United States v. Ma: Enforcement of Oral Mediation Agreements

This episode contains a Fifth Circuit Court of Appeals opinion affirming a district court's decision to enforce a settlement agreement between the United States and Ma Acupuncture Center. The government initially sued the defendants under the False Claims Act for allegedly defrauding the Department of Veterans Affairs through inflated billing practices. Although the parties reached an oral agreement during mediation regarding payment amounts and timelines, the defendants later challenged the settlement’s validity, claiming it lacked finality and specific legal authority. The court ruled that the material terms established during mediation created a binding contract, even without a signed written document. Furthermore, the court found that the defendants forfeited several arguments on appeal by failing to raise them in a timely manner during the initial proceedings. Ultimately, the appellate court concluded that the district court did not abuse its discretion by requiring the parties to honor the essential terms of their mediated deal.