Thacker v. Tennessee Valley Authority

On April 29, 2019, the U.S. Supreme Court decided Thacker v. Tennessee Valley Authority. The case arose from a tragic accident on the Tennessee River where Gary Thacker was electrocuted after his fishing boat struck a submerged power line owned and maintained by the Tennessee Valley Authority (TVA), a federally owned corporation. Thacker's estate filed a negligence lawsuit against TVA. The district court dismissed the suit, and the Eleventh Circuit affirmed, holding that TVA was protected by sovereign immunity through the discretionary function exception of the Federal Tort Claims Act, even though the TVA Act contains a broad "sue and be sued" clause. The Supreme Court unanimously reversed, holding that the discretionary function exception does not implicitly apply to the TVA Act's explicit waiver of immunity. The Court reasoned that the statutory language and structure demonstrated Congress's intent to subject TVA to tort liability just like a private corporation, permitting the lawsuit to proceed.

The U.S. Supreme Court issued a 9-0 decision reversing the Eleventh Circuit. The Court held that the Tennessee Valley Authority's statutory "sue and be sued" clause waives sovereign immunity and is not subject to the discretionary function exception, allowing the negligence lawsuit against TVA to move forward.

Whether the discretionary function exception of the Federal Tort Claims Act is implicitly incorporated into the Tennessee Valley Authority Act's "sue and be sued" clause, thereby barring a tort lawsuit against the federally owned corporation.

The decision clarified the limits of sovereign immunity for government-owned corporations, affirming that TVA can be held liable for negligence in its commercial operations. It reinforced the principle that express waivers of immunity by Congress should be broadly construed, ensuring accountability for federal entities when they engage in activities analogous to private businesses.