Am. Reliable Ins. Co. v. United States

CourtCourt of Appeals for the Sixth Circuit
DecidedJune 28, 2024
Docket23-5439
StatusPublished

This text of Am. Reliable Ins. Co. v. United States (Am. Reliable Ins. Co. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Am. Reliable Ins. Co. v. United States, (6th Cir. 2024).

Opinion

RECOMMENDED FOR PUBLICATION Pursuant to Sixth Circuit I.O.P. 32.1(b) File Name: 24a0141p.06

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

┐ AMERICAN RELIABLE INSURANCE COMPANY, et al., │ Plaintiffs-Appellants/Cross-Appellees, │ > Nos. 22-6014/23-5439 │ v. │ │ UNITED STATES OF AMERICA, │ Defendant-Appellee/Cross-Appellant. │ ┘

Appeal from the United States District Court for the Eastern District of Tennessee at Knoxville. Nos. 19-cv-469; 19-cv-470; 19-cv-472; 19-cv-474; 19-cv-478—J. Ronnie Greer, District Judge.

Argued: January 31, 2024

Decided and Filed: June 28, 2024

Before: BOGGS, GILMAN, and NALBANDIAN, Circuit Judges.

_________________

COUNSEL

ARGUED: Jonathan J. Tofilon, GROTEFELD HOFFMANN LLP, Geneva, Illinois, for Appellants/Cross-Appellees. Jeffrey E. Sandberg, UNITED STATES DEPARTMENT OF JUSTICE, Washington, D.C., for Appellee/Cross-Appellant. ON BRIEF: Jonathan J. Tofilon, GROTEFELD HOFFMANN LLP, Geneva, Illinois, Mark S. Grotefeld, GROTEFELD HOFFMANN LLP, Austin, Texas, Matthew J. Evans, Daniel C. Headrick, KAY GRIFFIN, PLLC, Knoxville, Tennessee, Stephen J. Zralek, SPENCER FANE BONE MCALLESTER, Nashville, Tennessee, Evan B. Stephenson, SPENCER FANE LLP, Denver, Colorado, for Appellants/Cross-Appellees. Jeffrey E. Sandberg, UNITED STATES DEPARTMENT OF JUSTICE, Washington, D.C., for Appellee/Cross-Appellant.

BOGGS, J., delivered the opinion of the court in which GILMAN and NALBANDIAN, JJ., joined in different parts. GILMAN, J. (pp. 25–28), delivered a separate opinion concurring in part and dissenting in part. NALBANDIAN, J. (pp. 29–37), also delivered a separate opinion concurring in part and dissenting in part. Nos. 22-6014/23-5439 Am. Reliable Ins. Co., et al. v. United States Page 2

OPINION _________________

BOGGS, Circuit Judge. This case arises from a 2016 catastrophic wildfire in the Great Smoky Mountains National Park in Eastern Tennessee that spread into the City of Gatlinburg and Sevier County, Tennessee, resulting in the destruction of over 2,500 structures and the death of 14 people. Appellant insurance companies paid claims to policy holders and then filed claims under the Federal Tort Claims Act (FTCA), 28 U.S.C. § 1346(b), against the National Park Service (NPS), alleging negligence for failure to follow multiple mandatory fire-management protocols in three major respects and for the failure to issue mandatory warnings to the public.

The government filed a motion, under Rule 12(b)(1) of the Federal Rules of Civil Procedure, to dismiss for lack of subject-matter jurisdiction, on grounds that it was immune from suit under the discretionary-function exception to the FTCA. 28 U.S.C. § 2680(a). The district court granted the motion on all three claims relating to fire-management protocols, but denied the motion on claims relating to the duty to warn. The insurance companies appealed, and the government cross-appealed.

I. Factual Background

2016 was a year of unusual drought in the Great Smoky Mountains National Park (the Park). On Wednesday, the day before Thanksgiving, a small vegetation fire (the Fire)1 was spotted coming from Chimney Tops Mountain, a double-peaked, exposed bedrock summit at an elevation of 4,724 feet, located approximately 5.5 miles south of Gatlinburg, Tennessee. The Park’s Fire Management Officer (FMO), Greg Salansky, after hiking a steep two-mile trail, located the Fire burning on the treacherously steep, nearly vertical northern peak known as Chimney Tops 2. Given the dense vegetation and hazardous terrain, Salansky determined that

1 The Fire was later determined to have been set intentionally by teenagers throwing lit matches into the woods. Nos. 22-6014/23-5439 Am. Reliable Ins. Co., et al. v. United States Page 3

the best course of action was an indirect strategy, permitting the Fire to burn inside a 410-acre containment “box” delineated by topographic and natural barriers.

Due to the holiday, Slansky had granted leave to most of the Park’s fire staff. Salansky did not cancel any of those requests or staff extra resources, and he failed to utilize the Park’s fire-management step-up (staffing) plan to request additional staffing needed to meet the elevated fire danger, based on the drought and weather forecasts. The Fire remained relatively small and inaccessible on Thursday and Friday and the firefighters who were not on leave spent time scouting the containment box. But by early Saturday morning, fire-weather forecasts indicated dangerous high winds on Monday and rain Monday night. Salansky performed a “Near Term Fire Behavior” projection in the field, which anticipated that the Fire could spread beyond the containment box. Nonetheless, Salansky believed, based on historical fire events and practices in the Park, that the containment box would successfully “catch and hold the fire.”

On Sunday, Salansky arrived at the Park at 0730 hours and realized that the Fire “had become more active overnight.” Salansky determined that the Fire had now risen to a Type 3 fire incident.2 He now requested ground and aerial fire-suppression assets. At 1300 hours, a helicopter along with an air-attack plane arrived to, respectively, drop water and provide surveillance information on the Fire. At approximately 1500 hours, a second plane took the first infrared images of the wildfire for mapping purposes. Those images indicated that the Fire perimeter had grown and was near the edge of the southwestern line of the containment box. By 1630 hours, all aircraft were grounded for the day due to weather-related flight restrictions.

Sunday evening, at 2000 hours, Salansky went to an overlook northwest and below Chimney Tops 2. From this vantage point, he observed that the visible Fire behavior appeared minimal, stating “you couldn’t even see the fire except for a couple glowing areas.” Because “the fire appeared quiet” with “no continuous line of fire visible,” Salansky lowered his classification of the Fire from a Type 3 to a Type 4 fire incident, even though the infrared aerial images had mapped the Fire at 35 acres in size on the southwest side of the mountain.

2 Wildfires are typed by complexity, from Type 5 (least complex) to Type 1 (most complex). Nos. 22-6014/23-5439 Am. Reliable Ins. Co., et al. v. United States Page 4

Salansky sent all firefighters home for the evening and all monitoring of the Fire stopped throughout the night.

When firefighters returned at 0700 hours Monday morning, the Fire had spread significantly and was now an estimated 250–500 acres in size. A strong wind was blowing north toward Gatlinburg and scattered “spot fires” were now outside the containment box. Having had no contact from the Park, the Gatlinburg Fire Department (GFD) initiated contact with FMO Salansky at 0900 hours in response to seeing ash and smoke. Salansky returned GFD’s call at 1058 hours and, despite having a mutual-aid agreement, Salansky told the captain of the GFD that the Park did not need help fighting the Fire and that the Fire was not a threat to the city.

At 1100 hours, Salansky heard Park dispatch report that the Fire had spread to a picnic pavilion housing the Park’s science center, resource-management offices, and fire offices, located approximately 1.5 miles from the Gatlinburg city limits. High winds drove the Fire from ridge top to ridge top and there were reports of spot fires at least 5 miles away from the main Fire.

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Am. Reliable Ins. Co. v. United States, Counsel Stack Legal Research, https://law.counselstack.com/opinion/am-reliable-ins-co-v-united-states-ca6-2024.