United States v. Olsen

Facts

Two injured mine workers and a spouse (P) sued the U.S. under the Federal Torts Claims Act, on the ground that the mine accident was due to the negligence of the mine inspectors. The Act permits private tort actions to be filed against the federal government, if the circumstances are such as to render the U.S. liable for tort against the claimant, under local law, if the U.S. were a private person (28 USC Section 1346 (b)(1)). The action was partly dismissed by the district court on the basis that the allegations did not prove that local law would have imposed liability on a private person in similar circumstances. The court of appeal reversed the decision on two grounds: (1) Where functions unique to a government are at stake, the Act would waive sovereign immunity on the part of the federal government if a state or municipal body would have incurred liability under the law of the place where the act or breach of duty occurred. (2) Federal mine inspections are a unique governmental function such that there is no similar liability in the private sector. From these arguments, the Ninth Circuit determined that the U.S. waived its sovereign immunity in this case. The U.S. Supreme Court granted review.