Aversa v. USA

Case Date: 10/21/1996
Court: United States Court of Appeals
Docket No: 95-2216







UNITED STATES COURT OF APPEALS UNITED STATES COURT OF APPEALS
FOR THE FIRST CIRCUIT FOR THE FIRST CIRCUIT
____________________


No. 95-2216

DANIEL AVERSA, ET AL.,

Plaintiffs, Appellants,

v.

UNITED STATES OF AMERICA, ET AL.,

Defendants, Appellees.


____________________

APPEAL FROM THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF RHODE ISLAND

[Hon. Mary M. Lisi, U.S. District Judge] ___________________

____________________

Before

Lynch, Circuit Judge, _____________
Campbell and Bownes, Senior Circuit Judges. _____________________

____________________

Francis G. Murphy, with whom Kathryn B. Johnston and Hall, Hess, _________________ ____________________ ____________
Kenison, Stewart, Murphy, & Keefe, P.A. were on brief for appellants. _______________________________________
Richard A. Olderman, Attorney, with whom Barbara L. Herwig, _____________________ ___________________
Attorney, Civil Division, Department of Justice, Paul M. Gagnon, _______________
United States Attorney, and Frank W. Hunger, Assistant Attorney ________________
General, were on brief for appellees.

____________________

October 21, 1996
____________________





















BOWNES, Senior Circuit Judge. Daniel and Carla BOWNES, Senior Circuit Judge. ____________________

Aversa filed a civil action alleging that Patrick Walsh, an

Assistant United States Attorney in the District of New

Hampshire, and Kenneth Claunch, Chief of the Criminal

Investigation Division of the Internal Revenue Service,

falsely stated and implied to the local and national news

media that Daniel Aversa was involved in laundering

illegally-gotten money, tax evasion, drug trafficking and

racketeering activity, and thus committed slander and other

common law torts under New Hampshire law and deprived him of

his right to liberty guaranteed by the Constitution of the

United States. Senior District Judge Martin F. Loughlin, who

presided over the related criminal case, found the statements

to have been "totally false," "misleading," "outrageous,"

"self-serving" and "unfair." In this civil action,

Magistrate Judge Lovegreen and District Judge Mary Lisi

agreed with Judge Loughlin's condemnation, adding that the

defendants' conduct showed "extraordinarily poor judgment"

and was "lacking in professionalism." The district court,

however, dismissed the Aversas' lawsuit, finding that Walsh

and Claunch were absolutely immune from suit for the common

law torts, and qualifiedly immune from suit for the

constitutional tort.

The purpose of immunity -- absolute or qualified --

is not to protect erring federal officials from the



-2- 2













consequences of their injurious acts, but to safeguard the

public interest in having responsible governmental employees

faithfully carry out their duties without fear of protracted

litigation in unfounded damage suits. See Wyatt v. Cole, 112 ___ _____________

S. Ct. 1827, 1833 (1992); Westfall v. Erwin, 484 U.S. 292, _________________

295 (1988); Harlow v. Fitzgerald, 457 U.S. 800, 807 (1982); ____________________

Scheuer v. Rhodes, 416 U.S. 232, 241-42 (1974); Barr v. ___________________ _______

Matteo, 360 U.S. 564, 565 (1959) (plurality opinion); Wood v. ______ _______

United States, 995 F.2d 1122, 1126 (1st Cir. 1993); ______________

Buenrostro v. Collazo, 973 F.2d 39, 42 (1st Cir. 1992). In _____________________

obvious tension with that objective is that well-founded

damage suits promote the public interest in compensating

victims and deterring unlawful conduct. Harlow, 457 U.S. at ______

814, 819; Barr, 360 U.S. at 576. ____

The law of immunity seeks a balance between the

evils inevitable in any available alternative. Harlow, 457 ______

U.S. at 813; Wood, 995 F.2d at 1126. Thus, a federal ____

employee who allegedly commits a common law tort will be

absolutely immune from suit if he acted within the scope of

his federal employment, 28 U.S.C. 2679(b)(1), but the

plaintiff can proceed against the government unless some

exception to the Federal Tort Claims Act applies. And a

federal official is qualifiedly immune from suit for an

alleged constitutional tort if his "conduct [did] not violate

clearly established . . . constitutional rights of which a



-3- 3













reasonable person would have known," Harlow, 457 U.S. at 818, ______

even though his actions may have been "despicable and

wrongful" in some more general sense. Souza v. Pina, 53 F.3d _____________

423, 427 (1st Cir. 1995).

Although we affirm, we believe that the false and

misleading information allegedly disseminated to the press in

Aversa's criminal case deserves more than condemnation, and

therefore refer the matter to the appropriate disciplinary

bodies.

I. FACTUAL AND PROCEDURAL BACKGROUND I. FACTUAL AND PROCEDURAL BACKGROUND

Except where otherwise noted, the following facts

are taken from Aversa's complaint. Daniel Aversa ("Aversa")

and Vincent Mento ("Mento") were partners in a legitimate

real estate business.1 In January of 1989, they sold a

parcel of land, splitting the proceeds. At the same time,

Aversa was experiencing marital difficulties with his wife

Carla. In order to conceal some of his assets from his wife

in the event of a divorce, Aversa asked Mento if he could

deposit his share of the proceeds, amounting to $55,000, into

Mento's personal bank account. Mento agreed.

Both men were aware that domestic financial

institutions were required to report currency transactions in

excess of $10,000 to the Secretary of the Treasury, see 31 ___


____________________

1. Vincent and Shirley Mento were plaintiffs in this action
but did not pursue an appeal.

-4- 4













U.S.C. 5313(a); 31 C.F.R. 103.22(a)(1), and wished to

avoid causing a Currency Transaction Report ("CTR") to be

filed. Aversa therefore made a series of deposits into

Mento's account in sums just under $10,000.2 At the time,

Aversa was unaware that structuring the transactions to avoid

causing a CTR to be filed was a crime under federal law. See ___

31 U.S.C. 5324(a).

In June of 1990, IRS agents contacted Aversa and

informed him that he was under investigation for structuring

deposits. He immediately met with Assistant United States

Attorney Walsh, and without an attorney present, explained

that he was hiding the money from his wife, that it was not

derived from an illegal source, and that he did not know that

structuring was illegal. Walsh told Aversa that he and Mento

had been under investigation for some time and that he had no

reason to believe the money was anything but "clean," but

said that he did not need to prove that it was derived from

an illegal source or that Aversa knew that structuring was

illegal. Walsh told Aversa that there was no reason to seek

counsel and encouraged him to plead guilty because all that


____________________

2. Aversa's purpose in transferring the money out of his
account was to conceal it from his wife, a purpose we do not
condone. But Judge Loughlin found that Aversa and Mento
wished to avoid a CTR being filed because they believed it
would cause the Internal Revenue Service to hold Mento
responsible for the taxes on the amount, and that Aversa and
Mento each reported his share of the proceeds on his own tax
return.

-5- 5













was needed for a conviction was what Aversa had just told

him. In a later meeting with Aversa's counsel, Walsh said

that he previously had been successful in prosecuting

individuals for structuring in Miami, but that this case

would be his first involving "clean money," and he planned to

use it to "set a precedent" and "educate the public about the

currency transaction reporting requirements."

On June 28, 1990, Walsh obtained an indictment

charging Aversa and Mento with conspiracy, structuring, and

making false statements, and Aversa alone with attempting to

cause a domestic financial institution to file a report

containing a material omission or misstatement of fact. That

same day, Walsh, Claunch, and the United States Attorney for

the District of New Hampshire, Jeffrey R. Howard (with whom

Aversa alleged Walsh and Claunch conspired but who was not

joined as a defendant) issued a press release and held a

press conference announcing to the local and national news

media, which reported to the public, that Aversa and Mento

had been arrested for money laundering. Walsh and Claunch

knew that Aversa and Mento were not involved in laundering

illegally-gotten money, or in drug trafficking, tax evasion

or organized crime, but created the impression that they

were. An article in the Boston Globe dated June 29, 1990,

reported:

Walsh said money laundering is usually
done for purposes of tax evasion, drug


-6- 6













dealing or organized crime. He would not
say if either of yesterday's indictments
are related to these activities, but
added after the news conference that "it
would be a fair statement" to say
authorities are looking into how [these]
men amassed the sums of money involved.

Walsh also stated that Aversa faced up to forty years in

prison and added that the investigation was continuing and

more charges would be filed.

A front-page article in the Concord Monitor dated

June 29, 1990 reported:

The indictments are a sign that
prosecutors are serious about using the
money laundering laws, a tool that allows
them to charge people for handling money
illegally without having to prove that
the money was gained illegally, said
Jeffrey Howard, U.S.A. attorney for New
Hampshire.

"The indictments are important because
they are examples of the commitment the
I.R.S. has made . . . to use the money
laundering statutes in order to ferret
out tax evasion, drug trafficking and
other crimes," he said.

Prosecutors declined to say how Aversa
and Mento got the money or why they
believe the men tried to evade the
currency laws.

Claunch stated at the press conference that

"[t]hese cases represent the IRS's commitment to ferreting

out money launderers," and that the IRS wanted "to send a

message that money laundering is going to be detected,

investigated and prosecuted to the full extent."




-7- 7













On October 10, 1990, after Judge Loughlin granted

the government's motion in limine to preclude a defense based __ ______

on ignorance of the anti-structuring law, Aversa pled guilty

to structuring. The plea agreement stipulated:

1. The United States has no evidence
that the currency involved in these
transactions was obtained from an
unlawful source.

2. The United States has no evidence
that the defendant knew of the
structuring provision, but states to the
Court that such knowledge is not
necessary to establish a violation of
Section 5324.

Aversa reserved his right to appeal the issue of whether a

conviction under 31 U.S.C. 5324 required knowledge that

structuring is illegal.

On October 17, 1990, following Mento's conviction,

Walsh issued a press release in which he stated that the

currency transaction reporting laws and the laws that

prohibit structuring "were passed to assist in the

investigation of related criminal conduct, such as narcotics

trafficking, organized crime and racketeering activity and

tax violations," and that these convictions would send "a

strong clear message that persons who violate . . . and evade

those laws will be vigorously prosecuted." Walsh made oral

statements to the press stating and implying that Aversa and

Mento had violated the anti-structuring law in order to

further an underlying criminal enterprise, and that they



-8- 8













could not account for some of the money involved in the

structured transactions. No evidence had been adduced at

Mento's trial that there was an underlying criminal purpose

or that the source of the money was unexplained.

At Aversa's and Mento's sentencing, Judge Loughlin

found that Aversa and Mento would bear the stigma of the

"totally false" innuendoes reported in the media for the rest

of their lives. In a memorandum opinion ruling on Aversa's

and Mento's post-conviction motions,3 the judge noted that

the government had admitted that Aversa and Mento were "not

involved in drugs and not laundering ill-gotten gains and not

keeping information from the United States," and found that

the prosecutors' statements to the press were "outrageous and

unfair," "misleading and cruel," "self-serving and more than

a little disingenuous," and "smeared the reputation of these

two men."

This court vacated Aversa's and Mento's

convictions, ruling that the willfulness requirement of the

applicable criminal penalty provision, 31 U.S.C. 5322(a),

required the government to prove the violation of a known

legal duty or the reckless disregard thereof, and that an

____________________

3. The motions for writ of coram nobis were based on Cheek _____ _____ _____
v. United States, 111 S. Ct. 604 (1991), decided after __________________
Mento's trial. Judge Loughlin found that in light of Cheek, _____
he had erred in ruling out the defendants' proposed mistake
of law defense, but found that he could not grant relief
under a writ of coram nobis because other relief, in the form _____ _____
of an appeal, was available.

-9- 9













unintentional, nonreckless mistake of law was a complete

defense to a structuring charge. United States v. Aversa, ________________________

984 F.2d 493, 498, 500, 502 (1st Cir. 1993) (en banc),

vacated sub nom., Donovan v. United States, 114 S. Ct. 873 _______ ___ ___ _________________________

(1994).4 We remanded for a new trial, but the government

elected not to proceed again against Aversa.

The Aversas then brought a civil action seeking

compensatory and punitive damages against Walsh, Claunch, and

other unnamed defendants, alleging in Count I that the

defendants, acting under color of federal law, deprived

Aversa of his Fifth Amendment right to liberty; in Counts II

and III that they committed the torts of slander and

intentional infliction of emotional distress under New

Hampshire law; and in Count IV that the defendants' conduct

caused Carla Aversa to lose the consortium of her husband.

The complaint alleged that Walsh and Claunch defamed Aversa

for the purpose of personally benefitting in their careers,

and that their false and misleading statements caused

irreparable harm to Aversa's personal and business


____________________

4. The Supreme Court ordered our judgment in Aversa vacated ______
and the case remanded for reconsideration in light of Ratzlaf _______
v. United States, 114 S. Ct. 655 (1994), in which the Court ________________
had held that the willfulness requirement of 31 U.S.C.
5322(a) required knowledge that structuring is illegal. Id. __
at 663. Congress has since amended the statute so that
willfulness is no longer required for a violation of 31
U.S.C. 5324. See Pub. L. No. 103-325, 411, 108 Stat. ___
2160 (Sept. 23, 1994) (codified as amended at 31 U.S.C.
5322(a) (West Supp. 1996)).

-10- 10













reputations and his business goodwill, caused him to be

discharged from his job as an accountant, and prevented him

from finding other employment as an accountant. The case was

transferred from the District of New Hampshire to the

District of Rhode Island. Pursuant to the Federal Employees

Liability Reform and Tort Compensation Act of 1988, commonly

known as the Westfall Act, the Attorney General certified

that Walsh and Claunch acted within the scope of their

federal employment and the United States was provisionally

substituted as the party defendant. 28 U.S.C. 2679(d)(1).

Aversa was permitted to depose Walsh and Claunch in aid of

his challenge to the scope certification, and he submitted

the depositions and various exhibits to the court.5

Thereafter, Magistrate Judge Lovegreen ruled that Walsh and

Claunch were acting within the scope of their employment,

thus converting the common law claims into claims against the

United States under the Federal Tort Claims Act, 28 U.S.C.

2679(d)(1), 1346(b), then recommended that those claims be

dismissed for lack of subject matter jurisdiction based on


____________________

5. The exhibits included copies of press releases dated
June 28, 1990, and October 17, 1990, a newspaper article
dated June 29, 1990, a transcript of Aversa's sentencing
hearing on March 14, 1991, Judge Loughlin's memorandum
opinion dated April 29, 1991, ruling on Aversa's and Mento's
motions for writ of coram nobis, Chapter 7 of the United _____ _____
States Attorneys' Manual (1988), 28 C.F.R. 50.2, Rule 35 of
the Local New Hampshire District Court Rules, Claunch's job
description, and an Internal Revenue Policy Statement
concerning news coverage.

-11- 11













the exception to the Federal Tort Claims Act for claims

arising out of libel or slander. 28 U.S.C. 2680(h).

Treating the defendants' motion to dismiss the constitutional

claim as a motion for summary judgment, the magistrate judge

recommended summary judgment in favor of Walsh and Claunch on

the basis that they were qualifiedly immune.

Magistrate Judge Lovegreen stated in his Report and

Recommendation that he was in full agreement with Judge

Loughlin's assessment of the defendants' conduct, and added

that the "defendants' extraordinarily poor judgment in making

these statements should not go unnoticed." In adopting the

magistrate's Report and Recommendation in its entirety,

United States District Judge Mary Lisi found that the

defendants' "publication of misleading information [was]

lacking in professionalism and deserving of the opprobrium

articulated by Judge Loughlin and Magistrate Lovegreen."

II. DISCUSSION II. DISCUSSION

A. The Common Law Claims A. The Common Law Claims

As an initial matter, the Aversas' complaint

describes a claim for slander under New Hampshire law, which

defines the tort as follows:

In order to be actionable, the language
complained of must tend to lower the
plaintiff in the esteem of any
substantial and respectable group, even
though it may be quite a small minority.
The defamatory meaning must be one that
could be ascribed to the words by hearers
of common and reasonable understanding. .


-12- 12













. . The threshold question . . . is
whether the published words are capable
of conveying the defamatory meaning or
innuendo ascribed to them by the
plaintiff.

Thomson v. Cash, 402 A.2d 651, 653 (N.H. 1979) (internal ________________

quotation marks and citations omitted). We agree with the

district court (and the Aversas do not contest) that the

claims for intentional infliction of emotional distress and

loss of consortium through "verbal abuse and slander" also

"arose out of" slander within the meaning of 28 U.S.C.

2680(h). See Jiminez-Nieves v. United States, 682 F.2d 1, 6 ___ _______________________________

(1st Cir. 1982) (court must look beyond the literal language

to ascertain the real cause of the complaint; heartland of

the tort of defamation is injury to reputation by the

implicit or explicit communication of an idea).

1. The Westfall Act 1. The Westfall Act

Before 1988, a plaintiff with a tort claim against

a federal employee could proceed against the employee in his

or her personal capacity, and if the employee was "acting

within the scope of his office or employment," 28 U.S.C.

1346(b), could proceed against the United States, instead of

or in addition to the federal employee, under the Federal

Tort Claims Act (FTCA), 28 U.S.C. 1346, 2671-78, 2680.

Congress, however, expressly excepted certain kinds of claims

from the FTCA's otherwise broad waiver of sovereign immunity,

including any claim arising out of slander and other



-13- 13













specified intentional torts. 28 U.S.C. 2680(h).6 Thus,

while a plaintiff with a claim not excepted from the right to

sue the United States likely would choose to sue the

government rather than or in addition to an individual who

may be judgment-proof, a plaintiff with an excepted claim

like the Aversas' would have no choice but to proceed solely

against the employee. The employee, however, might be found

absolutely immune from suit according to federal common law

principles. See Howard v. Lyons, 360 U.S. 593, 597 (1959). ___ _______________

In 1988, the Supreme Court decided Westfall v. ____________

Erwin, 484 U.S. 292 (1988), holding that absolute immunity _____

from state-law tort actions was available to federal

employees only when their conduct was both "within the scope

of their official duties and . . . discretionary in nature." ___

Id. at 297-98 (emphasis in original). The Court, however, __

invited Congress to legislate standards defining the scope of

____________________

6. The legislative history regarding the intentional tort
exceptions is scant, but they appear to rest on concerns
raised by the Department of Justice that those torts would be
"easily exaggerated" and "difficult to make a defense
against." See 2 L. Jayson, Personal Injury, Handling Federal ___
Tort Claims 13.06[1][a], at 13-48-49 n. 1.2 (1995)
(discussing legislative history). In 1973, Congress removed
from the list assault, battery, false imprisonment, false
arrest, abuse of process and malicious prosecution committed
by investigative or law enforcement officers, in recognition
of the "manifest injustice" of denying a federal remedy when
a federal agent intentionally assaults a citizen in an
illegal raid, while providing the remedy to a citizen run
down by a negligent mail truck driver. See S. Rep. No. 93- ___
588, 93d Cong., 2d Sess. 1974, reprinted in 1974 U.S.C.C.A.N. _________ __
2789. Congress has not otherwise amended the exceptions for
intentional torts.

-14- 14













federal employee immunity, since it was in the best position

to resolve the "complex and often highly empirical inquiry"

whether the "contribution to effective government"

sufficiently "outweighs the potential harm to individual

citizens" to warrant immunity in a particular context. Id. __

at 299-300.

Congress responded within the year with the Federal

Employees Liability Reform and Tort Compensation Act of 1988,

commonly known as the Westfall Act. The Westfall Act amended

the FTCA to make an action against the United States the

exclusive remedy for money damages for injury arising from

the "negligent or wrongful act or omission" of a federal

employee "acting within the scope of his office or

employment," 28 U.S.C. 2679(b)(1), thus eliminating the

discretionary function requirement and making federal

employees absolutely immune from suit for torts committed

within the scope of employment.7 The FTCA is the exclusive

remedy even when, as here, an exception to the FTCA precludes







____________________

7. Congress understood prior immunity law as not requiring
the act to have been discretionary in nature, feared
protracted litigation in determining whether the employee
exercised governmental discretion, and intended "to return
Federal employees to the status they held prior to the
Westfall decision." See H.R. Rep. No. 100-700, 100th Cong., ________ ___
2d Sess. 4,reprinted in 1988 U.S.C.C.A.N. 5945, at 5946-47. _________ __

-15- 15













government liability. United States v. Smith, 499 U.S. 160, _______________________

165-67 (1991).8

The exclusive remedy provision is first invoked

through a certification by the Attorney General or her

delegate that the employee was acting within the scope of

employment.9 28 U.S.C. 2679(d)(1). Once the certification

is made, the suit is "deemed an action against the United

States" under the FTCA and the United States is substituted

as the party defendant, id., but the certification is __

provisional and subject to judicial review, after which the

employee may be resubstituted. Gutierrez de Martinez v. __________________________

Lamagno, 115 S. Ct. 2227, 2230-31 (1995). _______

2. State Respondeat Superior Law 2. State Respondeat Superior Law __________ ________

Before the Westfall Act, federal employee immunity

from suit for state law torts was decided according to

federal common law. The Westfall Act provides that a federal

____________________

8. The Act provides that once the United States has been
substituted as the party defendant, the action "shall be
subject to the limitations and exceptions applicable to . . .
any action against the United States filed pursuant to
section 1346(b)," 28 U.S.C. 2679(d)(4) (sentence structure
disregarded), and the legislative history states that "any
claim against the government that is precluded by the
exceptions set forth in Section 2680 of Title 28, U.S.C. also
is precluded against an employee in [sic] his or her estate."
H.R. Rep. No. 100-700, supra, at 5950. _____

9. The Attorney General has delegated her authority to make
scope of employment certifications to the United States
Attorneys with respect to civil actions brought against
federal employees in their respective districts, subject to
the supervision of the Assistant Attorney General in charge
of the Civil Division. See 28 C.F.R. 15.3(a). ___

-16- 16













employee is immune if he or she acted "within the scope of

his office or employment," 28 U.S.C. 2679(b)(1), which,

according to the legislative history, is to be determined by

the same law that had previously been used only to determine

whether the United States could be sued under the FTCA: the

law of respondeat superior of the state in which the incident __________ ________

occurred. See H.R. Rep. No. 100-700, supra, at 5949. ___ _____

At oral argument, we raised a concern about whether

certain comments in the recent case of Gutierrez de Martinez _____________________

v. Lamagno, supra, might indicate that scope of employment is __________ _____

to be determined according to federal common law rather than

state respondeat superior law. In that case, the Court __________ ________

concluded that a certification by the Attorney General or her

delegate that the federal employee was acting within the

scope of his or her employment is subject to judicial review

for purposes of permanently substituting the United States as

the party defendant. 115 S. Ct. at 2234-36. Amicus raised a

potential Article III problem -- that if the court concluded

that the employee acted outside the scope of employment, and

the plaintiff and defendant were not of diverse citizenship,

there would no longer be a federal question to support

subject matter jurisdiction once the federal employee was

resubstituted. Id. at 2236. A four-justice plurality __

concluded that Article III nonetheless was satisfied because

"there was a nonfrivolous federal question" presented at the ___



-17- 17













outset of the case. Id. at 2236 (emphasis in original). __

Justice Ginsburg wrote:

At that time, the United States was the
defendant, and the action was thus under
the FTCA. Whether the employee was
acting within the scope of his federal
employment is a significant federal
question -- and the Westfall Act was
designed to assure that this question
could be aired in a federal forum.
Because a case under the Westfall Act
thus "raises [a] questio[n] of
substantive federal law at the very
outset," it "clearly 'arises under'
federal law, as that term is used in Art.
III."

Id. at 2236 (citations omitted). __

After further briefing in which both parties agreed

that the plurality did not mean that the scope determination

should be resolved by reference to federal rather than state

law, we reach the same conclusion. First, we think that all

the plurality intended to address was whether there is a

sufficient federal predicate to keep a Westfall Act case in

federal court, once a determination has been made that the

defendant was not acting within the scope of his federal

employment. The answer was yes, because at the outset, the

case arose under a law of the United States (the FTCA), and

the United States was a party. See U.S. Const. art. III, ___

2. Second, even if Justice Ginsburg was referring in some

measure to the scope determination, federal law does

determine whether a person is a federal employee and the

nature and contours of his or her federal responsibilities.


-18- 18













See Ezekiel v. Michel, 66 F.3d 894, 899 (7th Cir. 1995); ___ __________________

Platis v. United States, 409 F.2d 1009, 1011 (10th Cir. _________________________

1969). But state law governs whether the person was acting

within the scope of that employment and those

responsibilities. As already noted, the legislative history

is clear that Congress so intended, H.R. Rep. No. 100-700,

supra, at 5949, and although we are the first to grapple with _____

the meaning of the plurality's remarks in Gutierrez de _____________

Martinez, the courts of appeal, including our own, have ________

concluded that state law controls. See Heuton v. Anderson, ___ ___________________

75 F.3d 357, 360 (8th Cir. 1996); Haddon v. United States, 68 _______________________

F.3d 1420 (D.C. Cir. 1995); Garcia v. United States, 62 F.3d _______________________

126, 127 (5th Cir. 1995); Jamison v. Wiley, 14 F.3d 222, 227 ________________

n.4 (4th Cir. 1994); Schrob v. Catterson, 967 F.2d 929, 934 ___________________

(3d Cir. 1992); McHugh v. Univ. of Vermont, 966 F.2d 67 (2d ___________________________

Cir. 1992); S.J. & W. Ranch, Inc. v. Lehtinen, 913 F.2d 1538, _________________________________

1542 (11th Cir. 1990), cert. denied, 112 S. Ct. 62 (1991); ____ ______

Nasuti v. Scannell, 906 F.2d 802, 805 n.3 (1st Cir. 1990); ___________________

Arbour v. Jenkins, 903 F.2d 416, 421-22 (6th Cir. 1990); ___________________

Washington v. United States, 868 F.2d 332, 334 (9th Cir.), ____________________________

cert. denied, 493 U.S. 992 (1989). ____ ______

In a related vein, Aversa argues that we indicated

in Nasuti v. Scannell, supra, that intentional torts are not __________________ _____

within the scope of employment as a matter of law. There, we

stated that "the tort charged (assault and battery) is one of



-19- 19













the 2680(h) exceptions which could not by definition be

within the scope of employment." 906 F.2d at 813 n.16. This

remark, however, does not mean that intentional torts

excepted by section 2680(h) are outside the scope of

employment as a matter of federal law regardless of the law

of respondeat superior of the state in which the tort __________ ________

occurred. The assault at issue in Nasuti took place in ______

Massachusetts, under whose law an assault is within the scope

of employment only if done in response to some conduct of the

plaintiff that interfered at the time with the employee's

ability to do his or her job. Id. at 805 n.3 (citing Miller __ ______

v. Federated Dep't Stores, Inc., 304 N.E.2d 573, 579 (Mass. ________________________________

1973)). Because the district court found no evidence of

those circumstances, the assault on Nasuti was outside the

scope of employment as a matter of Massachusetts law.

Generally, however, an intentional tort excepted by section

2680(h) can be within the scope of employment if state

respondeat superior law so requires. See, e.g., Henson v. __________ ________ ___ ____ _________

NASA, 14 F.3d 1143, 1147-48 (6th Cir. 1994) (under Ohio law, ____

an employee's acts are within the scope of employment if he

acts within his authority during the course of employment

even though acting intentionally or maliciously, but are

outside the scope if the acts are self-serving and in no way

facilitate the employer's business); Nadler v. Mann, 951 F.2d ______________

301, 305-06 (11th Cir. 1992) (under Florida law, prosecutor's



-20- 20













allegedly slanderous conduct in referring bribery allegation

to FBI was within scope of employment, but leaking the story

to the press was not); Jayson, supra, 9.07[1], at 9-168 _____

(that the employee's conduct was intentional does not

preclude a finding that he was acting within the scope of

employment).

3. Scope of Employment 3. Scope of Employment

We now turn to the merits. It is the plaintiff's

burden to prove the existence of subject matter jurisdiction.

Murphy v. United States, 45 F.3d 520, 522 (1st Cir.), cert. _______________________ ____

denied, 115 S. Ct. 2581 (1995). Because it is not in dispute ______

that Aversa cannot sue the United States for defamation,

there is subject matter jurisdiction only if Walsh and/or

Claunch acted outside the scope of his employment. It was

Aversa's burden to persuade the court that they did. Nasuti, ______

906 F.2d at 813 n. 16. In ruling on a motion to dismiss for

lack of subject matter jurisdiction under Fed. R. Civ. P.

12(b)(1), the district court must construe the complaint

liberally, treating all well-pleaded facts as true and

indulging all reasonable inferences in favor of the

plaintiff. Murphy, 45 F.3d at 522. In addition, the court ______

may consider whatever evidence has been submitted, such as

the depositions and exhibits submitted in this case. Cf. __

Nasuti, 906 F.2d at 808 (trial court may hold evidentiary ______

hearing to resolve immunity-related factual disputes). We



-21- 21













review the district court's scope of employment determination

de novo. __ ____

There is no New Hampshire case resolving a scope-

of-employment question in a defamation case, but we find

sufficient guidance in New Hampshire cases dealing with the

question in the context of assault and in those sections of

the Restatement (Second) of Agency that we feel confident the

New Hampshire Supreme Court would follow. See Croes v. ___ _________

United States, 726 F.2d 31, 32 (1st Cir. 1984). _____________

An act is within the scope of employment under New

Hampshire law if it was authorized by the employer or

incidental to authorized duties; if it was done within the

time and space limits of the employment; and if it was

actuated at least in part by a purpose to serve an objective

of the employer. See Daigle v. City of Portsmouth, 534 A.2d ___ ____________________________

689, 698-700, 701-02 (N.H. 1987); Richard v. Amoskeag Mfg. _________________________

Co., 109 A. 88, 91-92 (N.H. 1920); Restatement (Second) of ___

Agency 228(1) (1958). The conduct is not within the scope

of employment if it was "different in kind from that

authorized, far beyond the authorized time or space limits,

or too little actuated by a purpose to serve the master."

Restatement, supra, 228(2). _____

As there was no dispute that Walsh and Claunch

acted within the time and space limits of their employment,

the magistrate judge focused on whether their conduct was



-22- 22













authorized or incidental to authorized duties, and was

intended by them to serve their employers. He found that

because Walsh and Claunch were authorized to prepare press

releases and participate in press conferences in order to

keep the public informed, and because Howard approved the

press releases, made the decision to hold the press

conferences, and was present for the press conferences, the

statements were either authorized or incidental to authorized

duties. The magistrate judge further found that Walsh and

Claunch acted at least in part to serve their employers'

interests in keeping the public informed of law enforcement

efforts.

Aversa correctly argues that Walsh's defamatory

statements to the press were not authorized. Walsh testified

that as an Assistant United States Attorney, he was expected

to abide by the United States Attorneys' Manual ("the

Manual") issued by his employer, the Department of Justice.

Chapter 7 of the Manual, entitled "Media Relations," provides

that "fairness [and] accuracy . . . must prevail in all

dealings with the news media." Manual, ch. 7, 1-7.001

(1988). News conferences should not be held to announce

indictments or arrests except in "unusual circumstances,"

such as to alert the public about a fugitive from justice,

and then "extreme care" should be taken to avoid statements

branding an accused as guilty of a crime of which he or she



-23- 23













has not been convicted. Id. Written news releases "relating __

the essentials of the indictment" may be distributed, and,

with permission of the United States Attorney, an Assistant

United States Attorney "may answer legitimate questions about

indictments or arrests, either in press conferences or in

discussions with individual reporters, but answers should not

go beyond explanation of what is in the public document or

the confines of 28 C.F.R. 50.2." Id. The Manual provides __

that 28 C.F.R. 50.2 "defines the types of information that

may be and the types of information that may not be made ___ __ ___ ___ __

available to the news media about pending . . . criminal

cases by employees of the Department of Justice." Id. __

(emphasis in original). Employees are to adhere to the

regulation "in both letter and spirit." Id. __

The regulation provides that, among other facts and

circumstances not relevant here, Justice Department employees

may make public the "substance or text of the charge, such as

a[n] indictment," and may disclose "only incontrovertible,

factual matters." 28 C.F.R. 50.2(b)(3). Release of

information that would be prejudicial or would serve no law

enforcement function is prohibited. Id. 50.2(b)(3), (5), __

(6). Statements which could "reasonably be expected to

influence the outcome of a pending or future trial," and

statements concerning evidence in the case, whether or not





-24- 24













anticipated to be used at trial, are prohibited. Id. __

50.2(b)(2), (6)(v).

Walsh also testified that he was subject to Rule 35

of the Local New Hampshire District Court Rules, which

prohibits any lawyer from releasing information that is not a

matter of public record, or is likely to interfere with a

fair trial or otherwise prejudice the due administration of

justice. See D.N.H. L.R. 35. ___

Walsh admitted that, in dealing with the news media

regarding a criminal case, he was not authorized to say

anything that was inaccurate or misleading, not contained in

a public document, or prejudicial to a defendant's right to a

fair trial, or to otherwise contravene the directives of the

Manual, 28 C.F.R. 50.2, or Local Rule 35. The statements,

as represented in the complaint and appearing in the press

releases and news articles submitted to the court,

transgressedthesepoliciesandrules andthereforewerenot authorized.

That Howard approved the press releases, made the

decision to call the press conferences, and was present at

the press conferences does not change that result. Howard

did not approve in advance any of Walsh's oral statements to

the press.10 Moreover, we do not think that Howard's

____________________

10. Howard did approve Walsh's statements after the fact.
Judge Loughlin required Howard's presence at the sentencing
hearing and asked him to respond to his criticism of the
"various innuendoes, totally false, in the media that these
crimes were drug related." Howard stated that he "stood by

-25- 25













approval can suffice as authorization for Walsh's defamatory

statements. An employee of the Department of Justice who

wishes to release information beyond that allowed by 28

C.F.R. 50.2 must obtain permission from the Attorney

General or Deputy Attorney General, 28 C.F.R. 50.2(9), not

the United States Attorney, and Walsh did not seek such

approval.

Although an employee's intentionally tortious act

was not authorized, it may nonetheless have been within the

scope of employment if it was "incidental to authorized

duties." According to New Hampshire cases dec