Document: 499 U.S. 315 111 S.Ct. 1267 113 L.Ed.2d 335 UNITED STATES, Petitioner,v.Thomas M. GAUBERT. No. 89-1793. Argued Nov. 26, 1990. Decided March 1991. Syllabus When the events in this case occurred, Home Owners' Loan Act of 1933 authorized Federal Bank Board (FHLBB) to prescribe rules and regulations providing "for organization, incorporation, examination, regulation" federal savings loan associations, issue charters, "giving primary consideration best practices thrift institutions United States." 12 U.S.C. § 1464(a). Pursuant Act, FHLBB Bank-Dallas (FHLB-D) undertook advise about oversee certain aspects operation Independent American Savings Association (IASA), but instituted no formal action against institution. At their request, respondent Gaubert, chairman board IASA's largest stockholder, removed himself from management posted security for his personal guarantee that net worth would exceed regulatory minimums. regulators threatened close IASA unless its directors resigned, new were recommended by FHLB-D. Thereafter, FHLB-D became more involved day-to-day business, recommending hiring a consultant it on operational financial matters; advising concerning whether, when, how subsidiaries should be placed into bankruptcy; mediating salary disputes; reviewing draft complaint used litigation; urging convert state charter; intervening when department attempted install supervisory agent at IASA. The soon announced had substantial negative worth, Insurance Corporation (FSLIC) assumed receivership After administrative tort claim was denied, Gaubert filed an District Court States under Tort Claims (FTCA), seeking damages lost value shares property forfeited ground been negligent carrying outtheir activities. court granted Government's motion dismiss regulators' actions fell within discretionary function exception FTCA, 28 2680(a). Appeals reversed part. Relying Indian Towing Co. v. States, 350 61, 76 122, 100 L.Ed. 48, found claims activities after they role affairs not "policy decisions," which fall exception, "operational actions," do not. Held: 1. covers acts involving element judgment or choice if are based considerations public policy. It is nature conduct rather than status actor governs whether applies. In addition protecting policymaking planning functions promulgation carry out programs, also protects Government agents' necessary grounded social, economic, political goals statute regulations. If employee obeys direction mandatory regulation, will protected because deemed furtherance policies led regulation's promulgation; violates there shelter liability room contrary On other hand, established governmental policy, as expressed implied statute, agency guidelines, allows exercise discretion, strong presumption agent's policy exercising discretion. Pp. 322-325. 2. erred holding does reach decisions made level There nothing description act refers exclusively functions. Day-to-day banking regularly requires range permissive courses wisest. Neither Dalehite 346 15, 73 956, 97 1427; Towing, supra, nor Berkovitz 486 531, 108 1954, supports Gaubert's Appeals' position dichotomy between 325-326. 3. some alleged Amended Complaint meaning challenged did go beyond "normal activity." They discretionary, since governing question, relevant statutory provisions left agency's institute proceedings institution mechanism use. Although statutes provided only proceedings, prevent supervising informal means, view held FHLBB, Resolution 82-381. argument outside mere application technical skills business expertise rejected rationale decision disapproved. FHLBB's Resolution, coupled with provisions, presumed have furthered decisions. Each related either protection FSLIC's insurance fund oversight industry. power persuasion accomplish goals, neither pervasiveness presence forcefulness recommendations sufficient alter actions' nature. 327-334. 885 F.2d 1284 (CA5 1989), remanded. WHITE, J., delivered opinion Court, REHNQUIST, C.J., MARSHALL, BLACKMUN, STEVENS, O'CONNOR, KENNEDY, SOUTER, JJ., joined. SCALIA, concurring part judgment, post, p. ----. Stuart Gerson, Washington, D.C., petitioner. Abbe David Lowell, respondent. Justice WHITE Court. 1 1933, §§ 1461-1468c,1 chartering regulation associations (FSLA's). Section 1464(a) "under such may prescribe, provide operation, FSLA's, States."2 (FHLB-D)3 Their respect suit 1346(b), 2671 et seq. (FTCA),4 asserting question before us taken "discretionary function" FTCA. Fifth Circuit answered negative. We reverse. 2 * This FTCA arises supervision Texas-chartered federally insured loan. Respondent ThomasM. shareholder. 1984, officials sought merge Investex Savings, failing Texas thrift. Because concerned dealings, requested he sign "neutralization agreement" effectively him management. asked post $25 million interest real agreed both conditions. then advice enable consummate merger Investex. Throughout period, Instead, relied likelihood follow suggestions advice. 3 spring 1986, replaced; all resign. officers directors, including chief executive officer who former employee, took over, business. financialmat ters; advised mediated reviewed urged actively intervened Department each instance, FHLB-D's followed. 4 thought financially sound while managed thrift, worth. May 20, 1987, FHLB-D, FSLIC, $75 guarantee.5 That same day, FSLIC denied six months later, instant Northern Texas. His amended $100 negligence selecting participating finding 2680(a).6 CA 3-87-2989-T (Sept. 28, App. Pet. Cert. 21a. 5 affirmed (1989). Court's 48 (1955), distinguished F.2d, 1287. claiming further support distinction Varig Airlines, 467 797, 104 2755, 81 660 (1984), 531 (1988), explained: 6 "The authority FHLB-Dallas take case, although guided regulations, unchallenged. telling them, every turn, IASA; fact, however, automatically render immune suits. Only oriented enjoy immunity. Thus, until thus crossed line Towing." 1289 (citations footnote omitted). 7 court's view, "began participate decisions." Id., 1290. Consequently, dismissal merger, neutralization agreement, guarantee, replacement management, affairs. certiorari, 496 935, 110 3211, 659 (1990), now II 8 subject various exceptions contained 2680, here. provides liable 9 "[a]ny upon omission Government, due care, execution valid, performance failure perform duty discretion abused." 10 nature, "involv[e] choice," Berkovitz, 536, S.Ct., 1958; see 34, 967, 1427 (1953); "it conduct, actor" 813, 2764. requirement satisfied "federal specifically prescribes course follow," "the has rightful option adhere directive." U.S., 1958. 11 Furthermore, even "assuming involves judgment," remains decided "whether kind designed shield." Ibid. See purpose "prevent judicial 'second-guessing' legislative through medium tort," id., 814, 2765, properly construed, theexception "protects policy." 537, 1959. Where Congress delegated independent Executive Branch implement general end, doubt planning-level establishing programs agencies programs. addition, agents protected. 13 Dalehite, barred recovery arising massive fertilizer explosion. manufactured, packaged, prepared export pursuant detailed comprehensive program aimed increasing food supply occupied areas World War II. 19-21, 959-961. Not cabinet-level so specific requirements manufacturing fertilizer. 37-38, 969. Nearly 30 years Aviation Administration's formulating implementing "spot-check" plan airplane inspection establish safety standards airplanes. 815, 2765. Actions likewise protected, those particular negligent. 820, 2767-2768. Most recently, we examined scheme licensing laboratories produce polio vaccine release drugs. 533, 1957. employees failed directions applicable i.e., instances, judgment. 542-543, 1961-1962. remanded analysis remaining light 544, 1962-1963. 14 Under precedents, therefore, mandates direction, regulation. 36, 968. very existence creates 15 however. Some case-by-case basis, adjudicatory administration Others promulgate topics, others. rely internal guidelines published any event, most often true aims controlling evident text. 16 must For survive dismiss, allege facts can said regime. focus inquiry subjective intent conferred susceptible analysis.7 III 17 our cases interpretation 2680(a), clear bank case. A one judgment; affairs, like businesses, permissible Discretionary confined level. "[I]t actor, applies given case." 18 Administration devised system "spot-checking" too executing deciding spot-check activity. Likewise therefore without recognized acts, remand, 545, 1963. 19 first use term "operational" connection occurred where noted "[t]he culpable responsibly less important practicability program." 42, 971. relies statement applied appropriate allegations complaint, merely occurred. suggestion could 20 below supported Towing. Coast Guard negligently maintain lighthouse allowing out. liable, making sure "did involve judgment." 538, n. 3, 1959, Indeed, benefit unsuccessfully maintaining liable. misinterpreted reference perpetuating nonexistent 1289. once determined level, concluded, incorrectly, necessarily scope exception. IV 21 inquire correct review entered dismiss. "accept factual [Gaubert's] true" ask 540, 1961. 22 dismissed several These seek agreement Gaubert," well replace Directors approved persons, effectuate decision." aspect ruling. viewed surviving 23 asserted achieved "a constant presence" 14, ¶ 33. describing presence, "consult[ed] operations IASA," 33a; "participated decisions" meetings, 33b; "became giving advice, recommendations, urging, directing procedures 33c; "advised hand-picked variety subjects," 34. Specifically, enumerated seven instances kinds objectionable official involvement. First, "arranged . consultants matters asset management." 34a. Second, "urged directed state-chartered federally-chartered become exclusive government entity control IASA." 34b. Third, "gave place bankruptcy." 34c. Fourth, "mediated disputes senior officers." 34d. Fifth, "reviewed litigation" contemplated filing "so litigation able successfully stall Directors' ultimate file Washington reviewed, on, commented draft." 34e (emphasis original). Sixth, "actively (IASA's principal regulator) State 34f. Finally, president wrote "affirming office, mutual goal protect fund." 15-16, 34g. According losses suffered caused "assumption in, make, [the] discharge duty." 17, 39. Moreover, involvement went normal activity, actually substituted association." 19, 55. 24 instead controlled 1958-1959. oversaw issue, promulgated extensive effect, CFR 500-591 (1986), party identified question. As already noted, authorizes examine regulate Both possessed broad supervise institutions.8 mandatory, example, terminate institution's status, cease-and-desist orders, suspend remove officers, "in Corporation" warranted engaging "unsafe unsound practice" 1730(b)(1), (e)(1), (g)(1). parallel orders officers. 1464(d)(2)(A), (d)(4)(A). grounds warranting appointment conservator receiver, determination these existed depended Board." 1464(d)(6)(A). here bound way; great "element choice." 25 unconvinced assertion IASA, did. language structure prevented invoking means institutions. mandate compelled way, prohibition mechanisms set forth 26 FHLBB; resolution passed 1982, adopted regarding Board's part: 27 "In responsibilities ('FSLIC'), violations law unsafe tolerated result initiation and/or enforcement Board. minimize, possible, occasioned taking prompt effective action. recognizes tailored vary according severity violation practice, responsiveness willingness association corrective following guidance considered actions. 29 assessment management's potential harm effected, staff weigh appropriateness available slight probability situation, appropriate. customers likely, promptly negotiated implemented. occur institution, customers, corrections promptly, order immediately Office General Counsel." 82-381 (May 1982), reprinted Brief 4a-6a. From invoke sanctions.9 31 argues expertise. But just another way saying concern precisely formulated never notion disapproving decision. resting mathematical calculations, genre. Rather, plain 32 convinced shield. quoted above, exercised choose contends implicate policies, undertaken reasons agencies: 33 "[T]he two discrete purposes mind commenced solvency industry large, public's confidence preserve assets depositors shareholders, one." 34 actionable activity" insupportable. 35 find alleging performed entitled exemption. By own admission, replaced fund; cannot disputed considerations. charter directly So consultant, bankruptcy, behalf officials, disputes. gave anything purview behind statutes. 36 goals. Nevertheless, long ago tactics Philadelphia Nat. Bank, 374 321, 83 1715, 915 (1963), wide array tools Deposit Reserve System overseeing banks. Noting "frequent intensive" examinations "detailed periodic reports" banks required submit, virtually surveillance system." 329, 1723. agencies' ability bank's drastic sanctions meant "recommendations tend followed bankers necessity compliance proceedings." 330, statements apply equal force More ago, similar observations improperly pressured loan's Miami Beach & Callander, 256 410 1958). "[w]hen holds powers over offspring, point appointing receiver ., difficult hold demand, clean house amount abuse agency." 414-415. 37 alleges regulators. substantive counts relief "negligent selection officers" operations." 18. asserts individual disposed submission. 9. routine frequent otherwise countless policy-based actionable. rule cases. V 38 face apparent reverse remand consistent opinion. 39 ordered. 40 41 I concur much write separately think analyze individually individualized leads results obtains. 42 so-called (FTCA) choice. 536-537, 1958-1959, (1988). "grounded [or] policy," or, briefly, represent Unfortunately, lower courts difficulty applying test. 43 concluded (in sense) agency. 1284, 1287 1989). agree wrong. think, inquiry, answer turns matter office decisionmaker. my shielded is, circumstances, ought informed whose include 44 test, looking it, something vs. dichotomy—though "something" what believed. Ordinarily, working responsible decisions, though highly dock foreman's store bags compact fashion because, carefully calculated cost versus safety, responsibility ponder things; Secretary Agriculture's effect weighing task. Cf. (1953). for, among things, maintenance personnel adequately inspect electrical equipment lighthouse; conceivably conducting superficial inspections, personnel, assuredly things. factor explains why universally acknowledged vehicle driver. ante, 325, 7. need expedition choice, cf. expect drivers make basis. 45 decisionmaker possesses responsibility, decisionmaker's identification evidence half test met am inclined believe, manner storing raises economic concerns reserved Agriculture himself. proper account phrase preceding excludes taken, " 'exercising valid.' 18, 959. mean "[can] attacked claimants Act." immunity represents absolute presumption, speak, judgments interfered with. one, levels judgments—and higher stronger presumption. 46 Turning present say complains functions, ground. To acted bank. decision, "day-to-day" surely answers inquiry. Perhaps imagine relatively high-level official, generally manage hires objectives mind. arguably low hire ordinary consider process. involved. 47 advances observe, 16, "[t]here statutes." An "within purview" decisions—in (and mandated 968), bar liability. Contrariwise, "outside fail qualify defense. defense erroneously, frustrate 2680(a) (discretionary abused"). words, condition comes Lacking sort record, little speculate Without more, denied. conclusion reached slightly different approach. misdeeds complained committed "recommended" seized operated imposed challenges remain independent. attach—a influenced "social, things corollary setting conditions list conditions, done here, announces Establishing unquestionably function. resort item-by-item analysis, Subsequent response current crisis industry, enacted changes Financial Institutions Reform, Recovery, Enforcement 1989 (FIRREA), Pub.L. 101-73, 103 Stat. 183. FIRREA abolished (FSLIC), repealed conduct. 401, 407, 354-357, 363. time, (FDIC) newly Thrift Supervision enjoyed agencies. 201, 301, 187-188, 277-343. stated full: deposit investment funds extension credit homes goods services, authorized, known banks, charters therefor, States. lending authorities section flexibility housing." Banks (FHLB's) 1423. empowered authorize FHLB "any except adjudications 1437(a). exceptions, waives sovereign suits wrongful employees. prior suit. 2675. Citing 1464, acknowledging activity date receivership, stressed invoked earlier, fallen pointed cooperate regulators, likely sooner. fact [Gaubert] cooperated refused give [him] cause none." 24a-25a. earlier well. postpone receivership. obviously employment regime seeks accomplish. drove automobile mission connected duties collided car, apply. driving official's hardly explained abolished, possessing authority. 1, supra. note recent Judge Garza, extend impose FDIC Corp. Mmahat, 907 546, 552 1990).

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