Appellant Art Metal-U.S.A., Inc. (Art Metal) appeals from the dismissal of its suit under the Federal Tort Claims Act, 28 U.S.C. §§ 1346(b), 2671-2680 (1982) (FTCA), for damages resulting from its unlawful de facto debarment from government contracting. Art Metal’s complaint alleged,
inter alia,
that a series of acts and omissions by employees of the General Services Administration (GSA) constituted negligence per se, interference with prospective advantage, and injurious falsehood. United States District Court Judge Harold H. Greene granted the government’s motion to dismiss, holding that the negligence per se counts failed to state a valid tort claim under District of Columbia law, and that the interference with prospective advantage and injurious falsehood claims were barred under the FTCA.
Art Metal-U.S.A., Inc. v. United States,
*1153 I. Background
Art Metal is a manufacturer of metal office furniture. The vast majority of the company’s business is supplying office furniture products to the federal government through contracts with GSA. At the time of the events leading to this action, Art Metal was the government’s largest supplier of metal office furniture.
During the summer of 1978, a series of newspaper articles appeared in Washington, D.C., and elsewhere accusing the company of a variety of serious misdeeds and improprieties in its contractual relations with GSA. Among the named and unnamed sources quoted in the articles were GSA employees and officials. The allegations included charges concerning Art Metal’s alleged failure to meet GSA specifications, inferior products, and possible abuses in contract dealings with GSA. In response to both the public allegations and inquiries from a Senate subcommittee, GSA abruptly ceased doing business with Art Metal by refusing to award several contracts on which Art Metal was the low bidder. In effect, GSA constructively debarred Art Metal without initiating any of the formal debarment or suspension procedures required by federal procurement regulations.
Art Metal immediately sought and obtained injunctive relief in the United States District Court for the District of Columbia. Judge Harold Greene found that GSA’s actions against Art Metal were taken for public relations reasons and were without any substantiated evidentiary basis. In issuing a temporary injunction, the district court concluded that GSA’s actions constituted an unlawful de facto debarment in clear violation of the agency’s procurement regulations. Art Metal-U.S.A., Inc. v. Solomon, 473 P.Supp. 1 (D.D.C.1978). In two subsequent actions, the district court entered a permanent injunction and an order awarding Art Metal three pending contracts based on GSA’s violation of the injunction. See Brief for Appellant, addendum at 16, 26.
Following denial of its administrative tort claim, Art Metal brought this action under the FTCA, alleging that the GSA officials’ acts and omissions constituted negligence, interference with prospective advantage, and injurious falsehood. 1 Judge Greene granted the government’s motion to dismiss and Art Metal appeals. We address three issues in this appeal: (1) whether interference with prospective advantage is barred as a claim “arising out of ... interference with contract rights,” 28 U.S.C. § 2680(h); . (2) whether injurious falsehood is barred as a “claim arising out of ... libel [or] slander,” id.; and (3) whether the GSA officials’ violations of federal debarment regulations constituted a tort cognizable under the FTCA. 2
II. Discussion
A. Claims Arising Out of the § 2680(h) Exceptions
1. Interference With Prospective Advantage
Art Metal alleged in Counts I, II, and IV of its complaint that GSA officials interfered with its prospective economic advantage by failing to comply with procedural requirements set forth in the debarment regulations, failing to award Art Metal contracts to which it was entitled, cancelling and delaying other contracts, and suspending all business with Art Metal. The district court held that those claims were *1154 barred under section 2680(h) 3 of the FTCA as “claims arising out of ... interference with contract rights.” 28 U.S.C. § 2680(h). 4 Art Metal argues that the district court erred by failing to recognize that interference with prospective advantage is a distinct common law tort and therefore not barred by the interference with contract rights exception.
As the Supreme Court recently noted, our task in construing the exceptions set forth in section 2680(h) is “to identify ‘those circumstances which are within the words and reason of the exception’ — no less and no more.”
Kosak v. United States,
— U.S.—,
In holding that Neal’s claims were not barred by section 2680(h), the Court distinguished its earlier holding in
United States v. Neustadt,
Unlike Neal, Art Metal seeks to recover for the breach of duties identical to those underlying a barred claim. The duty that the GSA officials allegedly breached is the duty not to interfere with Art Metal’s economic relationship with third parties. That duty is the same as the duty underlying a claim for interference with contract rights; the claims are distinguished only because the plaintiff’s rights or expectancies under the latter are secured by an existing contract.
See
Restatement (Second) of Torts § 766 comment b (1979) (“[T]here is a gen
*1155
eral duty not to interfere intentionally with another’s reasonable business expectancies of trade with third persons, whether or not they are secured by contract, unless the interference is not improper under the circumstances.”). To hold that interference with prospective advantage does not arise out of interference with contract rights under section 2680(h) would subject the government to liability if its employees interfered with the plaintiff's mere expectation of entering a contract, but not if they interfered with a contract already in existence. Such a result would be illogical and contrary to the “ ‘words and reason of the exception.’ ”
Kosak v. United States,
— U.S. —,
2. Injurious Falsehood
Art Metal alleged in Count III of its complaint that GSA officials “provided false information concerning the quality of goods manufactured by Art Metal to the press on a regular, continuing, and repeated basis,” and as a result, Art Metal’s “standing, reputation, prestige, and goodwill as a manufacturer of quality metal office furniture has been ruined and destroyed with consequent injury to its business and substantial loss of sales.” Joint Appendix (J.A.) at 11, 12. The district court dismissed the count as constituting a claim arising out of libel or slander.
Although distinctions exist at common law between actions for injurious falsehood and defamation,
7
the torts have always been very closely related.
See
Restatement (Second) of Torts § 623A comment g (1977) (“The action for injurious falsehood is obviously similar in many respects to the action for defamation.”);
id.
§ 624 comment a (“[T]he decisions went upon an analogy to the kind of oral defamation of the person that is actionable only upon proof of special harm.”).
See also Acoustical Manufacturing Co. v. Audio Times, Inc.,
3 Media L.Rep. 2057, 2064 (D.C.Super.Ct.1977) (“The cause of action based upon ‘injurious falsehood’ is closely
*1156
related to traditional defamation.”). Moreover, changes in the law of defamation produced by first amendment decisions have further minimized the common law distinctions between the torts.
See
W. Prosser,
The Law of Torts
§ 128 (5th ed. 1984); Restatement (Second) of Torts § 623A comment c (1977); Note,
Defamation and the First Amendment in the Corporate Context,
46 Alb.L.Rev. 603 (1982). The primary difference between injurious falsehood and defamation is the requirement in an injurious falsehood action of pecuniary harm. Restatement (Second) of Torts § 623A comment g (1977); Note,
Corporate Defamation and Product Disparagement: Narrowing the Analogy to Personal Defamation,
75 Colum.L.Rev. 963, 969 (1975). Even this distinction is negligible, however; a corporation suing for defamation, for example, may only recover actual damages in the form of lost profits.
Martin Marietta Corp. v. Evening Star Newspaper Co.,
To isolate this technical and esoteric distinction to hold that injurious falsehood does not arise out of libel or slander would contradict the words and reason of the section 2680(h) exceptions. In short, we conclude that “the fairest interpretation of [section 2680(h) ] is the one that first springs to mind,”
Kosak,
B. The Local Law Requirement
Having thus held that section 2680(h) bars Art Metal’s claims for interference with prospective advantage and injurious falsehood, we now address Art Metal’s argument that the GSA officials’ violations of federal procurement regulations constituted negligence or negligence per se cognizable under the FTCA. The district court dismissed Art Metal’s claims primarily
9
on the ground that they failed to allege an “established cause of action” under District of Columbia law.
10
*1157 As we discuss below, Art Metal’s argument is lacking in one vital respect: by basing its negligence claim entirely on violation of federal duties, it fails to consider that the FTCA waives the immunity of the United States only to the extent that a private person in like circumstances could be found liable in tort under local law. It is true that negligent performance of (or failure to perform) duties embodied in federal statutes and regulations may give rise to a claim under the FTCA, but only if there are analogous duties under local tort law.
To understand our analysis, it is helpful to set forth a summary of Art Metal’s negligence argument. It first points out that in the District of Columbia, as elsewhere, the elements of a cause of action for negligence are duty, breach, causation, and damages. Next, Art Metal contends that the GSA debarment regulations impose specific duties on GSA officials. The officials breached those duties by violating the clear requirements of the regulations, thereby causing Art Metal to suffer damages. This, Art Metal argues, constituted negligence cognizable under the law of the District of Columbia. Finally, since the regulations violated were designed to protect persons in Art Metal’s position against the type of harm that Art Metal suffered, violation of the regulations constitutes negligence per se under District of Columbia law.
See, e.g., Ceco Corp. v. Coleman,
We begin our analysis with the well-established principle that the violation of a federal statute or regulation by government officials does not of itself create a cause of action under the FTCA.
See Canadian Transport Co. v. United States,
Contrary to Art Metal’s suggestions, two recent decisions by this court,
Harr v. United States,
In
Beins,
the court found that the district court properly dismissed a FTCA claim because the plaintiff had failed to prove that federal regulations had in fact been violated.
That regulations impose particular duties on government officials is therefore not controlling. The regulations may nevertheless be important in determining whether the government may be liable for negligence under the FTCA. First, the regulations may provide evidence that the government has assumed duties analogous to those recognized by local tort law.
12
In
Schindler v. United States,
If the pertinent regulations are found to have imposed a duty analogous to a local tort law duty, the regulations also may provide the standard of care against which the government’s conduct should be assessed.
14
See Canadian Transport,
The correct analysis, then, is to ask whether a cause of action exists under District of Columbia law for the injuries Art Metal alleges.
See Carlson v. Green,
It is true that GSA officials failed to give Art Metal the process due it under the procurement regulations. Because the regulations do not embody duties recognized under District of Columbia tort law, however, they do not assist Art Metal in this FTCA action. An examination of the regulations indicates that they essentially impose duties on GSA officials to deal fairly with government contractors. Moreover, the “fairness duties” are required of the government
as a government
under the due process clause of the United States Constitution.
See Gonzalez v. Freeman,
III. Conclusion
For the foregoing reasons, the district court’s dismissal of Art Metal’s complaint for failure to state a claim under the FTCA is
Affirmed.
Notes
. Art Metal’s complaint also raised a constitutional claim based on the violation of its right to procedural due process, Count I, f 8, Joint Appendix (J.A.) at 5, and an abuse of process claim, Count V, J.A. at 14-17. Art Metal does not appeal the dismissal of those claims.
. The government also argues that Art Metal’s claims are barred by the discretionary function exception, which exempts the United States from liability for claims “based upon the exercise or performance or the failure to perform a discretionary function or duty ... whether or not the discretion involved be abused." 28 U.S.C. § 2680(a) (1982). Like the district court, we find it unnecessary to reach this issue in light of our disposition of the remaining issues.
. 28 U.S.C. § 2680(h) (1982) retains sovereign immunity for ‘‘[a]ny claim arising out of assault, battery, false imprisonment, false arrest, malicious prosecution, abuse of process, libel, slander, misrepresentation, deceit, or interference with contract rights."
. The district court also held that Art Metal failed to state a claim for relief since the interference with prospective advantage tort requires that the tortfeasor’s actions have interfered with economic relations between the plaintiff and a third party.
Art Metal also argues that the United States and its employees are different parties for purposes of the prospective advantage claims. We have considered that argument and find it mer-itless.
.
See Small v. United States,
. Injurious falsehood is also known as "disparagement of property,” “slander of goods,” and “trade libel.” The tort developed in the latter part of the sixteenth century in England as an action for "slander of title.”
See
W. Prosser,
The Law of Torts
§ 128 (5th ed. 1984); Note,
Injurious Falsehood
— An
Expanding Tort,
33 Geo.L.J. 213, 216 (1945). It protects against false statements that disparage the plaintiff’s interest in, or the quality of the plaintiffs land, chattels, or intangibles. Restatement (Second) of Torts § 623A comment a (1977). To state a claim, the plaintiff must allege pecuniary harm resulting from the defendant’s unprivileged publication of false statements, with knowledge or reckless disregard of the falsity, concerning the plaintiffs property or product.
Golden Palace, Inc. v. National Broadcasting Co.,
. See generally W. Prosser, The Law of Torts § 128 (5th ed. 1984); Restatement (Second) of Torts § 623A comment g (1977); Hibschman, Defamation or Disparagement, 24 Minn.L.Rev. 625 (1940); Note, Corporate Defamation and Product Disparagement: Narrowing the Analogy to Personal Defamation, 75 Colum.L.Rev. 963 (1975).
. We realize that distinctions exist between injurious falsehood and defamation. We also acknowledge that in some contexts those distinctions may be relevant. In this case, we hold only that the distinctions are inapposite in determining whether injurious falsehood, trade libel, slander of goods, or disparagement of property are claims arising out of libel or slander under the FTCA.
. The district court also concluded that Art Metal’s complaint alleged intentional rather than negligent conduct.
. Subject to the limitations and exceptions set forth therein, the FTCA renders the United States liable in tort in accordance with local law. Section 1346(b) authorizes suits against the United States for damages
for injury or loss of property ... caused by the negligent or wrongful act or omission of any employee of the Government while acting within the scope of his office or employment, under circumstances where the United States, if a private person, would be liable to the claimant in accordance with the law of the place where the act or omission occurred.
28 U.S.C. § 1346(b) (1982) (emphasis added). Section 2674 further provides that the United States shall be liable with respect to tort claims "in the same manner and to the same extent as a private individual under like circumstances.” 28 U.S.C. § 2674 (1982).
. The Supreme Court held that the claim in
United Scottish Insurance
was barred under 28 U.S.C. § 2680(a), the discretionary function exception. In doing so, however, the Court explicitly stated that it would not reach issues under 28 U.S.C. §§ 1346(b) and 2674 (the local law requirement).
. The government by its conduct, of course, may also assume duties analogous to those imposed under local tort law, independent of duties embodied in federal statutes or regulations. The Coast Guard, for example, in operating a lighthouse assumed good Samaritan duties under local tort law,
Indian Towing,
. FTCA claims involving inspection and certification activities commonly rely, as did
Schindler,
on the good Samaritan doctrine as enunciated in Restatement (Second) of Torts §§ 323, 324A (1965).
See, e.g., Loge v. United States,
. This is not to suggest that the standard of care embodied in the federal law is conclusive. Even if the government can show that it complied with the applicable law, it still may be found negligent.
Cf. Rudelson v. United States,
. Unfortunately, courts do not always distinguish between "federal legal duties” on the one hand and, on the other hand, the use of federal statutes and regulations to prove either that the government has assumed duties under local tort law or that it has breached those duties under principles of negligence per se.
See United Scottish Insurance,
In
Donohue v. United States,
Dicta in
Myers & Myers, Inc. v. United States Postal Service,
.
See Johnson v. United States,
