Midland National Bank v. Conlogue

720 F. Supp. 878, 1989 U.S. Dist. LEXIS 10313, 1989 WL 100275
CourtDistrict Court, D. Kansas
DecidedAugust 4, 1989
Docket83-1707-K
StatusPublished
Cited by1 cases

This text of 720 F. Supp. 878 (Midland National Bank v. Conlogue) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Midland National Bank v. Conlogue, 720 F. Supp. 878, 1989 U.S. Dist. LEXIS 10313, 1989 WL 100275 (D. Kan. 1989).

Opinion

MEMORANDUM AND ORDER

PATRICK F. KELLY, District Judge.

The factual background of the case has been discussed on two previous occasions by this court. Midland National Bank v. Conlogue, No. 83-1707-K (D. Kan. Mar. 22, 1989) (1989 WL 31439), and slip op. (D. Kan. July 29, 1986). The relevant facts may be briefly recounted here.

The intervening plaintiff, American Aircraft, Inc., was the owner of a Beechcraft King Air 90 airplane. Conlogue was the chief executive officer of American. In December, 1982, Conlogue was contacted by Ormie Blanton, an agent of the United States Customs Service. Blanton told Con-logue that the Customs Service needed the airplane for special undercover work. The plane would be flown only by a qualified pilot, and would be returned within a week or two. Conlogue was also cautioned not to disclose the government’s involvement to anyone, since a leak could result in the deaths of investigating agents.

Conlogue leased the airplane to Frank Raia, whom Blanton introduced as another customs agent, on December 21, 1982. On January 3, 1983, the airplane was crash-landed in the sea off Grand Cayman Island. No customs agents were aboard the airplane. The pilot of the airplane and a passenger were charged by the local police with illegal possession and importation of marijuana. The airplane was a total loss.

The plaintiff, Midland National Bank, held a security interest in the airplane. The defendant/third party plaintiff, Puritan Insurance Company, is the insurer of the airplane. Conlogue, Midland, and Puritan each present claims against the United States arising from the destruction of the airplane. This court has previously found Blanton to be immune from suit.

The United States has now moved to dismiss the claims against it, contending both that it is immune and that the court is without jurisdiction. Although the United States presents additional arguments which also will be addressed, it founds its present motion on two main arguments. First, it argues that the claims against it involve tort claims arising from misrepresentation, for which it retains immunity under 28 U.S.C. § 2680(h). Second, it argues that the claims are essentially contractual in nature, and that the court is therefore without jurisdiction to address the claims under 28 U.S.C. § 1346(a)(2).

Under 28 U.S.C. § 1346(b), the United States District Courts possess jurisdiction over civil actions arising from “the negligent or wrongful act or omission of any employee of the Government, while acting within the scope of his office or employ-ment_” The potential liability underlying this jurisdiction is established by the waiver of immunity contained in the Federal Tort Claims Act, 28 U.S.C. §§ 2671 et seq. The Tort Claims Act provides that the government

shall be liable, respecting the provisions of this title relating to tort claims, in the same manner and to the same extent as a private individual under like circumstances, but shall not be liable for interest prior to judgment or for punitive damages.

28 U.S.C. § 2674.

However, the waiver of immunity under the Act is limited by specific exceptions listed in 28 U.S.C. § 2680. Subsection (h) of this section provides that the Act shall not apply to

Any claim arising out of assault, battery, false imprisonment, false arrest, mali *880 cious prosecution, abuse of process, libel, slander, misrepresentation, deceit, or interference with contract rights....

The United States has now moved to dismiss the claims against it, contending that the claims arise out of alleged misrepresentations and are therefore barred through the operation of § 2680(h). In its brief, the United States correctly notes that misrepresentation under subsection (h) includes both intentional and negligent misrepresentation. United States v. Neustadt, 366 U.S. 696, 702, 81 S.Ct. 1294, 1298, 6 L.Ed.2d 614 (1961). To the extent that claims contained in the complaints filed against the United States in the present case represent actions for misrepresentation, whether intentional or negligent, the United States has retained its immunity, and those claims must be dismissed. However, the other claims contained in the complaints, to the extent that they represent tort claims separate from any governmental misrepresentations, must be retained.

In Block v. Neal, 460 U.S. 289, 103 S.Ct. 1089, 75 L.Ed.2d 67 (1983), the Court concluded that subsection (h) did not apply where the government has violated a duty of due care separate from any alleged misrepresentations. As in Neustadt, the plaintiff was a homeowner dissatisfied with the quality of the house constructed for him through the assistance of a federal agency. In Neustadt, the plaintiff had sued the agency, contending it had negligently inspected and appraised the house, and that he had been injured when he justifiably relied on the appraisal in purchasing the house. In Block, the plaintiff argued that the government agency, under the circumstances of the case, had violated a Good Samaritan duty to supervise the construction of the house.

The Court in Block held that the plaintiff's claims were not barred by Subsection (h). This provision provides protection for the government where the claim is grounded in misrepresentation, the essence of which, “whether negligent or intentional, is the communication of misinformation on which the recipient relies.” 460 U.S. at 296, 103 S.Ct. at 1093. The Court concluded, however, that subsection (h) “does not bar negligence actions which focus not on the Government’s failure to use due care in communicating information, but rather on the Government’s breach of a different duty.” Id., at 297, 103 S.Ct. at 1093. The Court then held that the plaintiff’s assertion of a Good Samaritan undertaking to supervise the construction of the house provided such an independent duty.

Nor was a different result compelled by the presence in the case of governmental misstatements which, in the absence of subsection (h), might have supported a claim for negligent misrepresentation in addition to the negligent supervision claim.

But the partial overlap between these two tort actions does not support the conclusion that if one is excepted under the Tort Claims Act, the other must be as well.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Wolf v. United States
855 F. Supp. 337 (D. Kansas, 1994)

Cite This Page — Counsel Stack

Bluebook (online)
720 F. Supp. 878, 1989 U.S. Dist. LEXIS 10313, 1989 WL 100275, Counsel Stack Legal Research, https://law.counselstack.com/opinion/midland-national-bank-v-conlogue-ksd-1989.