Federal Deposit Insurance v. Meyer

114 S. Ct. 996, 127 L. Ed. 2d 308, 7 Fla. L. Weekly Fed. S 761, 510 U.S. 471, 62 U.S.L.W. 4138, 63 Empl. Prac. Dec. (CCH) 42,847, 1994 U.S. LEXIS 1866, 94 Cal. Daily Op. Serv. 1298, 93 Daily Journal DAR 2365
CourtSupreme Court of the United States
DecidedFebruary 23, 1994
Docket92-741
StatusPublished
Cited by4,734 cases

This text of 114 S. Ct. 996 (Federal Deposit Insurance v. Meyer) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Federal Deposit Insurance v. Meyer, 114 S. Ct. 996, 127 L. Ed. 2d 308, 7 Fla. L. Weekly Fed. S 761, 510 U.S. 471, 62 U.S.L.W. 4138, 63 Empl. Prac. Dec. (CCH) 42,847, 1994 U.S. LEXIS 1866, 94 Cal. Daily Op. Serv. 1298, 93 Daily Journal DAR 2365 (U.S. 1994).

Opinion

Justice Thomas

delivered the opinion of the Court.

In Bivens v. Six Unknown Fed. Narcotics Agents, 403 U. S. 388 (1971), we implied a cause of action for damages against federal agents who allegedly violated the Constitution. Today we are asked to imply a similar cause of action directly against an agency of the Federal Government. Because the logic of Bivens itself does not support such an extension, we decline to take this step.

I

On April 13, 1982, the California Savings and Loan Commissioner seized Fidelity Savings and Loan Association (Fidelity), a California-chartered thrift institution, and appointed the Federal Savings and Loan Insurance Corporation (FSLIC) to serve as Fidelity’s receiver under state law. That same day, the Federal Home Loan Bank Board appointed FSLIC to serve as Fidelity’s receiver under federal law. In its capacity as receiver, FSLIC had broad authority to “take such action as may be necessary to put [the thrift] in a sound solvent condition.” 48 Stat. 1259, as amended, 12 U. S. C. § 1729(b)(l)(A)(ii) (repealed 1989). Pursuant to its general policy of terminating the employment of a failed thrift’s senior management, FSLIC, through its special representative Robert L. Pattullo, terminated respondent John H. Meyer, a senior Fidelity officer.

Approximately one year later, Meyer filed this lawsuit against a number of defendants, including FSLIC and Pat *474 tullo, in the United States District Court for the Northern District of California. At the time of trial, Meyer’s sole claim against FSLIC and Pattullo was that his summary discharge deprived him of a property right (his right to continued employment under California law) without due process of law in violation of the Fifth Amendment. In making this claim, Meyer relied upon Bivens v. Six Unknown Fed. Narcotics Agents, supra, which implied a cause of action for damages against federal agents who allegedly violated the Fourth Amendment. The jury returned a $130,000 verdict against FSLIC, but found in favor of Pattullo on qualified immunity grounds.

Petitioner Federal Deposit Insurance Corporation (FDIC), FSLIC’s statutory successor, 1 appealed to the Court of Appeals for the Ninth Circuit, which affirmed. 944 F. 2d 562 (1991). First, the Court of Appeals determined that the Federal Tort Claims Act (FTCA or Act), 28 U. S. C. §§ 1346(b), 2671-2680, did not provide Meyer’s exclusive remedy. 944 F. 2d, at 568-572. Although the FTCA remedy is “exclusive” for all “claims which are cognizable under section 1346(b),” 28 U. S. C. § 2679(a), the Court of Appeals decided that Meyer’s claim was not cognizable under § 1346(b). 944 F. 2d, at 567, 572. The court then concluded that the “sue- and-be-sued” clause contained in FSLIC’s organic statute, 12 U. S. C. § 1725(c)(4) (repealed 1989), constituted a waiver of sovereign immunity for Meyer’s claim and entitled him to maintain an action against the agency. 944 F. 2d, at 566, 572. Finally, on the merits, the court affirmed the jury’s conclusion that Meyer had been deprived of due process when he was summarily discharged without notice and a hearing. Id., at 572-575. We granted certiorari to consider *475 the validity of the damages award against FSLIC. 507 U. S. 983 (1993). 2

II

Absent a waiver, sovereign immunity shields the Federal Government and its agencies from suit. Loeffler v. Frank, 486 U. S. 549, 554 (1988); Federal Housing Administration v. Burr, 309 U. S. 242, 244 (1940). Sovereign immunity is jurisdictional in nature. Indeed, the “terms of [the United States’] consent to be sued in any court define that court’s jurisdiction to entertain the suit.” United States v. Sherwood, 312 U. S. 584, 586 (1941). See also United States v. Mitchell, 463 U. S. 206, 212 (1983) (“It is axiomatic that the United States may not be sued without its consent and that the existence of consent is a prerequisite for jurisdiction”). Therefore, we must first decide whether FSLIC’s immunity has been waived.

A

When Congress created FSLIC in 1934, it empowered the agency “[t]o sue and be sued, complain and defend, in any court of competent jurisdiction.” 12 U. S. C. § 1725(c)(4) (repealed 1989). 3 By permitting FSLIC to sue and be sued, Congress effected a “broad” waiver of FSLIC’s immunity from suit. United States v. Nordic Village, Inc., 503 U. S. 30, 34 (1992). In 1946, Congress passed the FTCA, which waived the sovereign immunity of the United States for certain torts committed by federal employees. 28 U. S. C. *476 § 1346(b). 4 In order to “place torts of ‘suable’ agencies . . . upon precisely the same footing as torts of ‘nonsuable’ agencies,” Loeffler, supra, at 562 (internal quotation marks omitted), Congress, through the FTCA, limited the scope of sue- and-be-sued waivers such as that contained in FSLIC’s organic statute. The FTCA limitation provides:

“The authority of any federal agency to sue and be sued in its own name shall not be construed to authorize suits against such federal agency on claims which are cognizable under section 1346(b) of this title, and the remedies provided by this title in such eases shall be exclusive.” 28 U. S. C. § 2679(a).

Thus, if a suit is “cognizable” under § 1346(b) of the FTCA, the FTCA remedy is “exclusive” and the federal agency cannot be sued “in its own name,” despite the existence of a sue-and-be-sued clause.

The first question, then, is whether Meyer’s claim is “cognizable” under § 1346(b). The term “cognizable” is not defined in the Act. In the absence of such a definition, we construe a statutory term in accordance with its ordinary or natural meaning. Smith v. United States,

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Bluebook (online)
114 S. Ct. 996, 127 L. Ed. 2d 308, 7 Fla. L. Weekly Fed. S 761, 510 U.S. 471, 62 U.S.L.W. 4138, 63 Empl. Prac. Dec. (CCH) 42,847, 1994 U.S. LEXIS 1866, 94 Cal. Daily Op. Serv. 1298, 93 Daily Journal DAR 2365, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-deposit-insurance-v-meyer-scotus-1994.