Vacated and remanded by published opinion. Senior Judge PHILLIPS wrote the opinion, in which Judge MURNAGHAN and Senior Judge BRITT joined.
OPINION
Global Mail Limited, a private courier service, brought this action alleging that the United States Postal Service (USPS) had violated the Lanham Act in advertising its international mailing service under the name “Global Priority Mail.” The district court determined that USPS was immune from Lan-ham Act suits through its retained sovereign immunity, and dismissed the suit. We reverse.
Global Mail Limited (Global), an enterprise primarily engaged in the business of sending letters, packages and parcels to recipients in other countries, entered the international mailing service market in 1987. Since that time it has continuously used the names “Global” and “Global Mail,” and a design including the name “Global Mail Ltd.,” in connection with its services. Global has published these marks and registered the design mark in the United States Patent and Trademark Office on March 7, 1989. Headquartered in Vienna, Virginia, Global has approximately 170 employees and totaled $82 million in service volume in 1996. Until March 1996, the United States Postal Service (USPS) operated an international mailing service under the name “World Post” that served as a direct competitor to Global’s services. That month, USPS changed the name of its international mailing service to “Global Priority Mail,” and embarked on a widespread advertising campaign prominently featuring the new name.
Global filed a complaint in the Eastern District of Pennsylvania in June 1996, alleging violations of the Lanham Act (“Act”), 15 U.S.C. §§ 1051-1127 (1994). After the case was transferred to the Eastern District of Virginia, USPS moved to dismiss the complaint alleging sovereign immunity from suit under the Act. The district court granted the motion and issued a four-page memorandum opinion. Despite the alleged fact that USPS has filed for or registered 82 trademarks under the Lanham Act, and has filed at least six cancellation or opposition proceedings to prevent competitors from registering marks too similar to their own, the court found that a section of the Postal Reorganization Act, 39 U.S.C. § 409(c) (1994), limits USPS’s tort liability to only those tort claims that are available under the Federal Tort Claims Act (FTCA), 28 U.S.C. §§ 2671-80 (1994). The court opined that because Lanham Act claims are tort claims, but federally created, they are not viable under the FTCA and that USPS therefore retains its sovereign immunity as to such claims. Said the court: “This result seems harsh, particularly in light of the Postal Service’s own activity in seeking protection of its own trademarks. Harshness resulting from sovereign immunity, however, is not new, and the court cannot as a matter of equity override what it concludes to be a valid sovereign immunity defense.” J.A. 218. The district court therefore dismissed Global’s action, and this appeal followed.
II
Challenging the district court’s dismissal of its claim, Global makes two related contentions: (1) that the Postal Reorganization Act (PRA) included within its broad waiver of USPS’s sovereign immunity all tort claims, and not just those cognizable under the FTCA; and (2) that USPS is a “person” capable of being sued under the Lanham Act. Reviewing
de novo
the district court’s dismissal of the complaint for lack of subject matter jurisdiction,
see White v. United States,
A.
As a governmental entity, USPS is entitled to sovereign immunity unless Congress waives that immunity and authorizes consent to suit. Sovereign immunity deprives a court of jurisdiction to hear a ease.
See FDIC v. Meyer,
The question then is the intended interrelationship of these PRA and FTCA provisions in defining the scope of the USPS’s sovereign immunity from Lanham Act claims.
Although § 401(1) of the PRA is a general waiver of USPS’s sovereign immunity,
see Franchise Tax Bd. of California v. USPS,
The Lanham Act creates in essence a federal statutory tort, derived from the common law tort of unfair competition. See,
e.g., Bauer Lamp Co., Inc. v. Shaffer,
Global responds that § 409(c) does not limit § 401(l)’s broad waiver of immunity to only those torts cognizable under the FTCA. Each of the circuits to have considered the issue has concluded that § 409(c) serves as a substantive limit on the types of suits to which USPS must submit. In the context of an alleged “constitutional tort” under
Bivens v. Six Unknown Fed. Narcotics Agents,
Also in the context of a Bivens-type claim, the Ninth Circuit held that the “ ‘sue and be sued’ language of the Postal Service’s charter should not be interpreted to enlarge - the waiver of sovereign immunity specified by the FTCA.”
Pereira v. USPS,
While acknowledging these decisions, Global and amici insist the legal landscape shifted dramatically with the Supreme Court’s decision in
FDIC v. Meyer,
Instead, the Court held that the FSLIC’s broad “sue-and-be-sued” clause constituted a waiver of sovereign immunity for all torts, even federal torts not cognizable under § 1346(b) of the FTCA. “[S]ue-and-be-sued clauses cannot be limited by implication unless there has been a ‘elea[r] showing] that certain types of suits are not consistent with the statutory or constitutional scheme, that an implied restriction of the general authority is necessary to avoid grave interference with the performance of a governmental function, or that for other reasons it was plainly the purpose of Congress to use the sue-and-be-sued clause in a narrow sense.’ ”
Id.
at 480,
Citing
Burr, Franchise Tax Board,
and
Loeffler
(the latter two involving USPS), the Court noted that “the claimants sought to subject the agencies to a particular suit or incident of suit to which private businesses are amenable as a matter of course.”
Id.
at 481,
The two lower federal courts that have considered USPS’s liability under the Lan-ham Act in light of
Meyer
have concluded that § 401(1) operates as a waiver of the USPS sovereign immunity. In
United States v. Quick International Courier, Inc.,
Similarly, in
Federal Express Corp. v. USPS,
We agree with the holdings of Quick and Federal Express, but must concede that Meyer does not flatly dictate them. USPS is correct in observing that the FSLIC’s waiver of sovereign immunity did not include a provision comparable to § 409(c) of the PRA. Nevertheless Meyer does explain that the FTCA does not serve as the only means by which a federal agency can be sued in tort, and torts that are not cognizable under the FTCA still may be the sources of appropriate claims. Courts must look to the scope of a waiver of sovereign immunity to determine whether a particular agency is amenable to suit for a particular claim.
The issue before us thus narrows to the effect of § 409(c) on the PRA’s broad waiver of USPS’s sovereign immunity contained in § 401(1).
As the Court explained long ago in Burr and recently reiterated in Loeffler:
[W]hen Congress establishes ... an agency, authorizes it to engage in commercial and business transactions with the public, and permits it to “sue and be sued,” it cannot be lightly assumed that restrictions on that authority are to be implied. Rather if the general authority to “sue and be sued” is to be delimited by implied exception, it must be clearly shown that certain types of suits are not consistent with the statutory or constitutional scheme, that an implied restriction of the general authority is necessary to avoid grave interference with the performance of a governmental function, or that for other reasons it was plainly the purpose of Congress to use the “sue and be sued” clause in a narrow sense. In the absence of such showing, it must be presumed that when Congress launched a governmental agency into the commercial world and endowed it with authority to “sue or be sued,” that agency is not less amenable to judicial process than aprivate enterprise under like circumstances would be.
Loeffler,
As the Supreme Court and lower federal courts have noted, the legislative history surrounding the PRA is replete with evidence that Congress intended that USPS “be run more like a business than had its predecessor, the Post Office Department,”
Franchise Tax Bd.,
As identified in
Meyer, supra,
there are three ways in which the presumption of immunity suggested by the “broad” waiver may be rebutted: (1) when the waiver would conflict with a statutory or constitutional scheme; (2) when there is plain evidence of congressional intent to restrict the waiver; or (3) when a broad reading would lead to “grave interference with performance of a governmental function.”
Rather, USPS argues that its construction of § 409(e) is the most natural reading of the subsection’s plain language and the only one that gives independent meaning to § 2679(a) of the FTCA. There are two possible interpretations of that subsection: (1) that only those torts cognizable by the FTCA are available to claimants against USPS, and those claimants must utilize FTCA procedures in pursuing their claims; and (2) that for those claims cognizable under the FTCA, claimants against USPS must utilize FTCA procedures, but for other tort claims for which they have a cause of action claimants may sue USPS directly. As indicated, § 2679(a) of the FTCA provides that independent waivers of a federal agency’s sovereign immunity do not authorize suits against that agency for claims cognizable under the FTCA; rather a claimant must follow the procedures of the FTCA and FTCA remedies are exclusive for such claims. As USPS urges, under the second interpretation of § 409(c) that subsection would mirror § 2679(a). Nevertheless we find it to be the more reasonable reading of the language. In the face of § 401(l)’s broad waiver of immunity, this subsection does not facially purport to create any restriction of that waiver. Rather, in a section of the PRA
Under ? our reading, admittedly, § 2679(a) and § 409(c) have substantially the same effect. But USPS’s preferred interpretation of § 409(c) would have more of an impact than we believe was intended, considering its ambiguous language and the general purpose of the PRA. In interpreting a statute we must consider both the plain language of the provisions and “its object and policy.”
United States v. Turpin,
USPS is not an enterprise that occasionally affects commercial firms indirectly in its endeavors. Rather, the language and the legislative history of the PRA make clear that Congress intended USPS to be a full-fledged competitor in the business of carrying letters, parcels and packages, and USPS has fulfilled that intention by competing head-to-head with a host of private courier services. In competing with private firms USPS advertises aggressively on television, in print, on billboards and even by sponsoring a professional cycling team. And, USPS has utilized the Lanham Act to register its marks and to ensure that other firms do not infringe upon them. We cannot conclude that Congress intended § 409(c) simultaneously to “launch [USPS] into the commercial world” and also to immunize USPS from liability for federally-created commercial torts such as the Lanham Act. Such a reading would be wholly inconsistent with Congress’s stated purpose in enacting the PRA.
In sum, we hold that § 409(e) does not limit the PRA’s waiver of sovereign immunity such that USPS is liable in tort only for those torts cognizable by the FTCA. Consequently, USPS is not immune from Global’s Lanham Act claim.
B.
The question remains whether USPS is a “person” capable of being sued under the Lanham Act. Aside from the sovereign immunity issue, USPS argues that the Lanham Act’s prohibitions by their terms do not apply to the federal government and its agencies, including itself. USPS relies primarily on the Eighth Circuit’s decision in
Preferred Risk Mut. Ins. Co. v. United States,
However, the Eighth Circuit found “[mjost important” the “fact that interpreting the Lanham Act to include the United States within the definition of ‘person’ would create a right of action against the United States under the terms of the Act. Providing such a right of action against the United States requires an express and unequivocal waiver of its sovereign immunity.”
It is evident that the Eighth Circuit relied on the fact that the Lanham Act did not contain an express waiver of the federal government’s sovereign immunity to conclude that no federal agency could be a “juristic person” under the Act.
See Quick,
Also, the fact that Congress amended the Act in 1992 to include states within its purview, but not the federal government, only indicates it did not intend to include a waiver of sovereign immunity for Lanham Act violations for the whole of the federal government. Again, we acknowledge that the Lan-ham Act itself does not include a waiver of sovereign immunity for federal agencies. But it also does not proscribe suits to enforce its provisions against agencies that are capable of being sued. Construing the Lanham
III
Because we conclude that Congress waived USPS’s sovereign immunity in the PRA we need not consider and therefore express no opinion on Global’s arguments that the USPS is “judicially estopped” from denying its status as a “person” under the Act, or that holding USPS not to be liable under the Lanham Act would create an unlawful “taking” of Global’s rights in violation of the Fifth Amendment.
IV
In conclusion, we hold that the PRA constituted a waiver of USPS’s immunity as to Lanham Act claims and USPS is a “person” within the Lanham Act. We therefore vacate the judgment of the district court and remand for further proceedings consistent with this opinion.
VACATED AND REMANDED.
Notes
In an unpublished opinion we have held, "Although [§ 401(1)] authorizes the USPS 'to sue and be sued in its official name,' this Act does not completely eviscerate sovereign immunity. Rather, [§ 409(c)] restricts this waiver to tort claims cognizable under the [FTCA]."
Johnson v. Runyon,
No. 95-3083,
