Opinion ID: 396885
Heading Depth: 2
Heading Rank: 3

Heading: Arbitrary Administration of the SIV Program.

Text: 25 Appellants have advanced an alternative argument. They maintain that there is a basis in the record for concluding that the Coast Guard officers who made the actual decision to bar TROPWAVE did so arbitrarily, and that the United States is not immune from suit for such actions. Appellants allege that although the presence of communist bloc crew members on TROPWAVE was the reason for barring it from Norfolk, other ships belonging to its owners called at Norfolk despite the presence of communist bloc officers. Appellants submitted affidavits in connection with the summary judgment motions which alleged that TROPWOOD, a Liberian flag vessel commanded by a Yugoslavian master entered Norfolk harbor twice in 1973 and five times in 1975. 19 In addition, appellants alleged that another ship, TROPWIND, commanded by a Polish Master 20 called at Norfolk in 1976. Furthermore, the Coast Guard had published information stating that the port of Norfolk was open to Polish-flag fishing vessels. 21 According to the record Polish fishing vessels were entitled to limited docking rights at Norfolk pursuant to an agreement by which its vessels may use U.S. ports. This agreement was publicized together with its limitations. Id. Because summary judgment was granted against the appellants, they are entitled to the benefit of all favorable factual inferences that may reasonably be drawn from this evidence. 22 We believe that appellants' evidence created an inference that the SIV program was applied to them arbitrarily. Accordingly, we must decide whether summary judgment was appropriate even if the Coast Guard's action was arbitrary. 23 26 The government contends that the decision to bar TROPWAVE called for considerable evaluation and discussion and an exercise of judgment (Appellee's Br. at 35) that the Coast Guard was therefore engaged in a discretionary function and no damage action may be maintained under the Suits in Admiralty Act. 27 Although we have recognized that the Suits in Admiralty Act contains a discretionary function exception, we have limited the exception's scope to the exercise of discretion in formulating government policy making authority to the officers responsible for administering the program. At this stage of the proceedings, therefore, we cannot say that the Coast Guard was performing a discretionary function when it admitted TROPWIND and Polish fishing vessels but excluded TROPWAVE. By failing to show that the Coast Guard officers were making policy judgments when these actions were taken, the government has failed to meet its burden of establishing that it is entitled to summary judgment as a matter of law. 24 Accordingly, we cannot affirm the grant of summary judgment to the government on this ground. 28 The District Court did not rely on the discretionary function exception, but held that there has been no waiver of sovereign immunity for any claim of wrongful administration of the SIV regulations because the Coast Guard's activity was uniquely governmental. 25 The court cited the language in the Suits in Admiralty Act which waives sovereign immunity only in cases where a proceeding could be maintained if a private person or property were involved. 46 U.S.C. § 742 (1976). The court noted that the legislative history was not helpful in interpreting this provision, and that there has been relatively little case law construing it. It looked to the similar language in the FTCA, 26 however, and concluded that it should rely upon FTCA case law, believing that the two provisions should be construed in pari materia. 29 We believe the District Court was correct in looking to the FTCA cases in construing the Suits in Admiralty Act's private person language. We think that the court erred, however, in concluding that those cases establish an exception for uniquely governmental action. 30 The District Court relied upon Feres v. United States, 340 U.S. 135, 71 S.Ct. 153, 95 L.Ed. 152 (1950). In that case the Court held that a soldier on active duty could not recover against the United States for injuries which arise out of or are in the course of activity incident to service. Id. at 146, 71 S.Ct. at 159. The Court cited five factors influencing its holding: (1) the absence of a parallel private liability, since no private person has the power to organize a military force; id. at 141-42, 71 S.Ct. at 156-57; (2) the presence of a comprehensive compensation system for military personnel, id. at 144-45, 71 S.Ct. at 158; (3) the small number of private bills which had sought compensation for members of the military, id. at 140, 71 S.Ct. at 156; (4) the exclusively federal nature of the relationship between a soldier and the United States, id. at 143-44, 71 S.Ct. at 157-58; (5) the variations of state law to which members of the military would be subjected involuntarily, since they have no choice in where they are sent, id. at 142-43, 71 S.Ct. at 157. 31 The government argues that the first factor identified in Feres v. United States is present here, that the protection of national security and conduct of foreign affairs are activities that only the United States conducts. Therefore, says the government, no liability can be imposed upon the United States because no private person would ever undertake such actions, let alone be held liable for performing them wrongfully. 32 We conclude however that subsequent Supreme Court decisions have so narrowed the Feres holding that the case will no longer support the government's position. In Indian Towing Co. v. United States, 350 U.S. 61, 76 S.Ct. 122, 100 L.Ed. 48 (1955), the Court noted that all Government activity is inescapably 'uniquely governmental' in that it is performed by the Government.... 'Government is not partly public or partly private, depending upon the governmental pedigree of the type of a particular activity or the manner in which the Government conducts it.'  Id. at 67-68, 76 S.Ct. at 125-26, quoting Federal Crop Ins. Corp. v. Merrill, 332 U.S. 380, 383-84, 68 S.Ct. 1, 2-3, 92 L.Ed. 10. In deciding that a suit could be brought against the United States for the Coast Guard's negligent operation of a lighthouse, an activity which the government had contended was uniquely governmental, the Court stated, we would be attributing bizarre motives to Congress were we to hold that it was predicating liability on such a completely fortuitous circumstance-the presence or absence of identical private activity. 350 U.S. at 67, 76 S.Ct. at 125. (footnote omitted) 33 In Rayonier Inc. v. United States, 352 U.S. 315, 77 S.Ct. 374, 1 L.Ed.2d 354 (1957), the Court held that the FTCA would permit recovery against the United States for the negligence of the Forest Service in fighting a fire. It cited Indian Towing v. United States for the proposition that an injured party cannot be deprived of his rights under the Act by resort to an alleged distinction, imported from the law of municipal corporations, between the Government's negligence when it acts in a 'proprietary' capacity and its negligence when it acts in a 'uniquely governmental' capacity. Id. at 319, 77 S.Ct. at 376. (footnote omitted) And in United States v. Muniz, 374 U.S. 150, 83 S.Ct. 1850, 10 L.Ed.2d 805 (1963), a unanimous Court appeared to limit the Feres decision to its particular facts: 34 In the last analysis, Feres seems best explained by the 'peculiar and special relationship of the soldier to his superiors, the effects of the maintenance of such suits on discipline and the extreme results that might obtain if suits under the Tort Claims Act were allowed for negligent orders given or negligent acts committed in the course of military duty....' 35 Id. at 162, 83 S.Ct. at 1857, quoting United States v. Brown, 348 U.S. 110, 112, 75 S.Ct. 141, 143, 99 L.Ed. 139 (1954). 27 36 Many recent cases have imposed liability upon the United States for its performance of activities that are not usually performed by private persons. In addition to the cases we have mentioned, the United States has been held liable for negligence in the operation of prisons, United States v. Muniz, supra, trespasses and invasions of privacy by law enforcement officers, Black v. Sheraton Corp. of America, 184 U.S.App.D.C. 46, 564 F.2d 531 (1977), negligence of an FBI agent attempting to prevent an airplane hijacking, Downs v. United States, 522 F.2d 990 (6th Cir. 1975) supra, and negligence by air traffic controllers, Eastern Air Lines v. United States, supra; Yates v. United States, 497 F.2d 878 (10th Cir. 1974); Ingham v. Eastern Air Lines, 373 F.2d 227 (2d Cir.) cert. denied, 389 U.S. 931, 88 S.Ct. 295, 19 L.Ed.2d 292 (1967); United Air Lines v. Wiener, 335 F.2d 379 (9th Cir. 1964). We believe that the appellants' claim was not barred merely because the Coast Guard was engaged in an activity not usually engaged in by private persons. See also Universe Tankships, Inc. v. United States, 388 F.Supp. 276 (E.D.Pa.1974), aff'd without considering this point, 528 F.2d 73 (3d Cir. 1975). 37 We do not construe the private person language of the Suits in Admiralty Act as totally without force, however. The statute requires that the United States can be sued only if an action in admiralty can be maintained if a private person or property were involved. This language means that a cause of action in admiralty would exist for the injury complained of by the plaintiff if that injury had been caused by a private person. Appellants maintain that a cause of action does exist in admiralty for intentional interference with contractual rights by a private person, 28 and the government does not dispute this. 29 The government argues, however, that in order to determine whether the Coast Guard wrongfully interfered with the appellants' contractual rights, the District Court must judge whether the SIV regulations were properly applied, a standard that by its very nature does not apply to private persons. Courts have not hesitated, however, to evaluate the conduct of government employees in light of federal regulations in order to determine whether there has been a breach of duty actionable in tort. In Downs v. United States, 552 F.2d 990 (6th Cir. 1975) supra, the court held that because the FBI's policy for dealing with hijackers had been embodied in regulations, an FBI agent would be required to implement those regulations with the degree of skill expected of an FBI agent with comparable training in handling such matters. Id. at 1002. Similarly, liability has been imposed for the failure of air traffic controllers to follow federal regulations governing the handling of aircraft. Yates v. United States, supra; Ingham v. Eastern Air Lines, supra. Not every violation by the government of its regulations will give rise to an action under the Tort Claims Act or the Suits in Admiralty Act. If, however, a cause of action would normally require proof that a private person acted wrongfully or without authority, the presence of that element may be proven in an action against the United States by reference to standards applicable to federal employees. 30 38 We therefore hold that if the Coast Guard officers acted arbitrarily and in violation of regulations in diverting TROPWAVE, the United States is not immune from a damage action brought under the Suits in Admiralty Act. Because there is an inference in the record that there was such arbitrary action, the District Court's entry of summary judgment was inappropriate. We emphasize, however, what we are not holding. We do not believe the inference created by appellants' evidence is so overwhelming that summary judgment in their favor is appropriate, or that, standing alone, it would necessarily be sufficient to meet their burden of proof at trial. Nor do we express any opinion on the question of whether the government must make the SIV regulations available to appellants. 31 We hold only that until some satisfactory explanation of the inference of arbitrary action is provided by the government, it is not entitled to summary judgment on the Suits in Admiralty Act claim on the grounds of sovereign immunity. 32