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No. 10127101
United States Court of Appeals for the Ninth Circuit
Thomas Mooney v. Douglas Fife
No. 10127101 · Decided September 30, 2024
No. 10127101·Ninth Circuit · 2024·
FlawFinder last updated this page Apr. 2, 2026
Case Details
Court
United States Court of Appeals for the Ninth Circuit
Decided
September 30, 2024
Citation
No. 10127101
Disposition
See opinion text.
Full Opinion
FOR PUBLICATION
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT
THOMAS MOONEY, Nos. 22-16328
23-15158
Plaintiff-Appellant,
D.C. No.
v. 2:17-cv-02191-
JCM-EJY
DOUGLAS FIFE, M.D.; HEATHER
FIFE; FIFE DERMATOLOGY, PC,
DBA Surgical Dermatology & Laser OPINION
Center, DBA Vivida Dermatology,
Defendants-Appellees,
and
ALAN ARNOLD, M.D.; VICTORIA
FARLEY, M.D.; ELIZABETH
LANGFORD, D.O.; MAC MACHAN,
M.D.,
Defendants.
Appeal from the United States District Court
for the District of Nevada
James C. Mahan, District Judge, Presiding
2 MOONEY V. FIFE
Argued and Submitted March 5, 2024
Las Vegas, Nevada
Filed September 30, 2024
Before: Milan D. Smith, Jr., Mark J. Bennett, and Daniel
P. Collins, Circuit Judges.
Opinion by Judge Bennett;
Partial Concurrence by Judge Collins
SUMMARY*
False Claims Act
The panel reversed the district court’s summary
judgment in favor of the defendants in a qui tam action under
the False Claims Act and remanded for further proceedings.
Plaintiff Thomas Mooney was employed as chief
operating officer for Dr. Douglas Fife, his wife Heather Fife,
and Fife Dermatology, PC, d/b/a Vivida Dermatology.
Mooney alleged concerns about improper billing practices at
Vivida. Following a conversation between Mooney and a
dermatologist belonging to another practice, Vivida
terminated his employment, citing unauthorized disclosure
of confidential information in violation of Mooney’s
employment agreement.
*
This summary constitutes no part of the opinion of the court. It has
been prepared by court staff for the convenience of the reader.
MOONEY V. FIFE 3
The panel held that a False Claims Act retaliation claim
requires proof of three elements: (1) protected conduct;
(2) notice; and (3) causation. Following most of the other
circuits that had considered the issue, the panel clarified that
in analyzing a retaliation claim, a court must use the
McDonnell Douglas burden-shifting framework, rather than
the Mt. Healthy framework commonly applied to First
Amendment retaliation claims. Under the McDonnell
Douglas framework, once an employee has established a
prima facie case of retaliation, the burden shifts to the
employer to produce a legitimate, non-retaliatory reason for
the employee’s termination. Then, if the employer produces
such a reason, the burden shifts to the employee to show that
the proffered explanation was pretextual.
In 2009, Congress amended 31 U.S.C. § 3730(h) to
provide that, in addition to protecting lawful acts done by the
employee, the False Claims Act also protects employees
from being discharged because of efforts to stop violations
of the Act. Prior to this amendment, this court held that,
under the Moore test, protected conduct had both a
subjective and an objective component. Thus, an employee
engaged in protected activity where (1) the employee in
good faith believed, and (2) a reasonable employee in the
same or similar circumstances might believe, that the
employer was possibly committing fraud against the
government. In U.S. ex rel. Hopper v. Anton, 91 F.3d 1261
(9th Cir. 1996), this court also held that the employee must
be investigating matters that were calculated, or reasonably
could lead, to a viable action under the False Claims Act.
Agreeing with the Eleventh Circuit, the panel held that
Hopper’s “investigating” requirement does not apply when
the employee alleges that he was discharged because of
efforts to stop violations of the Act. The panel further held
4 MOONEY V. FIFE
that the Moore test continues to apply following the 2009
amendment.
Applying this post-2009 amendment test, the panel
concluded that, at the summary judgment stage, Mooney
engaged in protected conduct that satisfied the first element
of a retaliation claim. Viewing the evidence in the light most
favorable to Mooney, he subjectively and objectively
believed that Vivida was possibly committing fraud against
the government.
The panel concluded that Mooney also met the notice
requirement of a prima facie case, which requires a showing
that the employer must have known that the employee was
engaging in protected conduct. Disagreeing with other
circuits, the panel held that it was irrelevant that Mooney had
a job duty to ensure compliance with billing regulations and
to report irregularities.
Vivida did not challenge causation, the third element of
a prima facie case, and so the burden shifted to Vivida to
produce a legitimate, non-retaliatory reason for Mooney’s
termination. The panel held that Mooney established
genuine issues of material fact whether the reasons proffered
by Vivida were pretextual. The panel therefore reversed the
district court’s grant of summary judgment as to Mooney’s
claim for False Claims Act retaliation and remanded that
claim for trial.
The panel also reversed the district court’s grant of
summary judgment on Mooney’s claims for breach of
contract and breach of the implied covenant of good faith
and fair dealing.
Concurring in part and in the judgment, Judge Collins
wrote that he concurred in the court’s opinion except for its
MOONEY V. FIFE 5
holding that the subjective and objective components for
protected activity, adopted in Moore with respect to the prior
version of the False Claims Act, also apply in determining
whether an employee engaged in protected conduct in the
form of efforts to stop violations of the False Claims Act.
Judge Collins wrote that this amended language seems to
suggest a stronger objective component than the one
described in Moore. Nonetheless, even assuming arguendo
that Mooney had to show that Vivida was likely engaged in
False Claims Act violations that he made efforts to stop,
Judge Collins thought his evidence was sufficient to raise a
triable issue of fact on that score.
COUNSEL
James P. Kemp (argued), Kemp & Kemp, Las Vegas,
Nevada, for Plaintiff-Appellant.
Kelly H. Dove (argued), Paul S. Prior, and Hayley J.
Cummings, Snell & Wilmer LLP, Las Vegas, Nevada, for
Defendants-Appellees.
6 MOONEY V. FIFE
OPINION
BENNETT, Circuit Judge:
In 2017, Dr. Douglas Fife, his wife Heather Fife, and Fife
Dermatology, PC d/b/a Vivida Dermatology (collectively,
“Vivida”) hired Thomas Mooney as its Chief Operating
Officer (“COO”) under a three-year agreement. Under the
agreement, Vivida could immediately terminate Mooney’s
employment for cause, including for a violation of any
confidentiality provision in the agreement. Mooney,
responsible for operational management and compliance,
alleged concerns about improper billing practices at Vivida.
Following a conversation between Mooney and Dr. Ken
Landow, a dermatologist belonging to another practice,
Vivida terminated his employment, citing unauthorized
disclosure of confidential information. Mooney initiated a
qui tam action under the False Claims Act (“FCA”), 31
U.S.C. §§ 3729–33, which he later voluntarily dismissed.
He then amended the complaint, which included claims for
FCA retaliation, breach of contract, and breach of the
implied covenant of good faith and fair dealing. The district
court granted summary judgment for Vivida on all three
claims.
We have jurisdiction under 28 U.S.C. § 1291. Because
we hold that the district court erred in applying the relevant
substantive law for Mooney’s FCA retaliation claim and
failed to view the evidence in the light most favorable to
Mooney for his breach of contract and breach of the
covenant of good faith and fair dealing claims, we reverse
and remand.
MOONEY V. FIFE 7
I. FACTUAL AND PROCEDURAL BACKGROUND
Vivida Dermatology is a dermatology practice founded
in 2009. In the spring of 2017, Vivida hired Mooney as its
Chief Operating Officer (“COO” or an “Executive
Director”). Vivida and Mooney signed the “Executive
Director Employment Agreement” (“Agreement”).
Mooney’s first experience overseeing a dermatology
practice was with Vivida, though he had managed practices
in other fields such as orthopedics and physical therapy.
Under the Agreement, Mooney’s employment began on
April 3, 2017, for a three-year initial term. But under § 7(a)
of the Agreement, Vivida could terminate Mooney’s
“employment . . . immediately and without advance notice
upon the existence of ‘[c]ause’ (as defined in subsection (b),
below).” Section 7 of the Agreement also provides:
a) Termination for Cause. . . . In the event of
termination for [c]ause, all obligations of the
Company[1] under this Agreement will
immediately cease, and no payments of any
kind, including payment of salary and fringe
benefits accrued through the date of
termination will thereafter be made in respect
of the remaining term of this Agreement. As
used herein with respect to termination by the
Company, “[c]ause” shall mean failure to
meet any of the requirements of Sections 3
and 4 above or for any other conduct
1
The Agreement defines “FIFE DERMATOLOGY, P.C., a Nevada
professional corporation d/b/a Surgical Dermatology & Laser Center” as
the “Company.”
8 MOONEY V. FIFE
constituting “just cause” [f]or termination
under Nevada common law.
b) For purposes of this Agreement, the term
“[c]ause” shall include the following:
...
2) Administrator’s[2] violation of any
terms and conditions of this agreement,
including, but not limited to, any
confidentiality provision[.]
The “any confidentiality provision” mentioned in § 7(b)(2)
refers to § 8(a), which in turn provides:
Confidentiality. Administrator shall not at
any time, except as required in the normal
course of his engagement hereunder, directly
or indirectly, divulge, disclose or
communicate to any person, firm or
corporation, in any manner whatsoever, or
make any use of any information concerning
any matters affecting or relating to the
business of the Company, including, without
limitation, . . . any other information
concerning the business of the Company, its
manner of operation, its plans, processes, or
other data, or any information ascertained by
Administrator through Administrator’s
employment with the Company (the
“Protected Information”) regardless of
whether any of the Protected Information
2
The Agreement defines “Thomas J. Mooney” as the “Administrator.”
MOONEY V. FIFE 9
would be deemed confidential, material or
important; the parties hereto stipulating that
as between them, the same are important,
material and confidential and gravely affect
the effective and successful conduct of the
business of the Company and the Company’s
good will. . . .
Mooney later testified that “its plans” as used in § 8(a)
“include prospective acquisition of other dermatologists[’]
practices.”
As Vivida’s COO, Mooney was responsible “for the
operational management and business administration of the
Company.” The Agreement’s Addendum A (“Job
Description”) lists specific COO duties, including:
6. Manag[ing] all financial functions
including overseeing the monthly reporting
for the CEO’s meeting with providers
regarding their production and practice
financials.
7. Troubleshoot[ing] all problems and
identifies proactive solutions to minimize
reoccurrence.
....
16. Proactively seek[ing] education about
changes in healthcare regulation, and
prepar[ing] the practice to take advantage of
10 MOONEY V. FIFE
opportunities and minimiz[ing] potential
damage caused by these changes.
Mooney testified in his deposition that “based on t[he]
[A]greement and the responsibilities set forth in the
Addendum,” it was his “role to make sure that Vivida
complied with Medicare and Medicaid regulations” and “to
alert Vivida if it was not complying with [such] regulations.”
During Mooney’s employment with Vivida, he came to
believe that Vivida was:
a. “upcoding” patient visits to reflect a
higher level of patient care than was actually
provided;
b. illegally “unbundling” services and
treatments so as to claim more
reimbursement from Medicare and Nevada
Medicaid than the Practice was entitled to;
and
c. calling uncertified staff “Medical
Assistants” and permitting them to see
patients and document in the electronic
medical records without the doctor being
present which would result in improperly
increased billing amounts for medical
services in violation of Medicare and Nevada
Medicaid regulations.
According to Mooney, he “would . . . raise these issues
with Dr. Fife at [thei]r weekly one-on-one meetings on
Fridays,” and he “confronted Dr. Fife in at least four or five
of these meetings.” Those meetings included their one-on-
one on June 16, 2017, when Mooney allegedly “reiterated to
MOONEY V. FIFE 11
Dr. Fife [his] concerns about the upcoding, explaining that
[he] thought the practice created significant legal liability
risk.”
Mooney also testified about his conversations with Dr.
Landow, a dermatologist at a different practice, on
Thursday, June 1, 2017, which eventually led to his
termination at Vivida.
Dr. Landow approached me and he asked me
about where we—were we doing something
with Dr. [Saul] Schreiber’s practice. And I
said we are in the market as you know
because we’re here looking at your practice
and if you have any issues or concerns please
address them with Dr. Fife.
He also testified that “Dr. Landow asked me if we were
purchasing or going to acquire or do anything with Dr.
Schreiber and I said as I’ve said a couple of times here, Fife
Dermatology is looking at a lot of different things as you
know and if you have any concerns about anything please
give Dr. Fife a call.”
On June 21, 2017, Vivida, via its counsel, sent a letter
terminating Mooney’s employment for cause under the
Agreement (“Termination Letter”): “Due to your direct
violation of the Agreement, the Company has elected to
terminate your employment for [c]ause, effective
immediately.” The Termination Letter explained the reasons
for Mooney’s termination:
Upon information and belief, on or about
June 1, 2017, you disclosed to a prospective
employee, Ken Landow, M.D., of the
12 MOONEY V. FIFE
Company’s intention to acquire Advanced
Dermatology, owned by Saul Schreiber, D.O.
On that same day, Dr. Landow told Dr. Fife,
“I had a visit from [Mooney] today, and he
said that you were considering purchasing
Saul Schreiber’s office.” When you were
confronted by Dr. Fife regarding this
unauthorized disclosure, you simply
responded that you were unaware the
information was confidential.
Vivida provided little detail about the “confrontation.”
Mooney disputed that the confrontation ever happened. He
testified:
I wasn’t confronted by Dr. Fife. I called Dr.
Fife after a meeting with . . . Ken Landow and
told him that he was highly upset and if we
were doing anything with Saul Schreiber’s
office that there’s no way he was going to
move forward with this potential merger.
And I told Dr. Fife that he should expect a
call from Dr. Landow and he was pretty
upset. So Dr. Fife told me, don’t worry, I’ll
handle it.
The Termination Letter further explained:
It is irrelevant whether you were aware that
the information was confidential in nature,
and unfortunately, this explanation is
insufficient. You were obligated to maintain
all Company Protected Information (as
defined in Section 8(a) of the Agreement)
MOONEY V. FIFE 13
confidential, regardless of whether the
Protected Information would be deemed
confidential, material or important. The
Agreement expressly forbids you from
sharing to any person the Company’s
business plans. Further, the Company’s
business plans are specifically identified in
the Agreement as Protected Information
under the confidentiality clause.
Dr. Fife further explained Vivida’s termination decision
in his deposition. He testified that “Dr. Landow was a very
well-trained dermatologist, very experienced, very
renowned, and [Dr. Schreiber] was kind of not—you know,
he was retiring. And we would just be taking over his charts,
but he was not a well-trained dermatologist and did not have
a good reputation in town.” Vivida had been “looking at
acquiring [Dr. Landow’s] practice and then having him work
part-time.” But because of Mooney’s supposed disclosure
to Dr. Landow about Vivida’s potential acquisition of Dr.
Schreiber’s practice, Dr. Landow “was kind of offended that
we were considering buying both of their practices and
thinking like, oh, am I going to be a colleague with this other
guy.” Dr. Fife believed that Mooney’s disclosure had
“seriously damaged [Dr. Fife’s] relationship with Dr.
Landow.”
On August 15, 2017, Mooney filed an FCA qui tam
action against Vivida. On June 4, 2020, Mooney voluntarily
dismissed the FCA claims. On July 15, 2021, Mooney
moved to file a Second Amended Complaint, which added
claims for retaliation under the FCA, breach of contract, and
breach of the implied covenant of good faith and fair dealing.
14 MOONEY V. FIFE
The district court granted the motion, and the Second
Amended Complaint was filed on December 22, 2021.
On August 29, 2022, after the close of discovery, the
district court granted summary judgment to Vivida on
Mooney’s three remaining claims. The district court
concluded that Mooney’s FCA retaliation claim failed
because “[e]nsuring compliance with billing regulations and
reporting irregularities” were activities Mooney was hired to
do, and his reporting did not put Vivida on notice of
potentially protected conduct.
As to the breach of contract claim, the district court
found that the Agreement is unambiguous and that
Mooney’s “deposition testimony proves that he disclosed
information he knew could be confidential—the acquisition
plans—by stating Vivida was ‘in the market,’ thus violating
§ 8(a) of the employment agreement.”
Finally, the district court determined that Mooney’s
breach of the implied covenant of good faith and fair dealing
claim also failed. The court noted that, under Nevada law,
such a claim is viable “[w]here the terms of a contract are
literally complied with but one party to the contract
deliberately countervenes the intention and spirit of the
contract.” (alterations in original) (quoting Hilton Hotels
Corp. v. Butch Lewis Prods., Inc., 808 P.2d 919, 922–23
(Nev. 1991)). The district court granted summary judgment
because Mooney “never argue[d] that [Vivida] literally
complied with the contract” and instead only pled that “he
did not breach confidentiality and therefore should not have
been terminated.”
After the district court granted Vivida’s motion for
summary judgment on all claims and entered judgment for
Vivida, Vivida moved for an award of attorneys’ fees. The
MOONEY V. FIFE 15
district court granted the motion, on the grounds that Vivida
was a “prevailing party” under § 13(h) of the Agreement.
Mooney timely appeals.
II. STANDARD OF REVIEW
We review a grant of summary judgment de novo,
Schnidrig v. Columbia Mach., Inc., 80 F.3d 1406, 1408 (9th
Cir. 1996), “viewing the evidence in the light most favorable
to the nonmoving party” and determining whether “there are
any genuine issues of material fact and whether the district
court correctly applied the relevant substantive law,” Lopez
v. Smith, 203 F.3d 1122, 1131 (9th Cir. 2000) (en banc).
III. DISCUSSION
A. The District Court Erred in Applying the Relevant
Substantive Law for Mooney’s FCA Retaliation
Claim.
1. The FCA’s Three Elements and the Burden-
Shifting Framework
The FCA protects “[a]ny employee” from being
“discharged . . . because of lawful acts done by the employee
. . . in furtherance of an [FCA] action . . . or other efforts to
stop 1 or more violations of [the FCA].” 31 U.S.C.
§ 3730(h)(1). “An FCA retaliation claim requires proof of
three elements”: (1) protected conduct, that is, “the
employee must have been engaging in conduct protected
under the Act”; (2) notice, that is, “the employer must have
known that the employee was engaging in such conduct”;
and (3) causation, that is, “the employer must have
discriminated against the employee because of her protected
conduct.” U.S. ex rel. Cafasso v. Gen. Dynamics C4 Sys.,
16 MOONEY V. FIFE
Inc., 637 F.3d 1047, 1060 (9th Cir. 2011) (quoting U.S. ex
rel. Hopper v. Anton, 91 F.3d 1261, 1269 (9th Cir. 1996)).
As some courts have recognized, we have not expressly
determined which framework we should use in analyzing
FCA retaliation claims. See, e.g., U.S. ex rel. Berglund v.
Boeing Co., 835 F. Supp. 2d 1020, 1040 (D. Or. 2011).
Some courts have applied the McDonnell Douglas burden-
shifting framework to FCA retaliation claims that we apply
to similar retaliation claims under Title VII and other statutes
(such as the Americans with Disabilities Act (ADA) and the
Age Discrimination in Employment Act (ADEA)). See, e.g.,
id.; Lestage v. Coloplast Corp., 982 F.3d 37, 47 (1st Cir.
2020); U.S. ex rel. Strubbe v. Crawford Cnty. Mem’l Hosp.,
915 F.3d 1158, 1168 (8th Cir. 2019); U.S. ex rel. King v.
Solvay Pharms., Inc., 871 F.3d 318, 332 (5th Cir. 2017); U.S.
ex rel. Schweizer v. Océ N.V., 677 F.3d 1228, 1241 (D.C.
Cir. 2012); see also N.Y. ex rel. Khurana v. Spherion Corp.,
511 F. Supp. 3d 455, 480 n.13 (S.D.N.Y. 2021) (applying
the McDonnell Douglas framework to claims made under
the New York (State) False Claims Act and New York City
False Claims Act); Nifong v. SOC, LLC, 234 F. Supp. 3d
739, 750–51 (E.D. Va. 2017) (applying the McDonnell
Douglas framework to an FCA retaliation claim while
acknowledging that “the Fourth Circuit has not directly held
that the McDonnell Douglas framework operates in FCA
retaliation cases.”).
Under that framework, once the employee has
established a prima facie case of FCA retaliation, the burden
shifts to the employer to produce a legitimate, non-
retaliatory reason for the employee’s termination. Erickson
v. Biogen, Inc., 417 F. Supp. 3d 1369, 1384 (W.D. Wash.
2019). Then, if the employer “produces [such] a . . . reason,”
MOONEY V. FIFE 17
the burden shifts to the employee “to show that the proffered
explanation was pretextual.” Id.
Some courts have seemingly adopted a different
framework that we commonly apply to First Amendment
retaliation claims, drawn from the Supreme Court’s decision
in Mt. Healthy City School District Board of Education v.
Doyle, 429 U.S. 274 (1977). Under that framework, the
burden of proof—and not merely the burden of production—
shifts to the employer once the plaintiff establishes a prima
facie case. See Allen v. Iranon, 283 F.3d 1070, 1074–75 (9th
Cir. 2002) (expressly distinguishing between the McDonnell
Douglas burden-shifting framework and the Mt. Healthy
framework). Specifically, “[a plaintiff] first ha[s] to show
that his conduct was constitutionally protected and that the
conduct was a ‘substantial’ or ‘motivating’ factor in the
defendants’ employment decisions.” Id. at 1074. “After he
ma[kes] these showings, the defendants could escape
liability only by sustaining the burden of proving ‘by a
preponderance of the evidence that [they] would have
reached the same decision . . . even in the absence of the
[plaintiff’s] protected conduct.” Id. (second and third
alterations and omission in original) (quoting Mt.
Healthy, 429 U.S. at 287). The Mt. Healthy framework
applies to First Amendment retaliation claims “regardless of
whether the plaintiff uses direct or circumstantial evidence
to prove that there was a retaliatory motive behind the
adverse employment action.” Id. at 1075.
The Third Circuit appears to have adopted the Mt.
Healthy framework in the FCA retaliation context. See
Hutchins v. Wilentz, Goldman & Spitzer, 253 F.3d 176, 186
(3d Cir. 2001) (adopting a standard under which “the burden
shifts to the employer to prove the employee would have
18 MOONEY V. FIFE
been terminated even if he had not engaged in the protected
conduct” (emphasis added)).3
We clarify today that the McDonnell Douglas burden-
shifting framework—rather than the Mt. Healthy
framework—applies to FCA retaliation claims. We find
support in our precedent in Stilwell v. City of Williams, 831
F.3d 1234 (9th Cir. 2016). There, we explained why the Mt.
Healthy standard applicable to First Amendment claims
under § 1983 does not apply to ADEA retaliation claims.
See id. at 1246–47. We relied on the higher burden of
causation applicable to Title VII retaliation claims under
University of Texas Southwestern Medical Center v. Nassar,
570 U.S. 338 (2013), which we held would apply to ADEA
retaliation claims. Stilwell, 831 F.3d at 1246–47. That same
logic applies to the FCA retaliation provision, which uses
“because of” language similar to that found controlling by
the Court in University of Texas. See 570 U.S. at 352
(stating that “because [of]” language generally requires “but-
for caus[ation]”). We thus conclude that the same legal
framework applicable to Title VII, ADEA, and ADA
retaliation claims should apply to FCA retaliation claims. In
doing so, we reach the same conclusion as most of our sister
circuits that have considered the issue.
The district court granted summary judgment because it
concluded that Mooney failed to satisfy the second element
(notice) of an FCA retaliation claim. The parties also dispute
whether the first element (protected conduct) is satisfied.
And even if Mooney could made out a prima facie FCA
3
But see Schweizer, 677 F.3d at 1241 n.14 (describing the approach in
Hutchins as being “similar” to the McDonnell-Douglas burden-shifting
framework).
MOONEY V. FIFE 19
retaliation claim, the parties dispute whether Vivida’s
proffered reason for terminating Mooney was pretextual.
2. Protected Conduct
The FCA only applies when an employee engages in
protected conduct, that is, “conduct protected under the
[FCA].” Cafasso, 637 F.3d at 1060 (citation omitted). Until
2009, however, protected conduct included only “lawful acts
done by the employee . . . in furtherance of an [FCA]
action.” 31 U.S.C. § 3730(h) (2008) (emphasis added). The
circuit courts split over what that meant. Some circuit courts
held that protected conduct only encompassed “either taking
action in furtherance of a private qui tam action or assisting
in an FCA action brought by the government.” U.S. ex rel.
Ramseyer v. Century Healthcare Corp., 90 F.3d 1514, 1522
(10th Cir. 1996), superseded by statute, 31 U.S.C. § 3730(h)
(2009). Under that interpretation, an employee who, for
example, “merely informed a supervisor of [an FCA
violation] and sought confirmation that a correction was
made” but never “initiated, testified for, or assisted in the
filing of a qui tam action” did not engage in protected
conduct. Zahodnick v. Int’l Bus. Machs. Corp., 135 F.3d
911, 914 (4th Cir. 1997), superseded by statute, 31 U.S.C.
§ 3130(h) (2009). Other circuit courts read the FCA’s “in
furtherance of” language more broadly to include protection
against “retaliation for filing an internal complaint.” U.S. ex
rel. Grenadyor v. Ukrainian Vill. Pharmacy, Inc., 772 F.3d
1102, 1109 (7th Cir. 2014) (describing and citing the
Seventh Circuit’s pre-2009 precedent); see also U.S. ex rel.
Yesudian v. Howard Univ., 153 F.3d 731, 741 (D.C. Cir.
1998) (“[T]he district court was wrong in suggesting that
Yesudian’s activity was unprotected because he had not
initiated a private suit by the time of his termination.”).
20 MOONEY V. FIFE
Congress amended 31 U.S.C. § 3730(h) in 2009. Fraud
Enforcement and Recovery Act of 2009, Pub. L. No. 111-
21, § 4, 123 Stat. 1617, 1624–25 (2009). That subsection
now provides that, in addition to protecting “lawful acts done
by the employee . . . in furtherance of an [FCA] action,” the
FCA also protects employees from being “discharged
. . . because of . . . other efforts to stop 1 or more violations
of [the FCA].” 31 U.S.C. § 3730(h). As the Eleventh Circuit
noted after the amendment:
Now, besides protecting employees who take
steps “in furtherance of” a[n] [FCA] suit, the
law protects employees who engage in
“efforts to stop 1 or more violations” of the
[FCA]. 31 U.S.C. § 3730(h)(1). In other
words, the amendments expanded retaliation
coverage to at least some set of people who
make “efforts to stop” [FCA] violations—
even if those efforts do not lead to a lawsuit
or to the “distinct possibility” of a lawsuit.
Hickman v. Spirit of Athens, Ala., Inc., 985 F.3d 1284, 1288
(11th Cir. 2021) (emphasis added).
Prior to 2009, we adopted a test for the “protected
conduct” element that has both a subjective and objective
component. We held that “an employee engages in protected
activity where (1) the employee in good faith believes, and
(2) a reasonable employee in the same or similar
circumstances might believe, that the employer is possibly
committing fraud against the government.” Moore v. Cal.
Inst. of Tech. Jet Propulsion Lab’y, 275 F.3d 838, 845 (9th
Cir. 2002). We also required that the employee “must be
investigating matters which are calculated, or reasonably
MOONEY V. FIFE 21
could lead, to a viable FCA action.” Hopper, 91 F.3d at
1269.
Since 2009, we have not addressed whether the Moore
test or the “investigating” requirement in Hopper survives
the FCA’s amendment. In two unpublished dispositions, we
continued to apply both. See Tribble v. Raytheon Co., 414
F. App’x 98, 99 (9th Cir. 2011) (affirming the district court’s
conclusion that Tribble had not engaged in protected conduct
under the FCA because “[t]here is no evidence that [he] took
any additional steps to pursue the alleged latent defect after
the submission of his PowerPoint presentation, nor that he
believed Raytheon’s failure to investigate the latent defect
constituted fraud against the U.S. government”); Lillie v.
ManTech Int’l Corp., 837 F. App’x 455, 457 (9th Cir. 2020)
(“To prove that he engaged in conduct protected under the
False Claims Act, the plaintiff must show that he
investigated his employer on the basis of a reasonable and
good faith belief that his employer might have been
committing fraud against the government.”).
We hold today that Hopper’s “investigating”
requirement does not apply when the plaintiff alleges that he
was “discharged . . . because of . . . other efforts to stop 1 or
more violations of [the FCA],” as Mooney does here.4 We
agree with the Eleventh Circuit that an employee’s “efforts
to stop 1 or more violations” need “not lead to a lawsuit or
to the ‘distinct possibility’ of a lawsuit.” Hickman, 985 F.3d
at 1288. It necessarily follows from that conclusion that the
employee should not be required to “be investigating matters
4
The “investigating” requirement continues to apply if the plaintiff only
alleges that he was “discharged . . . because of lawful acts done by the
employee . . . in furtherance of an [FCA] action.” 31 U.S.C.
§ 3730(h)(1).
22 MOONEY V. FIFE
which are calculated, or reasonably could lead, to a viable
FCA action.” Hopper, 91 F.3d at 1269 (emphasis added).
We further hold that the test we adopted in Moore for the
“protected conduct” element that has both a subjective and
objective component continues to apply following the 2009
amendment. We note, however, that this test does not set a
high bar. For the subjective component, Moore only
required that “the employee in good faith believe[] . . . that
the employer is possibly committing fraud against the
government.” 275 F.3d at 845 (emphasis added). Thus, the
employee need not know for certain that the employer has
committed fraud. Similarly, for the objective component,
Moore held that “a reasonable employee in the same or
similar circumstances might believe, that the employer is
possibly committing fraud against the government.” Id.
(emphasis added). Applying this post-2009 amendment
test—and viewing the evidence in the light most favorable
to Mooney—we conclude that, at this summary judgment
stage, Mooney did engage in protected conduct that satisfies
the first element of an FCA retaliation claim.
Through admissible evidence, Mooney stated that he has
“30[-]plus years of experience in management of medical
practices”:
[A]lthough that experience did not include
specifically managing a dermatology practice
like [Vivida,] [Mooney] do[es] have
extensive experience and knowledge of the
rules and regulations and proper practices of
billing insurance and Medicare for medical
services. [His] experience is such that [he]
can recognize issues of improper billing and
fraudulent billing and what [he] saw being
MOONEY V. FIFE 23
done at [Vivida] reasonably appeared to
[him] to be across the line into illegal and
fraudulent unbundling, upcoding, and
improperly billing non-physician time and
tasks as being the work of physicians in the
way in which it was recorded in the electronic
medical record system being utilized by
[Vivida].
(emphasis added).
He added that he “observed and became aware of
through [his] work, including reviewing reports, what [he]
reasonably believed to be fraudulent and improper billing
practices.” He explained:
[He] made Dr. Fife, the sole owner of the
practice who had 15 years of running a
dermatology practice, aware of [his]
concerns by directly addressing the matters
with Dr. Fife on four or five occasions
including one instance less than one week
prior [his] being fired. [Mooney] contend[s]
that these practices were actually unlawful
based on [his] personal observations and
information that [he] learned directly by
working [at Vivida]. If the information was
going into the electronic medical records and
the electronic medical records were being
used to formulate and produce bills to
Medicare and Medicaid then it is a
reasonable inference for [him] to draw and
conclude that there was fraudulent billing in
24 MOONEY V. FIFE
fact going out to the state and federal
government from [Vivida].
(emphasis added).
Mooney also alleged specific instances of improper
billing practices. First, he stated that Ms. Kila Ohlsen, “an
employee who was tasked with reviewing [Vivida’s] coding
for insurance claims (including Medicare and Medicaid) but
was not a certified coder, complained frequently to [him]
about how she felt that she might be risking legal exposure
by following Fife’s instructions regarding coding and
billing.”5 Second, he stated that, at a meeting in June 2017,
he “told the clinical staff that their practice of coding for a
full skin examination based only on glancing observation of
a clothed patient’s exposed skin was inappropriate upcoding,
especially when this ‘examination’ was performed by
uncertified or unqualified staff masquerading as ‘Medical
Assistants,’ who could not (and so did not) discuss any of
their ‘findings’ with the patient.”
Because Mooney’s statements are “to be believed, and
all justifiable inferences are to be drawn in his favor,”
Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255 (1986),
we easily conclude that in the light most favorable to
Mooney, he did subjectively and objectively believe that
Vivida was possibly committing fraud against the
government. This satisfies the first element of an FCA
retaliation claim.
Vivida argues that Mooney did not engage in protected
conduct because, first, Mooney has cited no evidence in the
5
Ms. Ohlsen was not deposed. According to Dr. Fife, she was no longer
with Vivida by the time of Dr. Fife’s deposition.
MOONEY V. FIFE 25
record that Vivida’s billing practices potentially violated any
law or regulation, and second, Mooney has not shown that
he had any reasonable basis for believing as much. Neither
argument is persuasive. First, as Mooney stated, he had no
opportunity to complete his investigation (though as we hold
above, investigation is not required for this element), when
he was fired shortly after he started noticing irregularities in
Vivida’s billing practices. Mooney explained in his
opposition below that “[h]e made observations and reviewed
reports, but he had not completed an investigation by
actually reviewing the bills themselves or to take other steps
to conclusively confirm the fraud” when “[h]e was fired
about 11 weeks into his . . . employment contract before he
could even complete his assessment of [Vivida] and
complete his investigation into the fraud.” Requiring more
would conflict with the FCA’s retaliation provision in
§ 3730(h)(1), undermine the goal of exposing fraud, and
motivate employers to terminate an employee before he
definitely uncovers fraud. Indeed, as Mooney stated,
because he was terminated by Vivida, he could “not
complete the investigation and potentially turn over
information regarding the apparent fraudulent billing to the
government.”
Second, Mooney’s 30-plus years of experience in
management of the business side of medical practices, as
well as his conversations with Ms. Ohlsen and the clinical
staff, would enable him to form good-faith and objectively
reasonable beliefs as to the alleged fraud. Moreover, at least
some of the alleged improper billing practices are common
enough that Mooney could uncover fraud on an “I-know-it-
when-I-see-it” basis. For example, the Sixth Circuit has
noted that “[u]pcoding” is “a common form of Medicare
fraud,” which “is the practice of billing Medicare
26 MOONEY V. FIFE
for medical services or equipment designated under a code
that is more expensive than what a patient actually needed or
was provided.” U.S. ex rel. Bledsoe v. Cmty. Health Sys.,
Inc., 342 F.3d 634, 637 n.3 (6th Cir. 2003) (citing Bonnie
Schreiber et al., Health Care Fraud, 39 Am. Crim. L. Rev.
707, 750 n.331 (2002)). The U.S. Department of Health and
Human Services has also noted that upcoding is a “common
type of false claim.” Office of Inspector General, U.S.
Department of Health and Human Services, I. Physician
Relationships With Payers, https://oig.hhs.gov/compliance/
physician-education/i-physician-relationships-with-payers.
See also, e.g., Bledsoe, 342 F.3d at 637 (noting that the
relator’s complaint alleged violations of the FCA by, in
addition to miscoding and upcoding, “unbundling services
and billing Medicare and Medicaid”); id. at 638 n.4 (defining
“unbundling” as a category of medical fraud that “occurs
when a health provider, who initially issues a service as one
package, breaks down the service into component parts and
finds individual reimbursement codes for those components,
so long as the individual rates combined exceed the global
rate” (citing Schreiber et al., supra, at 750 n.331)); U.S. ex
rel. Gutman v. Chi. Vein Inst., No. 1:16-CV-09734, 2021
WL 170674, at *1 (N.D. Ill. Jan. 19, 2021) (noting that the
relator’s complaint alleged that, among other things, the
defendant “billed procedures performed by underqualified
medical staff, then resubmitted these claims with Dr. Sunje
as the procedure provider, even though he had not performed
the procedures” (citation omitted)); U.S. ex rel. Williams v.
Med. Support L.A., No. CV 20-0198-CBM-(DFMx), 2022
WL 15399977, at *3 (C.D. Cal. Sept. 26, 2022), aff’d sub
nom. Williams v. Med. Support L.A., No. 22-55979, 2023
WL 8798089 (9th Cir. Dec. 20, 2023) (“The [Second
Amended Complaint]’s new theory of fraudulent
MOONEY V. FIFE 27
inducement is based on [the defendant]’s alleged delegation
of the above ‘components of the [medical disability
examinations]’ to ‘unlicensed and
unqualified . . . employees [of the defendant]’ and
‘misrepresent[ation] to the VA that such work had been
performed by properly-credentialled medical examiners.’”
(last alteration in original)). Therefore, given how common
and prevalent at least some of the alleged improper billing
practices are, Vivida’s argument that Mooney must
“explain[] how any billing violated any law or regulation”
fails.
We thus conclude that Mooney engaged in protected
conduct, at this stage.
3. Notice
Having concluded that Mooney engaged in protected
conduct, we move to the notice element of an FCA
retaliation claim, that is, whether “the employer must have
known that the employee was engaging in such conduct.”
Cafasso, 637 F.3d at 1060 (citation omitted).
Vivida puts forward a theory that distinguishes
employees with compliance duties from those without
compliance duties: “[B]ecause ensuring compliance with
billing regulations and reporting irregularities were activities
Mooney was hired to do, his reporting did not put Vivida on
notice of potentially protected activity.” Vivida’s theory
was adopted by the district court.
The district court relied on United States ex rel. Cafasso
v. General Dynamics C4 Systems, Inc., No. CV 06-1381
PHX NVW, 2009 WL 1457036 (D. Ariz. May 21, 2009),
aff’d on other grounds, 637 F.3d 1047 (9th Cir. 2011).
There, the district court held: “Where a plaintiff merely
28 MOONEY V. FIFE
advised her superiors of noncompliance and warned of
consequences for noncompliance, and her monitoring and
reporting activities were required to fulfill her job duties,
defendants did not have notice the plaintiff was furthering or
intended to further an FCA action.” Id. at *10 (emphasis
added) (citing Ramseyer, 90 F.3d at 1523).
Similarly, Vivida cites Dunlap v. Imaging Associates,
LLC, No. 3:14-cv-00143-TMB, 2019 WL 4580611 (D.
Alaska Sept. 20, 2019), in which the district court held that,
“[u]nder Ninth Circuit law, a plaintiff whose job
responsibilities include compliance must meet a higher
standard to place h[is] employer on notice of protected
activity.” Id. at *17.
First, Dunlap is incorrect that we have endorsed Vivida’s
theory. While other circuits have done so, we have not.6
6
In United States ex rel. Campie v. Gilead Sciences, Inc., 862 F.3d 890
(9th Cir. 2017), we cited the Tenth Circuit case, Ramseyer, with
approval:
That said, as noted by the district court, the monitoring
and reporting activities outlined by relators are by-
and-large the types of activities Campie was required
to undertake as part of his job. Courts have held that
when an employee is tasked with such investigations,
it takes more than an employer’s knowledge of that
MOONEY V. FIFE 29
Compare Note 6, supra, with Ramseyer, 90 F.3d at 1523 (the
Tenth Circuit endorsing this theory), and Robertson v. Bell
Helicopter Textron, Inc., 32 F.3d 948, 952 (5th Cir. 1994)
(“[Because] Robertson’s actions were consistent with the
performance of his duty, as a contract administrator, to
substantiate requests for additional funding . . . , Robertson
has identified no change in his conduct that might have
objectively demonstrated his qui tam intentions.”), and U.S.
ex rel. Parks v. Alpharma, Inc., 493 F. App’x 380, 389 (4th
Cir. 2012) (holding that “complaints [that] were clearly
couched in terms of concerns and suggestions, not threats or
warnings of FCA litigation” are not enough to put an
employer on notice).
activity to show that an employer was on notice of a
potential qui tam suit.
Id. at 908 (citing Ramseyer, 90 F.3d at 1523). But this is dicta. Indeed,
while finding Ramseyer “instructive,” the Campie panel held that the
complaint there alleged sufficient facts because:
Here, the Second Amended Complaint alleges that
“Mr. Campie made clear that he expected Gilead to
stop its deceptive practices and threatened to inform
the FDA if Gilead continued its fraudulent conduct.”
Second, Campie alleges he was “selectively
circumvent[ed]” and exclud[ed]” from the regulatory
review process in which he was meant to take part, was
told certain regulatory compliance actions, such as
issuing a quarantine, were “not in his job description,”
and had conversations outside of his chain of
command regarding his concerns.
Id. (emphasis added) (alterations in original).
30 MOONEY V. FIFE
We decline to follow this approach because it is
inconsistent with the plain language of the FCA following
the 2009 amendment.
First, as we noted when interpreting another section of
the FCA, “[i]t is well established that the ‘starting point in
discerning congressional intent is the existing statutory text’
and that ‘when the statute’s language is plain, the sole
function of the courts—at least where the disposition
required by the text is not absurd—is to enforce it according
to its terms.’” Schroeder v. United States, 793 F.3d 1080,
1082–83 (9th Cir. 2015); see also Carcieri v. Salazar, 555
U.S. 379, 387 (2009). Section 3730(h)(1) provides:
Any employee . . . shall be entitled to all relief
necessary to make that employee . . . whole,
if that employee . . . is discharged
. . . because of lawful acts done by the
employee . . . in furtherance of an action
under this section or other efforts to stop 1 or
more violations of this subchapter.
31 U.S.C. § 3730(h)(1) (emphasis added).
Section 3730(h)(1) grants protection to “[a]ny employee”
who is retaliated against for protected conduct. The plain
and unambiguous language of the statute thus does not limit
its application to only employees who do not have any
compliance duties. Nor does it distinguish between those
with compliance duties and those without.
Second, attaching a higher standard of notice to
employees with compliance duties makes little sense after
the FCA’s amendment. The amended § 3730(h)(1) provides
that protected conduct also includes “other efforts to stop 1
or more violations of [the FCA].” 31 U.S.C. § 3730(h)(1).
MOONEY V. FIFE 31
Those other efforts may or may not lead to a potential qui
tam suit. Thus, the relevant inquiry is not whether “an
employer was on notice of a potential qui tam suit,” Campie,
862 F.3d at 908, but whether the employer was on notice of
“other efforts to stop 1 or more violations” of the FCA.
Finally, limiting the application of § 3730(h)(1) as
Vivida and certain courts have suggested would strip
protection from the employees who are in the best position
to stop, or uncover and expose, the fraud against the federal
government that the FCA seeks to prevent or eliminate. If
an employee like Mooney were to have no protection from
retaliation under § 3730(h)(1) because one of his several job
duties was to help ensure compliance with Medicare and
Medicaid billing laws, then fear of that retaliation could
intimidate and discourage employees in such positions from
trying to stop fraudulent billing practices. This is
inconsistent with, indeed the opposite of, Congress’s intent
in providing protection to employees who make “other
efforts to stop 1 or more violations of [the FCA].” 31 U.S.C.
§ 3730(h)(1).7
We thus hold that the district court erred in applying the
substantive law: Section 3730(h)(1) does not hold an
employee with compliance duties to a different standard than
employees without such duties. Regardless of whether the
employee has compliance duties, to satisfy the second
element—the notice requirement—of an FCA retaliation
claim, the employer need only be aware of an employee’s
7
In enacting this FCA provision, Congress’s presumed intent was to
prevent retaliation against those who were trying to stop fraud against
the federal government. Given that aim, it is hard to see why Congress
would condition protection on whether the individual employee was
contemplating an FCA action or even knew there was an FCA.
32 MOONEY V. FIFE
“efforts to stop 1 or more violations of [the FCA].” 31
U.S.C. § 3730(h)(1).
Mooney stated that he raised the issues of improper
billings with Dr. Fife at their weekly one-on-one meetings
on Fridays and that he confronted Dr. Fife in at least four or
five of these meetings. According to Mooney, on June 16,
2017, during one of their one-on-ones, Mooney “reiterated
to Dr. Fife [his] concerns about the upcoding, explaining that
[he] thought the practice created significant legal liability
risk.” Viewing the evidence in the light most favorable to
Mooney, we hold that there was more than sufficient
evidence that Vivida was aware of Mooney’s efforts “to stop
1 or more violations of [the FCA].” 31 U.S.C. § 3730(h)(1).
4. Pretext
Because we hold that Mooney has satisfied the first and
second elements of a prima facie claim, and because Vivida
does not challenge the third element—causation—the
burden shifts to Vivida to produce a legitimate, non-
retaliatory reason for Mooney’s termination. If Vivida
produces such a reason, the burden then shifts to Mooney to
show that the proffered explanation was pretextual. Vivida
claims that it terminated Mooney’s employment based on a
legitimate, non-retaliatory reason “because Mooney
materially breached his Employment Agreement by
disclosing confidential information concerning Vivida’s
expansion plans.” Mooney argues that Vivida simply fails
to produce a legitimate, non-retaliatory reason because
“Mooney never breached confidentiality as he was accused
of doing.” The parties also dispute whether the proffered
explanation was pretextual.
For the purpose of pretext, “it is not important whether”
the proffered reason was “objectively false.” Villiarimo v.
MOONEY V. FIFE 33
Aloha Island Air, Inc., 281 F.3d 1054, 1063 (9th Cir. 2002).
“Rather, [we] only require that an employer honestly
believed its reason for its actions, even if its reason is foolish
or trivial or even baseless.” Id. (internal quotation marks and
citation omitted). We nonetheless conclude that there are
genuine issues of material fact as to whether Vivida
“honestly believed its reasons for its actions.”
First, in addition to the alleged breach of confidentiality,
Vivida also presented several other reasons for Mooney’s
termination. Dr. Fife testified in his deposition that several
“soft reasons” may have influenced his decision-making.
These “soft reasons” include Mooney (1) being dishonest
and disrespectful by telling Ms. Ohlsen that Dr. Fife called
her a “f****** b****” and violating Vivida’s core value of
integrity,8 (2) causing “one of [Vivida’s] most talented
8
When Dr. Fife was asked about Ms. Ohlsen, he testified that:
Q Did [Ohlsen] give you any reasons [for why she
left]?
A She did. I said, you know—we were talking about
it, and she reported an incident where [Mooney] was
frustrated with her and he said—he said to her, “Kila
[Ohlsen], this is why Dr. Fife says you are a blank,
blank.” And she told that to me.
She said—and she’s like, “Did you say that?”
And I said, “Have you ever heard me swear?”
So I’ve said a swear word, like, two times in my
life. But I don’t want to repeat the words right now.
I’ll spell them out, what she said.
Q If you can do that.
34 MOONEY V. FIFE
billing team members [Celia Palomata] [to leave] because of
his failure to” “get to know how [Vivida] work[s], how
[Vivida] do[es] things, to get to know the employees,” and
(3) being “pretty abrasive to different staff members and not
treating people with respect.”
To begin with, Mooney disputed the factual existence of
these “soft reasons.” He stated that: (1) he “did meet with
people and established a good rapport with the staff and
started the process of assessing and analyzing the systems,
including billing procedures and practices”; and (2) he “was
not abrasive with the staff or anyone that [he] had dealings
A F-[*-*-*-*-*-*], B-[*-*-*-*-]. He told her that I
called her that. And so that was a—and she was really
upset, and she was—you know, she felt like on
multiple occasions he had been aggressive towards her
and disrespectful. And, you know, that was an
instance where he was totally dishonest, because I
never said that. I don’t swear. I just don’t. It’s not
part of my vocabulary at all. I’ve never said that word
ever.
And so it was a major violation of our core values,
because one of our core values is respect. That was
extremely disrespectful to her, it was extremely
disrespectful to me, and it was also a violation of our
core value of integrity, because I have never said those
words about her or about anybody.
So when I spoke with her, I—you know, I said, “I
hope you can stay. You’re a great employee. You’re
one of our best employees.”
So she just said, “You know what? I’m so
emotional about this, and I’m just so—you know, I’m
just kind of done.”
So, yes, so that was when she left.
MOONEY V. FIFE 35
with in [his] work for” Vivida. He also stated: “I never told
Kiela [sic] Ohlson [sic], a billing employee of [Vivida], that
Dr. Fife had called her a ‘f****** b****.’ That simply
never happened.” When we view the evidence in the light
most favorable to Mooney—as we are required to do—the
lack of support for the alternative justifications for
termination may indicate pretext. Cf., e.g., Brazill v. Cal.
Northstate Coll. of Pharmacy, LLC, 949 F. Supp. 2d 1011,
1022 (E.D. Cal. 2013) (“Similarly, the College’s inclusion
of a potentially untenable explanation to its reasons for
terminating plaintiff casts doubt over the overall credibility
of its reasons. It gives rise to the inference that the College
is attempting to dissemble a discriminatory motive for
terminating plaintiff with other plausible justifications.”).
Moreover, the fact that Vivida presented different
justifications for Mooney’s termination may also indicate
pretext. For pretext, we generally require these justifications
to be “fundamentally different” as “they suggest the
possibility that neither of the official reasons was the true
reason,” Washington v. Garrett, 10 F.3d 1421, 1434 (9th Cir.
1993), or “incompatible,” Nidds v. Schindler Elevator Corp.,
113 F.3d 912, 918 (9th Cir. 1997). But we have also noted
that “different reasons stated at different times” may lead
“[a] rational trier of fact [to] find that these varying reasons
show that the stated reason was pretextual, for one who tells
the truth need not recite different versions of the supposedly
same event.” Payne v. Norwest Corp., 113 F.3d 1079, 1080
(9th Cir. 1997). “It may be that [an employer]’s
. . . explanations are acceptable when viewed in the context
of other surrounding events. However, such weighing of the
evidence is for a jury, not a judge.” Id. (internal quotation
marks and citation omitted).
36 MOONEY V. FIFE
Second, even if Vivida’s alternative reasons for
Mooney’s termination alone did not show a triable issue of
fact as to pretext, temporal proximity of the events
undermines the genuineness of Vivida’s proffered reason.
Prior to June 1, 2017, Mooney claimed to have raised issues
about improper billing practices in a few weekly meetings
with Dr. Fife. On June 1, 2017, Mooney met with Dr.
Landow, which was cited by Vivida as the reason for
Mooney’s termination. On June 16, 2017, Mooney claimed
that he met with Dr. Fife and reiterated his concerns about
improper billing practices. And on June 21, 2017, Vivida
sent Mooney the Termination Letter.
“[T]emporal proximity”—here, in context, the relatively
long time (twenty days) that elapsed between Mooney telling
Dr. Fife about his supposed breach of confidentiality and his
termination, and the short time between Mooney’s June 16
meeting with Dr. Fife and Mooney’s termination (five
days)—“can by itself constitute sufficient circumstantial
evidence of retaliation for purposes of . . . the showing of
pretext.” Dawson v. Entek Int’l, 630 F.3d 928, 937 (9th Cir.
2011).
Vivida argues that “if Vivida sought to retaliate against
Mooney for purportedly raising issues about Vivida’s billing
procedures, it would have swiftly taken some adverse action
against him following the . . . prior weekly meetings where
Mooney allegedly ‘confronted’ Dr. Fife.” But when viewed
in the light most favorable to Mooney, Mooney’s June 16
meeting can be interpreted as qualitatively different from the
previous weekly meetings. In the previous weekly meetings,
Mooney “discuss[ed] the legal risk to [Vivida]” and told Dr.
Fife that “he [wa]s putting himself at risk.” In the June 16
meeting, however, while Mooney “reiterated to Dr. Fife [his]
concerns about the upcoding, explaining that [he] thought
MOONEY V. FIFE 37
the practice created significant legal liability risk,” “[i]t was
[also] clear that Dr. Fife and all involved could have criminal
or civil liability.” (emphasis added).
Because we hold that there are genuine issues of material
fact with respect to pretext, we reverse the district court’s
grant of summary judgment as to Mooney’s claim for FCA
retaliation and remand that claim for trial.9
B. The District Court Failed to View the Evidence in the
Light Most Favorable to Mooney on His Breach of
Contract Claim.
Mooney also brought a breach of contract claim against
Vivida. Mooney alleged that “[Vivida] breached [the
Agreement] when . . . Dr. Fife, acting on behalf of [Vivida],
terminated Mooney’s employment without cause, as that
term is defined in the [Agreement].” “To succeed on a
breach of contract claim, a plaintiff must show four
elements: (1) formation of a valid contract; (2) performance
or excuse of performance by the plaintiff; (3) material breach
by the defendant; and (4) damages.” Laguerre v. Nev. Sys.
of Higher Educ., 837 F. Supp. 2d 1176, 1180 (D. Nev. 2011).
There is no dispute that the parties entered into a valid
written contract. There is, however, a dispute over whether
Vivida materially breached the contract intertwined with a
dispute of fact over whether Vivida terminated Mooney’s
employment for cause. If Mooney materially breached the
9
We later discuss issues relating to Mooney’s supposed breach of the
confidentiality provision. Looking at the evidence in the light most
favorable to Mooney, there are also triable issues as to whether there was
any breach of the confidentiality provision. The facts, as we view them
in Mooney’s favor, raise additional triable issues as to pretext, as a
reasonable factfinder could determine not only that there was no breach,
but also that Vivida knew there was no breach.
38 MOONEY V. FIFE
contract first, his claim for breach of contract cannot
succeed. See Bradley v. Nev.-Cal.-Or. Ry., 178 P. 906, 908
(Nev. 1919) (“[T]he party who commits the first breach of a
contract cannot maintain an action against the other for a
subsequent failure to perform.”). But “employers are
obligated to act in good faith and upon a reasonable belief
that good cause for terminating a for-cause employee
exists.” Sw. Gas Corp. v. Vargas, 901 P.2d 693, 700 (Nev.
1995). “Genuine issues of material fact casting a strong
doubt on the purported good-faith of the employer are ripe
for a jury’s consideration.” Id.
The district court concluded that (1) the terms in the
Agreement—including § 7(a) (providing that Vivida could
terminate Mooney for “[c]ause”), § 7(b)(2) (defining one
such “[c]ause” as a violation of any confidentiality
provision), and § 8(a) (specifying the terms of the
confidentiality provision)—are unambiguous, and
(2) Mooney violated the terms of § 8(a). “[W]hen a contract
is clear on its face, it ‘will be construed from the written
language and enforced as written.’” Canfora v. Coast Hotels
& Casinos, Inc., 121 P.3d 599, 603 (Nev. 2005) (quoting
Ellison v. Cal. State Auto. Ass’n, 797 P.2d 975, 977 (Nev.
1990)). We have “no authority to alter the terms of an
unambiguous contract.” Id.; see also Renshaw v. Renshaw,
611 P.2d 1070, 1071 (Nev. 1980).
The district court cited § 8(a) of the Agreement, which it
said provides that “[Mooney] could not divulge, disclose, or
communicate to any person . . . information concerning the
business of [Vivida], its manner of operation, its plans,
processes, or other date [sic], or any information ascertained
by [Mooney] through [Mooney’s] employment with
[Vivida].” (internal quotation marks omitted) (quoting the
Agreement). The district court found that Mooney violated
MOONEY V. FIFE 39
§ 8(a) because “[Mooney] himself admit[ted] that a
prospective acquisition of another dermatological practice
would constitute ‘plans’ under § 8(a) . . . [and] that he told
Dr. Landow that Vivida was ‘in the market.’”
We hold that the district court erred because it failed to
view the evidence in the light most favorable to Mooney.
First, it erred because it failed to cite—let alone discuss—an
important exception in § 8(a). In between the “shall not” and
“divulge, disclose, or communicate” language in § 8(a) lies
an exception to the general requirement not to breach
confidentiality; that is, § 8(a) did not forbid Mooney to
divulge, disclose, or communicate Vivida’s plans when it
was “required in the normal course of his engagement
hereunder.” The district court omitted that exception from
its quotation of § 8(a).
When we view the evidence in the light most favorable
to Mooney, a reasonable jury could conclude that any
disclosure that Mooney did make to Dr. Landow, even if
confidential, was required in the normal course of his
engagement. If so, then there was no breach of § 8(a).
Vivida had been “looking at acquiring [Dr. Landow’s]
practice and then having him work part-time.” When
Mooney went to Dr. Landow’s practice “under the direction
of Dr. Fife,” “Dr. Landow agreed for [Vivida] to be there to
do an analysis of his practice.” The undisputed purpose was
for Vivida to look at acquiring Dr. Landow’s practice. Oral
Arg. 21:46–21:53. And Mooney “went into Dr. Landow’s
office” with at least three other employees from Vivida.
According to Mooney, he did not approach Dr. Landow.
Instead, forty-five minutes after he went into Dr. Landow’s
office, Dr. Landow came out and talked to Mooney.
Mooney testified in his deposition that Dr. Landow said that
he understood Vivida was looking at Dr. Schreiber’s practice
40 MOONEY V. FIFE
and he had an issue with that. Rather than confirming or
denying whether Vivida was acquiring Dr. Schreiber’s
practice, Mooney replied, “we are in the market as you know
because we’re here looking at your practice and if you have
any issues or concerns please address them with Dr. Fife.”
(emphasis added). Mooney also testified that “Dr. Landow
asked me if we were purchasing or going to acquire or do
anything with Dr. Schreiber and I said as I’ve said a couple
of times here, [Vivida] is looking at a lot of different things
as you know and if you have any concerns about anything
please give Dr. Fife a call.”
A reasonable jury could well conclude that Mooney’s
responses to Dr. Landow’s questions were appropriate and,
even if somehow were disclosing confidential information,
did not breach § 8(a) because Mooney went to Dr. Landow’s
office and interacted and spoke to him “in the normal course
of his engagement.” And a reasonable jury could conclude
that if Mooney had refused to respond to Dr. Landow, he
would have been acting in a way that might well have upset
Dr. Landow, perhaps enough to terminate discussions in
violation of Mooney’s contractual obligations. Again, in the
light most favorable to Mooney, Mooney was answering a
question in a circumspect manner.
Second, the district court also failed to view the evidence
in the light most favorable to Mooney as to whether he even
disclosed any confidential information. In the light most
favorable to Mooney, he did not mention Dr. Schreiber.
Mooney conceded that he said “we are in the market as you
know.” The district court focused on this as disclosing
confidential information. But again, in the light most
favorable to Mooney, that wasn’t (and couldn’t have been)
confidential to Dr. Landow, because Dr. Landow knew Fife
was looking at acquiring Dr. Landow’s practice. Indeed,
MOONEY V. FIFE 41
Mooney testified that at one point “Dr. Fife had a meeting at
his office after hours and . . . introduced [Mooney] to [Dr.]
Landow[ and] told [Mooney] that [Dr. Fife] was interested
in purchasing his practice.” And “[Dr. Fife] said he was
looking at other practices.” According to Mooney, “it was
not something that was completely confidential about what
[Vivida] was in the business or looking to do to expand the
practice.”
We thus reverse the district court’s grant of summary
judgment on Mooney’s claim for breach of contract.
C. We Also Reverse the District Court’s Summary
Judgment on Mooney’s Claim for Breach of the
Implied Covenant of Good Faith and Fair Dealing.
Mooney next argues that the district court erred in
granting summary judgment on his claim for breach of the
implied covenant of good faith and fair dealing. “An implied
covenant of good faith and fair dealing exists in every
Nevada contract and essentially forbids arbitrary, unfair acts
by one party that disadvantage the other.” Frantz v.
Johnson, 999 P.2d 351, 358 n.4 (Nev. 2000).
With respect to the covenant of good faith
and fair dealing, [the Nevada Supreme Court]
ha[s] stated that “when one party performs a
contract in a manner that is unfaithful to the
purpose of the contract and the justified
expectations of the other party are thus
denied, damages may be awarded against the
party who does not act in good faith.”
Perry v. Jordan, 900 P.2d 335, 338 (Nev. 1995) (alteration
omitted) (quoting Hilton Hotels, 808 P.2d at 923). A
42 MOONEY V. FIFE
contractual breach of the implied covenant of good faith and
fair dealing occurs “[w]here the terms of a contract are
literally complied with but one party to the contract
deliberately countervenes the intention and spirit of the
contract.” Hilton Hotels, 808 P.2d at 922–23.
As Mooney concedes in his appellate briefs, the claim
for breach of the implied covenant of good faith and fair
dealing “is . . . brought in the alternative,” and “[i]f a breach
of contract is found by the jury[,] then this . . . claim will not
be necessary.”
For the same reasons we discuss above with respect to
the breach of contract claim, we also reverse the district
court on Mooney’s claim for breach of the implied covenant
of good faith and fair dealing. There are genuine issues of
material fact as to whether Vivida deliberately countervened
the intention and spirit of the contract. See Consol.
Generator-Nev., Inc. v. Cummins Engine Co., 971 P.2d
1251, 1256 (Nev. 1998) (holding that “good faith is a
question of fact” and, because it held that “a genuine issue
of material fact exists as to whether Cummins breached” the
contract, “correspondingly hold[ing] that a genuine issue of
material fact exists as to whether Cummins breached its
implied covenant of good faith and fair dealing in” that
contract).
IV. CONCLUSION
For all these reasons, we REVERSE the district court’s
grant of summary judgment on all three of Mooney’s claims
and REMAND to the district court for further proceedings
consistent with this opinion. Because Vivida is not a
“prevailing party” under § 13(h) of the Agreement, we
VACATE the district court’s order granting Vivida’s
motion for attorneys’ fees.
MOONEY V. FIFE 43
COLLINS, Circuit Judge, concurring in part and in the
judgment:
I concur in the court’s opinion except for its holding that
the “subjective” and “objective” components of the test for
“protected activity” that we adopted with respect to the prior
version of the False Claims Act (“FCA”) in Moore v.
California Institute of Technology Jet Propulsion
Laboratory, 275 F.3d 838, 845 & n.1 (9th Cir. 2002), also
apply in determining whether an employee engaged in
protected conduct in the form of “efforts to stop 1 or more
violations” of the FCA, 31 U.S.C. § 3730(h)(1). This latter
phrase, which references “1 or more violations” that the
employee is endeavoring to “stop,” seems to suggest a
stronger objective component than the one we described in
Moore. But I ultimately need not take a position on that issue
because, even assuming arguendo that Mooney had to show
that the company was likely engaged in FCA violations that
he made efforts to stop, I think his evidence was sufficient to
raise a triable issue of fact on that score. On that basis, I
concur in the court’s opinion in part and in its judgment.
Plain English Summary
FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT THOMAS MOONEY, Nos.
Key Points
01FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT THOMAS MOONEY, Nos.
022:17-cv-02191- JCM-EJY DOUGLAS FIFE, M.D.; HEATHER FIFE; FIFE DERMATOLOGY, PC, DBA Surgical Dermatology & Laser OPINION Center, DBA Vivida Dermatology, Defendants-Appellees, and ALAN ARNOLD, M.D.; VICTORIA FARLEY, M.D.; ELIZABETH LANGFORD,
03FIFE Argued and Submitted March 5, 2024 Las Vegas, Nevada Filed September 30, 2024 Before: Milan D.
04Opinion by Judge Bennett; Partial Concurrence by Judge Collins SUMMARY* False Claims Act The panel reversed the district court’s summary judgment in favor of the defendants in a qui tam action under the False Claims Act and remanded for fur
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FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT THOMAS MOONEY, Nos.
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