Ahmed v. United States

30 F.3d 514, 1994 WL 383191
CourtCourt of Appeals for the Fourth Circuit
DecidedJuly 25, 1994
DocketNo. 93-2135
StatusPublished
Cited by123 cases

This text of 30 F.3d 514 (Ahmed v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ahmed v. United States, 30 F.3d 514, 1994 WL 383191 (4th Cir. 1994).

Opinion

Affirmed by published opinion. Judge NIEMEYER wrote the opinion, in which Senior Judge SPROUSE and Judge RESTANI joined.

OPINION

NIEMEYER, Circuit Judge:

On a rainy evening in October 1989, in Salisbury, Maryland, Mark C. Varney lost control of his rented automobile and skidded across the center line, hitting an oncoming vehicle driven by Mohammad Ahmed. At the time of the accident, Varney, a civilian physicist with the United States Department of the Navy, was traveling on Navy business. The collision caused property damage of $2255.22 to Ahmed’s vehicle and personal [515]*515injury to Ahmed and to his wife and daughter, who were passengers in the vehicle. While the injuries to Ahmed and his daughter were minor, those sustained by his wife, Fozia, resulted in a diskectomy two years after the accident and a spinal infusion yet a year later.

The Ahmeds brought this negligence action against Varney in the Circuit Court for Wicomico County, Maryland, seeking damages for their personal injuries. The United States substituted itself as the defendant, determining that Varney, an employee of the United States Navy, was acting within the scope of his employment at the time of the accident, and removed the case to the district court. The United States then filed a motion to dismiss for lack of subject matter jurisdiction under Federal Rule of Civil Procedure 12(b)(1), contending that the Ahmeds failed to present their claim to the appropriate administrative agency as required by the Federal Tort Claims Act, 28 U.S.C. § 2675(a), and that their claim against the United States was now barred by the two-year statute of limitations imposed by 28 U.S.C. § 2401(b). The district court dismissed the action and we now affirm.

I

After the accident in October 1989, State Farm Insurance Company, which insured the Ahmed vehicle, paid $2255 for the damage caused to the automobile and then retained attorney Clifton B. Thaw, III, to collect its subrogated claim of $2255 against Varney. In its retention letter, State Farm instructed Thaw with respect to collection of the insurance pokey’s deductible amount:

By copy of this letter, we are informing our insured that this matter is being referred to you, and should our insured desire your representation concerning recovery of the deductible, he or she should contact you immediately. As you are aware, State Farm Insurance Company does not have a contractual obligation or a legal right to pursue the deductible of the insured. Should our insured engage your services, we would appreciate your handling this on the same contingency basis that you do for State Farm Insurance Company.

Thaw wrote to the Ahmeds on November 2, 1990, notifying them that he represented State Farm in its subrogation claim and advising them of their interest in the $250 deductible paid to repair their vehicle. Thaw asked the Ahmeds to check the appropriate box in a preprinted form if they authorized him to pursue the deductible. Thaw also advised the Ahmeds about other damage claims they may have:

If you so authorize us to recover your deductible claim, any other claims which you may have against the defendants arising out of the accident must be included in the suit papers filed on your behalf and you should notify us of such claims upon giving us authorization to proceed on your behalf. You may, of course, contact an attorney of your choice to represent your interest should you so desire.... If you do not bring claims which you have in conjunction with the suit we are about to file, you may be barred from bringing them at a later date.

(Emphasis added). The Ahmeds responded only by checking the authorization form to allow Thaw to collect the deductible claim.

In response to Thaw’s demand letter on the subrogation claim, the Navy wrote back instructing Thaw that a claim for personal injury “shall be presented by the person injured or his duly authorized agent or legal representative” and that the agent or legal representative filing the claim must present evidence of his appointment as such representative. The letter also instructed Thaw to use the Standard Form 95 (“SF 95”) for filing a claim for damage or injury.

Thaw completed an SF 95 and sent it to the Naval Legal Service Office in November 1990. The SF 95 identified the claimants as “Mohammad Riaz Ahmed and Fozia Qayum Ahmed to their own use and to the use of State Farm Mutual Automobile Insurance Company,” and claimed reimbursement for property damage to the vehicle in the amount of $2,255.22. The form also noted that there was an uninsured motorist bodily injury claim pending, but did not specify the [516]*516amount claimed. In the space provided for amount sought for personal injury, Thaw wrote, “not yet determined.” Thaw himself then added the following highlighted language to the pre-printed form:

I certify that the amount of claim covers only damages and injuries caused by the accident above and agree to accept said amount in full satisfaction and final settlement of this claim FOR PROPERTY DAMAGE ONLY, PERSONAL INJURY CLAIM PENDING.

Daniel J. Borders, a Navy investigator who investigated the claim, concluded that the accident was caused by driver error and negligence and recommended that liability be accepted by the Navy on behalf of its employee, Varney. The report specifically recognized that “on 5 December 1990, a claim for property damages in the amount of $2,255.22 was received from Clifton B. Thaw, III,” and that “the claim form indicates a claim for injuries is pending.” Borders recommended payment in the sum of $2,255.22, and the Navy paid that amount.

A month later, in January 1991, Karla Halstead-Tutt, a claims examiner for federal tort claims in the Navy’s legal office, called Thaw’s office to inquire about the potential personal injury claim. Thaw’s secretary, who answered the phone, informed Hal-stead-Tutt that State Farm had settled its subrogated claim with the United States. Upon Halstead-Tutt’s request, Thaw confirmed his secretary’s representation in a letter dated January 29, 1991:

This will follow-up your conversation with my secretary, Donna, of January 25, 1991. The above-captioned matter [Mohammad Riaz Ahmed and Fozia Qayum Ahmed v. Mark Clayton Varney and Poquoson Leasing, Inc.] has been settled between State Farm and Charter Risk Retention Group. Therefore, State Farm will not be looking for further payment.

Consequently, the Navy considered the personal injury claim withdrawn, and it closed its file on February 1, 1991.

On June 23, 1992, more than two and one-half years after the accident and after the two-year statute of limitations for the Federal Tort Claims Act had run, the Ahmeds brought suit against Varney in state court seeking damages for personal injuries. The United States removed the action to the district court and moved to dismiss the case, asserting lack of subject matter jurisdiction because of the Ahmeds’ failure to exhaust their administrative remedies as required by the Act.

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Bluebook (online)
30 F.3d 514, 1994 WL 383191, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ahmed-v-united-states-ca4-1994.