Attorney General intervenes in “false claims” case against former COPP Dave Gallik

Attorney General Tim Fox’s office alerted a Missoula court Thursday that the state will intervene in a lawsuit against former Commissioner of Political Practices Dave Gallik.

Gallik resigned as the state’s top political and ethics watchdog in January 2012 after the Great Falls Tribune reported allegations made by Gallik's former staff members that Gallik, an attorney, was conducting private law practice work out of his state office.

Two months later the Bozeman-based Montana Policy Institute sued Gallik under a state statue called the “False Claims Act,” a law Gallik carried when he served as a Democrat in the House of Representatives in 2005.

Democratic Gov. Steve Bullock, when he was still serving at attorney general, appointed Great Falls attorney Ward "Mick" Taleff to represent state in the case. Last November, Taleff argued on behalf of the state  that the case should be dismissed because the Montana Policy Institute, the plaintiff in the case, lacked standing to bring the lawsuit.

Missoula District Judge John Larson rejected the state’s claim and on April 12 ruled the  lawsuit against Gallik could proceed.

Thursday was the deadline for the current attorney general, Republican Tim Fox, to either intervene in the case or step aside and let MPI continue the litigation against Gallik.

John Barnes, communications director for the Attorney General’s Office, said the state will intervene. The state has 20 days to serve the complaint against Gallik.

“We feel that the claims that are being made against Gallik are serious,” Barnes said. “Given the nature of all of this – this has implications for state employees and state government in general – we feel its best handled by attorneys representing the State of Montana and best handled by the Department of Justice.”

Gallik said it is “odd” that the new attorney general decided to intervene in the case.

“That seems like a reversal of position,” Gallik said.

Gallik maintained  he did nothing wrong while serving as the commissioner of political practices.

“I told everybody that I am going to continue my law practice. I took the job because of the fact that I could continue my law practice. Nothing has changed. The job was a salaried position, I did the job, nothing has changed,” Gallik said.

A committee of top legislative leaders is meeting today to choose candidates to fill the commissioner position. Gallik’s successor, Jim Murry, ended his term last month and the position is now vacant. Senate President Jeff Essmann, House Speaker Mark Blasdel, Senate Minority Leader Jon Sesso, and House Minority Leader Chuck Hunter are interviewing five candidates today and will soon make recommendations to Governor Steve Bullock.

Judge says false claims lawsuit against former COPP Dave Gallik can proceed

In an order filed today, Missoula District Judge John Larson said a lawsuit against former Commissioner of Political Practices Dave Gallik can proceed.

Gallik resigned as commissioner in January 2012, shortly after the Great Falls Tribune reported allegations made by Gallik's former staff members who claimed Gallik, an attorney, was conducting private law practice work out of his state office.

The  Bozeman-based conservative watchdog group the Montana Policy Institute brought the lawsuit in March 2012 after the articles first ran in the Tribune.

The lawsuit was filed under the “False Claims Act,” a law Gallik carried when he was in the state House of Representatives in 2005.

The False Claims Act law authorizes a private person to prosecute a recovery and civil sanction action on behalf of the state government against any person who obtains payment from a government entity by means of a knowingly false or fraudulent representation or claim. The Montana Attorney General can then decide whether to join in on the lawsuit, stay out of the lawsuit, or move to dismiss the lawsuit altogether.

Great Falls attorney Ward "Mick" Taleff, the attorney representing the state in the case, last November argued in court that the case should be dismissed because the Montana Policy Institute lacked standing to bring the lawsuit.

The state asserted that Gallik’s alleged conduct was performed within the scope of his duties to the state. The state also argued the allegations in the complain mirrored those publically disclosed in the Tribune articles, and thus MPI cannot identify direct and independent knowledge of the allegations.

MPI argued in court that the group filed a freedom of information request several moths prior to the Tribune’s FOI request and subsequent news reports.

Larson ruled  in favor of MPI, saying state law does not  preclude MPI from bringing the case. The judge denied the state’s motion to dismiss the case.

The state now has 10 days to elect to intervene in the proceedings against Gallik or it must notify the court that it declines to take over the action. If the state elects to intervene, the state has to serve the complain on all defendants within 20 days of the intervening action. If the state declines to intervene, then then MPI can serve the defendants and move on with the lawsuit.

I’ll update this post throughout the day as I learn more.

UPDATE: Here’s the judge’s full order.