMING NIELSEN SENIOR UNITED STATES DISTRICT JUDGE


1 stuart f. delery assistant attorney general … lobbying...joint stipulation of dismsisal - 1 1...

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