Jayvee Brand, Inc. v. United States of AmericaJayvee Brand, Inc. v. United States of America
Opinion for the Court filed by Circuit Judge BORK.
Concurring opinion filed by Circuit Judge HARRY T. EDWARDS.
Concurring opinion filed by Senior Circuit Judge LUMBARD.
This is a suit for damages brought by manufacturers of children’s sleepwear against the United States, the Consumer Product Safety Commission and five individuals formerly members of that Commission. Appellants seek monetary damages for losses they say were caused by Commission regulatory action. We find that the Federal Tort Claims Act does not grant the district court jurisdiction over this suit against the United States and that the individuals are entitled to absolute immunity from the tort claims brought against them under the due process clause of the fifth amendment. We therefore affirm the order of the district court dismissing appellants’ complaint.
I.
Appellants are manufacturers of children’s sleepwear; they purchase fabric, cut and sew it into garments, and sell the product to wholesalers. In 1971 the Secretary of Commerce issued an apparel flammability standard applicable to appellants’ products. 16 C.F.R. Part 1615 (1983). This was followed in 1974 by further standards issued by the Consumer Product Safety Commission (“CPSC” or “Commission”). 16 C.F.R. Part 1616 (1983). In order to comply with these regulations, appellants began purchasing fabric treated with the flame-retardant compound tris (2,3-dibromopro-pyl) phosphate (“Tris”).
In March, 1976, and again in February, 1977, the CPSC received petitions alleging that Tris was a carcinogen and urging safety measures. Responding to these petitions, the Commission obtained data on Tris’ carcinogenic effects. On April 8,1977, the CPSC issued an amendment to
Appellants base their tort claim on procedural infirmities in the Tris ban. Specifically, they claim that the Commission failed to follow the procedures set forth in the Federal Food, Drug, and Cosmetic Act,
On December 30,1982 (subsequent to oral argument in this case) the President signed into law Pub.L. No. 97-395, 96 Stat. 2001 (the “Tris Act”). Under the Tris Act the Claims Court has jurisdiction over
any claim for losses sustained by any producer, manufacturer, distributor, or retailer of children’s sleepwear, or by any producer, converter, manufacturer, distributor, or retailer of fabric, yarn, or fiber contained in or intended for use in children’s sleepwear, (1) if those losses resulted from the actions taken by the Federal Government under the Federal Hazardous Substances Act of April 8, 1977, and thereafter relating to apparel, fabric, yarn, or fiber containing Tris (2,3-dibromopropyl) phosphate, and (2) if such children’s sleepwear or such fabric, yarn, or fiber, as the ease may be, at the time of its manufacture was subject to the requirements of or was subject to use in compliance with the mandatory Federal flammability standard FF3-71 or FF5-74.
The Tris Act goes on to prescribe the factors that the Claims Court is to consider in adjudging liability, the method of measuring losses and certain procedural rules for Tris claims.
This suit was brought in the District Court for the District of Columbia against the United States, the CPSC and the individual members of the Commission at the time of the ban. Relief was sought against the United States and the Commission under the Federal Tort Claims Act (“FTCA”),
In the district court, appellees urged dismissal on various grounds: lack of subject matter jurisdiction, failure to state a claim upon which relief could be granted, and lack of personal jurisdiction over the individual defendants. The district court granted the motion, ruling that (1) sovereign immunity bars the tort claims against the United States; (2) the CPSC is not a proper defendant under the FTCA; (3) there is no subject matter jurisdiction over the taking claim; 1 (4) “special factors” counsel against imposing Bivens -type liability on the individual Commissioners; and (5) the Commissioners are immune from individual liability of this type. Appellants are before this court on appeal of that order of dismissal.
II.
Courts may not entertain suits against the United States without consent of the United States in the form of an express waiver of sovereign immunity. The Federal Tort Claims Act is a limited waiver. Speaking generally, the FTCA waives immunity, allowing the government to be liable in tort for negligent or wrongful acts committed by a government employee acting within the scope of his employment when a private person would be liable for those acts under applicable law. The Act also contains specific exceptions to the general waiver. We are convinced, for reasons developed below, that the FTCA confers no jurisdiction over appellants’ claim. The language of the statute, though helpful, does not compel a decision either way. Our conclusion rests primarily upon the apparent intention of Congress as that may be gleaned from various materials and considerations of policy. The statutory category through which that decision may be expressed is either the discretionary function exception or the requirement that the government be liable only if a private person would be liable for the same conduct. Though either category would suffice for
A.
The FTCA excepts the discretionary functions of government employees from creating tort liability. The Act creates this “discretionary function” exception in
The provisions of this chapter and section 1346(b) of this title shall not apply to—
(a) Any claim based upon an act or omission of an employee of the Government, exercising due care, in the execution of a statute or regulation, whether or not such statute or regulation be valid, or based upon the exercise or performance or the failure to exercise or perform a discretionary function or duty on the part of a federal agency or an employee of the Government, whether or not the discretion involved be abused.
Appellants concede, as they must, that the substantive decision whether to ban Tris was discretionary and hence within the exemption provided by the second clause of
It is clear that the exception does not apply when a government employee fails to follow obligatory procedures in applying a rule that itself is an exercise of discretion.
Hatahley v. United States,
We are here presented, however, with a third case: an attack, not on the rule or its execution, but on the procedures by which the Tris ban was formulated and adopted. It would be possible, perhaps, to focus exclusively upon the procedures employed by the CPSC or, alternatively, to view those procedures as integral to the decision to adopt the substantive regulation. The different perspectives give different outcomes. The former involves a non-discretionary dereliction. The latter may be characterized as an abuse in the exercise of policy making, and hence an abuse of discretion shielded from liability by
B.
We think jurisdiction is lacking in this case for an additional reason: because the last condition of
civil actions on claims against the United States, for money damages, ... for injury or loss of property, or personal injury or death 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.
The Commission’s alleged failure to file the proper procedures was plainly a “wrongful act.” Similarly, the act or omission was by an “employee of the Government while acting within the scope of his office or employment.” But the last condition of
The Supreme Court has made clear its desire to avoid the “ ‘non-governmental’‘governmental’ quagmire that has long plagued the law of municipal corporations.”
Indian Towing Co. v. United States,
This conclusion, like that with respect to the discretionary function exception, does not rest upon the compulsion of the statute’s language, but we think both conclusions are compelled by considerations to which we now turn. 2
Appellants ask us to make a major innovation in the law by holding that the FTCA provides damage actions as an additional means of policing the internal procedures of governmental agencies. They have not, however, given us particularly good reasons for such an extraordinary step, and everything we have seen counsels against it. There is, in the first place, absolutely no evidence that in enacting the FTCA Congress intended to police internal governmental law-making procedures with damage actions. Appellants’ theory of governmental liability because of the CPSC’s failure to follow the procedures specified by
The Supreme Court’s discussion of the legislative history of the FTCA in
Dalehite v. United States,
[It was not] intended that the constitutionality of legislation, the legality ofregulations, or the propriety of a discretionary administrative act, should be tested through the medium of a damage suit for tort. The same holds true of other administrative action not of a regulatory nature, such as the expenditure of Federal funds, the execution of a Federal project and the like.
Dalehite,
Furthermore, as the Supreme Court has observed, the entire thrust of the FTCA is in a different direction from that appellants would have us give it: “Uppermost in the collective mind of Congress were the ordinary common-law torts. Of these, the example which is reiterated in the course of the repeated proposals for submitting the United States to tort liability is ‘negligence in the operation of vehicles.’ ”
Dalehite,
This thrust of the statute and Congress’ concomitant refusal to enact the rule for which appellants contend is well shown by a paragraph appearing in a number of Committee reports. This paragraph states that it is not “desirable or intended that the constitutionality of legislation, or the legality of a rule or regulation should be tested through the medium of a damage suit for tort. However, the common-law torts of employees of regulatory agencies would be included within the scope of the bill to the same extent as torts of nonregulatory agencies.” H.R.Rep. No. 2245, 77th Cong., 2d Sess. 10 (1942); S.Rep. No. 1196, 77th Cong., 2d Sess. 7 (1942);
House Hearings on H.R. 5373 and H.R. 6463, supra,
at 33,
quoted in Dalehite,
The distinction thus made between types of tort (assuming that we are dealing here with a tort at all) is firmly rooted in obvious policy differences. Tort liability under the FTCA is governed by “the law of the place where the act or omission occurred.” It is entirely appropriate that a government employee’s alleged tort, such as driving negligently, should be judged according to the standards of care in the community where the act occurred. The government’s employee is required to behave according to the standard of reasonableness expected of all other persons performing the same function in that jurisdiction. It would be most inappropriate, however, that the quasi-legislative procedures of a government agency should be policed according to local law. This case illustrates that point. Here, as will usually be the case, the agency acted in the District of Columbia but the impact of
Even more unlikely — and more absurd— is the implication of appellants’ argument that Congress intended that agency decisions made outside of the District of Columbia should be held subject to damage liability according to the tort law of whatever state or municipality a federal agency happens to be in when it acts.
The only case arguably contrary to our decision here is the Second Circuit’s decision in
Myers & Myers, Inc. v. United States Postal Service,
We agree that the decision to award a government contract is a discretionary one, and is therefore shielded by the discretionary function exception from giving rise to liability. Furthermore, we agree that the Service did not have the discretion, as that word is used in the ordinary sense, to violate its own rules. Nevertheless, we think that
Myers & Myers
may be distinguishable from the instant case because of the differences in the nature of the processes in issue. Selecting a government contractor is very different than legislating. The decision to award a government contract — although requiring discretion — seems to us more like a decision requiring discretion in the execution of policy than does a legislative determination, which itself requires policy judgments. Among other things, this seems true because in
Myers & Myers,
had proper procedures been followed, the plaintiff apparently would have received the contracts for whose loss he sought damages. No comparable assertion can be made here. Appellants might very well have been subjected to the same Tris ban had statutory procedures been followed. The difference in degree of certainty indicates a difference in the nature of the decisions, showing that the process involved here was more legislative in nature. Although we think this distinction real, at bottom we arrive at our decision because we do not know how to confine this new cause of action were we to accept the broad principle propounded by the appellants. Any procedural irregularity in any administrative determination would
Basically, we do not believe that Congress, in passing the FTCA, envisioned the creation of such a sweeping challenge to administrative determinations. Congress has explicitly created the remedy for cases where an agency violates mandatory procedures in framing a rule — the rule is to be declared a nullity. Congress has not created a general governmental liability for damages in that situation. 6
D.
Our holding is by no means an endorsement of the Commission’s behavior in this case. This is not the first time the CPSC has willfully disregarded the procedures Congress has established for it and grossly exceeded its authority.
See Pactra Industries, Inc. v. CPSC,
III.
Count Y of appellants’ amended complaint seeks damages against the individual Commissioners, claiming that they tortiously deprived appellants of property without due process of law.
See
The Supreme Court has determined that although qualified immunity is the rule for executive personnel, certain offices and functional roles are entitled to absolute immunity.
Harlow v. Fitzgerald,
The Tris ban here attacked was in the form of an amendment to the Code of Federal Regulations. 42 Fed.Reg. 18,853 (1977) (amending
The judgment of the district court is Affirmed.
HARRY T. EDWARDS, Circuit Judge, concurring:
I concur only in the result reached in this case.
LUMBARD, Senior Circuit Judge, concurring:
I concur in affirmance of the district court’s order which denied plaintiffs a cause of action under the Federal Tort Claims Act (FTCA), for the reasons stated by Judge Bork in Section II C. However, I do not think that result can be fit within either of the two express qualifications to the FTCA discussed in Section II A and B supra without straining unduly on common sense or past precedent. I would rest our affirmance squarely on the finding that Congress never intended to open the federal government to tort liability for procedural infractions in the promulgation of administrative rules.
It is axiomatic that no action lies against the United States unless Congress has authorized it.
Dalehite v. United States,
Where the wrongful conduct falls within one of the “ordinary common-law torts”
(e.g.,
negligent auto accidents) that motivated the passage of the FTCA, that showing is amply made by the legislative history of the Act.
Dalehite v. United States,
Here, in view of the novel form of tor-tious conduct involved, the anomaly of submitting this distinctly federal claim to the vagaries of state law, the potentially limitless number of private suits based on agencies’ procedural infractions, coupled with the unlikelihood of most plaintiffs making the necessary showing of causation to prevail, and Congress’s providing an alternative remedy for procedural infractions by declaring the resulting rules unlawful, it is extremely unlikely that Congress ever intended to submit the federal government to tort liability for such infractions. On that basis alone, I would reject appellants’ claim.
Notes
. In this appeal, appellants do not challenge the dismissals of the CPSC as a defendant and of their taking claim. Brief for Appellants at 18 n. 1. Accordingly, we deal with neither the CPSC nor Count IV of appellants’ complaint.
. Because we hold that this court has no jurisdiction under
Count I of the Amended Complaint alleges tortious misrepresentation with an eye to
Subsections (a) and (h) ofsection 2680 of title 28 do not prohibit the bringing of a civil action on a claim against the United States which—
(1) is based upon—
(A) misrepresentation or deceit ... on the part of the Commission or any employee thereof, or
(B) any exercise or performance, or failure to exercise or perform, a discretionary function on the part of the Commission or any employee thereof .... which exercise, performance, or failure was grossly negligent; and
(2) is not made with respect to any agency action (as defined in section 551(13) of title 5).
In the case of a civil action on a claim based upon the exercise or performance of, or failure to exercise or perform, a discretionary function, no judgment may be entered against the United States unless the court in which such action was brought determines (based upon consideration of all the relevant circumstances, including the statutory responsibility of the Commission and the public interest in encouraging rather than inhibiting the exercise of discretion) that such exercise, performance, or failure to exercise or perform was unreasonable.
The statute makes it plain that the exception to
(13) “agency action” includes the whole or a part of an agency rule, order, license, sanction, relief, or the equivalent or denial thereof, or failure to act;
This reading of the APA is sophistic to the point of being tail-swallowing; it imputes a self-contradictory structure to administrative law. Under section 702 of title 5, judicial relief is available to “[a] person suffering legal wrong because of agency action, or adversely affected or aggrieved by agency action .... ” Without agency action, then, there is no judicial review. Under appellants’ theory, a court, when it finds something an agency did to be a legal nullity (as in Springs Mills), would have to dismiss an APA suit for want of jurisdiction. To state appellants’ thesis thus is to refute it.
. The Court continued:
Referring to a prior bill which had not contained the “discretionary function” exemption, the House Committee on the Judiciary was advised that “the cases embraced within [the new] subsection would have been exempted from the [prior bill] by judicial construction. It is not probate that the court would extend a Tort Claims Act into the realm of the validity of legislation or discretionary administrative action, but H.R. 6463 makes this specific.”
Dalehite,
. This language is similar to that used in the House Report accompanying the bill that actually became the FTCA. (The legislative history discussed by the Supreme Court in Dalehite concerned consideration of the bill by an earlier Congress.) The House Report said that it is neither “desirable or intended that the constitutionality of legislation, or the legality of a rule or regulation should be tested through the medium of a damage suit for tort.” H.R.Rep. No. 1287, 79th Cong., 1st Sess. 6 (1945).
. We could, of course, confine tort claims based upon procedural irregularities to cases of an “egregious” or “extreme” nature, such as the case before us; however, if the Act applied, we would not have the authority to create such an exception. To do so would impose a condition on the statute that is not there. Furthermore, such an exception would in all probability accomplish very little since the courts would have to entertain endless litigation concerning the “egregiousness” of every procedural irregularity.
. In a supplemental brief submitted after passage of the Tris Act, appellees argue that that legislation provides another ground for rejecting appellants’ FTCA claim inasmuch as it creates an exclusive remedy in the Claims Court. Unlike appellees, we cannot find the word “exclusive” in the Tris Act’s jurisdictional section. Nor is the legislative history of the Tris Act significant. That history contains many statements to the effect that, without such legislation, the Tris manufacturers would be remediless. We hold today that those statements were correct, but they appear to embody judgments as to what the law was, not acts of will as to what it shall be. The Tris Act does not affect our decision on appellants’ FTCA claims.
. Because of this assumption we need not address the issue of possible special factors coun-selling against our finding a Bivens -type cause of action.
. An objection might be raised that the Commission was merely applying the definition of a hazardous substance contained in