Opinion ID: 338364
Heading Depth: 2
Heading Rank: 2

Heading: Exceptions to Sovereign Immunity

Text: 52 Under the sovereign immunity doctrine as developed by the Supreme Court, a suit is against the sovereign if 'the judgment sought would expend itself on the public treasury or domain, or interfere with the public administration,' . . . or if the effect of the judgment would be 'to restrain the Government from acting, or to compel it to act.'  Dugan v. Rank, 372 U.S. 609, 620, 83 S.Ct. 999, 1006, 10 L.Ed.2d 15 (1963), quoting Land v. Dollar, 330 U.S. 731, 738, 67 S.Ct. 1009, 91 L.Ed. 1209 (1947), and Larson v. Domestic and Foreign Commerce Corp., 337 U.S. 682, 704, 69 S.Ct. 1457, 93 L.Ed. 1628 (1949). The Court in Dugan, citing Larson, also recognized that there were two exceptions to the doctrine's applicability: (1) action by officers beyond their statutory powers and (2) even though within the scope of their authority, the powers themselves or the manner in which they are exercised are constitutionally void. 372 U.S. at 621-22, 83 S.Ct. at 1007. See also Larson v. Domestic and Foreign Commerce Corp., supra, 337 U.S. at 689-90, 69 S.Ct. 1457. The plaintiff contends that since the action of the Secretary in withholding benefits without first affording him the opportunity for a hearing was unconstitutional, this case comes within the second exception to the doctrine. If it were not for a footnote included by the Supreme Court in its opinion in Larson and the implications of that footnote, the plaintiff would likely be correct. 53 In Larson, the Court, after setting out the two general exceptions noted above, added in a footnote: 54 Of course, a suit may fail, as one against the sovereign, even if it is claimed that the officer being sued has acted unconstitutionally or beyond his statutory powers, if the relief requested cannot be granted by merely ordering the cessation of the conduct complained of but will require affirmative action by the sovereign or the disposition of unquestionably sovereign property. 55 337 U.S. at 691 n. 11, 69 S.Ct. at 1462. This footnote, the subject of much controversy, 20 has been interpreted by some courts to require applicability of the doctrine in any situation where the relief sought contemplates affirmative action by the government or the disposition of government property. See e. g., Knight v. New York, 443 F.2d 415, 420-21 (2d Cir. 1971); Zapata v. Smith, 437 F.2d 1024, 1025 (5th Cir. 1971). Some courts have avoided the footnote's broader implications by (1) holding that the relief being sought was not affirmative in nature since the cessation of unauthorized conduct was the object of the suit, see, e. g., State Highway Commission of Missouri v. Volpe, 479 F.2d 1099, 1123 (8th Cir. 1973); Knox Hill Tenant Council v. Washington, 145 U.S.App.D.C. 122, 448 F.2d 1045, 1052 (1971): or (2) construing the phrase a suit may fail in the footnote to not mean that a suit must fail but only that a suit may fail if the relief sought would work an intolerable burden on the government which outweighs any considerations of private harm, see, e. g., Schlafly v. Volpe, 495 F.2d 273, 279-80 (7th Cir. 1974); Washington v. Udall, 417 F.2d 1310, 1317-18 (9th Cir. 1969). 56 We think that footnote 11 precludes retroactive payments from the federal treasury. 21 If footnote 11 is to be limited or restricted, that obligation rests with the Supreme Court. See Knight v. New York, supra, 443 F.2d at 421. The Supreme Court has again recently indicated its reluctance to loosen the federal purse strings in suits for damages in deference to a particular conception of enlightened governmental policy. United States v. Testan, supra, 96 S.Ct. at 954.In a suit against the United States, there cannot be a right to money damages without a waiver of sovereign immunity, and we regard as unsound the    argument that all substantive rights of necessity create a waiver of sovereign immunity such that money damages are available to redress their violation. 57 Id. No permanent harm flows from this deference to sovereign immunity, since the plaintiff and the members of the class can recover all of the benefits withheld should they prevail upon review of the initial determination of ineligibility. See 42 U.S.C. § 1383(b). The government concedes as much in its supplemental brief. 58 We hold that there has been no waiver of sovereign immunity and that this case does not come within the scope of the judicially recognized exceptions to the doctrine. Retroactive relief is therefore barred by sovereign immunity.