Administrative Procedure -- 2005



United States v. Olson   (U.S. Supreme Court)

Federal Tort Claims Act, liability of government for mine inspection

The Supreme Court held 11/8/05 that the Federal Tort Claims Act’s authorization of private tort actions against the United States “under circumstances where the United States, if a private person, would be liable to the claimant,” 28 U.S.C. § 1346(b)(1) (emphasis added), does not extend to situations in which a state or municipal entity would instead be liable. The Court rejected the Ninth Circuit’s conclusion to the contrary in cases where “unique governmental functions” such as mine inspections are at issue. Because the Ninth Circuit also erred in concluding that no private-sector analogies exist for mine inspections, the Court remanded the case for consideration of whether under state law a private person in like circumstances would be liable. This case is important to all businesses subject to federal agencies’ inspections similar to those at issue here.

Decision Below: 362 F.3d 1236 (9th Cir. 2004)