Koopmann v. U.S. Dep't of Transp.

335 F. Supp. 3d 556
CourtDistrict Court, S.D. Illinois
DecidedAugust 16, 2018
Docket18-CV-3460 (JMF)
StatusPublished
Cited by4 cases

This text of 335 F. Supp. 3d 556 (Koopmann v. U.S. Dep't of Transp.) is published on Counsel Stack Legal Research, covering District Court, S.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Koopmann v. U.S. Dep't of Transp., 335 F. Supp. 3d 556 (S.D. Ill. 2018).

Opinion

JESSE M. FURMAN, United States District Judge

The United States Department of Transportation ("USDOT"), like most federal agencies, has enacted a set of regulations-known as " Touhy regulations" after the Supreme Court case that spawned them-governing when its employees may be called by private parties to testify in court. On their face, USDOT's regulations apply to both "current" and "former" employees. The principal question is this case is whether application of the regulations to "former" employees is lawful, as the statute pursuant to which the regulations were enacted-the Housekeeping Statute, 5 U.S.C. § 301 -speaks only of "employees." The case arises out of another case, Pirnik v. Fiat Chrysler Automobiles N.V. , 15-CV-7199 (JMF) (S.D.N.Y.) ("Pirnik "), in which Plaintiffs here bring securities-fraud claims against Fiat Chrysler Automobiles ("FCA") and other defendants. In an effort to obtain evidence concerning FCA's communications with the National Highway Traffic Safety Administration ("NHTSA"), a part of USDOT, Plaintiffs sought to depose a former NHTSA employee, and USDOT-invoking its Touhy regulations-denied the request. Pursuant to the Administrative Procedure Act ("APA"), 5 U.S.C. §§ 500 et seq. , Plaintiffs bring this suit to challenge that denial as "arbitrary, capricious, an abuse of discretion, and in excess of [USDOT's] statutory jurisdiction." (Docket No. 1 ("Compl.") ¶ 59). Defendants now move to dismiss or, *558in the alternative, for summary judgment; Plaintiffs cross-move for summary judgment. (Docket Nos. 23, 25).

Based on the text, structure, and purpose of the Housekeeping Statute, the Court concludes that USDOT's Touhy regulations are unlawful to the extent that they apply to former employees. Accordingly, and for the other reasons stated below, Plaintiffs' motion for summary judgment is GRANTED, and Defendant's motion is DENIED.

LEGAL BACKGROUND

"The antecedents" of today's Housekeeping Statute "go back to the beginning of the Republic, when statutes were enacted to give heads of early Government departments authority to govern internal department affairs." Chrysler Corp. v. Brown , 441 U.S. 281, 309, 99 S.Ct. 1705, 60 L.Ed.2d 208 (1979). Those early laws "were consolidated into one statute in 1874 and the current version of the statute was enacted in 1958." Id. The current version provides in full as follows:

The head of an Executive department or military department may prescribe regulations for the government of his department, the conduct of its employees, the distribution and performance of its business, and the custody, use, and preservation of its records, papers, and property. This section does not authorize withholding information from the public or limiting the availability of records to the public.

5 U.S.C. § 301. Pursuant to that statute, USDOT promulgated regulations "governing the testimony of an employee in legal proceedings." Testimony of Employees of the Department and Production of Records in Legal Proceedings, 49 C.F.R. § 9.1(a) (2017). These regulations-commonly known as " Touhy regulations" after the Supreme Court's decision in United States ex rel. Touhy v. Ragen , 340 U.S. 462, 71 S.Ct. 416, 95 L.Ed. 417 (1951) -establish "procedures to be followed when an employee is issued a subpoena, order or other demand ... by a court or other competent authority, or is requested by a private litigant, to provide testimony or produce records concerning information acquired in the course of performing official duties or because of the employee's official status." 49 C.F.R. § 9.1(a). Generally speaking, they prohibit any USDOT employee from "provid[ing] testimony or produc[ing] any material contained in the files of the Department, or disclos[ing] any information or produc[ing] any material acquired as part of the performance of that employee's official duties." Id. § 9.5.

In a case between private litigants, however, when an employee receives a subpoena or other demand to testify or produce records, "agency counsel, in his or her discretion, may grant the employee permission to testify or produce records"-but "only if the purposes of this part are met or agency counsel determines that an exception is appropriate." Id. § 9.11(b). Section 9.1(b), in turn, identifies five "purposes of this part": (1) "[c]onserv[ing] the time of employees for conducting official business"; (2) "[m]inimiz[ing] the possibility of involving the Department in controversial issues not related to its mission"; (3) "[m]aintain[ing] the impartiality of the Department among private litigants"; (4) "[a]void[ing] spending the time and money of the United States for private purposes"; and (5) "protect[ing] confidential, sensitive information and the deliberative processes of the Department." Id. § 9.1(b). Finally, Section 9.1(c) defines when an "exception" may be appropriate-namely, "when the deviation will not interfere with matters of operational or military necessity, and when agency counsel determines that" (1) the exception "is necessary to prevent a miscarriage *559

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335 F. Supp. 3d 556, Counsel Stack Legal Research, https://law.counselstack.com/opinion/koopmann-v-us-dept-of-transp-ilsd-2018.