Athletics Investment Group, LLC v. Schnitzer Steel Industries, Inc.

District Court, N.D. California·Decided May 14, 2024·No. 3:21-cv-05246·Unknown

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 ATHLETICS INVESTMENT GROUP, Case No. 21-cv-05246-MMC (DMR) LLC, 8 Plaintiff, ORDER FOLLOWING IN CAMERA 9 REVIEW v. 10 Re: Dkt. Nos. 103, 142 SCHNITZER STEEL INDUSTRIES, INC., 11 Defendant. 12 13 I. BACKGROUND 14 This is an action brought pursuant to the Clean Air Act’s (“CAA”) citizen suit enforcement 15 provision, 42 U.S.C. § 7604, to challenge Defendant Schnitzer Steel Industries, Inc.’s 16 (“Schnitzer”) operations at its metal shredding facility in West Oakland. 17 Plaintiff Athletics Investment Group, LLC (“AIG”) served a subpoena on third-party Bay 18 Area Air Quality Management District (“BAAQMD” or “the District”), a California state agency, 19 for production of 17 categories of documents. [Docket No. 103-1.] BAAQMD produced 20 approximately 5,000 documents in response to the subpoena but withheld nearly 9000 responsive 21 documents. AIG and BAAQMD subsequently filed a joint discovery letter regarding BAAQMD’s 22 response. Specifically, AIG challenges the sufficiency of BAAQMD’s privilege log; BAAQMD’s 23 claim of deliberative process privilege over approximately 9,000 documents; BAAQMD’s 24 withholding of “confidential documents shared under [two] interagency agreements”; and 25 BAAQMD’s redactions for relevance in 127 responsive documents. [Docket No. 103 (Jt. Letter).] 26 AIG moves for an order compelling BAAQMD to produce the documents that AIG contends were 27 “improperly withheld and redacted.” Jt. Letter 1. 1 review. [Docket Nos. 104, 105.] The court subsequently ordered AIG to select “20 examples of 2 withheld documents that it contends illustrate BAAQMD’s improper assertion of the deliberative 3 process privilege and five examples of documents containing BAAQMD’s redactions for 4 relevance,” and ordered BAAQMD to lodge the 25 documents for in camera review along with the 5 declaration of BAAQMD official Carol Allen supporting the District’s invocation of the 6 deliberative process privilege. [Docket No. 142.] The court noted that after reviewing the 7 exemplar documents it would “make benchmark rulings on the representative samples of 8 documents chosen by AIG and issue additional instructions or order(s) as it deems appropriate.” 9 Id. The court also ordered BAAQMD to lodge the two interagency agreements under which it 10 withheld “confidential documents.” Id. BAAQMD timely lodged all exemplar documents and 11 other materials for review. [See Docket Nos. 143, 153.] 12 The court reviewed the exemplar documents over which BAAQMD claims deliberative 13 process privilege that were submitted for in camera review along with the accompanying privilege 14 log entries and agency declaration. BAAQMD submitted parent emails and attachments to the 15 exemplars; in total, BAAQMD submitted 48 documents for in camera review. Some but not all of 16 BAAQMD’s claims of deliberative process privilege are supported by the record and by the law. 17 To move the parties’ dispute toward final resolution, the court sets forth its rulings on the 18 exemplar documents. BAAQMD and AIG shall now apply these benchmark rulings to the 19 remaining disputed documents withheld on the basis of deliberative process privilege as instructed 20 below. 21 The court has also reviewed the five exemplars of redacted documents and the two 22 interagency agreements under which BAAQMD withheld certain documents and now rules on 23 those disputes. 24 II. LEGAL STANDARDS 25 Federal Rule of Civil Procedure 45 governs discovery of nonparties by subpoena. Fed. R. 26 Civ. P. 45. The Advisory Committee Notes to Rule 45 state that “the scope of discovery through a 27 subpoena is the same as that applicable to Rule 34 and the other discovery rules,” which in turn is 1 34(a) (“A party may serve on any other party a request within the scope of Rule 26(b).”). Federal 2 Rule of Civil Procedure 26 provides:

3 Parties may obtain discovery regarding any nonprivileged matter that is relevant to any party’s claim or defense and proportional to the 4 needs of the case, considering the importance of the issues at stake in the action, the amount in controversy, the parties’ relative access to 5 relevant information, the parties’ resources, the importance of the discovery in resolving the issues, and whether the burden or expense 6 of the proposed discovery outweighs its likely benefit. 7 Fed. R. Civ. P. 26(b)(1). “Information within this scope of discovery need not be admissible in 8 evidence to be discoverable.” Id. “Relevancy, for the purposes of discovery, is defined broadly, 9 although it is not without ultimate and necessary boundaries.” Gonzales v. Google, Inc., 234 10 F.R.D. 674, 679-80 (N.D. Cal. 2006). 11 Rule 45 provides that “on timely motion, the court for the district where compliance is 12 required must quash or modify a subpoena that . . . requires disclosure of privileged or other 13 protected matter, if no exception or waiver applies; or subjects a person to undue burden.” Fed. R. 14 Civ. P. 45(d)(3)(A)(iii), (iv). “Of course, ‘if the sought-after documents are not relevant, nor 15 calculated to lead to the discovery of admissible evidence, then any burden whatsoever imposed 16 would be by definition undue.’” Del Campo v. Kennedy, 236 F.R.D. 454, 458 (N.D. Cal. 2006) 17 (quoting Compaq Computer Corp. v. Packard Bell Elec., Inc., 163 F.R.D. 329, 335-36 (N.D. Cal. 18 1995)). “[A] court determining the propriety of a subpoena balances the relevance of the 19 discovery sought, the requesting party’s need, and the potential hardship to the party subject to the 20 subpoena.” Gonzales, 234 F.R.D. at 680. 21 III. DISCUSSION OF THE DOCUMENTS SUBMITTED FOR IN CAMERA REVIEW FOR WHICH BAAQMD CLAIMS DELIBERATIVE PROCESS PRIVILEGE 22 A. Deliberative Process Privilege 23 The deliberative process privilege protects “the decision making processes of government 24 agencies” in order to “prevent injury to the quality of agency decisions.” N.L.R.B. v. Sears, 25 Roebuck & Co., 421 U.S. 132, 150-51 (1975) (quotation marks and citations omitted). “The 26 underlying premise of the privilege is that agency decision-making might be impaired if 27 discussions within the agency were subject to public review, thereby discouraging ‘frank 1 discussion of legal or policy matters.’” In re McKesson Governmental Entities Average 2 Wholesale Price Litig., 264 F.R.D. 595, 600 (N.D. Cal. 2009) (quoting Sears, 421 U.S. at 150). 3 The deliberative process privilege is not absolute, and even if the privilege applies, “a litigant may 4 obtain discovery of protected material if the need for the documents outweighs the governmental 5 interest in keeping the decision making process confidential.” McKesson, 264 F.R.D. at 601. The 6 Ninth Circuit has “defined the ambit of the deliberative process privilege . . . narrowly” and the 7 agency bears the burden of showing the privilege applies. Sierra Club, Inc. v. United States Fish 8 & Wildlife Serv., 925 F.3d 1000, 1011 (9th Cir. 2019). 9 In order for the deliberative process privilege to apply, “a document must be both (1) 10 predecisional or antecedent to the adoption of agency policy and (2) deliberative, meaning it must 11 actually be related to the process by which policies are formulated.” Nat’l Wildlife Fed’n v. U.S. 12 Forest Serv., 861 F.2d 1114, 1117 (9th Cir.

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