Loeffler v. Frank

486 U.S. 549, 108 S. Ct. 1965, 100 L. Ed. 2d 549, 1988 U.S. LEXIS 2586, 56 U.S.L.W. 4554, 46 Empl. Prac. Dec. (CCH) 38,003, 46 Fair Empl. Prac. Cas. (BNA) 1659
CourtSupreme Court of the United States
DecidedJune 13, 1988
Docket86-1431
StatusPublished
Cited by547 cases

This text of 486 U.S. 549 (Loeffler v. Frank) 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
Loeffler v. Frank, 486 U.S. 549, 108 S. Ct. 1965, 100 L. Ed. 2d 549, 1988 U.S. LEXIS 2586, 56 U.S.L.W. 4554, 46 Empl. Prac. Dec. (CCH) 38,003, 46 Fair Empl. Prac. Cas. (BNA) 1659 (1988).

Opinions

Justice Blackmun

delivered the opinion of the Court.

This case presents the question whether prejudgment interest may be awarded in a suit against the United States Postal Service brought under Title VII of the Civil Rights Act of 1964, 78 Stat. 253, as amended, 42 U. S. C. §2000e et seq.

I

Petitioner Theodore J. Loeffler was discharged from his position as a rural letter carrier for the United States Postal Service.1 Petitioner appealed his termination to the Merit Systems Protection Board and, when his discharge was affirmed there, sought administrative relief from the Equal Employment Opportunity Commission. This, also, was without success. Contending that his discharge resulted from [552]*552sex discrimination, petitioner subsequently brought this suit against the Postmaster General of the United States in his official capacity,2 pursuant to § 717 of Title VII, as amended, 42 U. S. C. §2000e-16. After a bench trial, the United States District Court for the Eastern District of Missouri concluded that petitioner was a victim of discrimination and ordered his reinstatement with backpay. App. to Pet. for Cert. A-26. Relying on a decision of its controlling court, Cross v. USPS, 733 F. 2d 1327, 1332 (CA8 1984) (en banc), cert. denied, 470 U. S. 1051 (1985), the District Court refused to award prejudgment interest. App. to Pet. for Cert. A-21. (In Cross, an equally divided Court of Appeals had affirmed the same District Judge’s conclusion that sovereign immunity barred an award of prejudgment interest in a Title VII suit against the Postal Service.)

The United States Court of Appeals for the Eighth Circuit affirmed the denial of prejudgment interest. Loeffler v. Carlin, 780 F. 2d 1365, 1370-1371 (1985). Concluding that the District Court’s reliance on Cross was “understandable and proper,” id., at 1370, the court stated: “If the question of prejudgment interest is to be reconsidered, it should be reconsidered by the Court en banc.” Id., at 1371.

Subsequently, the Eighth Circuit undertook that en banc reconsideration, and, by a 6-to-5 vote, affirmed the judgment of the District Court. Loeffler v. Tisch, 806 F. 2d 817 (1986). The majority adopted the reasoning of the majority of the original panel in Cross, 733 F. 2d 1327, which concluded that Congress had not waived the sovereign immunity of the Postal Service with regard to prejudgment interest in a Title [553]*553VII suit. The majority found its conclusion “strongly reinforced” by this Court’s recent decision in Library of Congress v. Shaw, 478 U. S. 810 (1986), which the majority interpreted as “holding that Congress, in enacting Title VII, did not waive the Government’s immunity from interest.”3 806 F. 2d, at 818. In the majority’s view, Congress’ provision in the 1970 Postal Reorganization Act, 39 U. S. C. § 401(1), that the Postal Service may “sue and be sued” was irrelevant to the question before it, because “a sue-and-be-sued clause does not expand the obligations of a federal entity in a suit brought pursuant to another statute that is itself a waiver of immunity and which constitutes an exclusive remedy.” 806 F. 2d, at 819.

The 5-judge dissent adopted the reasoning of the dissent in the Cross panel submission. That dissent had concluded that “limits on prejudgment interest have been imposed solely because of the barrier of sovereign immunity,” 733 F. 2d, at 1332, and that the sue-and-be-sued clause in the Postal Reorganization Act had eliminated that barrier in actions against the Postal Service. The dissent noted this Court’s observation in Shaw: “ ‘The no-interest rule is . . . inapplicable where the Government has cast off the cloak of sovereignty and assumed the status of a private commercial enterprise.’” 806 F. 2d, at 822, quoting Shaw, 478 U. S., at 317, n. 5. In the dissent’s view, the Postal Service fits within this exception and, therefore, “an award of prejudgment interest against the Postal Service under Title VII is not barred by sovereign immunity.” 806 F. 2d, at 823.

[554]*554Because of a conflict with the views of the Eleventh Circuit expressed in Nagy v. USPS, 773 F. 2d 1190 (1985), we granted certiorari to decide whether, in a Title VII suit, prejudgment interest may be awarded against the Postal Service. Sub nom. Loeffler v. Tisch, 483 U. S. 1004 (1987).

H

>

The question of statutory interpretation here presented, involving the interaction of the Postal Reorganization Act and Title VII, lends itself to straightforward resolution. Absent a waiver of sovereign immunity, the Federal Government is immune from suit. United States v. Sherwood, 312 U. S. 584, 586 (1941). Congress, however, has waived the sovereign immunity of certain federal entities from the times of their inception by including in the enabling legislation provisions that they may sue and be sued. In FHA v. Burr, 309 U. S. 242, 245 (1940), the Court explained:

“[S]uch waivers by Congress of governmental immunity . . . should be liberally construed. . . . Hence, when Congress establishes such an agency, authorizes it to engage in commercial and business transactions with the public, and permits it to ‘sue and be sued,’ it cannot be lightly assumed that restrictions on that authority are to be implied. Rather if the general authority to ‘sue and be sued’ is to be delimited by implied exceptions, it must be clearly shown that certain types of suits are not consistent with the statutory or constitutional scheme, that an implied restriction of the general authority is necessary to avoid grave interference with the performance of a governmental function, or that for other reasons it was plainly the purpose of Congress to use the ‘sue and be sued’ clause in a narrow sense. In the absence of such showing, it must be presumed that when Congress [555]*555launched a governmental agency into the commercial world and endowed it with authority to ‘sue or be sued,’ that agency is not less amenable to judicial process than a private enterprise under like circumstances would be.” (Footnote omitted.)

Accord, Franchise Tax Board of California v. USPS, 467 U. S. 512, 517-518 (1984); Reconstruction Finance Corporation v. J. G. Menihan Corp., 312 U. S. 81, 84-85 (1941); see also Keifer & Keifer v. Reconstruction Finance Corporation, 306 U. S. 381 (1939).

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Bluebook (online)
486 U.S. 549, 108 S. Ct. 1965, 100 L. Ed. 2d 549, 1988 U.S. LEXIS 2586, 56 U.S.L.W. 4554, 46 Empl. Prac. Dec. (CCH) 38,003, 46 Fair Empl. Prac. Cas. (BNA) 1659, Counsel Stack Legal Research, https://law.counselstack.com/opinion/loeffler-v-frank-scotus-1988.