Mark R. Troy
Overview
Mark R. Troy is a retired partner in Crowell & Moring's Government Contracts Group in Los Angeles. He engaged in government contract-related litigation and counseling for over 28 years. He focused on defending procurement fraud actions brought by the federal government and by so-called qui tam whistleblowers under the civil False Claims Act (FCA).
Early in Mark's career, he defended Hughes Aircraft (v. Schumer) in a cost mischarging case, winning the case on summary judgment, followed by a partial reversal by the Ninth Circuit, followed by complete victory in the U.S. Supreme Court. In 1992, Mark successfully defended General Dynamics (v. Lindenthal) in one of the first modern qui tam cases to go to trial—an eight-month long bench trial alleging falsification of engineering drawings for an Air Force battlefield simulator. In 2002, he was lead counsel for Lockheed Martin (v. Joest) in a successful jury trial alleging non-disclosure of government overpayments on a satellite contract. In 2014, Mark won another defense jury verdict for Lockheed (v. Hooper) in a case claiming over $1 billion in damages based on allegations of fraudulent bidding and false estimates for an Air Force contract to develop a new rocket launching system at Vandenberg and Cape Canaveral.
Mark won pre-trial dismissals in dozens of other landmark FCA cases involving allegations of deficient contractor performance, mischarging, defective pricing, Cost Accounting Standards non-compliance, false testing, product defects, kickbacks and campaign contributions, Medicare fraud, and violations of environmental laws.
Mark worked with clients to develop compliance measures and other procedures aimed at avoiding false claims prosecutions and meeting mandatory disclosure provisions of the Federal Acquisition Regulations. When clients first learn of allegations or an active government investigation, Mark frequently provided on-the-spot strategies for diffusing the situation, conducting a thorough internal investigation aimed at convincing the U.S. Department of Justice not to prosecute.
Because most qui tam relators bring claims of employment discrimination or retaliatory discharge, Mark was well versed in how to avoid such claims while still protecting the company's rights against opportunistic whistleblowers. And he had a proven track record in defending such claims in court and in front of juries.
As a leading FCA practitioner, Mark was a regular lecturer at national symposiums on procurement fraud and has served as amicus counsel in Supreme Court cases, representing:
- Chamber of Commerce of the United States
- Aerospace Industries Association
- National Defense Industrial Association
- American Hospital Association
Mark was also experienced in handling contract terminations for default, claims for equitable adjustments of contract prices, and disputes over allowable direct and indirect costs. Much of Mark's work in this area has been for small businesses. Mark was a seasoned negotiator with federal officials, contracting officers, and agency lawyers; and he was almost always able to achieve a successful resolution without resorting to the contractor litigating against its government customer.
Notable Court Decisions
- Hooper v. Lockheed Martin, 688 F. 3d 1037 (9th Cir. 2012) (affirming dismissal of claims of false testing and improper use of freeware or Free and Open Source Software (FOSS), on remand, defense jury verdict on false estimating and retaliation claims)
- U.S. ex rel. Humane Society v. Westland/Hallmark Meat, No. 08-0221 VAP (C.D. Cal. Dec. 2, 2013) (successful settlement of allegations of slaughterhouse's noncompliance with humane treatment of cattle)
- U.S. ex rel. Reiber v. Basic Contracting Services Inc., No. 13-35231 (9th Cir. 2014) (affirming dismissal of claims of deficient contract performance for failure to plead with particularity)
- U.S. ex rel. Smith v. Boeing, 505 F. Supp.2d 974 (D. Kan. 2007); No. 05-1073-MLB (Oct. 8, 2014) (summary judgment in case alleging faulty machining and inspection of parts on 737's)
- Wood ex rel. U.S. v. Applied Research Associates, 328 Fed. Appx. 744 (2nd Cir. 2009) (dismissal of SAIC for failure to state a claim)
- California ex rel. Hindin v. Hewlett-Packard Co., 153 Cal. App. 4th 307 (2007) (statute of limitations under California FCA)
- U.S. ex rel. Stone v. Rockwell, 492 F.3d 1157 (10th Cir. 2007); reversed 549 U.S. 457 (2007) (dismissal of qui tam relator under FCA's "original source" rule)
- Herndon v. Science Applications International Corp. (SAIC), 2007 WL 2019653 (S.D. Cal. 2007) (dismissal of qui tam claim for failure to state a claim)
- Graham County v. U.S. ex rel. Wilson, 545 U.S. 409 (2005) (amicus -- state statute of limitations barred retaliatory discharge claim)
- U.S. ex rel. Riley v. St. Lukes, 252 F.3d 749 (5th Cir. 2001) (amicus challenge to constitutionality of FCA)
- U.S. ex rel. Lujan v. Hughes Aircraft, 243 F.3d 1181 (9th Cir. 2001) (dismissal of qui tam relator under FCA's "first to file" defense; state statute of limitations barred retaliatory discharge claim)
- U.S. ex rel. Schumer v. Hughes Aircraft, 63 F.3d 1512 (9th Cir. 1995); reversed 520 U.S. 939 (1997) (unanimous decision barring retroactive application of 1986 FCA amendments)
- U.S. ex rel. Lindenthal v. General Dynamics, 61 F.3d 1402 (9th Cir. 1995) (upholding judgment for defendant in qui tam trial; award of costs to defendant)
- U.S. ex rel. Newsham v. Lockheed Missiles and Space Co., 779 F. Supp. 1252 (N.D. Cal. 1991) (challenge to retroactivity of FCA)
Early in Mark's career, he defended Hughes Aircraft (v. Schumer) in a cost mischarging case, winning the case on summary judgment, followed by a partial reversal by the Ninth Circuit, followed by complete victory in the U.S. Supreme Court. In 1992, Mark successfully defended General Dynamics (v. Lindenthal) in one of the first modern qui tam cases to go to trial—an eight-month long bench trial alleging falsification of engineering drawings for an Air Force battlefield simulator. In 2002, he was lead counsel for Lockheed Martin (v. Joest) in a successful jury trial alleging non-disclosure of government overpayments on a satellite contract. In 2014, Mark won another defense jury verdict for Lockheed (v. Hooper) in a case claiming over $1 billion in damages based on allegations of fraudulent bidding and false estimates for an Air Force contract to develop a new rocket launching system at Vandenberg and Cape Canaveral.
Mark won pre-trial dismissals in dozens of other landmark FCA cases involving allegations of deficient contractor performance, mischarging, defective pricing, Cost Accounting Standards non-compliance, false testing, product defects, kickbacks and campaign contributions, Medicare fraud, and violations of environmental laws.
Mark worked with clients to develop compliance measures and other procedures aimed at avoiding false claims prosecutions and meeting mandatory disclosure provisions of the Federal Acquisition Regulations. When clients first learn of allegations or an active government investigation, Mark frequently provided on-the-spot strategies for diffusing the situation, conducting a thorough internal investigation aimed at convincing the U.S. Department of Justice not to prosecute.
Because most qui tam relators bring claims of employment discrimination or retaliatory discharge, Mark was well versed in how to avoid such claims while still protecting the company's rights against opportunistic whistleblowers. And he had a proven track record in defending such claims in court and in front of juries.
As a leading FCA practitioner, Mark was a regular lecturer at national symposiums on procurement fraud and has served as amicus counsel in Supreme Court cases, representing:
- Chamber of Commerce of the United States
- Aerospace Industries Association
- National Defense Industrial Association
- American Hospital Association
Mark was also experienced in handling contract terminations for default, claims for equitable adjustments of contract prices, and disputes over allowable direct and indirect costs. Much of Mark's work in this area has been for small businesses. Mark was a seasoned negotiator with federal officials, contracting officers, and agency lawyers; and he was almost always able to achieve a successful resolution without resorting to the contractor litigating against its government customer.
Notable Court Decisions
- Hooper v. Lockheed Martin, 688 F. 3d 1037 (9th Cir. 2012) (affirming dismissal of claims of false testing and improper use of freeware or Free and Open Source Software (FOSS), on remand, defense jury verdict on false estimating and retaliation claims)
- U.S. ex rel. Humane Society v. Westland/Hallmark Meat, No. 08-0221 VAP (C.D. Cal. Dec. 2, 2013) (successful settlement of allegations of slaughterhouse's noncompliance with humane treatment of cattle)
- U.S. ex rel. Reiber v. Basic Contracting Services Inc., No. 13-35231 (9th Cir. 2014) (affirming dismissal of claims of deficient contract performance for failure to plead with particularity)
- U.S. ex rel. Smith v. Boeing, 505 F. Supp.2d 974 (D. Kan. 2007); No. 05-1073-MLB (Oct. 8, 2014) (summary judgment in case alleging faulty machining and inspection of parts on 737's)
- Wood ex rel. U.S. v. Applied Research Associates, 328 Fed. Appx. 744 (2nd Cir. 2009) (dismissal of SAIC for failure to state a claim)
- California ex rel. Hindin v. Hewlett-Packard Co., 153 Cal. App. 4th 307 (2007) (statute of limitations under California FCA)
- U.S. ex rel. Stone v. Rockwell, 492 F.3d 1157 (10th Cir. 2007); reversed 549 U.S. 457 (2007) (dismissal of qui tam relator under FCA's "original source" rule)
- Herndon v. Science Applications International Corp. (SAIC), 2007 WL 2019653 (S.D. Cal. 2007) (dismissal of qui tam claim for failure to state a claim)
- Graham County v. U.S. ex rel. Wilson, 545 U.S. 409 (2005) (amicus -- state statute of limitations barred retaliatory discharge claim)
- U.S. ex rel. Riley v. St. Lukes, 252 F.3d 749 (5th Cir. 2001) (amicus challenge to constitutionality of FCA)
- U.S. ex rel. Lujan v. Hughes Aircraft, 243 F.3d 1181 (9th Cir. 2001) (dismissal of qui tam relator under FCA's "first to file" defense; state statute of limitations barred retaliatory discharge claim)
- U.S. ex rel. Schumer v. Hughes Aircraft, 63 F.3d 1512 (9th Cir. 1995); reversed 520 U.S. 939 (1997) (unanimous decision barring retroactive application of 1986 FCA amendments)
- U.S. ex rel. Lindenthal v. General Dynamics, 61 F.3d 1402 (9th Cir. 1995) (upholding judgment for defendant in qui tam trial; award of costs to defendant)
- U.S. ex rel. Newsham v. Lockheed Missiles and Space Co., 779 F. Supp. 1252 (N.D. Cal. 1991) (challenge to retroactivity of FCA)
Career & Education
- University of California, Los Angeles, B.A., 1982
- Loyola Law School, Los Angeles, J.D., 1985
- University of California, Los Angeles, B.A., 1982
- Loyola Law School, Los Angeles, J.D., 1985
Professional Activities and Memberships
- American Bar Association (Section of Public Contract Law)
- National Contract Management Association
- National Defense Industrial Association
- Judge Pro Tem, Los Angeles County Superior Court
Professional Activities and Memberships
- American Bar Association (Section of Public Contract Law)
- National Contract Management Association
- National Defense Industrial Association
- Judge Pro Tem, Los Angeles County Superior Court
