Gonzales & Gonzales Bonds & Insurance Agency Inc. v. United States Department of Homeland Security

913 F. Supp. 2d 865, 2012 WL 6680228, 2012 U.S. Dist. LEXIS 181317
CourtDistrict Court, N.D. California
DecidedDecember 21, 2012
DocketNo. C 11-02267 DMR
StatusPublished
Cited by1 cases

This text of 913 F. Supp. 2d 865 (Gonzales & Gonzales Bonds & Insurance Agency Inc. v. United States Department of Homeland Security) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gonzales & Gonzales Bonds & Insurance Agency Inc. v. United States Department of Homeland Security, 913 F. Supp. 2d 865, 2012 WL 6680228, 2012 U.S. Dist. LEXIS 181317 (N.D. Cal. 2012).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION FOR SUMMARY JUDGMENT AND GRANTING IN PART AND DENYING IN PART PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT

DONNA M. RYU, United States Magistrate Judge.

Defendant United States Department of Homeland Security (“DHS”) moves pursuant to Federal Rule of Civil Procedure 56 for summary judgment against all claims in Plaintiff Gonzales and Gonzales Bonds and Insurance Agency, Inc.’s complaint. Plaintiff opposes Defendant’s motion and cross-moves for summary judgment. For the reasons stated below, the court grants in part and denies in part Defendant’s motion, and grants in part and denies in part Plaintiffs motion as well.

I. Background and Procedural History

Plaintiff is an authorized agent and underwriter of bonds. It posts immigration bonds with DHS on behalf of American Surety Company, a federally approved surety company, for the release of aliens from detention pending determination of the alien’s immigration status. (Am. Compl. ¶¶ 6, 16; Def.’s Mot. Summ. J. 3.) Since June 23, 2009, Plaintiff has filed approximately 571 alien file (“A-file”)1 re[868]*868quests with DHS pursuant to the Freedom of Information Act (“FOIA”), 5 U.S.C. § 552. (Am. Compl. ¶¶ 1, 30; Laird Decl. ¶ 4, Apr. 12, 2012.) According to Plaintiff, DHS has failed to respond to many of these FOIA requests; with respect to those requests to which DHS has replied, Plaintiff alleges that the responses were untimely2 and that DHS “improperly withheld A-file documents.”3 (Am. Compl. ¶ 30.) Plaintiff attributes many of these allegedly improper withholdings to DHS’s reliance on the consent provision in 6 C.F.R. § 5.3(a) (“the Consent Provision”), through which DHS mandates that if a party makes a FOIA request about another individual, “either a written authorization signed by that individual permitting disclosure of those records ... or proof that that individual is deceased ... must be submitted,” § 5.3(a). (Am. Compl. ¶ 31.)

On May 9, 2011, Plaintiff filed this action, bringing three causes of action against DHS stemming from the agency’s alleged failure and/or refusal to provide Plaintiff with the A-files. {See generally Compl.) In Count I, Plaintiff claimed that DHS improperly responded to 183 A-file requests by providing Plaintiff only with so-called “Record of Proceedings” documents (“ROPs”) or a letter giving a brief description of the alien’s status as removed, in removal proceedings, or apprehended and in custody. (Compl. ¶¶ 29-32; see Compl. Exs. 9-13.) Plaintiff filed administrative appeals for each request between October 30, 2009 and April 7, 2010. (Compl. ¶ 33.) However, as of May 6, 2011, with the exception of the acknowledgment of one appeal, DHS had failed to timely respond to these appeals.4 (Compl. [869]*869¶ 33.) In Count II, Plaintiff claimed that when it filed an additional 240 A-file requests, DHS again insufficiently and untimely responded with more ROPs. (Compl. ¶¶ 35-37; see Compl. Ex. 14.) Plaintiff did not appeal these requests, because it believed from its experience in Count I that doing so would have been futile. (Compl. ¶ 38.) In Count III, Plaintiff claimed that as of May 6, 2011, DHS had failed to timely acknowledge, let alone properly respond to, 148 other requests that it had submitted between August 6, 2009 and April 4, 2011. (Compl. ¶ 40; see Compl. Ex. 16.) Plaintiff did not appeal these requests, as it believed that it would have proven futile in light of its experiences set forth in Count I. (Compl. ¶ 40.)

Defendant moved to dismiss Plaintiffs complaint for lack of subject matter jurisdiction or, in the alternative, for Plaintiffs failure to exhaust its administrative remedies. [Docket No. 28.] In the latter argument, DHS asserted that Plaintiff failed to perfect its administrative appeals and that, when seeking information about third-parties, Plaintiff failed to submit the consent authorization required by § 5.3(a). The court granted Defendant’s motion on the grounds that Plaintiff had failed to exhaust his administrative remedies by not adhering to the Consent Provision, and dismissed Plaintiffs complaint with leave to amend. Gonzales & Gonzales Bonds & Ins. Agency, Inc. v. U.S. Dep’t of Homeland Sec., No. 11-2267 -DMR, 2012 WL 424852, at *6 (N.D.Cal. Feb. 9, 2012). In the interest of conserving the court’s and parties’ resources,’ the court also held that Plaintiffs failure to exhaust its administrative remedies with respect to the FOIA applications in Counts II and III did not preclude the court from entertaining Plaintiffs claims. Id. In light of DHS’s treatment of Plaintiffs applications in Count I, to have required Plaintiff to .exhaust its administrative remedies would have proven futile. Id.

On March 2012, . Plaintiff filed its Amended Complaint, which states four causes of action against DHS. [Docket No. 36.] Counts I, II, and III in the Amended Complaint trace their respective counterparts in the original complaint, as described above. (Am. Compl. ¶¶ 34-51; see Am. Compl: Exs. 10-17.) In Count IV, Plaintiff challenges the validity of the Consent Provision, “generally and as applied to [its] requests,” pursuant to FOIA or, in the alternative, 5 U.S.C. § 706(2) of the Administrative Procedure Act (“APA”). (Am. Compl. ¶¶ 53-70.) According to Plaintiff, the provision transgresses the FOIA statutory scheme because it “amounts to a substantive ‘tenth’ exemption to disclosure under the guise of a procedural requirement for making a FOIA request.” (Am. Compl. ¶ 54.) “If a party does not have the consent ..., then DHS takes the position that it can withhold every single document requested without the need to determine whether any of the specific nine withholding exemptions specified in the FOIA apply.” (Am. Compl. ¶ 54.)

DHS moved to dismiss Plaintiffs FOIA claims for failure to exhaust administrative remedies, and its APA claim for failing to state a claim upon which relief can be granted. [Docket No. 38.] In the former argument, DHS. asserted that Plaintiffs claims warranted dismissal because Plaintiff failed to exhaust his administrative remedies when it refused to submit § 5.3(a) consent forms with its FOIA applications. In the latter argument, DHS argued that Plaintiffs APA claim challenging the ’procedural validity of the Consent Provision was time-barred pursuant to the six-year statute of limitations in 28 U.S.C. § 2401(a). The court granted the motion in part and denied it in part. Gonzales & Gonzales Bonds & Ins. Agency, Inc. v. U.S. Dep’t of Homeland Sec., No. 11-2267 DMR, 2012 WL 1815632 (N.D.Cal. May 17, [870]*8702012). The court noted that Plaintiff challenges the lawfulness of the Consent Provision in the context of FOIA’s statutory scheme and that Plaintiff could bring such a substantive claim only after failing.to comply with the contested regulation. Id. at *4.

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913 F. Supp. 2d 865, 2012 WL 6680228, 2012 U.S. Dist. LEXIS 181317, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gonzales-gonzales-bonds-insurance-agency-inc-v-united-states-cand-2012.