Dynamic Image Technologies, Inc. v. United States

18 F. Supp. 2d 146, 1998 U.S. Dist. LEXIS 13428, 1998 WL 550737
CourtDistrict Court, D. Puerto Rico
DecidedJuly 17, 1998
DocketCIV. 97-2187(DRD)
StatusPublished
Cited by3 cases

This text of 18 F. Supp. 2d 146 (Dynamic Image Technologies, Inc. v. United States) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dynamic Image Technologies, Inc. v. United States, 18 F. Supp. 2d 146, 1998 U.S. Dist. LEXIS 13428, 1998 WL 550737 (prd 1998).

Opinion

OPINION AND ORDER

DOMINGUEZ, District Judge.

Pending before the Court is the United States of America’s (Defendant’s) motion to dismiss Dynamic Image Technologies and Rafael Vega’s (Plaintiffs) complaint. (Docket No. 6.) Plaintiffs oppose Defendant’s motion. (Docket No. 9.) Under the Federal Tort Claims Act, the Court lacks subject-matter jurisdiction over almost all of Plaintiffs’ claims and dismisses those claims. Fed. R.Civ.P. 12(b)(6). For the reasons explained below, the Court therefore GRANTS IN PART/DENIES IN PART Defendant’s motion. The Court dismisses Plaintiffs’ action against Defendant, except for Plaintiff Rafael Vega’s claim for the intentional infliction of emotional distress and Plaintiffs’ claim for negligent supervision. Plaintiffs may amend their complaint accordingly.

I. FACTUAL BACKGROUND

On or about July 1,1991, the United States Postal Service (USPS) announced its policy that bulk rate customers must correct their mailing addresses in order to be eligible for pre-sort discounts. Dynamic Micrographics, Inc. (DMI), the predecessor of Plaintiff Dynamic Image Technologies (DIT) 1 , developed a computer system to correct the postal addresses of its customers in Puerto Rico in accordance with the USPS specifications. Plaintiffs had several customers who used this system in Puerto Rico. In October 1993, DMI developed an improved system in accordance with USPS specifications. In July 1995, DMI obtained a USPS quality certification called Coding Accuracy Support System Quality Certification (CASSQC).

In July 1995, USPS held the Automail 95 convention in Puerto Rico for vendors to present their mail processing products to customers. Plaintiffs allege that the Customer Service Manager for USPS in Puerto Rico, Mr. Luis Rafael Peña, informed the convention attendees that no entity in Puerto Rico had CASSQC. In July 1995, Mr. Peña allegedly informed DMI that an Enhanced Regional CASSQC, a new certification, was necessary to do business with USPS in Puer-to Rico. Plaintiffs allege that Mr. Peña and other agents of the USPS continued to advise DMI’s customers and potential customers of DMI lacked the proper certification. Several customers allegedly discontinued or did not renew their use of Plaintiffs’ services because of this misinformation. Prospective clients declined to engage DMI’s services.

Plaintiffs claim they questioned Mr. Peña, and Mr. Malavé, the General Postmaster of Puerto Rico and the United States Virgin Islands, about the requirements of enhanced CASSQC. In September 1997, Mr. Robert G. Krause, a USPS employee, advised Plaintiffs that the test was optional. In October 1997, Mr. Peña allegedly advised Plaintiffs of an upcoming test for the alleged new and necessary certification. 2

Plaintiffs allege that Defendant has committed torts of negligence, intentional tor-tious contractual interference, and discrimination under the Civil Rights Act. Plaintiffs allege that these wrongs may be redressed under Title 31 of the Laws of Puerto Rico Annotated, Articles 1802 and 1803; the Federal Tort Claims Act, 28 U.S.C. § 2401 et seq., and the Civil Rights Act, 28 U.S.C. § 1983 (properly, 42 U.S.C. § 1983). Plaintiffs claim damages in the form of lost income and mental distress.

II. Analysis

A. Overview

Defendant the United States of America moves for the dismissal of Plaintiffs’ complaint on four primary grounds:

First, Plaintiffs’ claim that the actions of government employees and officials interfered with their existing and prospective *149 business is barred by the Federal Tort Claims Act’s interference with contract rights exception. 28 U.S.C. § 2680(h). Second, Plaintiffs’ allegation that false statements made by government employees and officials caused numerous companies in Puerto Rico to not engage in business deals with them is barred by the Federal Tort Claims Act’s slander and libel exception. 28 U.S.C. § 2680(h). Third, the Federal Tort Claims Act misrepresentation exception mandates dismissal of Plaintiffs’ complaint inasmuch as it asks for damages caused by the false or mistaken statements of government employees and officials. 28 U.S.C. § 2680(h). Finally, Plaintiffs’ action should be dismissed because the United States owes no actionable tort duty to the Plaintiffs under Puerto Rico law. 28 U.S.C. §§ 1346(b), 2641.

(Docket No. 6, at 2 (Defendant’s Memorandum in Support of Motion to Dismiss)). The Court agrees with Defendant’s first three points and proceeds accordingly.

B.Standard of Review

For the purposes of deciding a motion to dismiss under Rule 12 of the Federal Rules of Civil Procedure, the well-pleaded facts alleged in Plaintiffs’ complaint should be construed in favor of Plaintiffs. Aversa v. United States, 99 F.3d 1200, 1209-10 (1st Cir.1996) (citation omitted). The Complaint’s conclusory allegations, legal conclusions, and opinions are not entitled to deference, and are subject to challenge by Defendant at this stage of the action. See Garita Hotel Ltd. Partnership v. Ponce Fed. Bank, 958 F.2d 15, 17 (1st Cir.1992). Plaintiffs have the burden to prove that this Court has subject-matter jurisdiction over their claims. Aversa, 99 F.3d at 1209.

C.Jurisdiction Under the Federal Tort Claims Act

As a sovereign, the United States is immune from suit unless it consents to be sued. Molzof v. United States, 502 U.S. 301, 305, 112 S.Ct. 711, 714, 116 L.Ed.2d 731 (1992); Santiago-Ramirez v. Sec’t of Dep’t of Defense, 984 F.2d 16, 18 (1st Cir.1993) (Santiago-Ramirez I). The Federal Torts Claims Act (FTCA), 28 U.S.C. §§ 1346, 2671-2680, waives the sovereign immunity of the United States to many tort-based suits. Santiago-Ramirez I,

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Cite This Page — Counsel Stack

Bluebook (online)
18 F. Supp. 2d 146, 1998 U.S. Dist. LEXIS 13428, 1998 WL 550737, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dynamic-image-technologies-inc-v-united-states-prd-1998.