Church of Scientology Western United States v. Internal Revenue Service

769 F. Supp. 328, 91 Daily Journal DAR 14139, 1991 U.S. Dist. LEXIS 15374, 1991 WL 152624
CourtDistrict Court, C.D. California
DecidedMay 24, 1991
DocketCV-89-6370-RSWL
StatusPublished
Cited by2 cases

This text of 769 F. Supp. 328 (Church of Scientology Western United States v. Internal Revenue Service) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Church of Scientology Western United States v. Internal Revenue Service, 769 F. Supp. 328, 91 Daily Journal DAR 14139, 1991 U.S. Dist. LEXIS 15374, 1991 WL 152624 (C.D. Cal. 1991).

Opinion

ORDER

LEW, District Judge.

Plaintiff in the above captioned action has moved for attorney’s fees and expenses. Defendant timely opposed the motion. The matter was set for oral argument on March 25,1991 at 9:00 a.m. After review of the papers filed, the Court determined that all of the issues had been adequately briefed and removed the matter from the Court’s law and motion calendar pursuant to Federal Rule of Civil Procedure 78. Now having again reviewed all of the papers filed in support of and in opposition to the motion, the Court hereby issues the following order:

Plaintiff’s motion for attorney’s fees and costs is GRANTED. Plaintiff is hereby awarded attorney’s fees and costs incurred in filing and litigating this action in the amount of $5,040.00.

Background

By letter dated May 23,1989, counsel for plaintiff Church of Scientology (the “Church”) requested access to records of defendant Internal Revenue Service (the “IRS”) concerning the “tax shelter litigation project” pursuant to the Freedom of Information Act (“FOIA”), 5 U.S.C. § 552. The Church sought these documents because of its concern over the IRS’ designation of the Church and its parishioners as part of the tax shelter litigation project. By letter dated June 14, 1989, the Los Angeles Disclosure Office of the IRS responded that all requested documents were withheld in full on grounds that they were *330 exempt pursuant to FOIA subsections (b)(3) (exempt by statute) and (b)(5) (exempt inter-agency communications). On August 1, 1989, the Church appealed the IRS’ refusal to provide access to the documents. The IRS acknowledged the appeal by letter dated August 30, 1989.

On November 1, 1989, the Church filed this action to compel defendant Internal Revenue Service (the “IRS”) to produce the records. The IRS appeal was still pending at the time the action was filed.

Subsequently, the IRS deemed twelve pages of documents responsive to the Church’s request non-exempt from the FOIA. On September 11, 1990, the IRS released the non-exempt documents.

On March 25, 1991, the Church moved to voluntarily dismiss the action on grounds that the Church had obtained the records sought in the Complaint. The motion for voluntary dismissal was not opposed, and the Court granted the Church’s motion to dismiss with prejudice.

Now, the Church seeks an award of attorney’s fees and expenses incurred in the action pursuant to 5 U.S.C. section 552(a)(4)(E).

Standard for Award of Fees Under FOIA

The FOIA provides that a court “may assess against the United States reasonable attorney fees and other litigation costs reasonably incurred in any case under this section in which the complainant has substantially prevailed.” 5 U.S.C. § 552(a)(4)(E). This provision requires a two-step inquiry: (1) whether plaintiff is eligible for an award of attorney’s fees and costs; and (2) if so, whether plaintiff is entitled to such an award. Church of Scientology v. U.S. Postal Service, 700 F.2d 486, 489 (9th Cir.1983) (“Postal Service”). The first step, eligibility for the award, is satisfied if “the facts show that the plaintiff has substantially prevailed on his or her FOIA action.” Id. (citations omitted). The second step, entitlement to the award, “is left to the discretion of the district court.” Id.

The Church’s Eligibility for Attorney’s Fees and Costs

The Church contends it is eligible for an award of attorney’s fees and costs because it has substantially prevailed in the litigation.

In order to satisfy the eligibility requirement by showing that he or she has substantially prevailed in a FOIA suit, a plaintiff must present convincing evidence that two threshold conditions have been satisfied: (1) that the filing of the action was reasonably necessary to obtain the information; and (2) the filing of the action had a substantial causative effect on the release of the information. Id. In deciding whether a plaintiff has satisfied these threshold conditions, the district court should consider such facts as the time when the documents were released, what actually triggered the documents’ release, and whether plaintiff was entitled to the documents at an earlier time. Id. at 492.

The Church argues that reasonable necessity of this action is evidenced by the fact that the Church was initially denied all access to the records sought and that, subsequently, the Church waited without word for approximately three months after filing its administrative appeal before filing this action despite the FOIA requirement that an agency respond to an appeal within twenty working days. The IRS asserts that a response to the Church’s appeal was delayed because of the heavy case load and backlog of FOIA appeals in the Disclosure Litigation Division of the IRS.

Viewing the arguments presented in light of the factors set forth in Postal Service, the Court is satisfied that the Church is eligible for an award of attorney’s fees and costs. The Court finds persuasive the fact that the Church was required to engage in this litigation for over ten months before receiving documents which the Church was apparently entitled to receive in May of 1989. Furthermore, the requested documents were only released subsequent to this Court’s Order of June 28, 1990 requiring the IRS to produce a Vaughn Index of the documents with *331 held. In its opposition papers, IRS states that it released the requested records “in conjunction with” the filing of the Court-ordered Vaughn Index. It is, therefore, reasonable to conclude that the production and filing of the Vaughn Index triggered the release of the requested documents.

Thus, the Court finds the Church has substantially prevailed in the FOIA action and is eligible for an award of attorney’s fees and costs. The Court finds that the filing of the action was reasonably necessary to obtain the information, and the filing of the action had a substantial causative effect on the release of the information.

The Church’s Entitlement to an Award of Attorney’s Fees and Costs

Having found the Church eligible for an award of attorney’s fees and costs, the Court must exercise its discretion in determining whether the Church is entitled to such an award. The Court may take into account “whatever factors it deems relevant” in determining whether to make such an award. Id. at 492 (cite omitted). Courts considering this issue have generally considered four factors: “(1) the benefit to the public, if any, deriving from the case; (2) the commercial benefit to the complainant; (3) the nature of the complainant’s interest in the records sought; and (4) whether the government’s withholding of the records sought had a reasonable basis in law.” Id. (citations omitted).

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769 F. Supp. 328, 91 Daily Journal DAR 14139, 1991 U.S. Dist. LEXIS 15374, 1991 WL 152624, Counsel Stack Legal Research, https://law.counselstack.com/opinion/church-of-scientology-western-united-states-v-internal-revenue-service-cacd-1991.