Baker v. Consumer Financial Protection Bureau

CourtDistrict Court, District of Columbia
DecidedNovember 1, 2018
DocketCivil Action No. 2018-2403
StatusPublished

This text of Baker v. Consumer Financial Protection Bureau (Baker v. Consumer Financial Protection Bureau) 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
Baker v. Consumer Financial Protection Bureau, (D.D.C. 2018).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

JOSHUA BAKER, Plaintiff v. Civil Action No. 18-2403(CKK)

CONSUMER FINANCIAL PROTECTION BUREAU, Defendant

MEMORANDUM OPINION (November 1, 2018)

This is a Freedom of Information Act (“FOIA”) action, in which Plaintiff Joshua Baker

seeks records from the Consumer Financial Protection Bureau (“CFPB”) regarding its

investigation of Zillow Group, Inc. (“Zillow”). Before the Court is Plaintiff’s [2] Motion for a

Preliminary Injunction, which is opposed. Upon consideration of the pleadings,1 the relevant

legal authorities, and the record for purposes of this motion, the Court DENIES Plaintiff’s [2]

Motion. The Court concludes that Plaintiff has not made the requisite showing for a preliminary

injunction.

I. BACKGROUND Plaintiff is an attorney employed by The Rosen Law Firm, P.A. (“Rosen”). Pl.’s Mot.,

ECF No. 2, 1. Plaintiff submitted a FOIA request on behalf of Rosen in connection with a

securities class action in which Rosen is lead counsel. Id. In the class action, Rosen represents

purchasers of Zillow securities, alleging violations of the Securities Exchange Act of 1934. Id. at

1 The Court’s consideration has focused on the following documents: • Pl.’s Mot. for a Prelim. Inj. (“Pl.’s Mot.”), ECF No. 2; • Def.’s Opp’n to Pl.’s Mot. for a Prelim. Inj. (“Def.’s Opp’n”), ECF No. 5; • Pl.’s Reply Statement of Points and Authorities in Support of Pl.’s Mot. for a Prelim. Inj. (“Pl.’s Reply”), ECF No. 7. In an exercise of its discretion, the Court finds that holding oral argument in this action would not be of assistance in rendering a decision. See LCvR 7(f). 1 2. On October 2, 2018, the judge presiding over the class action dismissed the amended

complaint “without prejudice and with leave to amend.” Compl., ECF No. 1, ¶ 17. The judge

directed plaintiffs to file a second amended complaint by November 16, 2018. Id. Plaintiff

contends that the documents he seeks in his FOIA request are critical to supporting the

allegations in the second amended complaint, as Defendant has previously investigated Zillow

for misconduct similar to that alleged in the class action but did not take any enforcement action.

Id. at ¶¶ 16-18.

On July 26, 2018, Plaintiff filed a FOIA request with Defendant seeking access to the

following:

Any documents and/or correspondence related to the Civil Investigative Demand issued in 2015 by the Consumer Financial Protection Bureau to Zillow Group, Inc., including any documents and/or correspondence pertaining to the subsequent investigation.

Exhibit 1, ECF No. 2-2, 3. In response to Plaintiff’s FOIA request, on July 24, 2018, Defendant

sent an email attaching a letter dated June 27, 2018 acknowledging receipt of Plaintiff’s request

and assigning the request a case number. Exhibit 2, ECF No. 2-3, 2-3. That same day, Defendant

sent another email containing a fee estimate for plaintiff’s request. Exhibit 3, ECF No. 2-4, 3-4.

Defendant estimated that the fee to search for documents responsive to Plaintiff’s FOIA request

would be $35,160 and required Plaintiff to make an advance payment before Defendant would

start to process Plaintiff’s request. Id. On July 25, 2018, Rosen sent a check to Defendant for the

full amount. Weeks later, Plaintiff noticed that the check had never been cashed and contacted

Defendant by email to inquire. Pl.’s Mot., ECF No. 2, 4. On August 17, 2018, Plaintiff contacted

by telephone the FOIA analyst assigned to his case, who explained that Defendant had not

cashed the check because it was likely that Defendant would withhold or redact the vast majority

of documents requested. Prior to cashing the check, Defendant wanted to give Plaintiff an

2 opportunity to narrow his request. Declaration of Joshua Baker, ECF No. 2-1, ¶ 6. On October 2,

2018, Plaintiff emailed Defendant confirming that Plaintiff still wanted to proceed with the

unaltered request. Exhibit 4, ECF No. 2-5, 2. On October 4, 2018, Plaintiff again spoke with the

FOIA analyst assigned to his case who informed Plaintiff that his request would fall into the

“complex” que and that there were approximately twenty “complex” requests ahead of

Plaintiff’s, so it would likely take six to nine months to process Plaintiff’s request. Declaration of

Joshua Baker, ECF No. 2-1, ¶ 8.

On October 18, 2018, Plaintiff filed a Complaint in this Court, and on October 19, 2018,

Plaintiff filed his Motion for a Preliminary Injunction. Compl., ECF No. 1; Pl.’s Mot., ECF No.

2. In his motion, Plaintiff argues that Defendant failed to comply with FOIA’s mandated time

frame of twenty working days to respond to a FOIA request. See 5 U.S.C. § 552(a)(6)(A)(i).

Accordingly, Plaintiff asks this Court to issue a preliminary injunction ordering Defendant to

release all responsive records by a date certain. Initially, Plaintiff requested that the Court order

Defendant to release all responsive records by November 2, 2018. Given that briefing on

Plaintiff’s motion completed on October 30, 2018, this date for release would allow only two

days for the Court to consider the matter and issue a decision and for Defendant to process over

630,000 potentially responsive documents. And, as Defendant previously informed Plaintiff,

processing these records will be a substantial task as many of the documents will need to be

withheld or redacted “given their nature as confidential business information produced to a law

enforcement agency as part of an investigation and internal, predecisional, deliberative work

product by attorneys and others engaged in a law enforcement investigation.” Declaration of

Raynell Lazier, ECF No. 5-1, ¶ 16. Accordingly, Plaintiff has reconsidered his initial deadline. If

the Court finds Plaintiff’s initial deadline infeasible, Plaintiff instead asks the Court to order

3 Defendant to produce all responsive documents within ninety days, with some productions

occurring after thirty days and some occurring after sixty days. See Pl.’s Reply, ECF No. 7, 2.

II. LEGAL STANDARD “A preliminary injunction is ‘an extraordinary remedy that may only be awarded upon a

clear showing that the plaintiff is entitled to such relief.’” Sherley v. Sebelius, 644 F.3d 388, 392

(D.C. Cir. 2011) (quoting Winter v. Nat. Res. Def. Council, Inc., 555 U.S. 7, 22 (2008)); see also

Mazurek v. Armstrong, 520 U.S. 968, 972 (1997) (“[A] preliminary injunction is an

extraordinary and drastic remedy, one that should not be granted unless the movant, by a clear

showing, carries the burden of persuasion.” (emphasis in original; quotation marks omitted)). “A

plaintiff seeking a preliminary injunction must establish [1] that he is likely to succeed on the

merits, [2] that he is likely to suffer irreparable harm in the absence of preliminary relief, [3] that

the balance of equities tips in his favor, and [4] that an injunction is in the public interest.”

Aamer v. Obama, 742 F.3d 1023, 1038 (D.C. Cir. 2014) (quoting Sherley, 644 F.3d at 392

(quoting Winter, 555 U.S. at 20) (alteration in original; quotation marks omitted)). “‘When

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