Eugene Burger Management Corp. v. United States Department of Housing & Urban Development

192 F.R.D. 1, 1999 U.S. Dist. LEXIS 22096, 1999 WL 1598828
CourtDistrict Court, District of Columbia
DecidedJuly 12, 1999
DocketNo. CIV.A.98-2812(HHKJMF)
StatusPublished
Cited by17 cases

This text of 192 F.R.D. 1 (Eugene Burger Management Corp. v. United States Department of Housing & Urban Development) 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
Eugene Burger Management Corp. v. United States Department of Housing & Urban Development, 192 F.R.D. 1, 1999 U.S. Dist. LEXIS 22096, 1999 WL 1598828 (D.D.C. 1999).

Opinion

MEMORANDUM OPINION

FACCIOLA, United States Magistrate Judge.

Ready for resolution are three motions: (1) plaintiffs Motion to Compel Discovery (“Plains. First Mot.”), (2) plaintiffs Second Motion to Compel Discovery (“Plains. Second Mot.”), and (3) defendants’ Motion for a Protective Order Staying Discovery (“Defs.Mot.”).

I. Background of the Controversy

Plaintiff, Eugene Burger Management Corporation (“Burger”), provides management services for multi-family apartment complexes financed and regulated under the National Housing Act, 12 U.S.C. § 1701 et seq. and the U.S. Housing Act of 1937, 42 U.S.C. § 1437 et seq., as implemented by the United States Department of Housing and Urban Development (“HUD”). Burger currently manages sixty-five such HUD projects.

In 1970, HUD began building numerous housing projects. In order to attract private investors, Congress passed legislation allowing HUD to approve and guarantee low rent levels. This provided communities with low cost housing alternatives and allowed investors to make a modest profit. Investors, in turn, contracted with management companies for the daily operations of the housing projects.

In order to insure that participants in the housing programs will honor their financial obligations, HUD uses a screening process known as Previous Participation Review System (“PPRS”) or “2530 Process.” The purpose of PPRS is to examine a management company’s history with HUD properties. A “Participation Control Officer” may then (1) approve the form, (2) disapprove the form, or (3) refer the application to the Review Committee for further action.

In 1998, a “flag” was placed in Burger’s PPRS file in order to alert the review process that Burger was potentially guilty of illegal kickbacks. HUD’s Multifamily Participation Review Committee acted on the flag and stayed action on Burger’s application to manage certain California projects. While that stay was pending, plaintiff brought this suit which seeks a preliminary injunction requiring HUD to permit it to manage those projects while HUD conducts whatever investigation it sees fit into Burger’s alleged payment of kickbacks.

That stay has now ripened into HUD’s final decision which denied Burger’s application to manage those projects. Burger has not yet moved to amend its complaint to seek permanent relief against HUD’s action.

II. The Discovery Controversy

Dane Narode, Acting Deputy Chief Counsel of the Administrative Proceedings Division of HUD, had filed a declaration in support of HUD’s opposition to Burger’s motion for a preliminary injunction. He explained how he came to place the flag in the Burger [4]*4file and denied that he had done so for any retaliatory or improper reason.

While the United States Attorney’s office in this jurisdiction can always be counted on to resist any discovery in a case involving judicial review of agency action, it consented to Narode’s deposition. During the deposition, however, the Assistant United States Attorney objected to certain questions because he asserted they invaded either the deliberative process, attorney-client, or attorney work product privileges.1 On occasion,2 he instructed Narode not to answer these questions and Narode followed those instructions.

When the lawsuit was filed, the administrative record had not been collected and had not been filed. It has now been filed and HUD has expurgated some of the documents in it (in whole or in part) because they fall within these privileges.

Finally, after having filed the administrative record, the United States Attorney’s office, as HUD’s counsel, has reverted to form. It now resists any further discovery whatsoever and asks me to prohibit it.

In this opinion I will first deal with the claims of privilege as to the documents and then turn to the resumption of Narode’s deposition and whether all discovery sought by Burger must now come to an end.

III. Discussion

A. Judicial Review of Agency Decisions

Review of agency decisions is not de novo, based on a record created for the first time in the district court, but must be based on the administrative record created before the agency. Citizens to Preserve Overton Park, Inc. v. Volpe, 401 U.S. 402, 91 S.Ct. 814, 28 L.Ed.2d 136 (1971); Marshall County Health Care Authority v. Shalala, 988 F.2d 1221, 1226 (D.C.Cir.1993). As just explained, HUD has produced that record but has withheld as privileged certain materials from it.

B. Plaintiffs First and Second Motions to Compel

After a motions hearing held on May 14, 1999, I ordered defendants to submit for an in camera review those documents which had been completely or partially redacted from the administrative record.

According to defendants’ privilege log, ten documents or portions therein were withheld based either on a combination of the deliberative process privilege and the attorney-client privileges or solely on the deliberative process privilege.

1. Deliberative Process Privilege

The deliberative process privilege, also known as the “executive” or “governmental” privilege, serves many purposes:

[T]o assure that subordinates within an agency will feel free to provide the decisionmaker with their uninhibited opinions and recommendations without fear of later being subject to public ridicule or criticism; to protect against premature disclosure of proposed policies before they have been finally formulated or adopted; and to protect against confusing the issues and misleading the public by dissemination of documents suggesting reasons and rationales for a course of action which were not in fact the ultimate reasons for the agency’s action.

Coastal States Gas Corp. v. Department of Energy, 617 F.2d 854, 866 (D.C.Cir.1980). “Thus, the privilege protects documents reflecting advisory opinions, recommendations, and deliberations comprising part of a process by which governmental decisions and policies are formulated, as well as other subjective documents that reflect the personal opinions of the writer prior to the agency’s adoption of the policy.” Taxation with Representation Fund v. Internal Revenue Service, 646 F.2d 666, 677 (D.C.Cir.1981).

Although the deliberative process privilege is generally thought of as protecting [5]*5opinion-based information, “the ultimate question in deciding whether the deliberative process privilege applies is not whether the material is ‘factual’ or not.

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

Related

Acorin v. Wells Fargo, N.A.
S.D. California, 2024
Rutledge v. ADP, Inc.
S.D. California, 2023
(PC) Witkin v. Wise
E.D. California, 2020
Odland v. Federal Energy Regulatory Commission
34 F. Supp. 3d 3 (District of Columbia, 2014)
Jackson Hospital Corporation v. National Labor Relations Board
257 F.R.D. 302 (District of Columbia, 2009)
County of San Miguel v. Kempthorne
587 F. Supp. 2d 64 (District of Columbia, 2008)
Colorado Wild Horse & Burro Coalition, Inc. v. Kempthorne
571 F. Supp. 2d 71 (District of Columbia, 2008)
Tri-State Hospital Supply Corp. v. United States
226 F.R.D. 118 (District of Columbia, 2005)
Wyoming v. United States Department of Agriculture
239 F. Supp. 2d 1219 (D. Wyoming, 2002)
Mitchell v. National Railroad Passenger Corp.
208 F.R.D. 455 (District of Columbia, 2002)
Nesse v. Pittman
206 F.R.D. 325 (District of Columbia, 2002)
McPeek v. Ashcroft
202 F.R.D. 332 (District of Columbia, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
192 F.R.D. 1, 1999 U.S. Dist. LEXIS 22096, 1999 WL 1598828, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eugene-burger-management-corp-v-united-states-department-of-housing-dcd-1999.