Dichter-Mad Family Partners, et al v. USA, No. 11-55577 (9th Cir. 2013)
Annotate this CasePlaintiffs, investors in Bernard Madoff's Ponzi scheme, brought a Federal Tort Claims Act (FTCA), 28 U.S.C. 2674 et seq., action against the SEC and the Government. On appeal, the court held that the district court correctly concluded that it lacked jurisdiction within the "discretionary function" exception to the United State's waiver of sovereign immunity in section 2680(a) of the FTCA. Accordingly, the court affirmed the district court's judgment of dismissal for lack of subject matter jurisdiction and adopted parts of the district court's opinion as its own. The court also held that the additional allegations made in the Second Amended Complaint were insufficient to overcome the discretionary function exception to the FTCA's waiver of sovereign immunity. Finally, the court held that the district court did not abuse its discretion in denying plaintiffs' request for additional discovery. Accordingly, the court affirmed the judgment.
Court Description: Federal Tort Claims Act. The panel affirmed the district court’s dismissal of an action alleging claims under the Federal Tort Claims Act. The panel held that the district court correctly concluded that it lacked jurisdiction to entertain appellants’ claims because they fell within the “discretionary function” exception to the United States’ waiver of sovereign immunity in the Federal Tort Claims Act. The panel affirmed the district court’s judgment of dismissal for lack of subject matter jurisdiction, and adopted Parts I through V of the district court’s April 20, 2010 opinion, Dichter-Mad Family Partners, LLP v. United States, 707 F. Supp.2d 1016 (C.D. Cal. 2010). The panel also held that the additional allegations made in the Second Amended Complaint were insufficient to overcome the discretionary function exception to the Act’s waiver of sovereign immunity. Finally, the panel held that the district court did not abuse its discretion in denying appellants’ request for additional discovery.
The court issued a subsequent related opinion or order on February 12, 2013.
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