Facts

The County of Kern paid several county employees $39,000 in excess payments over a period of 13 years starting in 1990. The employees in question worked for the sheriff's department. Claiming the excess pay was unauthorized, the county filed seven lawsuits to reclaim the funds from the employees. The cases settled and the county was able to reclaim $25,000 of the funds. The county also filed a lawsuit under the California False Claims Act against Carl Sparks, the county sheriff during the period of time in question. In its lawsuit, the county also alleged intentional and negligent misrepresentation. Only the allegations of filing false claims and negligent misrepresentation proceeded to trial.

PLAINTIFF'S CONTENTIONS:
Defendant's actions amounted to negligent misrepresentation.

DEFENDANT'S CONTENTIONS:
Defendant denied having made any false claims because he contended that the county employees were paid fairly for their work. Further, the defense claimed that the two year statute of limitations period had expired on the county's claim, thus he could not be held liable. The defense also blamed the county's defective payment system for the problems, claiming that the payments had been approved through the payment system that was in effect at the time. Finally, the defense claimed that the defendant did not even have to obtain board approval because he had the discretion to pay the funds. The defense cited an attorney general opinion to support its contention.

Damages

$92,000, including treble damages. Up to $10,000 in punitive damages.

Result

Directed defense verdict. Defendant not liable for false misrepresentation. False Claims Act not applicable.

Other Information

Plaintiff filed notice of appeal.