Deuterium Corp. v. United States

4 Cl. Ct. 361, 1984 U.S. Claims LEXIS 1499
CourtUnited States Court of Claims
DecidedFebruary 2, 1984
DocketNo. 425-82C
StatusPublished
Cited by10 cases

This text of 4 Cl. Ct. 361 (Deuterium Corp. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Deuterium Corp. v. United States, 4 Cl. Ct. 361, 1984 U.S. Claims LEXIS 1499 (cc 1984).

Opinion

ORDER

COLAIANNI, Judge.

On August 26,1982, plaintiff filed a claim for damages in the United States Court of Claims alleging patent infringement, uncompensated taking of plaintiff’s trade secrets and inventions, and breaches of implied and express contracts. This suit was prompted by defendant, through the Energy Research and Development Agency (ERDA), entering a contract with Pacific Gas & Electric Company (PG & E) and EIC Laboratories, Inc. (EIC) to establish both a pilot and a demonstration upstream geothermal steam processing system for control of pollution at PG & E’s Geothermal Power Plant Unit No. 7 at The Geysers in California. Plaintiff apparently had been involved in some developmental work with PG & E of substantially the same kind contemplated by the ERDA contract. Plaintiff argues that certain proprietary information was appropriated, and patents were infringed, in the performance of defendant’s contract.

This order concerns defendant’s assertion that three groups of documents are protected from discovery under the deliberative process privilege. Those documents are identified by the parties as D-37 through D-42, D-43, and D-57. Documents D-37 through D-42 concern the review of the proposal to ERDA by PG & E and EIC that resulted in the contract for the geothermal steam processing system at The Geysers. This group of documents contains the proposal evaluation sheets and comments of [363]*363the reviewers for that proposal. The documents in D — 43 are cover letters used by defendant to send the proposal to those reviewers. The documents in D-57 concern the review of a different proposal, one submitted by Battelle-Northwest to the National Science Foundation.

Plaintiff has sought to have these documents produced by various motions. Defendant has offered to produce these documents, pursuant to a protective order, with the names of its reviewers deleted. Plaintiff has rejected defendant’s offer and insists that the documents be produced intact.

On December 15, 1983, defendant filed a formal claim of “deliberative process” privilege covering the three groups of documents. Appended to defendant’s claim was the affidavit of Danny J. Boggs, Acting Secretary of Energy,1 which formally asserted the claim of privilege and asked that none of the documents be disclosed without deleting all information that could identify the reviewers.

Defendant agrees to produce the documents now at issue, but wishes to delete the names and addresses of the reviewers, as well as any other identifying information. The sole issue, therefore, is whether defendant has established that the reviewers’ identities are privileged. For the following reasons, this court finds that it has.

Discussion

Defendant based its claim on the deliberative process privilege.2 The court finds, however, that the executive privilege, properly invoked, bars discovery in this instance. Although both doctrines may be similarly founded on the policy of encouraging open communication within a department or agency, only the executive privilege is recognized in this court. See Cetron Electronic Corp. v. United States, 207 Ct.Cl. 985, 990 (1975); Drexel Heritage Furnishings, Inc. v. United States, 4 Cl.Ct. 169 at 170 (Cl.Ct.1983). The distinction between these two doctrines is best illustrated by a comparison of two cases from our predecessor court, Kaiser Aluminum & Chemical Corp. v. United States, 141 Ct.Cl. 38, 157 F.Supp. 939 (1958) (claim of executive privilege, properly invoked, upheld), and Cetron Electronic Corp. v. United States, 207 Ct.Cl. 985 (deliberative process privilege not recognized).

Kaiser concerned an action for damages and contract reformation based on the United States’ alleged breach of a most favored purchaser clause in a contract for sale of three aluminum-producing plants. Plaintiff sought all documents relating to that sale and to an allegedly more favorable sale to one of its competitors. Defendant claimed privilege as to only one document: “an advisory opinion on intra-office policy” relating to the sales at issue. 141 Ct.Cl. at 45, 157 F.Supp. at 944. The court noted that this advisory opinion was “the kind that every head of an agency or department must rely upon for aid in determining a course of action * * Id. at 47, 157 F.Supp. at 945. The court found: “There is a public policy involved in this claim of privilege for this advisory opinion — the policy of open, frank discussion between subordinate and chief concerning administrative action.” Id. at 48, 157 F.Supp. at 946. Therefore, the court determined that the advisory opinion was “privileged from inspection as against public interest but not absolutely.” Id. at 49, 157 F.Supp. at 946.

Crucial to Kaiser, and crucial to the claim of executive privilege, was the agency head’s affidavit. See Kaiser Aluminum & Chemical Corp. v. United States, 141 Ct.Cl. [364]*364at 42-43, 157 F.Supp. at 942-943. The agency head must aver, and the circumstances sufficiently demonstrate, that disclosure would significantly and adversely affect the agency’s vital functions.

These requirements are highlighted by the later case of Cetron Electronics Corp. v. United States, 207 Ct.Cl. 985. In Cetron, plaintiffs were attempting to obtain various internal reports, prepared by officials of the Internal Revenue Service, relating to a penalty tax assessment. No claim of privilege was asserted by the agency head, and no showing was made “that * * * production would upset vital Government functions— for there is no claim of executive privilege.” Id. at 990. In contrasting the doctrines of executive and deliberative process privilege, the court noted:

Both doctrines are said to have a similar basis, however, in public policy which favors candid discussion between subordinates and superiors in Government. It is argued that such discussion would be handicapped by the possibility of disclosure and, thus, the decisionmaking process would be impeded.

Id. at 989. The court held, however:

There is no common-law privilege of the general nature asserted by defendant here. The common law speaks only of executive privilege and of such things as attorney-client, husband-wife, and priest-penitent privilege. Cf. Kaiser Alum, & Chem. Corp. v. United States, 141 Ct.Cl. 38, 45, 157 F.Supp. 939, 944 (1958). Further, it is clear from the legislative history of the Federal Rules of Evidence that Congress rejected the concept of governmental [deliberative process] privilege against disclosure of official information in favor of the general reference in Rule 501 to those privileges recognized by the Constitution, statute, and the common law. [See annotations to Rule 501 and to proposed Rule 509 rejected by Congress.]

Id. at 990.

Although defendant argued it was claiming “deliberative process” privilege, it properly invoked the executive privilege by submitting the affidavit of Acting Secretary Boggs which noted the serious and adverse effect disclosing the reviewers’ identities would have on the agency’s operations. The Acting Secretary averred:

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