Global Mail Limited v. United States Postal Service, United Parcel Service, Incorporated Air Courier Conference of America, Amici Curiae

142 F.3d 208, 46 U.S.P.Q. 2d (BNA) 1602, 1998 U.S. App. LEXIS 7787, 1998 WL 191469
CourtCourt of Appeals for the Fourth Circuit
DecidedApril 23, 1998
Docket97-1146
StatusPublished
Cited by28 cases

This text of 142 F.3d 208 (Global Mail Limited v. United States Postal Service, United Parcel Service, Incorporated Air Courier Conference of America, Amici Curiae) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Global Mail Limited v. United States Postal Service, United Parcel Service, Incorporated Air Courier Conference of America, Amici Curiae, 142 F.3d 208, 46 U.S.P.Q. 2d (BNA) 1602, 1998 U.S. App. LEXIS 7787, 1998 WL 191469 (4th Cir. 1998).

Opinion

Vacated and remanded by published opinion. Senior Judge PHILLIPS wrote the opinion, in which Judge MURNAGHAN and Senior Judge BRITT joined.

OPINION

PHILLIPS, Senior Circuit Judge:

Global Mail Limited, a private courier service, brought this action alleging that the United States Postal Service (USPS) had violated the Lanham Act in advertising its international mailing service under the name “Global Priority Mail.” The district court determined that USPS was immune from Lan-ham Act suits through its retained sovereign immunity, and dismissed the suit. We reverse.

*210 I

Global Mail Limited (Global), an enterprise primarily engaged in the business of sending letters, packages and parcels to recipients in other countries, entered the international mailing service market in 1987. Since that time it has continuously used the names “Global” and “Global Mail,” and a design including the name “Global Mail Ltd.,” in connection with its services. Global has published these marks and registered the design mark in the United States Patent and Trademark Office on March 7, 1989. Headquartered in Vienna, Virginia, Global has approximately 170 employees and totaled $82 million in service volume in 1996. Until March 1996, the United States Postal Service (USPS) operated an international mailing service under the name “World Post” that served as a direct competitor to Global’s services. That month, USPS changed the name of its international mailing service to “Global Priority Mail,” and embarked on a widespread advertising campaign prominently featuring the new name.

Global filed a complaint in the Eastern District of Pennsylvania in June 1996, alleging violations of the Lanham Act (“Act”), 15 U.S.C. §§ 1051-1127 (1994). After the case was transferred to the Eastern District of Virginia, USPS moved to dismiss the complaint alleging sovereign immunity from suit under the Act. The district court granted the motion and issued a four-page memorandum opinion. Despite the alleged fact that USPS has filed for or registered 82 trademarks under the Lanham Act, and has filed at least six cancellation or opposition proceedings to prevent competitors from registering marks too similar to their own, the court found that a section of the Postal Reorganization Act, 39 U.S.C. § 409(c) (1994), limits USPS’s tort liability to only those tort claims that are available under the Federal Tort Claims Act (FTCA), 28 U.S.C. §§ 2671-80 (1994). The court opined that because Lanham Act claims are tort claims, but federally created, they are not viable under the FTCA and that USPS therefore retains its sovereign immunity as to such claims. Said the court: “This result seems harsh, particularly in light of the Postal Service’s own activity in seeking protection of its own trademarks. Harshness resulting from sovereign immunity, however, is not new, and the court cannot as a matter of equity override what it concludes to be a valid sovereign immunity defense.” J.A. 218. The district court therefore dismissed Global’s action, and this appeal followed.

II

Challenging the district court’s dismissal of its claim, Global makes two related contentions: (1) that the Postal Reorganization Act (PRA) included within its broad waiver of USPS’s sovereign immunity all tort claims, and not just those cognizable under the FTCA; and (2) that USPS is a “person” capable of being sued under the Lanham Act. Reviewing de novo the district court’s dismissal of the complaint for lack of subject matter jurisdiction, see White v. United States, 53 F.3d 43, 45 (4th Cir.1995) (citing Ahmed v. United States, 30 F.3d 514, 516 (4th Cir.1994)), we take these issues in turn.

A.

As a governmental entity, USPS is entitled to sovereign immunity unless Congress waives that immunity and authorizes consent to suit. Sovereign immunity deprives a court of jurisdiction to hear a ease. See FDIC v. Meyer, 510 U.S. 471, 475, 114 S.Ct. 996, 1000, 127 L.Ed.2d 308 (1994); United States v. Mitchell, 463 U.S. 206, 212, 103 S.Ct. 2961, 2965, 77 L.Ed.2d 580 (1983). Congress has enacted a general waiver of USPS’s sovereign immunity through the Postal Reorganization Act of 1970(PRA). Specifically, § 401(1) provides that USPS shall have the power “to sue and be sued in its official name,” 39 U.S.C. § 401(1), and “to settle and compromise claims by or against it.” 39 U.S.C. § 401(8). And, Section 409(c) of the PRA, under the title “Suits by and against the Postal Service,” provides: “The provisions of chapter 171 and all other provisions of title 28 relating to tort claims shall apply to tort claims arising out of activities of the Postal Service.” “Chapter 171” refers to the FTCA which was itself enacted to waive the federal government’s sovereign immunity for certain tort suits.

*211 Meanwhile, the FTCA includes the provision, “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 cases shall be exclusive.” 28 U.S.C. § 2679(a). This subsection was intended to “place torts of ‘suable’ agencies ... upon precisely the same footing as torts of ‘nonsuable’ agencies.” H.R.Rep. No. 1287, 79th Cong., 1st sess., 6 (1945) (quoted in Loeffler v. Frank, 486 U.S. 549, 562, 108 S.Ct. 1965, 1973, 100 L.Ed.2d 549 (1988)). In other words, those agencies that have been given the general authority to sue and be sued, and therefore have lost their general sovereign immunity, remain subject to the terms of the FTCA for those claims cognizable under that Act. See FDIC v. Meyer, 510 U.S. 471, 476-79, 114 S.Ct. 996, 1000-02, 127 L.Ed.2d 308 (1994).

The question then is the intended interrelationship of these PRA and FTCA provisions in defining the scope of the USPS’s sovereign immunity from Lanham Act claims.

Although § 401(1) of the PRA is a general waiver of USPS’s sovereign immunity, see Franchise Tax Bd. of California v. USPS, 467 U.S. 512, 519, 104 S.Ct. 2549, 2553-54, 81 L.Ed.2d 446 (1984), it is axiomatic that waivers of sovereign immunity are not necessarily total. See Ruckelshaus v. Sierra Club,

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142 F.3d 208, 46 U.S.P.Q. 2d (BNA) 1602, 1998 U.S. App. LEXIS 7787, 1998 WL 191469, Counsel Stack Legal Research, https://law.counselstack.com/opinion/global-mail-limited-v-united-states-postal-service-united-parcel-service-ca4-1998.