Midwest Knitting Mills, Incorporated v. United States

RIPPLE, Circuit Judge.

Midwest Knitting Mills, Inc. (Midwest Knitting) brought this action for damages under the Federal Tort Claims Act. It alleged that the government, acting through the Small Business Administration (SBA), negligently supervised and retained an employee known to be derelict in his duties. The district court dismissed the case for lack of subject matter jurisdiction. It held that, under these facts, Wisconsin would not recognize the tort of negligent supervision or retention of an employee. For the following reasons, we affirm the judgment of the district court.

I

BACKGROUND

A.…