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Bethel Native Corp., an Alaska Native Village Corp.,plaintiff v. Department of the Interior Bruce Babbitt, Secretary of the Interior Bureau of Indian Affairs Niles Cesar, Regional Administrator of the Bureau of Indian Affairs Ada Deer, Assistant Secretary of the Interior for Indian Affairs v. United States of America, Defendant-Third-Party-Plaintiff-Appellee v. State of Alaska,third-Party-Defendant-Appellant,and City of Bethel Southwest Fuels,inc. Michael S. Shantz Ben Dale, Third-Party-Defendants

Citations: 208 F.3d 1171; 2000 Cal. Daily Op. Serv. 2677; 30 Envtl. L. Rep. (Envtl. Law Inst.) 20492; 2000 Daily Journal DAR 3629; 50 ERC (BNA) 1889; 2000 U.S. App. LEXIS 6227Docket: 98-3531

Court: Court of Appeals for the Third Circuit; April 6, 2000; Federal Appellate Court

Narrative Opinion Summary

The case involves the Ninth Circuit Court of Appeals reviewing whether the Eleventh Amendment bars the United States from filing a third-party claim against the State of Alaska for equitable apportionment of tort liability in response to an action initiated under the Federal Tort Claims Act (FTCA). The United States had donated diesel fuel to Alaska, which, after being sold to the City of Bethel, resulted in a significant fuel leak affecting the Bethel Native Corporation's property. The district court allowed the United States to file a third-party complaint against the State, City, and contractors, alleging negligence. The State of Alaska's motion to dismiss the third-party claim based on Eleventh Amendment immunity was denied, leading to an appeal. The court upheld the denial, referencing Alden v. Maine, indicating that the Eleventh Amendment does not provide immunity from third-party claims in this context. The decision also referenced Alaska statute § 09.17.080 regarding fault allocation and clarified that equitable apportionment does not equate to declaratory relief, which might be restricted by the Eleventh Amendment. The ruling ultimately supported the United States' right to reduce potential damages through equitable apportionment, benefitting the original plaintiff by proportionally reducing the liability of the defendant/third-party plaintiff based on fault allocation.

Legal Issues Addressed

Alaska Statute § 09.17.080 and Fault Allocation

Application: The statute requires courts to allocate fault among all parties in tort actions, including the possibility of treating multiple parties as a single entity when their actions are indistinguishable.

Reasoning: This statute mandates that courts instruct juries or make findings regarding damages and percentage fault allocation among all involved parties, considering both individual conduct and the causal relationship to the damages claimed.

Collateral Estoppel and State Immunity

Application: The State argues that federal fault allocation might lead to a binding determination, but the ancillary effects of such judgments do not violate the Eleventh Amendment.

Reasoning: The United States counters that any state court judgment resulting from the federal court's findings would be an ancillary effect and not a direct violation of the Eleventh Amendment.

Eleventh Amendment Immunity and Third-Party Claims

Application: The Eleventh Amendment does not provide immunity for the State of Alaska against third-party claims filed by the United States for equitable apportionment of tort liability under the Federal Tort Claims Act.

Reasoning: The court determined that the Eleventh Amendment does not provide immunity for such third-party claims in this context.

Equitable Apportionment vs. Declaratory Relief

Application: Unlike declaratory judgments, which may be barred by the Eleventh Amendment, equitable apportionment serves to reduce potential damages against the United States without imposing ongoing duties.

Reasoning: The equitable relief sought in the current case is similar to the declaratory relief in Green, aiming to determine the proportionate liabilities of tortfeasors without imposing ongoing duties.

Federal Government's Ability to Sue States

Application: The United States can initiate lawsuits against states without being barred by the Eleventh Amendment, as states have consented to such actions reflecting national interests.

Reasoning: The Supreme Court clarified this distinction in Alden v. Maine, emphasizing that while state employees cannot sue their state for overtime pay, the United States can pursue such claims on their behalf.

Transition to Pure Several Liability in Alaska

Application: Alaska law now requires assessing total fault among parties without allowing for contribution among joint tortfeasors, which is relevant for equitable apportionment claims.

Reasoning: Alaska law has transitioned from 'modified joint and several liability' to a 'pure several liability' system, which removes the right of contribution among joint tortfeasors.