Bernard T. Halloran v. Veterans Administration

874 F.2d 315, 35 Cont. Cas. Fed. 75,689, 1989 U.S. App. LEXIS 7915, 1989 WL 51536
CourtCourt of Appeals for the Fifth Circuit
DecidedJune 6, 1989
Docket88-6180, 89-2055
StatusPublished
Cited by48 cases

This text of 874 F.2d 315 (Bernard T. Halloran v. Veterans Administration) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bernard T. Halloran v. Veterans Administration, 874 F.2d 315, 35 Cont. Cas. Fed. 75,689, 1989 U.S. App. LEXIS 7915, 1989 WL 51536 (5th Cir. 1989).

Opinion

JERRY E. SMITH, Circuit Judge:

During an investigation into alleged fraud by a United States government contractor, Veterans Administration (VA) officials surreptitiously taped a series of conversations among undercover government agents, employees of the contractor, and third parties. In response to a request under the Freedom of Information Act (FOIA), 5 U.S.C. § 552, for transcripts of the tapes, the government released copies of the transcripts from which it deleted (1) identifying information regarding the suspects and third parties and (2) medical information about one particular third party. The district court ordered the government to produce unredacted copies of the transcripts; because we conclude that the information withheld by the government comes within the FOIA exemption for “records or information compiled for law enforcement purposes [the disclosure of which] ... (C) could reasonably be expected to constitute an unwarranted invasion of privacy,” id. § 552(b)(7)(C), we reverse and render.

I.

A.

In 1984, Santa Fe Engineers, Inc. (“Santa Fe”), contracted with the VA to renovate two VA medical centers; Santa Fe in turn subcontracted a portion of this work relating to asbestos removal to All Professional Services, Inc. (APS). During the course of the work, APS alleged, Santa Fe sent a letter to APS suggesting that the two firms bill the government for more than the contract price — $30 per cubic foot removed — and split the excess. APS perceived this suggestion as a kickback proposal, and so informed the VA Office of Inspector General.

In response to the tip, the Inspector General, working with APS employees, began an undercover investigation of Santa Fe. During the investigation, the Inspector General had APS employees or an undercover federal agent wear hidden microphones to tape, secretly, conversations with Santa Fe employees. Six transcripts, totaling 198 pages, were made from these tapes.

After the investigation was completed, the Inspector General recommended to the Justice Department that criminal indictments be sought against Santa Fe and three of its employees. The United States Attorney’s Office, after reviewing the evidence and the Inspector General’s recommendation, declined to prosecute, citing, inter alia, “the lack of sufficient evidence.”

B.

Bernard Halloran, an attorney, began representing APS in 1985, while the investigation was underway. During this time, Halloran, on behalf of APS, sought to collect money from Santa Fe for work performed by APS on, inter alia, the VA project. Currently, the dispute between APS and Santa Fe over the amount due APS for its work on the VA project is the subject of a civil lawsuit.

Pursuant to the FOIA, Halloran requested that the VA release to him, inter alia, *318 the transeipts of the conversations secretly taped during the Inspector General’s investigation. Although it notified Halloran that it was processing his request, the YA failed to produce the transcripts within the statutory period, and Halloran filed the instant suit. Shortly thereafter, the VA released redacted copies of the transcripts; these redactions are the subject of this appeal.

The YA made two sets of deletions from the transcripts. First, it deleted the names of, and other identifying information relating to, forty-two individuals, i.e., the three unindicted suspects of the investigation, other persons participating in the conversations, and third parties mentioned in the conversations, including one federal employee who was not involved in the investigation. The VA did not delete from the transcripts the names of APS employees mentioned in Halloran’s FOIA request or the federal special agents who worked with APS during the investigation. Second, the VA deleted medical information, relating to one person, that had been revealed during the course of one of the conversations.

Halloran objected to the deletions, contending that the information deleted was not exempt from disclosure under the FOIA. After performing an in camera inspection of the unedited transcripts, the district court concluded that the FOIA exemptions under which the VA sought to justify the deletions were not applicable. Accordingly, it ordered the VA to produce the deleted information. 1 The VA appeals.

II.

The VA argues that its refusal to release the identifying and medical information is justified under both FOIA exemption 6, which excepts from disclosure “personnel and medical files and similar files the disclosure of which would constitute a clearly unwarranted invasion of privacy,” 5 U.S.C. § 552(b)(6), and exemption 7(C), which excepts “records or information compiled for law enforcement purposes ... [the disclosure of which] could reasonably be expected to constitute an unwarranted invasion of personal privacy.” 5 U.S.C. § 552(b)(7)(C). We conclude that the district court erred by rejecting the VA’s argument that the deleted information was protected from disclosure under exemption 7(C); for that reason, we do not reach the issue of whether the same information is also within the scope of exemption 6.

Although the FOIA embodies “a general philosophy of full agency disclosure,” Department of the Air Force v. Rose, 425 U.S. 352, 360, 96 S.Ct. 1592, 1598-99, 48 L.Ed.2d 11 (1976) (quoting S.Rep. No. 813, 89th Cong., 1st Sess. 3 (1965)), the Act also reflects Congress’s awareness that other concerns may require a departure from this general philosophy:

The Act expressly recognizes ... that public disclosure is not always in the public interest and consequently provides that agency records may be withheld from disclosure under any one of the nine exemptions defined in 5 U.S.C. § 552(b).

Baldrige v. Shapiro, 455 U.S. 345, 352, 102 S.Ct. 1103, 1108, 71 L.Ed.2d 199 (1982). One of the most important concerns counterbalancing the public’s general interest in disclosure is the desire to protect individuals’ privacy interests; it is for this reason that two out of the nine exemptions, exemptions 6 and 7(C), refer explicitly to “privacy,” with several others motivated by privacy concerns as well. 2

*319 Congress contemplated that in applying these exemptions, courts would reconcile these competing interests by balancing all while ignoring none. It is not, Congress noted,

an easy task to balance the opposing interests, but it is not an impossible one either....

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874 F.2d 315, 35 Cont. Cas. Fed. 75,689, 1989 U.S. App. LEXIS 7915, 1989 WL 51536, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bernard-t-halloran-v-veterans-administration-ca5-1989.