Halvorson v. United States
This text of 381 F. Supp. 3d 1115 (Halvorson v. United States) is published on Counsel Stack Legal Research, covering United States District Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
JEFFREY L. VIKEN, CHIEF JUDGE
INTRODUCTION
This case stems from decedent Kenneth Holst's alleged wrongful death. Plaintiff Ronda Halvorson brought suit under the Federal Tort Claims Act ("FTCA"), alleging decedent's death was caused by employee negligence at the Department of Veterans Affairs ("VA") Fort Meade hospital in Sturgis, South Dakota. (Docket 1 at ¶¶ 31-39). As defendant, the United States moves to dismiss plaintiff's complaint on the grounds it was filed untimely, resulting *1117in a lapse of the FTCA's waiver of sovereign immunity. (Docket 7). Plaintiff resists the motion. (Docket 16).
The court referred the pending motion to Magistrate Judge Veronica L. Duffy pursuant to the court's standing order of October 16, 2014, and
ANALYSIS
I. Facts
Neither party objected to the magistrate judge's factual findings. (Dockets 23 at p. 1 & 24 at p. 2). The court accordingly adopts the facts recited by the magistrate judge. (Docket 22 at pp. 2-6). For the purposes of resolving plaintiff's objections to the R&R, the court need only recite a few key facts.
On May 19, 2015-when he was 84 years old-decedent went to the Fort Meade VA hospital for post-operative care.
Plaintiff was appointed special administrator of decedent's estate on May 9, 2017. (Docket 1 at ¶ 8). She presented her claim to the VA for administrative adjudication on May 17.
II. Plaintiff's Objections
Plaintiff objects to two of the magistrate judge's legal conclusions. As summarized by the court, the objections argue:
1. The two-year limit for medical malpractice claims imposed by a South Dakota statute of repose, SDCL § 15-2-14.1, was tolled by an extender statute, SDCL § 29A-3-109. (Docket 23 at pp. 2-4).
2. The FTCA's timing provisions preempt the South Dakota statute of repose.Id. at pp. 4-8 .
The court will examine each objection in turn.
III. Discussion
A. Legal standards
1. Rule 12(b)(1)
Defendant argues the court lacks subject matter jurisdiction over plaintiff's *1118FTCA claim. (Docket 7). Under Federal Rule of Civil Procedure 12(b)(1), a defendant has the right to challenge the "lack of subject-matter jurisdiction ...." Fed. R. Civ. P. 12(b)(1). While considering a Rule 12(b)(1) motion to dismiss for lack of subject matter jurisdiction, the court must "accept all factual allegations in the pleadings as true and view them in the light most favorable to the nonmoving party." Great Rivers Habitat All. v. Fed. Emergency Mgmt. Agency,
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JEFFREY L. VIKEN, CHIEF JUDGE
INTRODUCTION
This case stems from decedent Kenneth Holst's alleged wrongful death. Plaintiff Ronda Halvorson brought suit under the Federal Tort Claims Act ("FTCA"), alleging decedent's death was caused by employee negligence at the Department of Veterans Affairs ("VA") Fort Meade hospital in Sturgis, South Dakota. (Docket 1 at ¶¶ 31-39). As defendant, the United States moves to dismiss plaintiff's complaint on the grounds it was filed untimely, resulting *1117in a lapse of the FTCA's waiver of sovereign immunity. (Docket 7). Plaintiff resists the motion. (Docket 16).
The court referred the pending motion to Magistrate Judge Veronica L. Duffy pursuant to the court's standing order of October 16, 2014, and
ANALYSIS
I. Facts
Neither party objected to the magistrate judge's factual findings. (Dockets 23 at p. 1 & 24 at p. 2). The court accordingly adopts the facts recited by the magistrate judge. (Docket 22 at pp. 2-6). For the purposes of resolving plaintiff's objections to the R&R, the court need only recite a few key facts.
On May 19, 2015-when he was 84 years old-decedent went to the Fort Meade VA hospital for post-operative care.
Plaintiff was appointed special administrator of decedent's estate on May 9, 2017. (Docket 1 at ¶ 8). She presented her claim to the VA for administrative adjudication on May 17.
II. Plaintiff's Objections
Plaintiff objects to two of the magistrate judge's legal conclusions. As summarized by the court, the objections argue:
1. The two-year limit for medical malpractice claims imposed by a South Dakota statute of repose, SDCL § 15-2-14.1, was tolled by an extender statute, SDCL § 29A-3-109. (Docket 23 at pp. 2-4).
2. The FTCA's timing provisions preempt the South Dakota statute of repose.Id. at pp. 4-8 .
The court will examine each objection in turn.
III. Discussion
A. Legal standards
1. Rule 12(b)(1)
Defendant argues the court lacks subject matter jurisdiction over plaintiff's *1118FTCA claim. (Docket 7). Under Federal Rule of Civil Procedure 12(b)(1), a defendant has the right to challenge the "lack of subject-matter jurisdiction ...." Fed. R. Civ. P. 12(b)(1). While considering a Rule 12(b)(1) motion to dismiss for lack of subject matter jurisdiction, the court must "accept all factual allegations in the pleadings as true and view them in the light most favorable to the nonmoving party." Great Rivers Habitat All. v. Fed. Emergency Mgmt. Agency,
2. FTCA
"The United States is immune from suit unless it consents. Congress waived the sovereign immunity of the United States by enacting the FTCA, under which the federal government is liable for certain torts its agents commit in the course of their employment. The United States is, nevertheless, immune if an exception applies." Hart v. United States,
The FTCA contains an interconnected statute of limitation and administrative adjudication requirement.
A tort claim against the United States shall be forever barred unless it is presented in writing to the appropriate Federal agency within two years after such claim accrues or unless action is begun within six months after ... notice of final denial of the claim by the agency to which it was presented.
An action shall not be instituted upon a claim against the United States ... unless the claimant shall have first presented the claim to the appropriate Federal agency and his claim shall have been finally denied by the agency in writing and sent by certified or registered mail. The failure of an agency to make final disposition of a claim within six months after it is filed shall, at the option of the claimant any time thereafter, be deemed a final denial of the claim for purposes of this section.
These statutes create the following procedural schedule for FTCA plaintiffs.
1. The claim must be presented to the federal agency for administrative adjudication within two years of the claim's accrual.Id. at § 2401(b).
2. If the agency does not make a final disposition of a claim within six months, it is deemed denied and the plaintiff may file suit in federal court.Id. at §§ 2401(b), 2675(a).
3. If the plaintiff chooses to pursue the administrative adjudication process to its conclusion and the agency denies her claim, she must file her suit *1119in federal court within six months of the denial.Id. at § 2401(b).
The FTCA requires plaintiffs to attempt administrative adjudication but leaves to their discretion whether to file suit at six months after the agency receives the claim-under the deemed denial provision-or within six months of the agency's actual final denial of the claim. If a plaintiff chooses to participate in the entire administrative adjudication process, the FTCA sets no time limit on that process.
B. Extender statute objection
Plaintiff's first objection argues the two-year limit set by South Dakota's statute of repose was tolled by a separate statute. The magistrate judge concluded this argument failed under controlling South Dakota case law and was contrary to the plain terms of the statute. The court agrees.
The issue arises from South Dakota's medical malpractice statute of repose. The statute states "an action against a [health care professional], whether based upon contract or tort, can be commenced only within two years after the alleged malpractice ... occurred."2 SDCL § 15-2-14.1. However, the extender statute suspends "[t]he running of any statute of limitations on a cause of action belonging to a decedent ... for one year[.]" SDCL § 29A-3-109. Defendant's alleged negligence occurred on May 19, 2015, but plaintiff did not file this suit until May 10, 2018. Plaintiff's suit is untimely under the statute of repose but would be timely if the repose deadline is subject to the extender statute.
A South Dakota Supreme Court case squarely resolves this objection. In Pitt-Hart v. Sanford USD Med. Ctr., the South Dakota Supreme Court unequivocally affirmed that SDCL § 15-2-14.1 is a statute of repose which "will not be tolled for any reason ."
Plaintiff refers the court to her argument in response to defendant's motion to dismiss that the extender statute's use of the term "statute of limitations" should be interpreted to include statutes of repose. (Docket 16 at pp. 2-6). She noted the South Dakota Supreme Court used the terms interchangeably on occasion and that "there is no evidence that the South Dakota Legislature used the term 'statute of limitation' in a technical legal sense and intended the statute to suspend statutes of limitation but not statutes of repose[.]" Id. at p. 3.
It is true "[i]nconsistency has persisted in almost all of [the South Dakota Supreme Court's] decisions involving SDCL 15-2-14.1." Pitt-Hart,
The extender statute on its face applies only to statutes of limitation. SDCL § 29A-3-109. South Dakota courts
*1120adhere to two primary rules of statutory construction. The first rule is that the language expressed in the statute is the paramount consideration. The second rule is that if the words and phrases in the statute have plain meaning and effect, [courts] should simply declare their meaning and not resort to statutory construction.
Winslow v. Fall River Cty.,
She does cite a principle of South Dakota statutory construction holding "[w]ords used in the South Dakota Codified Laws are to be understood in their ordinary sense[.]" Pitt-Hart,
The extender statute does not toll the statute of repose. Plaintiff's objection is overruled, and the R&R is adopted on this point.
C. Preemption objection
Plaintiff's second objection concedes the statute of repose would bar her claim but argues the time limitation provisions of the FTCA preempt the statute of repose. (Docket 23 at pp. 4-8). Resolving this objection requires the court to wade into a contested and developing area of FTCA law. After thoroughly surveying the legal landscape on this point, the magistrate judge concluded the South Dakota statute of repose is a substantive state tort law incorporated by the FTCA. (Docket 22 at pp. 18-21, 24-31). The court agrees the statute of repose is a substantive state tort law but concludes it cannot be reconciled with the FTCA's administrative adjudication provisions. The court holds the FTCA preempts the application of the statute of repose to plaintiff's claim.
1. Conflict of authority
Given the importance of this issue both to plaintiff and for FTCA plaintiffs in South Dakota more broadly, the court will outline the competing legal theories on FTCA preemption of state statutes of repose. In general, courts finding no preemption have focused on the FTCA's explicit incorporation of state substantive law. Courts taking the opposite view have emphasized the conflict between the FTCA's administrative adjudication requirement and state statutes of repose.
The United States Court of Appeals for the Eighth Circuit has not yet determined whether the FTCA preempts state statutes of repose. One appellate court concurrence found preemption. In Kennedy v. United States Veterans Admin., the Sixth Circuit reversed a district court's order dismissing a FTCA claim because of Ohio's statute of repose.
*1121[I]it is clear that Congress intended the administrative process to be the preferred method for resolving tort claims against the federal government and that a plaintiff engaging in that process have six months after the agency denial to evaluate his or her position. Because the Ohio medical-malpractice statute of repose operates in this case to undercut the federal procedure, it "stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress" and thus does not apply under conflict preemption principles.
One district court in the Eighth Circuit, developing the analysis later supported by Judge White's concurrence in Kennedy, concluded "the FTCA's administrative filing requirement and statute of limitations preempt[ed]" Missouri's medical malpractice statute of repose. Ziehr v. United States, Case No. 10-00299,
One Court of Appeals rejected the preemption argument on facts analogous to this case and three have less definitively adopted that position. See Augutis v. United States,
2. Preemption law
"The Supremacy Clause invalidates state laws that interfere with, or are contrary to, federal law." Qwest Corp. v. Minn. Pub. Utils. Comm'n.,
3. FTCA preempts South Dakota statute of repose
The court distills the following principles from the authority discussed above:
1. South Dakota's statute of repose is a substantive limit on liability for torts originating in medical malpractice. CTS Corp.,573 U.S. at 16-17 ,134 S.Ct. 2175 ("A statute of repose can be said to define the scope of the cause of action, and therefore the liability of the defendant."); Pitt-Hart,878 N.W.2d at 413 ("[S]tatutes of repose are substantive, not merely semantic.") (citation omitted).
*11232. The FTCA expressly incorporates state substantive tort law through the private person analogue provisions.28 U.S.C. §§ 1346 (b)(1), 2674 ; Moss,895 F.3d at 1097 .
3. The FTCA also requires plaintiffs to undergo at least six months of administrative adjudication before filing in federal court and is intended to encourage administrative resolution of tort claims.28 U.S.C. § 2401 ; McNeil v. United States,508 U.S. 106 , 112 n.7,113 S.Ct. 1980 ,124 L.Ed.2d 21 (1993).
4. A state law that obstructs the purposes of Congress is impliedly preempted. Arizona,567 U.S. at 399 ,132 S.Ct. 2492 . Courts determine if such obstruction exists by reference to congressional intent. Crosby,530 U.S. at 373 ,120 S.Ct. 2288 .
These principles lead the court to reject the magistrate judge's conclusion the FTCA does not preempt South Dakota's statute of repose.
To begin, the magistrate judge correctly concluded South Dakota's statute of repose is a substantive state tort law. (Docket 22 at pp. 11-14). Plaintiff's argument to the contrary is unpersuasive and wholly contradicted by South Dakota case law. (Docket 23 at pp. 4-5) (arguing the "fundamental flaw" in the R&R is "the conflation of the concepts of substantive law and procedural law."). Ordinarily, the FTCA incorporates state substantive tort law.
The magistrate judge concluded no absolute conflict existed between the statute of repose and the FTCA's administrative adjudication provisions because a plaintiff can comply with both. (Docket 22 at p. 28). It is certainly true that a South Dakota FTCA plaintiff in the abstract can comply with both. The statute of repose sets a two-year deadline and the FTCA's administrative adjudication requirement only subtracts six months from that total. However, the facts of this case show the illusory nature of that possibility. The decedent here was injured by the VA's alleged malpractice on May 19, 2015, and passed away on June 3, 2016.5 Plaintiff was appointed administrator of decedent's estate on May 9, 2017, a mere ten days before the two-year period the FTCA allows for claimants to file their administrative claim expired. The repose period likewise expired on May 19, 2017, while plaintiff was just beginning her mandatory administrative adjudication. She could not have maintained her wrongful death FTCA claim and complied with the statute of repose.6 As plaintiff's experience illustrates, applying the statute of *1124repose would convert the FTCA's administrative adjudication provisions into a trap, requiring all but the most diligent wrongful death plaintiffs to undergo adjudication which would inevitably result in the barring of their claims if a settlement was not reached.
For plaintiff, this is a case "where compliance with both federal and state regulations [was] a physical impossibility," but the court acknowledges some plaintiffs may be able to comply with both statutes. Arizona,
Looking to the "purpose and intended effects" of the administrative adjudication requirement, the court cannot conclude Congress intended this result when it added the requirement to the FTCA in 1966. Crosby,
The legislative history of the 1966 FTCA amendment, for those who consider it, confirms the court's statutory interpretation. In the Supreme Court's telling,
the Department of Justice proposed that Congress amend the FTCA to "requir[e] all claims to be presented to the appropriate agency for consideration and possible settlement before a court action could be instituted. This procedure would make it possible for the claim first to be considered by the agency whose employee's activity allegedly caused the damage. That agency would have the best information concerning the activity which gave rise to the claim. Since it is the one directly concerned, it can be expected that claims which are found to be meritorious can be settled more quickly without the need for filing suit and possible expensive and time-consuming litigation."
The Senate Judiciary Committee further noted that "the improvements contemplated by [the 1966 amendments] would not only benefit private litigants, but would also be beneficial to the courts, the agencies, and the Department of Justice itself."
McNeil,
*1125Moreover, medical malpractice claims are among the most complex and time-consuming actions in FTCA litigation. The claimant must fully investigate the alleged medical malpractice, must compile years of medical records, and must retain one or more medical experts specializing in the field of medical care at issue. All this must be accomplished by the claimant before or during the FTCA administrative adjudication phase. Likewise, the responding agency must independently develop this information in order to settle or deny the FTCA administrative claim. These realities, well understood by any attorney competent to practice FTCA medical malpractice law, will often extend agency proceedings past the mandatory six months. Under defendant's theory, many medical malpractice cases would lose the benefit of administrative adjudication because plaintiffs would need to cut the agency proceedings short and file in federal court to avoid the repose deadline. The court cannot reconcile these practical consequences of defendant's theory with Congress' choice to encourage administrative adjudication.
The Supreme Court's oft-expressed presumption against implied preemption of "the historic police powers of the States" does not dislodge the court's statutory analysis. See Arizona,
In holding the FTCA did not preempt the South Dakota statute of repose, the magistrate judge concluded the FTCA's administrative adjudication provisions were not "so important to the objective of the statute as a whole that [they] should displace any substantive state statute of repose with which [they] might conflict." (Docket 22 at p. 28). The court's statutory analysis does not support this theory. There is no need to elevate the FTCA's private person analogue over its administrative adjudication requirement to resolve a conflict engendered by a state statute of repose. The conflict can be resolved without doing violence to Congress' intent in crafting both parts of the FTCA by preempting the incorporation of the state statute. See Food & Drug Admin. v. Brown & Williamson Tobacco Corp.,
The magistrate judge also noted allowing the plaintiff to proceed with her suit would "completely defeat[ ]" the purpose of the state statute of repose. (Docket 22 at p. 31). True enough, but the purpose of the state statute is of lesser concern in a *1126preemption analysis. The purpose of the federal statute controls, because that purpose determines whether the state statute constitutes a sufficient obstacle to merit preemption. Arizona,
The magistrate judge relied on CTS Corp., a case holding an express preemption provision in the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA") did not preempt North Carolina's general tort statute of repose.
The court might agree with the magistrate judge's reliance on CTS Corp. if only tension existed between the statute of repose and the FTCA's administrative adjudication provision. The facts of this case show that the interplay between these two statutes is more aptly described as open conflict. Under defendant's theory, plaintiff's compliance with the FTCA's administrative requirements doomed her case from the outset. While Congress may have intended to tolerate some tension between state substantive tort law and the FTCA, the court cannot conclude Congress intended to allow state law to eviscerate the administrative adjudication provision. The better approach is to give full effect to the administrative adjudication provision by holding it preempts South Dakota's statute of repose to the extent the two conflict. The court concludes applying the statute of repose would create "an obstacle to the accomplishment of the full purposes and objectives of Congress[.]" Arizona,
Plaintiff's objection is sustained.
IV. Conclusion
The court holds the FTCA preempts South Dakota's statute of repose to the extent that statute curtails plaintiff's FTCA claim. Plaintiff alleges the negligence causing the decedent's death occurred on May 19, 2015. (Docket 1 at ¶ 19). Plaintiff filed her administrative claim on May 17, 2017, within the two-year period provided by the FTCA. Id. at ¶ 10. The VA failed to act on plaintiff's administrative claim within six months and she accordingly brought this action. As plaintiff's case was timely brought under the FTCA and that statute preempts the South Dakota statute of repose, the court holds the United States' waiver of sovereign immunity created by the FTCA applies to this case. The court has subject matter jurisdiction.
ORDER
For the reasons given above, it is *1127ORDERED that plaintiff's objections to the report and recommendation (Docket 23) are overruled in part and sustained in part.
IT IS FURTHER ORDERED that the report and recommendation (Docket 22) is adopted in part and rejected in part, as described in this order.
IT IS FURTHER ORDERED that defendant's motion to dismiss the complaint (Docket 7) is denied.
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