Lead Opinion
The following question has been certified for review by this Court pursuant to V.R.A.E 5(b): “Whether the traditional governmental/proprietary distinctions in municipal tort immunity law should be replaced with the so-called private-analog test as now employed in state tort claims under 12 V.S.A. § 5601?” Because of the Legislature’s approval of the governmental/proprietary distinction and the complex policy issues involved, we hold that the abrogation and replacement of the distinction are matters for the Legislature, not the courts.
Plaintiff was riding his bicycle across a grassy area in the Town of Colchester when a manhole cover, over which he was crossing, collapsed. He sued the Town and others for injuries allegedly sustained during the occurrence. The Town filed a motion for summary judgment claiming sovereign immunity. In deciding the motion, the Chittenden Superior Court abandoned the established governmental/proprietary distinction in favor of the private-analog test, a test used to determine the liability of the State in tort actions. See 12 V.S.A. § 5601(a). It found that plaintiff satisfied the rеquirements of the test and denied the Town’s motion. The court then granted a motion by the Town requesting permission to appeal the court’s interlocutory order to this Court.
Municipal immunity is a common-law doctrine dating back in Vermont to the mid 1800s. See Baxter v. Winooski Turnpike Co.,
In the present case, the Town argues that this Court should not abandon the governmental/proprietary distinction because the Legislature has explicitly and implicitly endorsed the doctrine. Plaintiff, however, urges this Court not to “shirk its duty and retreat into the safe haven of deference to the legislature.” (Quoting Hay v. Medical Ctr. Hosp. of Vt.,
The Legislature first recognized sovereign immunity in 1960 when it adopted 29 V.S.A. § 1403, which waived immunity to the extent of coverage whenever the state, a county, or a municipality purchased liability insurance. See 1959, No. 328 (Adj. Sess.), § 14 (when governmental entity purchases liability insurance “it waives its sovereign immunity from liability to the extent of the coverage of the policy and consents to be sued”). The Legislature amended the statute in 1982 and 1989, eliminating the state from its coverage with the second amendment. See 1981, No. 213 (Adj. Sess.), § 1; 1989, No. 114, § 7. The enactment and amendments of § 1403 are an explicit acknowledgment of municipal immunity and an implicit recognition of the governmental/proprietary distinction. They also demonstrate the
Under the common law, lawsuits against the state are barred unless the state consents to be sued by waiving its sovereign immunity. Denis Bail Bonds, Inc. v. State,
In 1986, the Legislature again indicated approval of the distinction with its enactment of 24 V.S.A. §§ 4941-4946, a statute relating to intermunicipal insurance agreements. See 1985, No. 237 (Adj. Sess.), § 1. Section 4946 states that “the implementation of this subchapter by any municipality . . . shall constitute essential governmental functions.” (Emphasis added.) It also states that participation by a municipality in an agreement shall not “constitute a waiver of sovereign immunity under 29 V.S.A. § 1403.” 24 V.S.A. § 4946 (emphasis added). Both references demonstrate the Legislature’s recognition and acceptance of the governmental/proprietary distinction.
The Town also argues that complicated public policy issues preclude the Court from abandoning the governmental/proprietary distinction and replacing it with the private-analog test. This Court
It is also important to note that the Legislature tailored the private-analog test with exceptions and limitations that this Court is in no position to define and compel in the area of municipal immunity. See Denicore v. City of Burlington,
*276 [I]t is desirable and in the public interest that any change in the doctrine of sovereign immunity should come from the legislative branch of the State Government rather than from the judicial branch inasmuch as there are fiscal considerations, administrative difficulties and other problems in balancing the rights of the State and its agencies with new possible rights of the individual citizens, which can far better be considered and resolved by the legislative branch than by the judiciary of the State.
Jekofsky v. State Roads Comm’n,
Our refusal to abolish the governmental/proprietary distinction should not be read as an endorsement of that distinction. We point out, as we did in Hudson,
The certified question is answered as follows: the abrogation and replacement of the governmental/proprietary distinction is a matter for the Legislature.
Dissenting Opinion
dissenting. In two of three of its general themes, I concur in Justice Johnson’s dissent. The governmental/proprietary distinction is neither appropriate nor workable and should be abandoned. This Court created the distinction and should now eliminate it, making it irrelevant to the negligence liability of a municipality whether a governmental or proprietary activity was involved. The Legislature has never endorsed this distinction, and we should not leave it to that body to eliminate it. We cannot, as the majority holds, refuse to endorse the distinction but leave it in place.
I do not concur, however, in the broader view that we should also eliminate general municipal immunity, leaving only the very limited protections proposed by Justice Johnson. Nor do I believe that our goal should be to expand municipal liability. Many of the reasons for municipal immunity have become archaic; many did not support the policy even when it was adopted. Our task should be to tailor our law on municipal immunity to the modern policy reasons for recognizing such immunity.
Throughout this century, government at all levels has taken on new responsibilities to protect the health and safety of its citizens. Through inspection and regulation, government seeks to prevent activities that would impair the public health or degrade the environment. Through its law enforcеment and corrections personnel, it seeks to prevent crime and incapacitate violent lawbreakers. Through its fire-fighters, it seeks to prevent property damage and loss of life from fires. Through proper design, construction and operation, it makes modern transportation systems safe and efficient. If the promise of these governmental programs were fully realized, the vast majority of personal injuries would be prevented and there would be few adverse public health consequences from pollution and environmental degradation. Conversely, it is possible to assign some of the blame for almost any serious personal injury or environmentally caused sickness to the failure of a governmental actor to intervene effectively and in a timely fashion.
There are other reasons that government becomes a tort-litigation target. Many of the standards under which government employees act are, and must be, embodied in statutes and regulations that become duties, the breach of which gives rise to tort liability. Judgments аgainst governmental units are usually collectible.
I do not believe that our tort-liability rules should provide that whenever the appropriate response of a government agent could have prevented a personal injury or adverse health consequence, the responsible governmental unit is liable along with any primary tortfeasor. Not only were the governmental programs not designed to assume a personal duty to every potential beneficiary, particularly in an era of scarce public resources where need and demand are inevitably greater than the capacity to meet them, but the liability consequences of such a policy would be massive, threatening the ability of government to respond at all to health and safety threats. It would be wiser to spend any additional resources on making prevention programs work better for the benefit of all citizens rather than responding to tort claims.
Even in Vermont where most municipalities are small and are governed by volunteers, municipalities have responsibility in essential
One possible response to the issues before us is to point out the difficulties and deficiencies in possible approaches and leave it to the Legislature to act. Both the majority decision and the dissent of Justice Johnson propose this response. The majority resolution is not likely to induce any response since the Legislature can continue with the status quo no matter how irrational the status quo may be. Cities and towns, supported by insurance carriers, are likely to respond 'to Justice Johnson’s position by declaring a liability crisis, requiring immediate and emergency action by the Legislature to fix the problem. I do not think that we deal appropriately with a coequal branch of government by either action. I think our proper response is to create a new, workable municipal immunity rule. We can do so prospectively, as Justice Johnson suggests. If the Legislature is able to improve on any immunity rule we adopt, we should welcome its action.
The superior court proposed that we adopt, as an alternative to our current rule, the private-analog test, which is used to determine whether the state is immune from suit. See, e.g., Denis Bail Bonds, Inc. v. State,
Under the public-duty rule, tort liability does not attach where the duty owed by the municipality runs to the public in general, rather than to any particular member of the public, in the absencе of a special relationship between the municipality and the tort plaintiff. We have an interesting recent history with this rule. In Hudson v. Town of East Montpelier,
Without referring specifically to the public-duty doctrine, we held that the town could not be liable for failure to enforce the fire code because the duty was owed to “the public as a whole.” Id. We cited to public-duty-rule cases from other jurisdictions and quoted extensively from one. We recognized the apparent inconsistency of the holding with Hudson and attempted to distinguish that case on the ground that Hudson dealt with official immunity while Corbin dealt with whether a duty of care existed.
Justice Johnson would treat Corbin as sui generis, standing simply for the proposition that “government entities are not liable for their failure to enforce regulations adopted to protect the public at large.”
I am reminded of the Massachusetts experience. In Dinsky v. Town of Framingham,
Our Hudson decision criticized the public-duty rule for three reasons: (1) it resurrects governmental immunities; (2) “in recent yeаrs [it] has been rejected or abolished by most courts considering it”; and (3) “it is confusing and leads to inequitable, unpredictable, and irreconcilable results.”
If our goal is to eliminate municipal immunity, the public-duty rule is inconsistent with that goal. See, e.g., Note, Massachusetts General Laws Chapter 258, § 10: Slouching Toward Sovereign Immunity, 29 New Eng. L. Rev. 1079, 1080 (1995). But, I believe that our goal is different: to define where governmental assistance, designed to protect the health and safety of citizens generally, should give rise to a duty to protect individual citizens such that negligent breach of the duty should give rise to tort liability. The public-duty rule addresses that goal directly. Thus, the fact that it resurrects governmental immunities is its strength, not its weakness:
If there has been any trend to reject or abolish the public-duty rule, it has been a “slight trend.” Comment, Connecticut Tort Reform Act and Municipalities’ and Building Officials’ Liability, 20 Conn. L. Rev. 203, 216 (1987); see generally Annotation, Modern Status of Rule Excusing Governmental Unit from Tort Liability on Theory that Only General, Not Particular, Duty Was Owed Under Circumstances,
I would also immunize a municipality from acts of employees that are discretionary, rather than ministerial. Justice Johnson’s dissent states the rationale for this form of immunity. Although they differ on the scope of discretionary acts that are covered by immunity, all New England states extend municipal immunity to discretionary acts. See Conn. Gen. Stat. § 52-557n(a)(2)(B) (Supp. 1997); Gordon v. Bridgeport Housing Auth,
The majority commits us to continue an artificial distinction that this Court created but cannot now endorse. I would understand our inaction if there were no alternatives that protect the legitimate interests of municipalities and yet provide relief for persons seriously injured by municipal negligence where tort liability is appropriate. We do a great injustice to this injured plaintiff, and others in similar situations, by not modernizing our law on municipal liability. I would let this action go to the jury, and dissent from the decision to terminate it prematurely.
Notes
Rhode Island has merged the public-duty rule and the discretionary-function rule. Thus, political subdivisions are immune for “governmental actions that by their nature are not ordinarily performed by private persons.” Haley,
Dissenting Opinion
dissenting.
It is revolting to have no better reason for a rule of law than that so it was laid down in the time of Henry IV. It is still more revolting if the grounds upon which it was laid down have vanished long since, and the rule simply persists from blind imitation of the past.
Oliver Wendell Holmes, The Path of the Law, 10 Harv. L. Rev. 457, 469 (1897).
.The judicially created doctrine perpetuated by today’s decision denies plaintiff a legal remedy for his injuries solely because the manhole cover he ran over happens to service only the Town’s street and not its sewer system. The majority feels compelled to reaffirm the doctrine, one universally condemned for its unjust results and long-ago discarded by the vast majority of jurisdictions, not because it makes any sense to do so, but rather because it is longstanding and the Legislature has not acted to abolish it.
Neither reason should constrain this Court from acting to abrogate its own laws that no longer have a place in a legal system grounded on modern principles of tort liability emphasizing risk sharing and collective security. This Court, not the Legislature, created general municipal immunity and its accompanying governmental/proprietary distinction, and thus this Court has not only the right but the duty to abolish these concededly unjust laws. No past enactment of the Legislature prevents us from doing so. Rather -than explicitly or implicitly endorsing general municipal liability and the governmental/ proprietary distinction, the Legislature has enacted statutes that, in most instances, merely sought to limit these judicially created doctrines.
I would abolish general municipal immunity along with the governmental/proprietary distinction, but continue to protect local government bodies from being sued for their legislative, judicial and high-level policy decisions, and for their failure to follow up on rеgulatory duties imposed to protect the general public. Apart from the instant case, I would implement these changes prospectively to give towns the time to adjust their insurance coverage and the Legislature an opportunity to address the issue of municipal immunity, in the event it elects to do so.
I.
Municipal immunity is a common-law doctrine associated with sovereign immunity but arising out of a 1788 English case, Russell v.
But because general municipal immunity is contrary to the basic legal concept that liability follows negligence and to the spirit of constitutional provisions entitling every person to a legal remedy for injuries suffered, the courts continually looked for ways to limit its reach. Owen v. City of Independence,
The courts justified the distinction by arguing that local governments should not be liable for activities by which they derived no profit, that public funds should not be diverted to compensate victims for the torts of governmental employees, and that it was not reasonable to hold municipalities liable for torts committed in the
As a result of this criticism, most jurisdictions abrogated general municipal immunity between the late 1950s and the early 1980s, recognizing that the community at large rather than the individual should bear the risk of injury resulting from the negligent conduct of government employees. See, e.g., Parish v. Pitts,
To a large extent, Vermont’s history of municipal immunity and the governmental/proprietary distinction parallels the above history. Initially, municipal immunity seemed to have been presumed rather than declared in Vermont. In Baxter v. Winooski Turnpike Co.,
Thirty-four years later, in Welsh,
As in other jurisdictions, this Court early on encountered “considerable difficulty ... in drawing the line which separates governmental activities from those of a corporate or proprietary nature.” Farmer v. Poultney School Dist.,
Indeed, the latter anomaly is present in the instant case. The parties debated before the superior court whether the manhole cover that plaintiff ran over was indirectly connected to the sewer system via a storm drain system, in which case plaintiff could seek relief from the Town, or whether the manhole was solely associated with maintenance of the street system, in which case the governmental/ proprietary distinction would bar plaintiff from seeking relief from the Town for his injuries. Because the superior court determined that
In the majority’s view, we must turn a blind eye toward these inequities because our doctrine creating them has been around a long time and has been accepted by the Legislature. The majority adopts the Town’s position that the Legislature has explicitly and implicitly endorsed general municipal immunity and the governmental/proprietary distinction by (1) enacting various statutes since at least 1797 that make towns liable for only certain types of tortious acts, e.g., Vt. Rev. Stat. §§ 13-14, at 355 (1797) (towns are liable for damages resulting from their failure to maintain roads and bridges); (2) enacting in 1960, and later amending, a statute that waives municipal immunity to the extent that municipalities purchase liability insurance, see 29 V.S.A. § 1403; (3) enacting in 1961 a tort claims act that addressed state but not municipal liability, see 12 V.S.A. §§ 5601-5606; and (4) enacting in 1986 a statute providing that the participation of towns in intermunicipality insurance agreements is not a waiver of sovereign immunity under 29 V.S.A. § 1403, see 24 V.S.A. § 4946. In taking this position, the majority relies on similar past decisions by this Court declining to abrogate municipal immunity. See Lomberg v. Crowley,
Notwithstanding our past disinclination to address the significant inequities caused by general municipal immunity and the governmental/proprietary distinction, we should do so now. See Molitor,
The Legislature has never explicitly or implicitly endorsed general municipal immunity or the governmental/proprietary distinction. At best from the Town’s perspective, the Legislature has merely recognized the existence of the court-originated doctrine of municipal immunity and enacted statutes that, for the most part, limit its reach. See Molitor,
In addition to its belief that the Legislature has endorsed general municipal immunity and the governmental/proprietary distinction, the majority states that the Legislature is better suited to consider the complex public policy issues surrounding muniсipal immunity. This may be true, but it should not preclude this Court from abolishing its own universally condemned doctrine while affording the Legislature time to step in and address the subject, if it so chooses. See Long,
II.
While it is clear that general municipal immunity under the governmental/proprietary dichotomy is bad law that should be abolished, the more difficult question is what, if anything, should remain of municipal immunity? Even those courts declaring that they were abrogating municipal immunity stated that municipalities would continue to be immune for their acts or omissions connected with legislative, judicial, and high-level executive policy decisions. W. Keeton, supra, § 131, at 1052; e.g., Nieting v. Blondell,
Rather than focus on formalistic labels that merely serve as conclusions reached after consideration of the relevant factors, see Hudson,
The goal should be to place municipalities on an equal footing with private corporate entities with respect to responsibility for injuries caused by the common torts of their employees, but to shield them
The Restatement also recognizes that some courts have considered quasi-judicial or quasi-legislative regulatory and enforcement activities to fall within § 895C. Restatement, supra, § 895C cmt. g; see, e.g., Bolden v. City of Covington,
In light of the prior discussion, I would abrogate general municipal immunity and the governmental/proprietary distinction, and adopt Restatement § 895C in its place. In doing so, I would acknowledge our continued support for the position stated in Corbin (and analogous case law construing the private analog test) that government
Without question, the Restatement approach would not provide the Town with immunity in the present case, which concerns a common tort scenario that implicates neither legislative or judicial functions, nor high-level policy decisions or regulatory activities. Of course, § 895C’s general principles would have to be refined in future cases by examining and considering various fact patterns while keeping in mind the underlying principles that support limited exceptions to general municipal liability. Although it will not be easy to set forth on a case-by-case basis а principled and cohesive doctrine that is both fair and consistent, it will be far better than allowing to stand a doctrine acknowledged to be inequitable and inconsistent. Because of
We could defer to the Legislature’s ultimate authority in this area by abrogating general municipal immunity and abolishing the governmental/proprietary distinction prospectively, as many other courts have done, to allow municipalities time to adjust their insurance coverage and to allow the Legislature an opportunity either to enact comprehensive legislation on municipal immunity, to include municipalities within the Tort Claims Act, or to impose other legislative limitations on municipal liability, if it so chooses. See Becker v. Beaudoin,
The courts that have abrogated general municipal immunity have differed on whether to apply their holding prospectively or retroactively. Some courts have followed the general rule of retrospective application, e.g., Stone,
III.
There can be no doubt that the effect of governmental immunity is “to sacrifice the injured citizen to the benefit of the public treasury.”
Justice Dooley’s dissent misstates my position. It is simply not true that, like the majority, I have chosen merely to point out the deficiencies in possible approaches to municipal immunity and leave it for the Legislature to act. I have attempted to analyze the public policy considerations underlying municipal immunity and, based on those considerations, have stated that I would adopt the American Law Institute’s restatement of the law in this area, hardly a radical stand creating a crisis situation. I have not suggested, as Justice Dooley indicates, .that municipalities should be liable whenever the appropriate response of a government agent could have prevented a personal injury or adverse health consequence. Indeed, as I state above, I continue to support this Court’s position in Corbin v. Buchanan,
