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McElmurray v. August-Richmond County

ELR Citation: 37 ELR 20252
Nos. No. 06-16493, (11th Cir., 10/01/2007)

The Eleventh Circuit upheld the dismissal of dairy farmers' False Claims Act (FCA) against a Georgia county for misrepresenting its compliance with state and local environmental laws in order to obtain federal government loans for wastewater treatment facilities providing sewage sludge as fertilizer for the farmers' agricultural fields. The farmers' allegations of fraud on the loans sought by the county were based on public documents and disclosures. Therefore, they were not the original source of the information, as required by the FCA. In addition, the lower court did not err in converting the county's motion to dismiss for failure to state a claim into a motion to dismiss for lack of subject matter jurisdiction. Since it treated the motion as a facial challenge to the court's jurisdiction rather than a factual challenge, no discovery was needed.