Does the False Claims Act make provision for the award of fees to the relator?
A particularly critical element of Section 3730(d)(1) is that provision which specifies that the relator “shall also receive an amount for reasonable expenses which the court finds to have been necessarily incurred, plus reasonable attorneys’ fees and costs. All such expenses, fees, and costs shall be awarded against the defendant.” (Emphasis added.) Unlike the relator’s recovery, which is deducted from the government’s total recovery, the relator’s expenses and costs are separately assessed against the defendant. A common mistake of inexperienced counsel is to either (a) assume that any such award is also subtracted from the settlement or judgment paid the government, or (b) assume that the issue of attorney’s fees is governed by the prevailing “American rule” which usually forecloses such an award. Consequently, no settlement agreement should be entered into with the government until the issue of how much the relator will be paid under this provision is determined. This is because aw
