Opinion ID: 509579
Heading Depth: 3
Heading Rank: 3

Heading: Application of the Misrepresentation Exception

Text: 90 In the proceedings below, plaintiffs alleged that they were induced to believe that Dr. Channing was an ophthalmologist, and that this misrepresentation formed the basis for their consent to Dr. Channing's treatment. They argued that, had they been informed that Dr. Channing was an optometrist, they never would have consented to treatment. They also argued that Dr. Channing violated N.J.Rev.Stat. Sec. 45:12-26 by using the title Dr. without qualification by use of the term optometrist. The district court concluded that it had no jurisdiction to consider these claims because they were barred by the misrepresentation exception to the government's waiver of sovereign immunity that is contained in 28 U.S.C. Sec. 2680(h). We believe that this conclusion was erroneous. 91 In Ramirez v. United States, 567 F.2d 854 (9th Cir.1977) (en banc), the Ninth Circuit concluded that the misrepresentation exception to the government's waiver of immunity is inapplicable in malpractice cases. The Ramirez court concluded that, in enacting section 2680(h), Congress had in mind the 'traditional and commonly understood' torts of negligent misrepresentation and common law deceit. Id. at 856 (quoting United States v. Neustadt, 366 U.S. 696, 706-07, 711 n. 26, 81 S.Ct. 1294, 1300-01, 1302 n. 26, 6 L.Ed.2d 614 (1961)). As a general rule, these claims have  'been confined very largely to the invasion of interests of a financial or commercial character, in the course of business dealings. '  Id. (quoting Neustadt, 366 U.S. at 711 n. 26, 81 S.Ct. at 1302 n. 26). 92 The court further noted that the legislative history of the Federal Tort Claims Act reveals that Congress rejected an amendment that would have retained government immunity in malpractice cases. The refusal to adopt such an amendment clearly supports the conclusion that Congress intended to provide a remedy against the United States for malpractice claims. Application of the misrepresentation exception in such a case would defeat this purpose. 93 The creation of strained distinctions to encompass aspects of ordinary medical malpractice within the misrepresentation exception of section 2680(h) is not justified by the language of the statute, by its history, or by Neustadt. The patient who suffers harm from [a physician's misrepresentation] is the victim of negligent conduct, not of an esoteric form of misrepresentation. 94 Ramirez, 567 F.2d at 857. Other courts have concluded that, when misrepresentation is a collateral aspect of a plaintiff's claim for medical malpractice, the claim is not barred by the misrepresentation exception contained in section 2680(h). See, e.g., Phillips v. United States, 508 F.Supp. 544 (D.S.C.1981). We believe that this approach to the application of the misrepresentation exception in malpractice cases is analytically sound. Thus, we conclude that the district court erred in holding that to the extent plaintiffs' claims were based upon allegations of misrepresentation, they were barred by the Federal Tort Claims Act. 6 95 In sum, we conclude that the district court erred in its application of the Federal Tort Claims Act and its various exceptions to the facts of the present case. We conclude that Dr. Channing's alleged failure to comply with the SOP was not a discretionary function within the meaning of the Act. We further conclude that plaintiffs' claims regarding the absence of informed consent are properly characterized as negligence claims under New Jersey law. Thus, they are not encompassed by the battery exception to the waiver of immunity contained in 28 U.S.C. Sec. 2680(h). Even if the claim is one for battery under New Jersey law, it is within the jurisdiction of the district court by virtue of the application of 10 U.S.C. Sec. 1089(e). Finally, we conclude that the misrepresentation exception to the waiver of immunity contained in 28 U.S.C. Sec. 2680(h) does not preclude consideration of plaintiffs' claim of negligence.