Opinion ID: 495299
Heading Depth: 3
Heading Rank: 3

Heading: Tortious Activity Exception

Text: 28 We find it unnecessary to determine the applicability of the commercial activity exception to Joseph's tort claims, in light of our determination that the district court correctly concluded that the FSIA's tortious activity exception applies to these claims. 29 The tortious activity exception provides jurisdiction over tort actions not encompassed in the commercial activity exception in which money damages are sought against a foreign state for ... damage to or loss of property, occurring in the United States and caused by the tortious act or omission of that foreign state. 28 U.S.C. Sec. 1605(a)(5). In order to find that a foreign sovereign can be sued under the tortious activity exception, the court must find: (1) that the tortious acts of individual employees of the sovereign were undertaken within the scope of employment, and (2) that the claim is not based upon the exercise or failure to exercise a discretionary function. Id. Both requirements are met in the instant case. 7
30 The scope of employment provision of the tortious activity exception essentially requires a finding that the doctrine of respondeat superior applies to the tortious acts of individuals. See Skeen v. Federative Republic of Brazil, 566 F.Supp. 1414, 1417-18 (D.D.C.1983). This determination is governed by state law. Id. at 1417. In this case, the law of California applies. 31 Under California respondeat superior doctrine, the determination of whether an employee has committed a tort during the course of employment turns on whether: (1) the act performed was either required or incident to his or her duties, or (2) the employee's misconduct could be reasonably foreseen by the employer. Clark Equipment Co. v. Wheat, 92 Cal.App.3d 503, 154 Cal.Rptr. 874, 882 (1979). Joseph contends that the second foreseeability approach is applicable here. We agree. 32 Throughout this case the defendants have conceded that the Joseph property was occupied as a residence by an authorized consular officer for the purpose of performing consular responsibilities. That is, the defendants have defined the scope of employment to include residence at the Joseph house. 33 The defendants contest the application of respondeat superior primarily on the ground that the alleged tortious acts at the Joseph house were not foreseeable. We reject this argument. Foreseeability as a test for respondeat superior merely means that in the context of the particular enterprise an employee's conduct is not so unusual or startling that it would seem unfair to include the loss resulting from it among the other costs of the employer's business. Rodgers v. Kemper Construction Co., 50 Cal.App.3d 608, 619, 124 Cal.Rptr. 143, 149 (1975). Under this definition, the acts in question were foreseeable. There is nothing unusual or startling about damage done to a house in the course of its occupation. 34 The defendants also object to the application of respondeat superior to this case because the acts at issue did not benefit Nigeria, and were intentional. However, respondeat superior is applicable to acts that are contrary to the employer's orders, and that are not for the benefit of the employer. Perez v. Van Groningen & Sons, Inc., 41 Cal.3d 962, 227 Cal.Rptr. 106, 109-10, 719 P.2d 676 (1986). 8 In addition, the acts at issue may involve a combination of the employee's personal business with the employer's business. Perez, 227 Cal.Rptr. at 110, 719 P.2d at 680. These principles are applicable even in cases of intentional torts. See Perez, 227 Cal.Rptr. at 109-10, 719 P.2d at 679-80. 35 In light of California's expansive approach to respondeat superior, we conclude that the individual tortious acts alleged by Joseph were within the scope of employment of the residents of the Joseph house. The damage allegedly caused by the consular employees was a risk inherent in the consular enterprise, under the defendants' broad definition of that enterprise. The defendants cannot avoid responsibility for damage done by its employees in the Joseph house. See Perez, 227 Cal.Rptr. at 110, 719 P.2d at 680.
36 In order for the tortious activity exception to be applied to this case, the torts alleged by Joseph must not involve the exercise of discretionary functions. See 28 U.S.C. Sec. 1605(a)(5)(A). The existence of a discretionary function under the FSIA is generally analyzed under the principles developed pursuant to the Federal Tort Claims Act's (FTCA) discretionary function exception. Olsen v. Government of Mexico, 729 F.2d 641, 646-47 (9th Cir.), cert. denied, 469 U.S. 917, 105 S.Ct. 295, 83 L.Ed.2d 230 (1984). At one time, this circuit distinguished between two types of governmental acts: those at the planning level and those at the operational level. The former qualified for the discretionary function exception; the latter did not. See Olsen, 729 F.2d at 647. This approach was utilized by the district court in finding that the acts in question were not discretionary. However, we have abandoned this approach in FTCA cases, pursuant to the Supreme Court's decision in United States v. S.A. Empresa de Viacao Aerea Rio Grandense (Varig Airlines), 467 U.S. 797, 104 S.Ct. 2755, 81 L.Ed.2d 660 (1984). See, e.g., Mitchell v. United States, 787 F.2d 466, 468 (9th Cir.1986) (planning-operational distinction has been abandoned); Chamberlin v. Isen, 779 F.2d 522, 524 (9th Cir.1985) (same); Begay v. United States, 768 F.2d 1059, 1062-63 n. 2 (9th Cir.1985) (same). 37 Pursuant to Varig, a two-pronged test has been developed for determining whether the discretionary function exception applies in FTCA cases. First, the court must examine  'the nature of the conduct, rather than the status of the actor.'  Begay, 768 F.2d at 1064 (quoting Varig, 467 U.S. at 813, 104 S.Ct. at 2764). Second, the court must inquire whether the governmental acts at issue were  'grounded in social, economic, and political policy.'  Id. In other words, the court should avoid second-guessing policy decisions through the medium of a tort action. Id. The execution of policy decisions by subordinates, even those subordinates at the operational level, comes under the discretionary function exception if the acts involved the exercise of policy judgment. Red Lake Band of Chippewa Indians v. United States, 800 F.2d 1187, 1196 (D.C.Cir.1986). 38 The application of the Varig approach to FSIA cases is ably discussed in MacArthur Area Citizens Association v. Republic of Peru, 809 F.2d 918 (D.C.Cir.), amended on other grounds, 823 F.2d 606 (D.C.Cir.1987). The factual situation in MacArthur is somewhat similar to the case at issue. Peru purchased a building in an area zoned for residential use, and proceeded to convert the property into a chancery. Primarily for security reasons, Peru put bricks and bars over various parts of the building, established an elaborate alarm system, and installed harsh fluorescent lights. Id. at 919. Because of the unsightly nature of the results, a neighborhood association sued for damages. The district court dismissed the suit on the ground of sovereign immunity, and the court of appeals affirmed pursuant to, inter alia, the FSIA's discretionary function exception. 39 The court stated that establishing a chancery ... to conduct foreign relations is a discretionary public policy decision and ... this decision undergirds the specific acts which the Association bewails. Id. at 922. The court found that the decisions to purchase and modify the chancery building were made in order to implement the determination to establish the chancery. The court concluded that these implementing decisions involved a measure of policy judgment and were thereby protected by the discretionary function exception. Id. at 922-23. Specifically, the court stated that the implementing decisions at issue: (1) [were] grounded in an economic judgment regarding which property represents the best value; or (2) embodie[d] a political decision regarding the image that the Peruvian Government seeks to project through the offices it occupies; or (3) reflect[ed] security considerations.... Id. at 923. In sum, the actions taken by Peru were intimately connected with policy decisions made by a sovereign, and were therefore discretionary. 40 MacArthur indicates that the acquisition and operation of the Joseph residence by the Consulate was a discretionary policy decision. However, MacArthur does not indicate that the purely destructive acts which give rise to Joseph's tort claims were discretionary. Destruction of property can hardly be considered as part of a policy decision to establish a consular residence. Nor will the exercise of jurisdiction over the instant lawsuit encroach on the ability of foreign sovereigns to make policy decisions regarding their consular buildings. See Liu v. Republic of China, 642 F.Supp. 297, 305 n. 7 (N.D.Cal.1986). We therefore conclude that the discretionary function exception does not apply to Joseph's tort claims. 41 In sum, all of the requirements of the tortious activity exception are met in this case. The district court has jurisdiction over Joseph's tort claims against Nigeria and the Consulate.