Cyrus R. Ware v. United States

626 F.2d 1278, 1980 U.S. App. LEXIS 13470
CourtCourt of Appeals for the Fifth Circuit
DecidedOctober 2, 1980
Docket79-1031
StatusPublished
Cited by57 cases

This text of 626 F.2d 1278 (Cyrus R. Ware v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cyrus R. Ware v. United States, 626 F.2d 1278, 1980 U.S. App. LEXIS 13470 (5th Cir. 1980).

Opinion

HATCHETT, Circuit Judge:

Appellant, Cyrus R. Ware, appeals a district court order dismissing his $331,607.89 claim against the United States. Ware brought his claim under the Federal Tort Claims Act (hereinafter F.T.C.A.), 28 U.S.C. §§ 1346(b), 2674, 1 and under the Tucker Act, 28 U.S.C. §§ 1346(a)(2), 1491, 2 as an *1280 alternate, pendent claim. We find that Ware’s F.T.C.A. claim is not barred by the misrepresentation exception in the F.T.C.A. or the statute of limitations. We also find that the district court does not have pendent jurisdiction over Ware’s Tucker Act claim. We, therefore, affirm in part and reverse in part.

FACTS

Ware operates a dairy farm near San Antonio, Texas. On five occasions between December, 1970, and August, 1975, agents of the Department of Agriculture tested Ware’s dairy herd for tuberculosis, diagnosed 246 of the cattle as tubercular, and killed them. The government compensated Ware on the basis of the value of diseased cattle. Ware asserts that he later learned that the government misdiagnosed 243 of the 246 cattle, and that only three of the cattle were diseased. The following chart reveals the dates of the government tests and the number of cattle diagnosed as tubercular, and the number killed by the government.

Number of Cattle Date Destroyed Number of Alleged Healthy Cattle Destroyed
December, 1970 34 33
November, 1974 22 21
February,1974 150 149
April, 1975 27 27
August, 1975 AS AS
Total Number 246 Total Number 243

Upon learning of the misdiagnosis, Ware filed an administrative claim with the Department of Agriculture on or about April 1, 1977. In June of 1977, the Department of Agriculture denied the claim. Five months later, Ware filed the present action, contending that the government was negligent in misdiagnosing his cattle and therefore liable under the F.T.C.A. Ware also asserted an alternative pendent claim under the Tucker Act for the loss of his cattle. Under both acts, Ware sought the actual cash market value of the 243 healthy cattle, plus compensation for lost milk production and damage to his dairy’s business. In his complaint, Ware asserted liability under the F.T.C.A. in these words:

[t]he Defendant’s agents when destroying the Plaintiff’s aforesaid cattle, represented to Plaintiff that those head of cattle actually destroyed were tubercular upon which representation the Plaintiff relied and the action of Defendant’s agents in *1281 destroying the cattle, Plaintiff acquiesced, relying on the representation that the cattle were all indeed diseased.

The basis of the Tucker Act claim is not clearly articulated, but appears to be a Fifth Amendment allegation of taking of property without just compensation.

The government moved to dismiss the complaint. The government claimed that Ware’s F.T.C.A. complaint was barred by the “misrepresentation exception” to the F.T.C.A. If the F.T.C.A. claim was not barred entirely by the misrepresentation exception, the claim for 208 of the 243 cattle was barred under 28 U.S.C. §§ 2401(b), 2675(a), 3 because Ware failed to file an administrative claim within two years of the accrual of the claim. The government further alleged that the district court lacked jurisdiction over Ware’s pendent Tucker Act claim since the amount in controversy exceeded $10,000, the statutory limit of the district court in an original Tucker Act case.

Initially, the district court granted the government’s motion as to the Tucker Act claim, holding that exclusive jurisdiction lay in the Court of Claims. The district court, however, concluded that neither the misrepresentation exception nor the statute of limitations barred Ware’s F.T.C.A. claim. Both parties moved the court to reconsider its ruling and, on reconsideration, the district court, for jurisdictional reasons not fully explained, dismissed Ware’s entire case. This appeal results.

ISSUES

This court must decide:

1. whether the misrepresentation exception to the F.T.C.A. bars Ware’s tort claim;

2. whether Ware’s failure to file an administrative claim within two years of the date the government told him the cattle were tubercular bars his claim for 203 of the 243 cattle; and,

3. whether the district court has jurisdiction over Ware’s Tucker Act claim.

I

The government argues that Ware’s tort claim is barred by 28 U.S.C. § 2680(h), the misrepresentation exception to the F.T.C.A. Section 2680(h) provides, in pertinent part, that:

[t]he provisions in this chapter and section 1346(b) of this title shall not apply to—
(h) Any claim arising out of misrepresentation deceit, or interference with contract rights. . . . [Emphasis added.]

The government relies on United States v. Neustadt, 366 U.S. 696, 81 S.Ct. 1294, 6 L.Ed.2d 614 (1961), for the proposition that the misrepresentation exception bars claims arising out of negligent misrepresentation. In Neustadt, a couple purchased a home that they would not have purchased had they not relied on a negligent inspection and appraisal of the home made for mortgage and insurance purposes by the Federal *1282 Housing Administration. The government maintains that Ware’s complaint reveals that the basis of his action is the tort of negligent misrepresentation, for which, under Rey v. United States, 484 F.2d 45 (5th Cir. 1973), there is no recovery.

In Rey, the plaintiffs filed an amended complaint against the United States under the F.T.C.A., alleging that a Department of Agriculture veterinarian negligently tested or diagnosed their hogs. This government employee erroneously and negligently notified the plaintiffs that the hogs were infected with hog cholera, and plaintiffs then administered a vaccine which killed the hogs. In affirming the district court’s dismissal of the amended complaint, this court held that the misrepresentation exception to the F.T.C.A. barred recovery because:

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Bluebook (online)
626 F.2d 1278, 1980 U.S. App. LEXIS 13470, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cyrus-r-ware-v-united-states-ca5-1980.