Arizona Maintenance Co. v. United States

Appellant Arizona Maintenance Co., a public utility serving domestic and commercial water users in Arizona, filed this suit against the United States under the Federal Tort Claims Act (FTCA), 28 U.S.C. §§ 1346 (b) and 2674. Arizona Maintenance claimed that blasting done by the United States in connection with construction of the Central Arizona Project seriously damaged Arizona Maintenance’s water system. The district court granted Appellee’s Motion to Dismiss and/or for Summary Judgment, holding that the government’s decision to blast and the manner in which it blasted were discretionary decisions protected by the discretionary function exception to the FTCA. We review the district court’s decision in light of the Supreme Court’s recent decision in Berkovitz v. United States, — U.S. -, 108 S.Ct. 1954 , 100 L.Ed.2d 531 (1988).

BACKGROUND

In 1968, the Colorado River Basin Project Act established the Central Arizona Project (“CAP”). 43 U.S.C. § 1521 . The CAP is part of a program designed to regulate the flow of the Colorado River in order to provide adequate water supplies, improved navigation, added outdoor recreation areas, improved wildlife conditions and added electrical…