Federal Circuits, Fifth Circuit (June 30, 1975)
Docket number: 74-2366
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US Code - Title 28: Judiciary and Judicial Procedure - 28 USC 2680 - Sec. 2680. Exceptions
US Code - Title 28: Judiciary and Judicial Procedure - 28 USC 2671 - Sec. 2671. Definitions
U.S. Supreme Court - NLRB v. J. H. Rutter-Rex Mfg. Co., 396 U.S. 258 (1969)
Daniel Lund, New Orleans, La., for plaintiff-appellant.
Gerald J. Gallinghouse, U. S. Atty., William T. Abbot, James D. Carrier, Asst. U. S. Attys., New Orleans, La., for defendant-appellee.Appeal from the United States District Court for the Eastern District of Louisiana.Before GIBSON,* THORNBERRY and AINSWORTH, Circuit Judges.PER CURIAM:J. H. Rutter Rex Manufacturing Company seeks to recover $144,001.24 from the United States under the Federal Tort Claims Act, 28 U.S.C. 2671 et seq. Rutter Rex claims that the National Labor Relations Board's unreasonable delay in securing compliance with a reinstatement order caused the damages. The district court below ruled on the merits that the discretionary function exception to the Tort Claims Act bars the suit. Rutter Rex challenges that here, but we agree with the district court and affirm.On April 21, 1954 the production and maintenance workers at Rutter Rex's New Orleans plant went on a strike that lasted until April 4, 1955. During that time Rutter Rex hired replacements for many of the striking employees. The National Labor Relations Board found that the employer had committed unfair labor practices, and ordered the company to reinstate the strikers with back pay. After Rutter Rex refused voluntary compliance, the Board successfully petitioned this court for enforcement. NLRB v. J. H. Rutter-Rex Manufacturing Co., 245 F.2d 594 (5 Cir. 1957). On August 21, 1957, the Board's regional office wrote Rutter Rex offering its assistance in implementing the decree, but also stating: "When you have fully complied with the affirmative terms of the decree and there are no violations of its negative provisions, you will be notified that the case has been closed. Until you receive such notice you will know that the case remains open for all purposes as awaiting compliance." On November 4, 1961, the Board filed its first back pay specification, listing claims totalling $342,764.07 as of June 30, 1961. Rutter Rex contested that specification to the U. S. Supreme Court, but ultimately lost. See NLRB v. J. H. Rutter Rex Manufacturing Co., 396 U.S. 258, 90 S.Ct. 417, 24 L.Ed.2d 405 (1969). The Board then computed a supplemental back pay specification for claims accruing after June 30, 1961. A panel of our court enforced that specification in J. H. Rutter Rex Manufacturing Co. v. NLRB, 473 F.2d 223 (5 Cir. 1973), cert. denied, 414 U.S. 822, 94 S.Ct. 120, 38 L.Ed.2d 55.Thus over a period of about twenty years, Rutter Rex has actively contested the reinstatement orders and back pay awards at every turn. The company has now filed a claim under the Federal Tort Claims Act seeking to recover $144,001.24 the claimed additional back pay liability incurred by the Board's unreasonable delay in filing the initial back pay specification.1The government answered Rutter Rex's FTCA claim and moved to dismiss for lack of subject matter jurisdiction under Fed.R.Civ.P. 12(b)(1). The trial court denied the government's motion to dismiss, and the parties submitted the case to the trial court on a lengthy set of stipulations and deposition testimony. After considering the additional materials, the trial court ruled on the merits for the United States. The trial court felt that the Board's delay in the case was "deplorable" but declined to award Rutter Rex the requested damages. The court opined that the government's decision on allocation of its enforcement case load was a discretionary act within the meaning of 28 U.S.C. 2680(a). Therefore the court ruled for the United States on the merits, and dismissed the complaint with prejudice.The Federal Tort Claims Act, 28 U.S.C. 2671 et seq., makes a limited waiver of the government's sovereign immunity. 28 U.S.C. 2674 provides that "The United States shall be liable, respecting the provisions of this title relating to tort claims, in the same manner and to the same extent as a private individual under like circumstances, but shall not be liable for interest prior to judgment or for punitive damages." 28 U.S.C. 2680 provides the exception to this waiver of immunity that the trial court relied on: "The provisions of this chapter and section 1346(b) of this title (the jurisdictional statute for the Federal Tort Claims Act) shall not apply to (a) Any claim based upon an act or omission of an employee of the Government, exercising due care, in the execution of a statute or regulation, whether or not such statute or regulation be valid, or based upon the exercise or performance or the failure to exercise or perform a discretionary function or duty on the part of a federal agency or an employee of the Government, whether or not the discretion involved be abused."The discretionary function exception was originally given a broad sweep in Dalehite v. United States, 346 U.S. 15, 73 S.Ct. 956, 97 L.Ed. 1427 (1953), where the Supreme Court relieved the United States of all liability for its actions in connection with the April 1947 Texas City disaster. But subsequent Supreme Court decisions substantially narrowed Dalehite 's reading of the discretionary function exception. See Rayonier, Inc. v. United States, 352 U.S. 315, 77 S.Ct. 374, 1 L.Ed.2d 354 (1957); Hatahley v. United States,Try vLex for FREE for 3 days
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