Document: 425 U.S. 807 96 S.Ct. 1971 48 L.Ed.2d 390 UNITED STATES, Petitioner,v.Joseph V. ORLEANS et al. No. 75-328. Argued March 22, 1976. Decided June 1, Syllabus Under the Economic Opportunity Act of 1964 (EOA) Federal Government, acting through an agency (at relevant time herein Office (OEO)), furnishes financial assistance for community action programs undertaken by agencies. Such is defined as a "State or political subdivision State . public private nonprofit organization which has been designated such subdivision" to plan and administer program, consisting "services activities having measurable potentially major impact on causes poverty in ." The Warren-Trumbull Council operating corporation under Ohio law was funded entirely OEO, but also received 20% Of its support locally from "in-kind" services compliance with EOA funding requirements. One Council's Neighborhood Center, sponsored recreational outings children. While returning one Center's car had made arrangements minor child injured collision. his father (respondents) brought suit District Court against United States Tort Claims (FTCA) alleging negligence part agents organizing supervising outing. Government moved summary judgment ground that Center were not "instrumentalities agencies States" within purview FTCA. granted motion, holding contractor federal instrumentality, employees employees. Appeals reversed. Held : are instrumentalities their meaning Pp. 813-819. (a) FTCA, limited waiver sovereign immunity applying injuries caused negligent act any Employee while scope employment, excluding coverage "any States," never intended reach all federally programs. critical element distinguishing Government's power "to control detailed physical performance contractor," Logue v. States, 412 521, 528, 93 2215, 2219, 37 121, 128. question here whether receives money must comply standards regulations, daily operations supervised Government. Cf. Logue, supra; Maryland 381 41, 85 1293, 14 205. 813-85. (b) Compliance conditions regulations meet contract grant goals does convert agent 815-816. (c) emphasizes (which like myriads other funded) local enterprise, enterprise whose "detailed performance" subject control. P. 816. (d) legislative history relating manifests congressional intent create new strengthen capabilities eliminating at level. 817. (e) Local officials Though OEO guidelines be observed, none may serve board, no supervise neighborhood program. 817-819. 509 F.2d 197, Harry R. Sachse, Washington, D. C., petitioner. William E. Pfau, Jr., Youngstown, Ohio, respondents. Mr. Chief Justice BURGER delivered opinion Court. 1 This case presents instrumentality purposes liability. 2 * Title II 1964, 78 Stat. 516, amended, 81 Stat 690, 42 U.S.C. § 2781 Et seq., passed "stimulate better focusing available local, State, private, resources upon goal enabling low-income families, individuals become fully self-sufficient." 2781(a). To this end "provides programs, prescribes structure describes functions authorizes related projects activities." Ibid. 3 statute " "capable planning, conducting, administering evaluating program 2790(a). A "includes designed include range 4 Opportunity, Inc., agency; it incorporated 1702.01 seq. Revised Code. At suit, monetary (OEO), established Act.1 contributions empowered receive sources. supply each qualify grants. 2812(c). 5 Westlawn (Westlawn), 2811. outing group furnished van Since large enough transport children, arranged two young men area drive some children privately owned automobiles. Respondent Joseph Orleans who, cars, when collided parked truck. 6 boy father, exhausted administrative remedies, sued Northern Act, 28 §§ 1346(b) 2671 charge supervision. pursuant Fed.Rule Civ.Proc. 56 2671." 7 "not States." found C72-260-Y (Sept. 13, 1973). In response respondents' motion reconsider, accepted "the four basic facts plaintiffs base conclusion": "was created purpose carrying out contained 1964," funds source than conducted only "formulated government," closely activities. noted stopped until reorganized chairman governing board appointed. held, however, recited did warrant conclusion determined Congress controlled encouraged develop used "remains independent, constituted non-profit corporation." Court, reaffirming prior ruling, thus held conducting "prepackaged programs." Sixth Circuit reversed 197 (1975), necessary examine "type extent retained principal." Id., 201. It noted, "necessary keep mind concept importance using fight underlies 1964." 202. 8 "The relationship between WTCEO (the Council) meets number criteria establishing independent contractor. There showing work Westlawn. Moreover, requirements imposed these concerned details day-to-day they carry County area. They more nature general instructions followed order assure certain policies adopted respected adhered to." 203. 9 considered important, withholding funding, required selection reorganize concluded kind authority usually reserved principal dealing authority, along "voluminous OEO," need secure approval fact could have acted directly level rather utilize agencies, led hold traditional contractors. 204. reasoned since both remedy hardship suffering, they, read together, indicate intend beneficiaries who sustain injury course approved barred recovery Act. court's "beneficiaries" effect carved special class covered independently member bthe same recover. 10 Subsequently, April 1975, Eighth reached contrary conclusion. Vincent 513 1296. We writ certiorari resolve conflict Circuits. 423 911, 62, 46 54 (1975). 11 immunity, making liable party torts employment. intended, construed confer benefits people. language unambiguous, covering "caused wrongful omission employee office employment ."2 defines [officers agency" excludes 2671.]3 can waived due regard given exceptions, including exception, waiver. See Dalehite 346 15, 30-31, 73 956, 965, 97 L.Ed. 1427, 1437-1438 (1953). contractor." 128 (1973). 12 county jail housed prisoners Bureau Prisons thus, torts. Although Prisons' rules prescribing treatment, although rights inspection enter determine contract, authorize physically jail's short take compel standards, operations. 205 (1965), civilian caretakers Air National Guard aircraft assigned Guard, state, federal, paid standards. we factors relied state supervision military personnel. Thus, Maryland[the Government.]4 13 Billions dollars spent year performed people institutions These contractors States. responsible specifications grant, largely free select means implementation.5 Perhaps cost often includes expense liability insurance, matter either choice. respondents sue itself. Similarly, fix specific precise implement objectives. aimed assuring goals, do acts entrepreneurs governmental bodies into acts.6 Jackson Metropolitan Edison Co., 419 345, 95 449, 477 (1974); Moose Lodge 107 Irvis, 407 163, 92 1965, 32 267 (1972). reaches myriad areas activity governments sector well. inconceivable follow largesse cover countless unidentifiable classes "beneficiaries." sense controls finances gifts, grants, contracts, loans. supra, U.S., S.Ct., L.Ed.2d, underlying enterprise; "employee(s) (Federal) government." 2671. 15 supported reports reflect role will give counsel help, When requested, make substantial meeting costs those H.R.Rep. 1458, 88th Cong., 2d Sess., (1964), U.S.Code Cong. & Admin.News pp. 2900, 2909 (emphasis original). Other similarly reflects strengthening planning coordinating Federal, elimination organizations 2781(a)(1). S.Rep. 1218, 18 (1964). promote resident participation development implementation poor areas," 2781(a)(4), broaden aid, 2781(a)(5). Tied latter requirement least nonfederal 16 Further our provides administered Community composed officials, representatives members business, labor, groups community, 2791; board. 45 CFR 1015.735-19 (1974). extensive procedures, lobbying limitations, accounting expenditure programmatic limitations application procedures. pts. 1060-1070 issues numerous guidelines. attempt benefit poor. operation 17 Nothing plainer entities complete over own supplying advice, oversight diverted unauthorized purposes.7 Until now every confronted issue so Act; mean whenever conferred Congress, benefited execution project falls 383 F.Supp. 471 (E.D.Ark.1974), aff'd, 1296 (CA8 1975); (N.D.Ohio Sept. 1973), rev'd, (CA6 1975) (case below); Hughes 1071 (S.D.Iowa 1973); Anderson Simpson, Nos. CA62-18 63-58 (E.D.Tenn. Oct. 17, 1972); cf. Prater 357 1044 (N.D.Tex.1973).8 executors planned conditional distorts well-established concepts master servant relationships extends Clas beyond Congress. therefore instrumentalities, nor before us accordingly 19 Reversed. Service Administration succeeded Opportunity. CSA currently 88 2310, 2941 (1970 ed., Supp. IV). full: "(b) Subject provisions chapter 171 title, district courts, together Canal Zone Virgin Islands, shall exclusive jurisdiction civil actions claims damages, accruing after January 1945, loss property, personal death circumstances where if person, would claimant accordance place occurred." "As sections 2401(b) term 'Federal agency' executive departments, establishments corporations primarily 'Employee government' officers agency, naval forces persons behalf official capacity, temporarily permanently service without compensation. 'Acting employment', line duty." applies test See, g., Gillum Industrial Comm'n, 141 St. 373, 381, N.E.2d 234, 237 (1943); New York, C. L. Co. Heffner Constr. App.2d 174, 223 649 (1967). generally Restatement (Second) Agency (1958). there irrelevant grant. placed reliance suspension pending changes board; plainly granting changing components. obtain additional sources conduct money. another context employer. Hines Cenla Action Comm., 474 1052, 1058 (CA5

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