Bean LLC v. John Doe Bank

291 F. Supp. 3d 34
CourtCourt of Appeals for the D.C. Circuit
DecidedJanuary 4, 2018
DocketCivil Action No. 17–2187 (RJL)
StatusPublished
Cited by3 cases

This text of 291 F. Supp. 3d 34 (Bean LLC v. John Doe Bank) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bean LLC v. John Doe Bank, 291 F. Supp. 3d 34 (D.C. Cir. 2018).

Opinion

RICHARD J. LEON, United States District Judge

Bean LLC, doing business as Fusion GPS ("Fusion" or "plaintiff"), applies to this Court for an order enjoining the enforcement of a Congressional subpoena ("the Subpoena") that requires the production of certain financial records from Fusion's bank, Defendant Bank ("the Bank").1 The Subpoena, issued by the Permanent Select Committee on Intelligence of the U.S. House of Representatives ("the Committee"), seeks records of Fusion's financial transactions with certain clients and contractors. The Committee issued the Subpoena in conjunction with its investigation into Russian active measures-i.e., Russian conduct, direct and indirect in nature, calculated to advance Russia's political agenda-directed at the 2016 U.S. presidential election ("the 2016 Presidential election"). The Subpoena followed revelations in the press that Fusion had a role in compiling a series of memos-together commonly known as "the Trump Dossier" (also referred to herein as "the Dossier")-that alleges ties between President Donald Trump and the Kremlin.

Although the Subpoena was issued to Defendant Bank-not to Fusion-Fusion filed a motion for a temporary restraining order and preliminary injunction, seeking to enjoin the Bank from complying with the Subpoena on the ground that it is overly broad, unauthorized, and requests records of Fusion's business transactions that are irrelevant to the Committee's investigative inquiry. While the Committee and Fusion were able to negotiate a narrowing of the thousands of records responsive to the Subpoena, they unfortunately could not agree as to seventy of those records. As to these, Fusion asserts that the Subpoena violates its First Amendment rights to speech and association, as well as its rights under certain financial privacy laws. This matter is now fully briefed and ripe for resolution. Upon consideration of the pleadings, oral argument, and the entire record herein. Fusion's Renewed *38Motion for a Temporary Restraining Order and Preliminary Injunction is DENIED.

BACKGROUND

The House Permanent Select Committee on Intelligence is a standing committee of the United States House of Representatives, charged with oversight of the intelligence community and intelligence-related activities and programs of the United States Government. See H.R. Res. 658, 95th Cong. (1977). Pursuant to those oversight responsibilities, the Committee is currently conducting an investigation into Russian interference with the 2016 Presidential election. See Press Release, U.S. House of Representatives Permanent Select Comm. on Intelligence, Intelligence Committee Chairman, Ranking Member Establish Parameters for Russia Investigation (Mar. 1, 2017) ("March 1, 2017 Press Release").2 Among other things, the Committee's investigation is seeking answers to the following questions: (1) "What Russian cyber activity and other active measures were directed against the United States and its allies?" and (2) "Did the Russian active measures include links between Russia and individuals associated with political campaigns or any other U.S. Persons?" Id.

Fusion is a research firm that provides strategic intelligence, opposition research-including research on political candidates-and due diligence services to corporations, law firms, and investors. Decl. of Peter Fritsch ("Fritsch Decl.") [Dkt. # 2-2] ¶ 6. During the 2016 Presidential election campaign, an unknown third party engaged Fusion's services to conduct political opposition research on then-candidate Donald J. Trump ("Mr. Trump"). Id. at ¶ 9; Decl. of Mark R. Stewart ("Stewart Decl.") [Dkt. # 12-1] ¶ 5. In early 2016, that unknown client terminated its contract with Fusion, but another client took over the contract, seeking the same opposition research. Stewart Decl ¶ 5. As part of this research, Fusion hired a former British intelligence officer, Christopher Steele ("Steele"), to research Mr. Trump's ties to Russia. Id. at ¶¶ 4, 6; Fritsch Decl. ¶ 9. Steele's research led to a series of memos that has become known in the press as the "Trump Dossier." Stewart Decl. ¶¶ 4, 6; Fritsch Decl. ¶ 9. The Dossier made unverified allegations of misconduct regarding Mr. Trump's relationship with Russian individuals, as well as allegations of collusion between the Trump campaign and representatives of the Russian government during the 2016 Presidential election. Stewart Decl. ¶ 6.

It was later revealed that Steele was paid an undisclosed sum of money for work he performed on behalf of the FBI, and that the Trump Dossier was provided to the FBI in 2016. Id. at ¶¶ 4-7, 9. It also came to light that other individuals in the Intelligence Community were aware of the Trump Dossier and its contents, and that they provided briefings about the Dossier to both President Obama and President-elect Trump in January 2017. Id. at ¶ 9. As a result, the Committee is seeking to discover, inter alia, who paid Fusion for the Trump Dossier, who received it, whether steps were taken to verify its accuracy, and whether the FBI relied on the Dossier as grounds for its counterintelligence investigation into potential coordination between the Trump campaign and the Russian government to influence the 2016 Presidential election.3 Id. at ¶¶ 9-10.

*39After unsuccessful attempts to obtain relevant documents and testimony from Fusion itself, see, e.g., Stewart Decl. ¶¶ 12-13, Committee Chairman Devin Nunes ("Chairman Nunes") issued subpoenas for testimony and documents to each of Fusion's principals. Id. at ¶ 14. Fusion's principals objected to these subpoenas, but on October 18, 2017, two of them appeared for compelled testimony, during which they invoked constitutional privileges not to testify pursuant to the First and Fifth Amendments. Id. at ¶¶ 16-17.

On October 5, 2017, the Committee served the Subpoena at issue in this dispute on Defendant Bank, seeking "all documents sufficient to identify Fusion GPS's banking transaction history, among other items, from August 1, 2015 to October 4, 2017." Id. at ¶ 14; Decl. of Joshua A. Levy ("Levy Decl.") Ex. A [Dkt. # 2-3]. The Bank initially raised a number of objections to the Subpoena, but after the Committee rejected all of those objections, the Bank, on October 19, 2017, agreed to comply and produce all responsive documents by 9 A.M. on October 23, 2017. Stewart Decl. ¶ 18.

In response, Fusion immediately filed the instant action on October 20, 2017, seeking to enjoin the Bank from turning over records of Fusion's financial transactions to the Committee. See Compl. ¶ 3. Curiously, Fusion did not name the Committee as a defendant, but instead listed only Defendant Bank. See id. at ¶ 9. This case was initially assigned to my colleague, Judge Tanya Chutkan, and she held a telephonic hearing with all interested parties-including the Committee-at 5 P.M. on the day the suit was filed. See 10/20/17 Minute Entry; Telephone Conference Tr., Oct. 20, 2017 [Dkt. # 18]. The Committee formally intervened in this case the following day. See Mot. to Intervene [Dkt. # 7]; 10/21/17 Minute Order (granting the Committee's Motion to Intervene).

After reviewing the pleadings, the Court again held a telephonic hearing with the parties on October 24, 2017. See 10/24/17 Minute Entry.

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Bluebook (online)
291 F. Supp. 3d 34, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bean-llc-v-john-doe-bank-cadc-2018.