Opinion ID: 770282
Heading Depth: 2
Heading Rank: 2

Heading: Waiver of Sovereign Immunity under FEGLIA

Text: 10 The district court, having concluded that there was no waiver of immunity under the FTCA, went on to consider whether there was some other possible basis of jurisdiction over Atkins's claims. In her pleadings, Atkins had invoked Federal Employees Group Life Insurance Act, 5 U.S.C. § 8715 (1994)(FEGLIA), which waives sovereign immunity independently of the FTCA when a plaintiff claims that the United States breached duties imposed by FEGLIA. See Barnes v. United States, 307 F.2d 655, 657 (D.C. Cir. 1962). The district court, citing 5 U.S.C. § 9705(a) and 5 C.F.R. § 870.802, found that the burden of properly executing and filing the designation of beneficiary form rests with the insured, while the employing office of the United States has no duty beyond receiving the forms. The district court therefore held that FEGLIA does not provide the necessary waiver of sovereign immunity. This holding has given rise to two opposing arguments on appeal. Atkins argues that the district court erred in that the United States does have a duty to Tyler under FEGLIA. Contrariwise, the United States urges us to affirm the holding that FEGLIA imposed no duty, and goes on to argue that FEGLIA preempts any possible cause of action Atkins may have under the FTCA.
11 The district courts of the United States have original jurisdiction . . . of a civil action or claim against the United States founded on [FEGLIA]. 5 U.S.C. § 8715 (1994). It is clear, based on § 8715, that the United States has consented to be sued for any breach of legal duty owed by it under FEGLIA. See Barnes, 307 F.2d at 657. We must then define the nature of the legal duty owed by a United States employee under the circumstances of this case. The district court was unable to discern any legal duty on the part of the United States under FEGLIA to make certain that its employees sign their designation of beneficiary forms. Noting that the statute and regulations addressing the designation of beneficiaries speaks in terms of a United States employing office receiving the designation, the district court held that the law imposes no duty on the United States. However, one plausible version of the facts emergingfrom the pleadings and evidence is that Tyler fulfilled his duty to turn over a properly filled out and signed designation of beneficiary form and a United States employee lost or misfiled it. While we agree with the district court that the personnel clerk had no duty to ensure that the forms were properly completed, we conclude that the United States, through the personnel clerk, has a duty to maintain the designation of beneficiary forms turned over to its care as a part of its responsibilities under FEGLIA. 12 On appeal, the United States urges this court to affirm the district court's holding concerning duty by adopting the alternative analysis developed in Robinson v. United States, 8 Cl. Ct. 343 (1985), aff'd, 806 F.2d 249 (Fed. Cir. 1986). Robinson assumed without deciding that the United States had a duty to the plaintiff under FEGLIA, but that plaintiff could not recover money damages from the United States. The Robinson plaintiff alleged that the United States breached a duty to timely provide her mother with forms which would have allowed the mother to convert her FEGLIA policy to an individual policy. During the United States's delay in providing forms, the plaintiff's mother died and her FEGLIA policy lapsed. The United States moved to dismiss the lawsuit on the grounds that FEGLIA does not provide for the recovery of money damages against the United States. Id. at 343. The plaintiff argued that FEGLIA created a duty upon the United States to timely provide the requisite conversion forms. The court disagreed, stating that even if the statute created a duty, in the absence of a much clearer legislative statement, the court would not recognize a money remedy against the United States for the breach of any such duty. Id. at 345. The court reasoned that without specific Congressional intent, it would be unwise to expose the Government to potential monetary liability for every administrative lapse which might occur in the course of operating a program as large as FEGLI[A]. Id. The United States urges us to bypass the issue of duty and hold, as the Robinson court did, that Congress's directive concerning liability under FEGLIA is not explicit enough to allow recovery of money damages against the United States. We disagree. The civil action or claim against the United States founded on [FEGLIA] contemplated by § 8715 is sufficient to establish Congress's intent to allow suits such as the present one to proceed in district court. 3. Preemption 13 Under the FTCA, the United States waived sovereign immunity for torts committed by government employees under circumstances where the United States, if a private person, would be liable under the law of the place where the act or omission occurred. 28 U.S.C. §§ 1346(b) and 2674 (1994). FEGLIA, however includes a preemption provision, which provides: 14 The provisions of any contract under this chapter which relate to the nature or extent of coverage or benefits (including payments with respect to benefits) shall supersede and preempt any law of any State or political subdivision thereof, or any regulation issued thereunder, which relates to group life insurance to the extent that the law or regulation is inconsistent with the contractual provisions. 15 5 U.S.C. § 8709(d)(1)(1994). Since the 1980 addition of the preemption language to FEGLIA, no published case has expressly decided whether FEGLIA preempts a state law negligence claim such as Atkins's case. The issue was not raised or decided in the district court, but was raised for the first time in the United States's appellee brief in this court. Because the issue is not dispositive of this appeal, we decline to address it in the first instance without further development.