Background
The United States sued Dr. Dongxin Ma and Ma Acupuncture Center, P.C. under the False Claims Act for allegedly submitting inflated bills for acupuncture services to the Department of Veterans Affairs. The government sought treble damages and civil penalties totaling nearly twenty-three million dollars. The parties attended mediation where they reached an oral agreement on payment terms, including a total payment of two point three million dollars over forty-two months. The government later moved to enforce the settlement or for summary judgment after the defendants failed to sign a written agreement containing additional standard terms.
The court’s reasoning
The Fifth Circuit reviewed the district court’s decision for abuse of discretion. The court found that the defendants forfeited their argument regarding their counsel’s authority to settle because it was not raised in their opening brief. The court held that the parties orally agreed to all material terms, including the payment amount, schedule, and release of claims. The court determined that additional terms in the written agreement were immaterial as they were standard and customary. The court further found the oral agreement was final and binding based on the parties’ conduct and the lack of explicit agreement that the contract would not be valid until signed. The court also found the defendants forfeited their anticipatory repudiation argument because it was raised too late.
Assessing the district court’s decision under this deferential standard, we AFFIRM.
United States v. Ma, 25-50067 (5th Cir. June 15, 2026)
What it means going forward
The ruling reinforces that oral settlements reached at mediation can be binding and enforceable even without a signed written document, provided the material terms are clear and the parties’ conduct indicates assent.