Center for Auto Safety v. U.S. Department of Treasury

133 F. Supp. 3d 109, 2015 U.S. Dist. LEXIS 133220
CourtDistrict Court, District of Columbia
DecidedSeptember 30, 2015
DocketCivil Action No. 2011-1048
StatusPublished
Cited by9 cases

This text of 133 F. Supp. 3d 109 (Center for Auto Safety v. U.S. Department of Treasury) 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
Center for Auto Safety v. U.S. Department of Treasury, 133 F. Supp. 3d 109, 2015 U.S. Dist. LEXIS 133220 (D.D.C. 2015).

Opinion

MEMORANDUM OPINION

BERYL A. HOWELL, United States District Judge

The plaintiff, Center for Auto Safety (“CAS”), requested, under the Freedom of *113 Information Act (“FOIA”), 5 U.S.C. § 552, documents related to the 2009 Chrysler and General Motors bankruptcies. The defendant, the United States Department of the Treasury (“Treasury”) has released to the plaintiff over 65,000 pages of records but continues to withhold approximately 452 documents in whole and 90 documents in part at the request of the defendant-intervenor General Motors LLC (“GM”) and 284 documents in whole or in part at the request of Chrysler Group LLC (“Chrysler”). Treasury contends that the withheld documents are exempt from release pursuant to Exemption 4 of the FOIA, 5 U.S.C. § 552(b)(4), because they contain confidential commercial or financial information likely to impair the government’s ability to obtain necessary information in the future and likely to cause substantial competitive harm to GM and Chrysler. The plaintiff challenges the majority of the withholdings, arguing that the defendants’ Vaughn indices are insufficiently descriptive and the defendants have not sufficiently shown that the information withheld is confidential.

Pending before the Court are cross-motions for summary judgment: (1) a joint motion for summary judgment brought by Treasury and GM (“Jt.Mot.”), ECF No. 36, and (2) a cross-motion for summary judgment brought by CAS (“Pl.’s Mot.”), ECF No. 40. For the reasons discussed below, the defendants’ motion is granted in part and denied in part, and the plaintiffs cross-motion is denied without prejudice.

I. BACKGROUND

In the fall of 2008, in response to economic instability, Congress enacted the Emergency Economic Stabilization Act (“EESA”). Defs.’ Mot., Ex. 1, Decl. of Kathleen Cochrane (“Cochrane Deck”) ¶ 26, ECF No. 36-1. The EESA established the Office of Financial Stability (“OFS”), which implemented the Troubled Asset Relief Program (“TARP”). Id. Pursuant to the TARP, Treasury established the Automotive Industry Financing Program (“AIFP”) and, through 2009, provided billions of dollars of loans to entities associated with GM and Chrysler. 1 Id. ¶¶ 26-28; Pk’s Statement of Material Facts as to Which There is No Genuine Issue & Pk’s Resp. to Defs.’ Statement of Material Facts (“Pk’s SMF”) ¶¶ 18-19, ECF No. 40; Defs.’ Resp. to Pk’s Statement of Material Facts as to Which There is No Genuine Issue (“Defs.’ Resp. SMF”) ¶¶ 18-19, ECF No. 48-1. In connection with the loans, GM and Chrysler entities were required to implement restructuring plans, see Cochrane Deck ¶¶ 27-28; Pk’s SMF ¶¶ 29-30; Defs.’ Resp. SMF ¶¶29-30, and in February 2009, President Obama established the Auto Task Force (“Task Force”) to review the viability of the restructuring plans, Cochrane Deck ¶ 30.

The government provided an initial loan to General Motors Corporation (“Old GM,” now known as “Motors Liquidation Company”), which filed for bankruptcy, on June 1, 2009, as part of its restructuring. Id. ¶ 27. Pursuant to Section 363 of the Bankruptcy Code, 11 U.S.C. § 363, a newly formed entity, General Motors LLC (“GM”), the defendant-intervenor in this lawsuit, purchased most of the assets and some of the liabilities of Old GM (“GM Section 363 Sale”). Id.; Pl’s SMF ¶¶3, 11; Defs.’ Resp. SMF ¶¶ 3, 11. Similarly, Chrysler LLC (“Old Chrysler,” now known as “Old Careo”) filed for bankruptcy in April 2009, and in June 2009, the newly *114 formed entity, Chrysler 'Group LLC (“Chrysler”) purchased most of the assets and some of the liabilities of Old Chrysler (“Chrysler Section 363 Sale”). Cochrane Decl. ¶ 28; Pl.’s SMF ¶¶4, 12; Defs.’ Resp. SMF ¶ 4, 4 n. 1, 12. As part of the Section 363 Sales, GM and Chrysler were not required to assume certain liabilities' that were left with Old GM and Old Chrysler. Pl.’s SMF ¶¶ 11-12; Defs.’ Resp. SMF ¶¶ 11-12. This aspect of the auto industry bailout is the principal focus of the FOIA request at issue.

The plaintiff, CAS, is “a nationwide nonprofit consumer advocacy organization .... working] toward improved safety, environmental responsibility, and fair dealing in the automotive industry and marketplace.” Compl. ¶ 4, ECF No. 1; Pl.’s Mot., Ex. R (“FOIA Req.”) at 1, ECF No. 42-10. On June 8, 2009, CAS requested under the FOIA: “All e-mail correspondence since January 1, 2009, in any way related to the Chrysler and General Motors bankruptcies, the events preceding those bankruptcies, and the federal government’s roles in and deliberations concerning those matters.” FOIA Req. at 1; see also Compl. ¶ 18; Defs.’ Statement of Material Facts as to Which There is No Genuine Issue (“Defs.’ SMF”) ¶ 1, ECF No. 36; Pl.’s SMF WA-l, B.l; Defs.’ Resp. SMF ¶ 1. The request included “all ... e-mails generated and/or received by the Department of the Treasury and ... Brian Deese[,] Ed Montgomery[,] Ron Bloom[,] Steven Rattner[,] Matthew Feld-man[,] [and] Timothy Geithner[.]” FOIA Req. at 1; see also Compl. ¶ 19; Defs.’ SMF ¶ 1. CAS also requested a waiver of the fees and costs associated with processing its request. Compl. ¶ 20.

The plaintiffs FOIA request was prompted by concern about the liabilities left with the old, bankrupt companies, which allegedly have left consumers injured by defectively manufactured cars without recourse. See Pl.’s Mem. Supp. Mot. Summ. J. & Opp’n Defs.’ Mot. Summ. J. (“PL’s Mem.”) at 1, 16, 19, ECF No. 40. According to the plaintiff, “in exchange for the bailout funds[,]” GM and Chrysler were allowed to leave liabilities, “including the need to compensate consumers injured by defective cars manufactured by General Motors and Chrysler[,]” with the old, bankrupt companies which do not have “the necessary funds to compensate victims of such accidents and incidents and their families.” Id. at 1 (emphasis omitted). The plaintiff is concerned about the government’s role in allegedly “requiring the ‘new’ Chrysler and GM to leave behind potential liabilities vis-a-vis consumers who have been both physically and economically injured by defective products manufactured by the ‘old’ GM and Chrysler.” Id. at 16.

Almost two years after the plaintiff made its FOIA request, around March 2011, Treasury had identified 170,000 pages of documents responsive to the plaintiffs request but denied the plaintiffs fee waiver request, which denial was appealed by CAS. Compl. ¶¶ 23-25. Then, on June 7, 2011, having received no response to its appeal, see id. ¶¶ 28-29, CAS filed the Complaint in this action requesting declaratory and injunctive relief, see id. at 10-11.

On December 16, 2011, the parties filed a Voluntary Stipulation of Partial Settlement and Proposed Order for Further Proceedings (“Stipulation”), ECF No. 12, which the Court granted, see Minute Order, Dec. 19, 2011.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
133 F. Supp. 3d 109, 2015 U.S. Dist. LEXIS 133220, Counsel Stack Legal Research, https://law.counselstack.com/opinion/center-for-auto-safety-v-us-department-of-treasury-dcd-2015.