USAA Cas. Ins. Co. v. PERMANENT MISSION OF NAMIBIA

681 F.3d 103, 2012 WL 1889409, 2012 U.S. App. LEXIS 10688
CourtCourt of Appeals for the Second Circuit
DecidedMay 25, 2012
Docket10-4892-cv
StatusPublished
Cited by28 cases

This text of 681 F.3d 103 (USAA Cas. Ins. Co. v. PERMANENT MISSION OF NAMIBIA) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
USAA Cas. Ins. Co. v. PERMANENT MISSION OF NAMIBIA, 681 F.3d 103, 2012 WL 1889409, 2012 U.S. App. LEXIS 10688 (2d Cir. 2012).

Opinion

JOSÉ A. CABRANES, Circuit Judge:

The question presented is whether the Permanent Mission of the Republic of Namibia to the United Nations (“the Mission” *105 or “Permanent Mission”) may be sued for the damage to an adjoining property caused by its alleged failure to comply with the New York City Building Code (“the Building Code”). 2 The Mission brings this interlocutory appeal from a November 17, 2010 order of the United States District Court for the Southern District of New York (Laura Taylor Swain, Judge) denying it immunity under the Foreign Sovereign Immunities Act (“FSIA”), 3 in the circumstances presented.

We affirm.

BACKGROUND 4

At some point before the events that gave rise to this action, the Republic of Namibia made the decision to house the chancery, or base of operations, of its Permanent Mission to the United Nations in a Manhattan townhouse located at 135 E. 36th Street (the “Building”). The Mission commissioned extensive interior construction in order to render the Building suitable for a diplomatic mission. To perform the proposed construction, the Mission hired an independent general contractor, Federation Development Corporation (“Federation”), which in turn hired a subcontractor, Ryback Development, Inc. (“Ryback”) (together with Federation, the “Contractors”).

The townhouse adjoining the Building, 133 E. 36th Street, was then owned by Robert Adelman and insured by USAA Casualty Insurance Co. (“USAA”). The Building was separated from the Adelman townhouse by a brick and mortar party wall, upon which the support beams of the Adelman townhouse rested.

In early December 2008, Ryback employees began pouring a reinforced concrete wall in the interior of the Building, alongside the existing party wall. On December 15, as the concrete wall was being poured, the party wall collapsed, causing substantial damage to Adelman’s property. Adelman filed an insurance claim with USAA, which paid Adelman $397,730 for his damages.

On April 21, 2010, USAA brought suit as Adelman’s subrogee against the Contractors and the Mission (jointly, the “defendants”) in New York State Supreme Court. 5 On May 26, 2010, the Mission removed the suit to federal court, and on July 8, 2010, with court approval, USAA filed an amended complaint (the “Amended Complaint”). The Amended Complaint alleged five counts against the Mission, its contractor, and its subcontractor: (1) negligence; (2) nuisance; (3) trespass; (4) ultrahazardous activity; and (5) res ipsa loquitur: 6

*106 In alleging that the Mission had committed a tort against Adelman, USAA relied primarily upon Section 3309.8 of the New York City Building Code. In pertinent part, that section states:

When any construction or demolition operation exposes or breaches an adjoining wall, including load bearing and non load-bearing walls as well as party walls and non party walls, the person causing the construction or demolition operation shall, at his or her own expense, perform the following: (1) Maintain the structural integrity of such walls, have a registered design professional investigate the stability and condition of the wall, and take all necessary steps to protect such wall. 7

USAA alleged that the Mission had violated that section of the Building Code by, among other things, “failing to shore up the common wall.”

On July 28, 2010, the Mission moved to dismiss the Amended Complaint pursuant to Federal Rule of Civil Procedure 12(b)(1), 8 arguing that the District Court lacked subject matter jurisdiction over the Mission because it is entitled to sovereign immunity under the FSIA. It also argued that the Amended Complaint should be dismissed pursuant to Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim upon which relief can be granted. 9

On November 17, 2010, the District Court granted the motion to dismiss in part, denied it in part, and held that the Mission was not entitled to sovereign immunity. 10 Reasoning that the Mission’s case “falls squarely within the [tortious activity] exception” to the immunity from suit conferred by the FSIA, the Court held that “[t]he discretionary function provision of 28 U.S.C. § 1605(a)(5)” was “inapplicable to the instant claim.” 11 Accordingly, the Court found that it had subject matter jurisdiction and denied the motion to dismiss pursuant to Rule 12(b)(1). 12 With respect to the Mission’s motion under Rule 12(b)(6), the District Court granted the motion to dismiss the Third (trespass) and Fourth (ultrahazardous activity) Counts of the Amended Complaint for failure to state a claim. It denied the motion to dismiss with respect to the First (negligence), Second (nuisance), and Fifth (res ipsa loqui tur)i Counts. The District Court’s ruling on the Rule 12(b)(6) motion is not before us on appeal.

*107 This appeal followed. The Mission argues on appeal that it is entitled to immunity under the FSIA from this “suit alleging vicarious liability for negligence of independent contractors who were hired to renovate a building to make it suitable for use as the Mission.” Br. of App’t Permanent Mission of the Repub. of Namib. at 4.

DISCUSSION

A. Appellate Jurisdiction and Standard of Review

We have jurisdiction to hear this interlocutory appeal because the District Court’s November 17, 2010 order denying, on the ground of sovereign immunity, the Mission’s motion to dismiss the Amended Complaint is immediately appealable under the collateral order doctrine. 13

We review “de novo the district court’s conclusions of law regarding jurisdiction under the FSIA.” 14 We also review de novo “ ‘a dismissal for lack of subject matter jurisdiction where the trial court dismissed on the basis of the complaint alone or the complaint supplemented by undisputed facts from the record.’ ” 15

B. The FSIA

The FSIA “provides the sole basis for obtaining jurisdiction over a foreign state in the courts of this country.”

Related

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Bluebook (online)
681 F.3d 103, 2012 WL 1889409, 2012 U.S. App. LEXIS 10688, Counsel Stack Legal Research, https://law.counselstack.com/opinion/usaa-cas-ins-co-v-permanent-mission-of-namibia-ca2-2012.