Munger, Tolles & Olson LLP v. United States Department of the Army

58 F. Supp. 3d 1050, 2014 U.S. Dist. LEXIS 158097, 2014 WL 5781394
CourtDistrict Court, C.D. California
DecidedNovember 6, 2014
DocketCase No. CV 13-06890 DDP (MANx)
StatusPublished
Cited by4 cases

This text of 58 F. Supp. 3d 1050 (Munger, Tolles & Olson LLP v. United States Department of the Army) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Munger, Tolles & Olson LLP v. United States Department of the Army, 58 F. Supp. 3d 1050, 2014 U.S. Dist. LEXIS 158097, 2014 WL 5781394 (C.D. Cal. 2014).

Opinion

ORDER RE: MOTIONS FOR SUMMARY JUDGMENT

DEAN D. PREGERSON, District Judge.

Presently before the court are cross-motions for summary judgment regarding Plaintiffs request for documents from Defendant, a government agency, under the Freedom of Information Act (“FOIA”). Although Defendant has released some responsive documents, Plaintiff alleges that the documents released were improperly redacted, more documents should be released, and Defendant unreasonably delayed answering the request even with regard to the documents that were produced. Defendant argues that its search was reasonable and that the documents not released are exempt from disclosure.

I. BACKGROUND

Plaintiff Munger, Tolies & Olson LLP (“MTO”) brings this suit as the requestor of certain records allegedly held by the Department of the Army (“the Army”). (Compl. ¶ 13.) MTO requested the records, and now sues, on behalf of its client, American Management Services LLC d/b/a Pinnacle (“Pinnacle”). (Id. at ¶ 1, 9.) Pinnacle is involved in ongoing litigation with Clark Realty Capital, LLC (“Clark”) over a joint venture between the two companies to develop and manage certain family housing complexes for the Army (collectively, “the Projects”). (Id. at ¶¶ 5-7, 17-21.) Pinnacle alleges that Clark is attempting to force it out of the Projects. (Id. at ¶¶ 5-7, 22.) The requested records are proposals to modify and expand the scope of the Projects, which Pinnacle alleges resulted in “millions of additional dollars for the projects-funds that became available at essentially the same time that Clark initiated litigation against Pinnacle.... ”(M at ¶ 8.)

Thus, on September 17, 2012, MTO submitted a FOIA request to the Army (via the Office of the Assistant Secretary of the Army, Installations & Environment) requesting the release of the following:

[1052]*10521. All documents and communications received from Monterey Bay Military Housing LLC related to Modified Scope Plans at Monterey Bay, including but not limited to preliminary reports, presentations, projections, forecasts, working papers, and assessments.
2. All documents and communications received from Fort Belvoir Residential Communities LLC related to Modified Scope Plans at Fort Belvoir, including but not limited to preliminary reports, presentations, projections, forecasts, working, papers, and assessments.
3. All documents and communications received from Fort Benning Family Communities LLC related to Modified Scope Plans at Fort Benning, including but not limited to preliminary reports, presentations, projections, forecasts, working papers, and assessments.
4. All documents and communications received from California Military Communities LLC or Fort Irwin Land LLC related to any post-closing capital contributions to Fort Irwin Land and any subsequent loans from Fort Irwin Land to California Military Communities, including but not limited to preliminary reports, presentations, projections, forecasts, working papers, and assessments. [1059]*1059shed little if any light upon the agency’s performance of its statutory duties.... [Wjhether the lower bidder marked up one cost element by a large margin and another by a small margin, in the course of making its bid competitive overall, is not self-evidently relevant to the question what the “government is up to.”

[1052]*1052(Compl., Ex. A.)

Plaintiff alleges, and provides documentation of, the following chain of events after its request was received: On September 28, 2012, Paul Cramer of the Assistant Secretary’s office informed MTO that the United State Army Corps of Engineers, Norfolk District (“USACE”) handled FOIA requests regarding the projects. (Compl., Ex. B.) On October 8, 2012, MTO directed its request to the appropriate person at USACE. (Compl., Ex. C.) On October 17, USACE notified MTO that because the request “involve[d] records that were obtained from a non-government source,” USACE would have to hear legal arguments from the source (here, Clark) before releasing the documents. (Compl., Ex. D.) On January 14, 2013, the Army released “just one heavily redacted document” out of “hundreds (if not thousands)” of documents MTO expected. (Compl. at ¶2 & Ex. E.) The letter accompanying the released document explained that the request was partially denied and that MTO had a right to appeal the denial. (Compl., Ex. E.) MTO filed an administrative appeal with USACE’s counsel March 4, 2013. (Compl., Ex. G.) Although MTO sent the appeal to the address indicated in USACE’s letter, there appears to have arisen thereafter some administrative confusion as to the location of MTO’s appeal packet and who, exactly, was responsible for hearing and responding to the appeal. (Compl., Exs. H-N.) As of May 24, 2013, the person responsible for reviewing the appeal had apparently still not received the proper documents. (Compl, Ex. N.) Because of this series of miscommunications and delays, MTO alleges, “[t]he Army did not respond to Plaintiffs appeal within twenty working days, as required by law.” (Compl. ¶ 50.)

MTO alleges that as of September 18, 2013, when it filed the Complaint, it had received no further responsive documents. (Id. at ¶ 61.) On November 19, 2013, another office of the Department of the Army altogether, the Office of the Administrative Assistant to the Secretary of the Army, sent MTO a letter stating that it was the entity authorized to accept FOIA requests and apparently restarting the process under a new case number. (Decl. Jason Axe, Ex. 1.) On December 12, 2013, that office responded to the March 4, 2013 appeal, agreeing to “releas[e] the requested documents to you with partial redac-tions,” but notifying MTO that the Army [1053]*1053was withholding about 50 pages’ worth of documents altogether. (Decl. Jason Axe, Ex. 2.) On April 21, 2014, the Army sent MTO a “modified release of documents” undoing some of the redaction on one page in the December 12 release and releasing an additional 13 pages. (Decl. Jason Axe, Ex. 4.) It appears, therefore, that at this time 379 pages, comprising 26 documents, have been released in redacted form to MTO. (Def.’s Vaughn Index, Decl. Jose Burgos.) Six additional documents, identified as “Excel Spreadsheets,” were withheld altogether. (Id.) The Army has indicated that these redactions and with-holdings were done by Clark’s counsel. (Id.) MTO does not concede that these 32 documents are the only relevant documents. (Pl.’s Statement Genuine Disputes Material Fact at 4:10-13.)

MTO seeks release of any withheld records, the release of all documents “without improper redactions,” a declaratory judgment that “it was unlawful for the Army to fail to disclose the subject records,” and attorneys’ fees. (Compl. at section titled “RELIEF REQUESTED.”)

The parties have filed cross-motions for summary judgment. ' (Dkt. Nos. 27, 31.) On October 9, 2014, the Court ordered the Army to produce the documents in question for in camera review, as well as to supplement its Vaughn Index with clearer descriptions of the items withheld in their entirety. (Dkt. No. 43.) The Court also requested supplemental briefing from both parties on legal precedent regarding FOIA exemption of the specific kinds of information at issue, and also on the factual question of whether Clark was likely to suffer competitive injury if the information was revealed.

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58 F. Supp. 3d 1050, 2014 U.S. Dist. LEXIS 158097, 2014 WL 5781394, Counsel Stack Legal Research, https://law.counselstack.com/opinion/munger-tolles-olson-llp-v-united-states-department-of-the-army-cacd-2014.