United States v. Gaubert

Summary

The Supreme Court held that regulatory actions by federal officials overseeing a savings and loan association fell within the discretionary function exception to liability under the Federal Tort Claims Act. The Court rejected a distinction between protected policy decisions and unprotected operational or management-level actions, explaining that discretionary conduct may include day-to-day decisions when grounded in public policy. The Court reversed the judgment of the Fifth Circuit.

Holdings

1. The discretionary-function exception is not confined to planning or policymaking functions; operational and day-to-day management decisions may also be protected when they involve judgment or choice and are grounded in public-policy considerations.
2. The challenged actions were discretionary and grounded in public policy, so Gaubert's FTCA claims were barred by the discretionary-function exception.

Questions Presented

1. Whether the Federal Tort Claims Act's discretionary-function exception applies to governmental decisions made at the operational or management level rather than only to planning or policymaking decisions.
2. Whether the federal regulators' challenged supervisory activities involved discretionary judgment and were grounded in social, economic, or political policy within the meaning of 28 U.S.C. § 2680(a).

Disposition

reversed_and_remanded