Gelb v. Defense Finance and Accounting Service

CourtDistrict Court, District of Columbia
DecidedJanuary 8, 2025
DocketCivil Action No. 2023-0995
StatusPublished

This text of Gelb v. Defense Finance and Accounting Service (Gelb v. Defense Finance and Accounting Service) 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
Gelb v. Defense Finance and Accounting Service, (D.D.C. 2025).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

BERNARD GELB, Plaintiff, Case No. 23-cv-995 (JMC) v.

U.S. DEPARTMENT OF DEFENSE, et al.,

Defendants.

MEMORANDUM OPINION

Plaintiff Bernard Gelb, proceeding pro se, brings this suit against the Department of

Defense (Defense), Defense Finance and Accounting Service (DFAS), Secretary of Defense Lloyd

J. Austin III, and Defense’s Chief Freedom of Information Act (FOIA) Officer Joo Y. Chung

(collectively, “Defendants”). ECF 12.1 Gelb brings two claims. Id. ¶¶ 99–115. First, he alleges that

Defendants automatically cancel checks after six months if they are not cashed, without notice to

the checks’ recipients, in violation of the Due Process and Takings Clauses of the Constitution

(Count I). Id. ¶¶ 99–106. Second, he alleges that Defendants failed to search for and produce

records responsive to his FOIA request (Count II). Id. ¶¶ 107–115. Defendants move to dismiss

Count I on several grounds, including that Gelb lacks standing. ECF 16. In response, Gelb moves

for summary judgment on both Counts I and II, ECF 19, and Defendants counter with their own

motion for summary judgment on both counts, ECF 24. Gelb also moves to strike several of

Defendants’ filings. ECF 31.

1 Unless otherwise indicated, the formatting of citations has been modified throughout this opinion, for example, by omitting internal quotation marks, emphases, citations, and alterations and by altering capitalization. All pincites to documents filed on the docket in this case are to the automatically generated ECF Page ID number that appears at the top of each page. 1 Because Gelb lacks standing to bring his constitutional claims and Defendants did comply

with the FOIA’s requirements, the Court will GRANT Defendants’ motion to dismiss Count I

pursuant to Federal Rule of Civil Procedure 12(b)(1), ECF 16, GRANT Defendants’ cross-motion

for summary judgment on Count II, ECF 24, and DENY Gelb’s cross-motion for summary

judgment, ECF 19. The Court will also DENY Gelb’s motion to strike. ECF 31.

I. BACKGROUND

Gelb is a resident of New York who “specializes in finding persons to whom the

Government owes money and helping th[o]se persons obtain the funds to which they are entitled.”

ECF 12 ¶ 30. He alleges that Defendants “cancel all checks that remain outstanding six (6) months

after the date of issuance, without any notice to the payee who is the owner (“Owner”) of the

canceled checks proceeds or money outstanding.” Id. ¶ 43. He estimates that Defendants have

issued “about $500 million dollars in uncashed checks outstanding and unclaimed.” Id. ¶ 48.

In March 2021, Gelb submitted a FOIA request to DFAS (a Department of Defense

agency), requesting the following:

[A] search for all – Outstanding and Unpresented Checks not submitted for payment – stale-dated outstanding check lists . . . specifically, businesses, contractors, suppliers and vendors checks issued and payable in the years 2017, 2018, 2019, 2020 that are still outstanding and unpaid as of the date my FOIA search is processed for responsive documents. Please also include any Electronic Fund Transfer (EFT) payments that were made or were attempted and failed. To simplify this FOIA request, please search for all checks or ETF outstanding with a value of $100,000.00 and higher. Please eliminate from this list, any checks or electronic payments that have been actually paid or re-issued.

ECF 12-1 at 3. He asked that the resulting report include the following information:

1. ALC – Agency Location Code 2. Check Number 3. Payment Date 4. Cancel Date

2 5. Payment Amount 6. Invoice Number 7. Vendors, Suppliers, Businesses and Contractors, Name and Address 8. Agency Account Number Symbol Id.

Gelb specified that the agency should “search the Defense Finance and Accounting Service

Procurement [] Integrated Enterprise Environment (PIEE) computer database for the responsive

documents.” Id. He stated that his FOIA request “can be done in the PIEE databases background

and without any expense to DFAS because . . . DFAS would only be performing queries within its

PIEE database and utilizing existing software.” Id. at 4.

DFAS responded to Gelb’s request in April 2021, explaining that it had no existing

responsive records or reports. ECF 12-1 at 35. “To produce responsive records,” DFAS explained,

“would require the coordination of multiple disbursing locations, systems, and the creation of

database queries to generate a report solely for responding to your specific request.” Id. Because

this process would be burdensome, the agency estimated that it would cost Gelb, at minimum,

$4,608 in processing fees. Id. at 35–36. DFAS stated that if Gelb wished to proceed with his

request, he should submit a statement indicating his willingness to pay those fees. Id. at 35. Gelb

responded in October 2021, stating that he wished to proceed with his FOIA request and was

willing to pay the estimated fees. Id. at 39.

A few weeks later, the agency determined that it was in fact unable to fulfill Gelb’s request

because it “does not have a way to track if payments have cleared.” ECF 24-2 ¶ 22; ECF 24-5 at 1.

On October 29, 2021, FOIA Program Manager Gregory Outlaw spoke with Gelb on the phone “to

explain that DFAS could not fulfil his request as previously stated because [it had] determined that

the requested records did not exist and could not readily be compiled from existing sources.”

ECF 24-2 ¶ 24.

3 In January 2022, Gelb emailed DFAS stating that the agency had constructively denied his

March 2021 FOIA request by failing to provide responsive records, and appealing that constructive

denial. ECF 12-1 at 41–42. Gelb filed this suit in May 2023 and amended his complaint in August

2023. ECF 1; ECF 12. He alleges that Defendants’ policy of canceling outstanding checks after

six months without providing notice to owners is unconstitutional (Count I), and that Defendants

violated the FOIA by “fail[ing] to search the PIEE database and produce responsive record[s] to

[his] March 11, 2021 FOIA Request” (Count II). ECF 12 ¶¶ 99–115.

In September 2023, Outlaw “realized that [he] had forgotten to send an official written

response for ‘no records’” to Gelb after their October 2021 phone call. ECF 24-2 ¶ 26. On

September 15, 2023, DFAS sent Gelb a letter formally stating that it was unable to locate records

responsive to his request. ECF 24-7 at 1. Gelb responded via email that same day dismissing

Outlaw’s response.2 ECF 24-8 at 1.

Defendants filed a partial motion to dismiss, asking the Court to dismiss Count I for lack

of standing, improper venue, and failure to state a claim pursuant to Federal Rules of Civil

Procedure 12(b)(1), 12(b)(3), and 12(b)(6). ECF 16. The Court issued a Fox order advising Gelb

of his obligations in responding to that motion. ECF 17. Gelb responded by filing a cross-motion

for summary judgment on both Counts I and II. ECF 19. Defendants, in turn, opposed Gelb’s

motion for summary judgment and filed a cross-motion for summary judgment of their own on

both Counts I and II. ECF 24. The Court issued a Neal order, again advising Gelb of his obligations

in responding to Defendants’ cross-motion. ECF 26. Gelb filed an opposition, ECF 29, and

2 That email stated: “We are in litigation. Nice try but it won’t work.

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