Federal Trade Commission v. Owens-Corning Fiberglas Corporation v. Michael Pertschuk Federal Trade Commission v. Owens-Corning Fiberglas Corporation

626 F.2d 966, 200 U.S. App. D.C. 102, 1980 U.S. App. LEXIS 19687
CourtCourt of Appeals for the D.C. Circuit
DecidedMarch 13, 1980
Docket79-1167, 79-1443
StatusPublished
Cited by43 cases

This text of 626 F.2d 966 (Federal Trade Commission v. Owens-Corning Fiberglas Corporation v. Michael Pertschuk Federal Trade Commission v. Owens-Corning Fiberglas Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Federal Trade Commission v. Owens-Corning Fiberglas Corporation v. Michael Pertschuk Federal Trade Commission v. Owens-Corning Fiberglas Corporation, 626 F.2d 966, 200 U.S. App. D.C. 102, 1980 U.S. App. LEXIS 19687 (D.C. Cir. 1980).

Opinions

Opinion for the court filed by Circuit Judge TAMM.

Opinion concurring in part and dissenting in part filed by Circuit Judge WALD.

TAMM, Circuit Judge:

This case comes before us on cross-appeals from an order of the United States District Court for the District of Columbia that enforced, subject to certain conditions, three subpoenas duces tecum issued by the Federal Trade Commission. The appellants, respondents in the enforcement action, seek further protections against public disclosure of trade secrets that they assert appear in the documents under subpoena. The Commission disagrees and, in addition, argues that the district court exceeded its authority by attaching conditions to the subpoenas beyond those appearing in the Commission’s original orders. We conclude that the issues presented by the appellant are either meritless or not yet ripe for review and that the protective conditions added by the district court are unwarranted. We therefore affirm the order insofar as it enforces the subpoenas as issued, and we vacate those portions of the order that impose further restrictions.

I. BACKGROUND

The facts in this case are straightforward. As part of a nonpublic antitrust investigation of the insulation industry, the Commission staff in July of 1977 issued virtually identical subpoenas duces tecum to [969]*969Owens-Corning Fiberglas Corporation, Johns-Manville Corporation, and Certain-Teed Corporation, the appellants herein. The subpoenas asked for various documents containing technical, business, and financial information about the thrée companies. After meetings with members of the Commission staff produced mutually satisfactory modifications, the appellants submitted nonconfidential documents to the Commission. They refused, however, to turn over certain other documents that they claimed contain trade secrets.1

The Commission agreed to afford the withheld documents confidential treatment under its customary procedures for handling such information.2 Specifically, it committed itself to giving the company that submitted a document ten days’ notice before disclosing its contents to anyone outside the Commission. The Commission nevertheless excepted from this procedure official requests from courts or arms of Congress. In these instances, it promised “ten days’ prior notice where possible, and in any event as much notice as can reasonably be given.” Joint Appendix (J.A.) at 233, 237, 311, 315 (letters from the Commission staff to appellants’ counsel). Subsequently, the appellants tendered additional documents, but they still refused to surrender the rest without further assurances of confidentiality.

On October 23,1978, the Commission filed a petition in the district court for an order to enforce the subpoenas under section 9 of the Federal Trade Commission Act (FTC Act), 15 U.S.C. § 49 (1976). The appellants, respondents in the district court, filed substantially identical counterclaims asking for a declaration that the documents contain trade secrets within the meaning of the Trade Secrets Act, 18 U.S.C. § 1905 (1976),3 and section 6(f) of the FTC Act, 15 U.S.C. § 46(f) (1976),4 and that the documents are exempt from release under the Freedom of Information Act (FOIA), 5 U.S.C. § 552 (1976). They also sought a protective order that would provide additional guarantees of confidentiality.5

[970]*970On January 31,1979, the court entered an order dismissing the counterclaims and enforcing the subpoenas subject to the Commission’s promised procedures regarding confidentiality, with two additions. First, the order requires the Commission in the case of a congressional or a judicial request “immediately, forthwith upon receipt by it of such a request, [to] advise the respondent which had furnished the document, by telephone and by a written communication, that the request has been made and indicate the nature and extent of the request.” FTC v. Owens-Coming Fiberglas Corp., Misc. No. 78-313, at 2 (D.D.C. Jan. 31,1979) (order enforcing subpoenas), reprinted in J.A. at 11, 12. Second, in the case of congressional requests the order obliges the Commission to “verif[y] that the request is made in accordance with the controlling congressional rule, and [to advise] the requestor that the respondent has claimed that the document contains confidential trade secrets.” Id. This order is now before us on cross-appeals, the appellants contending that the district court did not go far enough and the Commission that it went too far.

II. COMMISSION DISCLOSURE OF CONFIDENTIAL INFORMATION

Before embarking on an analysis of the particular arguments raised by the parties, we believe it useful to recapitulate in general terms the law governing Commission disclosure of information contained in confidential documents it has obtained under subpoena. Specifically, appellants are troubled by requests from two sources, Congress and the general public.6 We therefore shall review the Commission’s formal release of secret information to these groups, either voluntarily or pursuant to some request that by law it must grant.

A. Congressional Requests

Recently this court has had several occasions to discuss congressional requests for confidential documents in the hands of the Commission. In particular, we have held explicitly that the Commission may not deny Congress access to confidential documents, including those that contain trade secrets. E. g., Exxon Corp. v. FTC, 589 F.2d 582, 585-86 (D.C. Cir. 1978), cert. denied, 441 U.S. 943, 99 S.Ct. 2160, 60 L.Ed.2d 1044 (1979); Ashland Oil, Inc. v. FTC, 548 F.2d 977, 979 (D.C. Cir. 1976). Release to a congressional requestor is not a public disclosure forbidden by section 6(f) of the FTC Act. Exxon Corp. v. FTC, 589 F.2d at 589; Ashland Oil, Inc. v. FTC, 548 F.2d at 979. Moreover, courts may not require the Commission to delay surrendering documents to Congress to notify affected parties in advance, for the judiciary must refrain from slowing or otherwise interfering with the legitimate investigatory functions of Congress. FTC v. Anderson, No. 78-1032 (D.C.Cir. Sept. 17, 1979); Exxon Corp. v. FTC, 589 F.2d at 588-89. Once documents are in congressional hands, “courts must presume that the committees of Congress will exercise their powers responsibly and with due regard for the rights of affected parties.” Id. at 589 (citing Ashland Oil, Inc. v. FTC, 548 F.2d at 979).7 A court may not block disclosure of information in Congress’s possession, at least when the disclosure would serve a valid legislative purpose. Doe v. McMillan, 412 U.S. 306, 93 S.Ct. 2018, 36 L.Ed.2d 912 (1973) (construing the speech and debate clause, U.S.Const. art.

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

Related

United States v. Office Depot, Inc.
District of Columbia, 2024
Ward v. Thompson
D. Arizona, 2022
Reifler v. Comm'r
2015 T.C. Memo. 199 (U.S. Tax Court, 2015)
Federal Trade Commission v. Bisaro
757 F. Supp. 2d 1 (District of Columbia, 2010)
Beverly Enterprises, Inc. v. Herman
130 F. Supp. 2d 1 (District of Columbia, 2000)
W.D.I.A. Corp. v. McGraw-Hill, Inc.
34 F. Supp. 2d 612 (S.D. Ohio, 1998)

Cite This Page — Counsel Stack

Bluebook (online)
626 F.2d 966, 200 U.S. App. D.C. 102, 1980 U.S. App. LEXIS 19687, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-trade-commission-v-owens-corning-fiberglas-corporation-v-michael-cadc-1980.