In this civil action, three construction workers 1 are attempting to hold their private employers legally responsible for alleged violations of their federal constitutional rights occurring in Saudi Arabia. Plaintiffs were prosecuted and punished under the law of Saudi Arabia by Saudi authorities when they were found in possession of marijuana while employed in that kingdom by the American firms named here as defendants.
The narrow question presented at this stage of the case is whether a private company operating under a contract with the federal government may be sued for alleged violations by it of the constitutional rights of its employees occurring in a foreign country. The three plaintiffs were working in Saudi Arabia, as employees of defendant Morrison-Knudsen Saudi Arabia Consortium (hereinafter “MKSAC”), which is comprised of defendants Morrison-Knudsen of Arabia, Inc., Fischbach and Moore International Corp., and Interbeton Construction N.V., Curacao. Also named as a defendant is Morrison-Knudsen Company, Inc. (hereinafter “M-K Co.”), the parent of Morrison-Knudsen of Arabia, Inc. which is the controlling partner of MKSAC. 2
*518 This suit arises out of a series of events which took place in Saudi Arabia in 1980-81, culminating in plaintiffs’ prosecution by Saudi authorities and subsequent imprisonment in a jail in that kingdom for possession of marijuana. Suing here directly under the United States Constitution, plaintiffs have charged MKSAC, their employer, with violations of various constitutional rights guaranteed to them under the Fourth, Fifth and Sixth Amendments. In addition, they seek recoveries from defendants under various theories of state law. 3 Compensatory damages in the amount of $1,000,000 and punitive damages in the amount of $2,500,000 are sought in Count One which alleges plaintiffs’ federal claim. Jurisdiction has been asserted under 28 U.S.C. § 1331 and also under 28 U.S.C. § 1332.
Presently before the Court are various motions for summary judgment. Defendant MKSAC seeks summary judgment on the grounds that as a private entity it cannot be held liable for constitutional torts, that diversity jurisdiction does not exist, and that plaintiffs’ pendent state claims should likewise be dismissed. Defendant M-K Co. has filed a separate motion for summary judgment, relying on the same grounds as has defendant MKSAC and also contending that as the parent of a partner of MKSAC, it cannot be held responsible for the acts of that entity. Plaintiffs themselves have filed a cross motion for partial summary judgment, asking this Court to find that MKSAC was sufficiently involved with the federal government to become a so-called “state actor.” Extensive briefs have been filed in support of and in opposition to thesé motions, and oral argument has been heard in open court. For the reasons to be herein stated, this Court will grant summary judgment in favor of all defendants and will deny plaintiffs’ motion for partial summary judgment.
I
Background Facts
As disclosed by the extensive discovery undertaken to date, the essential facts are not in dispute. At the time that the events in question occurred, MKSAC was under contract with the United States Army Corps of Engineers (hereinafter “the Corps”) to construct a significant portion of the King Khalid Military City (hereinafter “KKMC”) for the Saudi Arabian government. The KKMC was being built for the Saudi Arabian Ministry of Defense and Aviation pursuant to an agreement between the United States and Saudi Arabia known as the Engineer Assistance Agreement of 1965 (hereinafter “The EAA”). Under this Agreement, the United States undertook to provide engineering and construction management services for the building of military facilities for the Saudi government. The Corps was designated to carry out the responsibilities of the United States under this Agreement. Various contracts were awarded by the Corps for the performance of this work, including one to MKSAC. The construction work in question was performed at the KKMC site located in the desert in northeastern Saudi Arabia. Plaintiffs and other employees lived at the site in prefabricated housing constructed by MKSAC.
In February 1980, security forces of MKSAC, acting on a tip that plaintiffs were using illegal drugs, searched their rooms. Although some dispute exists concerning whether plaintiffs freely consented to the search, it appears that plaintiffs did permit MKSAC representatives to search the rooms. Marijuana was found in each man’s room. The plaintiffs were interrogated by representatives of MKSAC, and statements were obtained from two plaintiffs admitting to the use and possession of marijuana. MKSAC immediately terminated plaintiffs’ employment, and they prepared to return to the United States. Pursuant to their contracts of employment plain *519 tiffs could be terminated for using narcotics.
Approximately one week after the searches were conducted, plaintiffs were informed that the Saudi government had become involved and that plaintiffs would be required to surrender their passports and remain at KKMC. Thereafter, MKSAC furnished the Saudi authorities with the evidence it had gathered including the marijuana itself and the statements of the plaintiffs.
Ten days later, plaintiffs were arrested by Saudi authorities, were charged with narcotics violations and were incarcerated. In early June 1980, plaintiffs were tried, convicted and sentenced by a Saudi court in Dammam. The original sentence was flogging and deportation. Upon review by the Saudi Royal Family, the sentences were increased, and a two year term of imprisonment was added. However, plaintiffs remained in prison only until January, 1981 when they were released and returned to the United States.
This suit was filed on January 12, 1982. Federal jurisdiction is asserted directly under the Constitution and is based on plaintiffs’ claims that MKSAC as a “state actor” violated their constitutional rights by, inter alia, searching their rooms without a warrant, eliciting involuntary confessions, confining them to house arrest at KKMC, and confiscating their passports. Various other claims are asserted by plaintiffs under state tort and contract law. 4
II
Plaintiffs’ Federal Claim
Count One of the complaint alleges that actions of MKSAC taken under color of law deprived plaintiffs of various rights guaranteed by the United States .Constitution. Specifically, plaintiffs assert (1) that the unauthorized search of their living quarters at KKMC by representatives of MKSAC in February, 1980 violated the Fourth Amendment; (2) that their coercive interrogation by MKSAC security personnel violated the Fifth and Sixth Amendments; (3) that the unauthorized seizure of their passports yiolated the Fourth and Fifth Amendments; (4) that their confinement to the job site at KKMC for approximately 10 days violated the Fifth Amendment; and (5) that their Fifth Amendment rights were also violated when they were turned over to Saudi authorities in February 1980.
By their cross-motion for partial summary judgment, plaintiffs ask this Court to find that the acts of representatives of MKSAC which they have challenged here constituted so-called “state action” so as to permit a federal claim to be asserted by plaintiffs against the private companies named as defendants here. Defendants’ motions for summary judgment likewise address the question whether a federal claim may be asserted by these plaintiffs against the private firms which employed them.
This case is particularly well suited for disposition by way of motions for summary judgment. Pursuant to Rule 56(c), F.R. Civ.P., a motion for summary judgment should be granted “forthwith” if the pleadings, discovery and affidavits filed in a case show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law. The pending motions for summary judgment present essentially legal issues. Although plaintiffs have argued that there are disputed facts in the record which preclude the entry of summary judgment, this Court is satisfied that the facts material to a decision here are not in dispute.
The federal claim asserted by plaintiffs in Count One • is based on the Supreme Court decision in
Bivens v. Six Unknown Named Agents,
It is well settled that most rights secured by the Constitution are protected against infringement only by governments or their agents.
Flagg Bros., Inc. v. Brooks,
A review of
Bivens
and its progeny indicates that a federal cause of action asserted thereunder is not nearly as broad as one brought against a state official under 42 U.S.C. § 1983.
Bivens
was judge-made law, and the Supreme Court in
Bivens
and in a number of later cases applying its principles, has expressly and repeatedly cautioned that such a remedy will not be available when “special factors counseling hesitation” are present.
Bivens,
The Supreme Court has, however, never held that a
Bivens
-type claim may be brought against a private party.
5
In recent decisions, the Supreme Court has repeatedly cautioned that before a
Bivens
remedy may be fashioned, the court must take into account any special factors counseling hesitation.
Bush v. Lucas,
— U.S. —, —,
It is not necessary in this case to hold that a Bivens-type claim may never be asserted against a private party. If there were ever a case where special factors exist which counsel hesitation, this is it. First, as noted, MKSAC is a private party. Whether or not the remedy is available against a private party, this is assuredly a factor to be considered by a court in determining whether to extend the
Bivens
doctrine and impose liability.
See Zerilli v. Evening News Association,
These circumstances lead this Court to conclude that there were special factors present here which would counsel this Court to hesitate in extending the Bivens doctrine to claims of the sort which have been asserted against the defendants in this case. In view of these special’ factors, no Bivens remedy will be fashioned by this Court in this case to permit plaintiffs to recover damages from the defendants under the federal claim they have asserted in Count One of the complaint.
In any event, even if this Court were to conclude that a
Bivens
-type remedy were available to the plaintiffs, the facts of this case indicate that the challenged
*522
actions of the defendants were not undertaken under color of federal law. To establish that so-called “state action” existed, a complaining party must show that there was a sufficiently close nexus between the state and the challenged action so that the action of the private party may be treated as that of the state itself.
Jackson v. Metropolitan Edison Co., supra
In three separate decisions handed down in June of 1982, the Supreme Court reviewed in some detail the distinction between private action and state action.
Lugar v. Edmondson Oil Co.,
Lugar
involved the contention that a private party had acted jointly with state officers in depriving a debtor of his property without due process of law. In affirming in part and reversing in part the lower court’s ruling, the Supreme Court cautioned that careful adherence to the “state action” requirement would preserve an area of individual freedom by limiting the reach of federal law and federal judicial power.
In
Blum,
the Court ruled that the decision of a private nursing home to discharge or transfer Medicaid patients to lower levels of care did not amount to state action. The Court emphasized that faithful adherence to the “state action” requirement of the Fourteenth Amendment .demanded careful attention to the gravamen of the plaintiff’s complaint.
In Rendell-Baker, the Court concluded that a teacher at a private school which was supported almost wholly by public funds, was not entitled to sue her employer under § 1983 for alleged violations of her constitutional rights. In that case, the Court analyzed the state action issue under the four traditional factors considered in previous eases.
When those four factors are considered under the circumstances of this case, this Court finds and concludes that the acts of defendants challenged here did not amount to state action. First, private companies are involved here, and any public funds received by them were earned pursuant to their contract with the Corps. The mere fact that MKSAC had entered into a contract with the Corps to perform construction work in Saudi Arabia is of little significance. As the Supreme Court said in
Rendell-Baker, supra
Secondly, although it appears that the Corps regulated and supervised MKSAC’s performance of the contract, this fact is likewise of little significance when considered in terms of the particular acts challenged as unconstitutional. The investigation of plaintiffs’ use of narcotics was not directed or regulated by the Corps, but was undertaken by MKSAC on its own to determine whether plaintiffs were in violation of their employment contract. The Corps had nothing to do with MKSAC’s decision to terminate plaintiffs’ employment, nor was the Corps responsible for turning the evidence in question over to Saudi authorities. The general supervisory role of the Corps in connection with this construction contract is not sufficient to transform defendants’ private acts into those undertaken under color of federal law.
Rendell-Baker, supra
The third factor to be considered is whether MKSAC was performing a “public function.” In analyzing this issue, the question is whether the function has been “traditionally the exclusive prerogative of the state.”
Jackson v. Metropolitan Edison Co., supra
The final factor to be considered is whether a “symbiotic relationship” existed here between the government and the private entity. In
Rendell-Baker, supra,
the Supreme Court noted that the private school’s fiscal relationship with the state was “not different from that of many contractors performing services for the government.”
Thus, when the four factors mentioned in Rendell-Baker are considered here, this Court finds and concludes that no state action existed. Accordingly, even were the Court to find that the Bivens doctrine should be extended to permit a federal claim of this sort to be asserted against the defendants, plaintiffs would still not be entitled to a recovery under the facts of this particular case because the acts of representatives of the defendants in question did not, as a matter of law, amount to state action.
Plaintiffs rely heavily on the case of
Dobyns v. E-Systems, Inc.,
Dobyns
was decided in February 1982, before the Supreme Court decisions in
Lu-gar, Blum
and
Rendell-Baker.
Whether or not
Dobyns
satisfies the present Supreme Court requirements for a finding of state action, the facts of
Dobyns
presented, as the Court itself noted, “an almost unique factual situation.”
E-Systems, Inc., the defendant in Dobyns, was an American company working under a government contract in the Sinai Peninsula. The United States had agreed to act as a neutral party to monitor compli *524 anee with an agreement between Israel and Egypt concerning troop withdrawal in the Sinai. Concerned about American military involvement, Congress had required that only civilians could be used to fulfill this peace-keeping function. Accordingly, the United States government created the Sinai Support Mission to carry out the duties and responsibilities of the government. The Director of the Mission was a government employee appointed by the President and authorized to enter into any contract necessary to carry out its duties. The Mission had entered into a contract with plaintiffs employer, defendant E-Systems, whereby the latter was responsible for the installation, operation, maintenance and support of the early warning surveillance system and was required to report all information received to Israel and Egypt. In holding that defendant E-Systems was performing a public function, the Fifth Circuit found that the role of the defendant was that of a peacekeeper (a job traditionally reserved to the sovereign); that the defendant conducted military surveillance (clearly a sovereign function); that the defendant established its own contacts with the embassies of two foreign countries and that the defendant had taken over the police function of the government, including the specific searches challenged in the suit which had been ordered by the Director of the Mission.
No such unique facts are present in this case. Here there is little more than a private company acting under a government contract in a foreign country and subject to the general supervision of the Corps of Engineers. In
Dobyns,
the Fifth Circuit was careful to point out that the mere existence of a contract between the federal government and a private company is insufficient to create state action.
For all these reasons, the motion for summary judgment of defendant MKSAC will be granted. Similarly, the motion for summary judgment of defendant M-K Co. will likewise be granted. Finally, the motion of plaintiffs for partial summary judg'ment will be denied.
In granting the motion for summary judgment of defendant ‘ M-K Co., the Court has assumed that the acts of representatives of defendant MKSAC were the acts of defendant M-K Co. as well. Defendant M-K Co. is, however, entitled to summary judgment for another reason. M-K Co. was a separate entity from MKSAC, which is a joint venture formed by several corporations including Morrison-Knudsen of Arabia, Inc., which is a subsidiary of M-K Co. On the record here, this Court finds and concludes as a matter of law that defendant M-K Co. was not responsible for any acts of MKSAC. There is no fraud or paramount equity which would permit this Court to pierce the corporate veil and hold M-K Co. responsible for any acts of employees of MKSAC.
See Cawley v. Bloch,
Ill
Plaintiffs’ Claims Under State Law
Plaintiffs’ claims under state law alleged in Counts Two through Eleven of the complaint are based on the assertion first that diversity jurisdiction exists in this case-and secondly that in any event this Court should exercise pendent jurisdiction over these state claims. On the record here, this Court concludes that the state claims likewise should be dismissed.
First, it is apparent that complete diversity does not exist in this case. Plaintiff Perkins is a resident and citizen of Idaho. As established by an affidavit filed herein, M-K Co. has its principal place of business in Boise, Idaho.
7
It is well established that a federal court may not exercise diversity jurisdiction if any one of the plaintiffs and one of the defendants are citizens of the same state.
Owen Equipment & Erection Co. v. Kroger,
Pendent jurisdiction is a doctrine of discretion and not one of plaintiffs right.
United Mine Workers v. Gibbs,
Here, the federal claim has been dismissed pursuant to defendants’ motions for summary judgment. Outlining the relevant factors to be considered in determining the appropriateness of a court’s exercise of its discretion to decide pendent state claims, Judge Friendly in
Kavit v. A.L. Stamm & Co.,
If it appears that the federal claims ... could be disposed of on a motion for summary judgment under F.R.Civ.P. 56, the court should refrain from exercising pendent jurisdiction absent exceptional circumstances.
Since summary judgment has been granted as to plaintiffs’ federal claim and since there are no exceptional circumstances here, this Court will not exercise pendent jurisdiction in this case. If plaintiffs wish to assert claims against defendants under state law, they should file an appropriate suit in a state court.
For these reasons, defendants’ motions for summary judgment will likewise be granted as to Counts Two through Eleven inclusive.
IV
Conclusion
Accordingly, plaintiffs’ motion for summary judgment will be denied, and defendants’ motions for summary judgment will be granted as to all counts. Judgment will therefore be entered in favbr of the defendants, with costs. An appropriate Order will be entered by the Court.
Notes
. The wife of one of these construction workers has joined her husband as a plaintiff in this suit. References to "plaintiffs” herein are intended to mean the male plaintiffs.
. The complaint also named as defendants J.K. Lemley (an employee of MKSAC) and Milton L. Little (a Colonel in the United States Army Corps of Engineers). Orders have been entered dismissing these two individuals as defendants *518 because of lack of personal jurisdiction or failure of service.
. Ten of the eleven counts of the complaint are based on state law.
. Defendants’ motions to dismiss the complaint based on the act of state doctrine, forum non conveniens and lack of jurisdiction have previously been denied by this Court.
. In a case asserting a claim under
Bivens,
it is federal rather than state action which must be found before the action can be maintained. However, the doctrine encompassing both concepts is commonly known as "state action” and that term will be used in this Opinion to mean federal governmental action. •
See Dobyns v. E-Systems, Inc.,
.
Holodnak v. Avco Corp.,
. In its "Statement of Undisputed Facts," plaintiffs concede that M-K Co. (and also its subsidiary Morrison-Knudsen of Arabia, Inc.) is headquartered in Boise, Idaho.
