Agility Public Warehousing Company K.S.C. v. Department of Defense

110 F. Supp. 3d 215, 2015 U.S. Dist. LEXIS 81071, 2015 WL 3867978
CourtDistrict Court, District of Columbia
DecidedJune 23, 2015
DocketCivil Action No. 2014-1064
StatusPublished
Cited by5 cases

This text of 110 F. Supp. 3d 215 (Agility Public Warehousing Company K.S.C. v. Department of Defense) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Agility Public Warehousing Company K.S.C. v. Department of Defense, 110 F. Supp. 3d 215, 2015 U.S. Dist. LEXIS 81071, 2015 WL 3867978 (D.D.C. 2015).

Opinion

MEMORANDUM OPINION

JOHN D. BATES, United States District Judge

Whistleblowers sent two- emails- to the Defense Logistics Agency claiming that Kuwait & Gulf Link Transport Company (“KGL”), a government contractor, had illicit ties to Iran that ought to disqualify the company from winning certain contracts. Although the whistleblowers called themselves “Scott Wilson,” the emails were later traced back to Agility Public Warehousing — the plaintiff in this case and a competing government contractor. Aggrieved by these emails, KGL sued Agility in Pennsylvania state court, claiming defamation and tortious interference with contractual and other business relationships. Alas, the sultry details (whistleblowers! Iran! feuding contractors! defamation!) are being explored in state court.

Some more mundane aspects of this dispute have found their way here to the District Court for the District of Columbia. *219 To defend itself in Pennsylvania, Agility sought information from DLA, demanding access to various documents and employee testimony through third-party subpoenas. DLA responded to these subpoenas, granting some requests for information, but denying others. All told, DLA eventually provided Agility with more than 1,000 documents, and it has made two of its employees available for depositions. 1 Some of those documents have been produced by DLA in response to valid points raised by Agility. But disagreements remain: Agility claims that DLA has improperly withheld (in whole or in part) just over 100 additional documents, and it claims that this withholding rises to the level of arbitrary and capricious behavior under the Administrative Procedure Act. It has therefore filed a motion to compel production of these documents' — which really amounts to a motion for partial summary judgment on its APA claim. 2 For the reasons explained below, and after in camera review of the disputed documents, the Court will grant Agility’s motion in part and deny it in part.

DISCUSSION

Any analysis in this case must begin with a nod to United States ex rel. Touhy v. Ragen, 340 U.S. 462, 71 S.Ct. 416, 95 L.Ed. 417 (1951). In that case, the Supreme Court explained that an agency employee could not be held in contempt for refusing to submit to a subpoena “on the ground that [he] is prohibited from making such submission by his superior.” Id. at 467, 71 S.Ct. 416. In the wake of that case, the Department of Defense— like other federal government entities— promulgated regulations (called, appropriately, Touhy regulations) that govern responses to third-party subpoenas for documents or testimony. See, e.g., 32 C.F.R. § 97.6. The regulations make clear the Department’s “policy that official information should generally be made reasonably available for use in Federal and State courts and by other governmental bodies unless the information is classified, privileged, or otherwise protected from public disclosure.” Id. § 97.4 (emphasis added). Invoking these regulations, DLA claims that several “privileges” justify the with-holdings at issue here, including the deliberative-process privilege, the attorney-client privilege, the work-product doctrine, and the criminal provisions of the Trade Secrets Act.

In cases like this, where “the agency refuses to produce the requested documents, the sole remedy for the state-court litigant is to file a collateral action *220 in federal court under the APA.” Houston Bus. Journal, Inc. v. Office of Comptroller of Currency, 86 F.3d 1208, 1212 (D.C.Cir.1996). As an APA case, then, the question is whether “the government has refused production in an arbitrary, capricious, or otherwise unlawful manner.” COMSAT Corp. v. Nat’l Sci Found., 190 F.3d 269, 277 (4th Cir.1999); see also Watts v. SEC, 482 F.3d 501, 508 n. * (D.C.Cir.2007) (noting the arbitrary and capricious standard applies in this kind of case). And that determination turns on whether the agency properly applied its claimed privileges. See Puerto Rico v. United States, 490 F.3d 50, 70-71 (1st Cir.2007) (“These materials fall within the scope of the ... privilege-[Therefore,] the FBI was neither arbitrary nor capricious in withholding such information.”). As the Court reviews the Agency’s privilege claims, the usual APA burden of proof controls: the Court will “presume[] agency action to be valid,” and it is Agility’s task to overcome this presumption. Ethyl Corp. v. EPA 541 F.2d 1, 34 (D.C.Cir.1976); see also Puerto Rico, 490 F.3d at 61 (applying deference to agency withholdings).

Before diving into the merits, a brief roadmap might prove useful. The parties are currently at odds concerning (by the Court’s count) 144 documents. For 136 of these documents, DLA has elected to withhold the document under the deliberative-process privilege, the attorney-client privilege, the work-product doctrine, or some combination of the three. This leaves eight documents, which DLA continues to withhold based on its non-disclosure responsibilities under the Trade Secrets Act. The Court will discuss each of these justifications, in turn.

I. Deliberative-Process Privilege

Start with the deliberative-process privilege, which is an “ancient privilege ... predicated on the recognition that the quality of administrative decision-making would be seriously undermined if agencies were forced to operate in a fishbowl.” Dow Jones & Co. v. Dep’t of Justice, 917 F.2d 571, 573 (D.C.Cir.1990) (internal quotation marks omitted). The privilege covers materials “that are both predecisional and deliberative,” Judicial Watch, Inc. v. Food & Drug Admin., 449 F.3d 141, 151 (D.C.Cir.2006); that is to say, documents that are “generated before the adoption of an agency policy” and that “reflect[] the give-and-take of the consultative process,” Coastal States Gas Corp. v. Dep’t of Energy, 617 F.2d 854, 866 (D.C.Cir.1980).

The Court is satisfied that the still-withheld documents fit this two-part description. First, the documents (and their redacted portions) reflect “pre-decisional” information. To establish a document’s pre-decisional character, DLA need only “identify[] the decisionmaking process to which [the documents in question] contributed.” Access Reports v. Dep’t of Justice,

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110 F. Supp. 3d 215, 2015 U.S. Dist. LEXIS 81071, 2015 WL 3867978, Counsel Stack Legal Research, https://law.counselstack.com/opinion/agility-public-warehousing-company-ksc-v-department-of-defense-dcd-2015.