David v. Commonwealth

3 N. Mar. I. Commw. 157
CourtDistrict Court, Northern Mariana Islands
DecidedSeptember 11, 1987
DocketDCA 86-9018
StatusPublished

This text of 3 N. Mar. I. Commw. 157 (David v. Commonwealth) is published on Counsel Stack Legal Research, covering District Court, Northern Mariana Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
David v. Commonwealth, 3 N. Mar. I. Commw. 157 (nmid 1987).

Opinion

OPINION

DUEÑAS: District Judge

[159]*159Plaintiff8-appellants, Evelyn and Phillip David, appeal from the trial court's order granting summary judgment in favor of defendant-appellee, Commonwealth of the Northern Mariana Islands (hereinafter "CNMI").

STATEMENT OF THE CASE

Facts

The Davids brought this action against the CNMI and Dr. Edmund Griley, alleging that in the course of performing surgery on Mrs. David, Dr. Griley negligently punctured Mrs. David's bladder. Mrs. David was first referred to Dr. Griley by a staff doctor at Dr. Torres Hospital, (hereinafter "Hospital") a hospital operated, managed, and controlled by the CNMI where she was operated on by Dr. Griley. Mrs. David was told that Dr. Griley was a specialist from Guam.

Proceedings Below

The CNMI moved for summary judgement on the grounds that, since Dr. Griley is an independent contractor, the CNMI is immune from suit under 7 CMC §2202(a). In support of its motion the CNMI submitted a copy of Dr. Griley's contract, which showed that he was hired as an independent contractor. The CNMI also attached several affidavits which indicate that Dr. Griley is self-employed at Guam Polyclinic and all services performed by him at the Hospital are performed under the contract and that the Hospital deducts no taxes, social security, or insurance from Dr. Griley's pay. The CNMI [160]*160asserts that the Hospital exercises no control over the acts of Dr. Griley.

The Davids opposed the motion and submitted affidavits stating that they were under the impression that Dr. Griley was a Hospital employee and were never told he was an independent contractor. The Davids rely on the principle of apparent authority to argue that the Hospital was liable for the acts of Dr. Griley, whom the Hospital allegedly held out as their employee.

The trial court found that Dr. Griley is an independent contractor, and that the principle of apparent authority may not be applied to waive the sovereign immunity of the CNMI, which provides that it cannot be sued on the basis of its own laws without its consent. We regretfully affirm.

ANALYSIS

An appellate court rev,iews the ~raric or denial of a motion for summary judgment de novo. Fidelity Financial Corp. v. Federal Home Loan Bank, 792 F.2d 1432, 1437 (9th Cir. 1986); Lone Ranger Television v. Program Radio Corp., 740 F.2d 718, 720 (9th Cir. 1984). The Davids do not contest that Dr. Griley is in fact an independent contractor and not an employee of the Hospital. They contend, however, that the trial court erred as a matter of law in its construction of 7 CMC §2202 and its rejection of the theory of apparent authority.

[161]*161The Davids argue that the trial court erred by not reading the term "employee" in §2202 1 to include those persons who would in other circumstances be deemed an employee for purposes of liability under the doctrine of apparent authority. The Davids also suggest that the CNMI was acting in a proprietary capacity, and therefore the doctrine of estoppel may be applied.

The CNMI argues that its sovereign immunity is not waived for acts of independent contractors. Sovereign immunity is not diminished by its operation of a hospitaland that since the govemmental/proprietary distinction was not raised by the Davids below they may not press it here. 2

With respect to the Davids' apparent authority and estoppel arguments, the CNMI argues that even if these ' principles apply, there is insufficient evidence presented to support a finding that Dr. Griley had apparent authority or that the CNMI can be estopped from asserting that Dr. Griley is not an employee.

Sovereign Immunity of CiIHI

The CNMI is generally protected from suits by the doctrine of sovereign immunity. The Covenant to Establish a Commonwealth of the Northern Mariana Islands, Section 103, grants the people of the Northern Mariana Islands the right to self-government. This provision was intended to affirm the sovereign immunity of the CNMI, in that it cannot be sued on the basis of its laws without its consent."* See, Section [162]*162by Section Analysis of the Covenant to Establish a Commonwealth of the Northern Mariana Islands, Marianas Political Status Commission, February 15, 1975, at 11.

The CNMI has by statute waived its sovereign immunity in some circumstances. 7 CMC §2202 provides:

The Commonwealth Government shall be liable in tort for damages arising from the negligent acts ' of employees of the Commonwealth acting within the scope of their office or employment, provided that
(a) The Commonwealth and any employees engaged in the performance of service on behalf of the Commonwealth shall not be liable in a suit based on the performance of those services for more than $50,000 in an action for wrongful death and $100,000 in any other tort action ....

A court will not find a waiver of sovereign immunity unless waiver is express and there is a clear intention to waive governmental immunity. Lehman v. Nakshian, 453 U.S. 156, 160-61, 101 S.Ct. 2698, 69 L.Ed.2d 548 (1981); Edelman v. Jordan, 415 U.S. 651, 673, 94 S.Ct. 1347, 39 L.Ed.2d 662, reh. denied, 416 U..S. 1000 (1974) (waiver by state of its protection under the Eleventh Amendment)f Petty v. Tennessee-Missouri Bridge Co.. 359 U.S. 275, 276, 79 S.Ct. 785, 31 L.Ed.2d 804 (1959). A statute which waives the government’s immunity must be strictly construed in favor of the sovereign and "not enlarged beyond what the language requires." Ruckelshaus v. Sierra Club, 463 U.S. 680, 685, 103 S.Ct. 3274, 77 L.Ed.2d 938 (1983).

[163]*163We must determine whether strict construction of 7 CMC §2202 precludes application of the doctrines of apparent authority or estoppel in order to find that Dr. Griley, although an independent contractor, nevertheless constitutes an employee for purposes of CNMI's liability under 7 CMC §2202.

Apparent Authority

The general rule is that a principal is not liable for the tortious conduct of an independent contractor. See generally, Restatement Second of Agency §2, Comment b. (1958). There are specific exceptions to the rule.

The Davids argue that the principle found in the Restatement Second of Agency §267 should have been applied by the trial court which would then have compelled the finding that Dr. Griley is an employee within the meaning of §2202. Section 267 provides:

One who represents that another is his servant or other agent and thereby causes a third person justifiably to rely upon the care or skill of such apparent agent is subject to liability to the third person for harm caused by the lack of care or skill of the one appearing to be a servant or other agent as if he were such.

This section sets forth an exception to the general rule precluding liability for the acts of independent contractors.

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Related

Hormel v. Helvering
312 U.S. 552 (Supreme Court, 1941)
Petty v. Tennessee-Missouri Bridge Commission
359 U.S. 275 (Supreme Court, 1959)
Turner v. City of Memphis
369 U.S. 350 (Supreme Court, 1962)
Edelman v. Jordan
415 U.S. 651 (Supreme Court, 1974)
Lehman v. Nakshian
453 U.S. 156 (Supreme Court, 1981)
Ruckelshaus v. Sierra Club
463 U.S. 680 (Supreme Court, 1983)
Saul E. Bramer v. United States
595 F.2d 1141 (Ninth Circuit, 1979)
Pegasus Fund, Inc. v. Laraneta
617 F.2d 1335 (Ninth Circuit, 1980)

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