Aversa v. United States

99 F.3d 1200, 25 Media L. Rep. (BNA) 1033, 80 A.F.T.R.2d (RIA) 5372, 1996 U.S. App. LEXIS 27339, 1996 WL 593509
Court of Appeals for the First Circuit·Decided October 21, 1996·No. 95-2216·Published·Cited by 428 cases

Opinion

BOWNES, Senior Circuit Judge.

Daniel and Carla Aversa filed a civil action alleging that Patrick Walsh, an Assistant United States Attorney in the District of New Hampshire, and Kenneth Claunch, Chief of the Criminal Investigation Division of the Internal Revenue Service, falsely stated and implied to the local and national news media that Daniel Aversa was involved in laundering illegally-gotten money, tax evasion, drug trafficking and racketeering activity, and thus committed slander and other common law torts under New Hampshire law and deprived him of his right to liberty guaranteed by the Constitution of the United States. Senior District Judge Martin F. Loughlin, who presided over the related criminal case, found the statements to have been “totally false,” “misleading,” “outrageous,” “self-serving” and “unfair.” In this civil action, Magistrate Judge Lovegreen and District Judge Mary Lisi agreed with Judge Loughlin’s condemnation, adding that the defendants’ conduct showed “extraordinarily poor judgment” and was “lacking in professionalism.” The district court, however, dismissed the Aversas’ lawsuit, finding that Walsh and Claunch were absolutely immune from suit for the common law torts, and qualifiedly immune from suit for the constitutional tort.

The purpose of immunity — absolute or qualified — is not to protect erring federal officials from the consequences of their injurious acts, but to safeguard the public interest in having responsible governmental employees faithfully carry out their duties without fear of protracted litigation in unfounded damage suits. See Wyatt v. Cole, 504 U.S. 158, 167-68, 112 S.Ct. 1827, 1833, 118 L.Ed.2d 504 (1992); Westfall v. Erwin, 484 U.S. 292, 295, 108 S.Ct. 580, 583, 98 L.Ed.2d 619 (1988); Harlow v. Fitzgerald, 457 U.S. 800, 807, 102 S.Ct. 2727, 2732, 73 L.Ed.2d 396 (1982); Scheuer v. Rhodes, 416 U.S. 232, 241-42, 94 S.Ct. 1683, 1688-89, 40 L.Ed.2d 90 (1974); Barr v. Matteo, 360 U.S. 564, 565, 79 S.Ct. 1335, 1336, 3 L.Ed.2d 1434 (1959) (plurality opinion); Wood v. United States, 995 F.2d 1122, 1126 (1st Cir.1993); Buenrostro v. Collazo, 973 F.2d 39, 42 (1st Cir.1992). In obvious tension with that objective is that well-founded damage suits promote the public interest in compensating victims and deterring unlawful conduct. Harlow, 457 U.S. at 814, 819, 102 S.Ct. at 2736, 2738-39; Barr, 360 U.S. at 576, 79 S.Ct. at 1342.

The law of immunity seeks a balance between the evils inevitable in any available alternative. Harlow, 457 U.S. at 813, 102 S.Ct. at 2735-36; Wood, 995 F.2d at 1126. Thus, a federal employee who allegedly commits a common law tort will be absolutely immune from suit if he acted within .the scope of his federal employment, 28 U.S.C. § 2679(b)(1), but the plaintiff can proceed against the government unless some exception to the Federal Tort Claims Act applies. And a federal official is- qualifiedly immune from suit for an alleged constitutional tort if his “conduct [did] not violate clearly established ... constitutional rights of which a reasonable person would have known,” Harlow, 457 U.S. at 818, 102 S.Ct. at 2738, even though his actions may have been “despicable and wrongful” in some more general sense. Souza v. Pina, 53 F.3d 423, 427 (1st Cir.1995).

Although we affirm, we believe that the false and misleading information allegedly disseminated to the press in Aversa’s criminal case deserves more than condemnation, and therefore refer the matter to the appropriate disciplinary bodies.

I. FACTUAL AND PROCEDURAL BACKGROUND

Except where otherwise noted, the following facts are taken from Aversa’s complaint. *1204 Daniel Aversa (“Aversa”) and Vincent Mentó (“Mentó”) were partners in a legitimate real estate business. 1 In January of 1989, they sold a parcel of land, splitting the proceeds. At the same time, Aversa was experiencing marital difficulties with his wife Carla. In order to conceal some of his assets from his wife in the event of a divorce, Aversa asked Mentó if he could deposit his share of the proceeds, amounting to $55,000, into Mento’s personal bank account. Mentó agreed.

Both men were aware that domestic financial institutions were required to report currency transactions in excess of $10,000 to the Secretary of the Treasury, see 31 U.S.C. § 5313(a); 31 C.F.R. § 103.22(a)(1), and wished to avoid causing a Currency Transaction Report (“CTR”) to be filed. Aversa therefore made á series of deposits into Men-to’s account in sums just under $10,000. 2 At the time, Aversa was unaware that structuring the transactions to avoid causing a CTR to be filed was a crime under federal law. See 31 U.S.C. § 5324(a).

In June of 1990, IRS agents contacted Aversa and informed him that he was under investigation for structuring deposits. He immediately met with Assistant United States Attorney Walsh, and without an attorney present, explained that he was hiding the money from his wife, that it was not derived from an illegal source, and that he did not know that structuring was illegal. Walsh told Aversa that he and Mentó had been under investigation for some time and that he had no reason to believe the money was anything but “clean,” but said that he did not need to prove that it was derived from an illegal source or that Aversa knew that structuring was illegal. Walsh told Aversa that there was no reason to seek counsel and encouraged him to plead guilty because all that was needed for a conviction was what Aversa had just told him. In a later meeting with Aversa’s counsel, Walsh said that he previously had been successful in prosecuting individuals for structuring in Miami, but that this ease would be his- first involving “clean money,” and he planned to use it to “set a precedent” and “educate the public about the currency transaction reporting requirements.”

On June 28, 1990, Walsh obtained an indictment charging Aversa and Mentó with conspiracy, structuring, and making false statements, and Aversa alone with attempting to cause a domestic financial institution to file a report containing a material omission or misstatement of fact. That same day, Walsh, Clauneh, and the United States Attorney for the District of New. Hampshire, Jeffrey R.

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Aversa v. United States, 99 F.3d 1200, 25 Media L. Rep. (BNA) 1033, 80 A.F.T.R.2d (RIA) 5372, 1996 U.S. App. LEXIS 27339, 1996 WL 593509 (1st Cir. 1996).

99 F.3d 1200 (Aversa v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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