Union of Concerned Scientists v. U.S. Nuclear Regulatory Commission, General Electric Company

824 F.2d 1219, 263 U.S. App. D.C. 239, 18 Envtl. L. Rep. (Envtl. Law Inst.) 20168, 1987 U.S. App. LEXIS 10140
CourtCourt of Appeals for the D.C. Circuit
DecidedJuly 31, 1987
Docket85-6227
StatusPublished
Cited by9 cases

This text of 824 F.2d 1219 (Union of Concerned Scientists v. U.S. Nuclear Regulatory Commission, General Electric Company) 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
Union of Concerned Scientists v. U.S. Nuclear Regulatory Commission, General Electric Company, 824 F.2d 1219, 263 U.S. App. D.C. 239, 18 Envtl. L. Rep. (Envtl. Law Inst.) 20168, 1987 U.S. App. LEXIS 10140 (D.C. Cir. 1987).

Opinion

McGOWAN, Senior Circuit Judge:

The appellants, the Nuclear Regulatory Commission (“NRC” or “Commission”) and the United States of America, challenge an attorney’s fees award of $18,876.04 to the appellee, Union of Concerned Scientists (“UCS”). The District Court awarded these fees in a case brought under the Freedom of Information Act, 5 U.S.C. § 552 (1982 & Supp. Ill 1985) (“FOIA”), in which UCS sought a “probabilistic risk assessment” (“PRA”) prepared by the General Electric Company (“GE”) for its nuclear reactor design known as GESSAR-II.

We find that the District Court did not clearly err nor abuse its discretion in concluding that UCS was eligible for, and entitled to, attorney’s fees under the FOIA. However, full findings of fact must be made to support a court’s belief that a party has substantially prevailed in a lawsuit before a grant of attorney’s fees can be awarded. Because we do not believe that the District Court’s Memorandum Opinion of October 22, 1985 contained adequate findings, we remand the case to the District Court for further explanation or factual findings supporting its conclusion that UCS substantially prevailed in this lawsuit.

I.

The General Electric Company applied to the NRC for final approval of its GESSAR-II standard design nuclear power plant. In support of its application, GE submitted a PRA as well as supplementary information, requesting that this material be kept confidential. 1 Br. of Appellants at 2. They produced an affidavit explaining why the material was proprietary in nature and the harm that would be incurred by GE if the material were disclosed. J.A. at 31-36. Brookhaven National Laboratory, under contract with the NRC, reviewed GE’s application and generated various reports on the PRA. See Br. of Appellants at 2.

The Union of Concerned Scientists filed a FOIA request with the NRC on March 13, 1984, seeking production of the PRA and review documents prepared by NRC and its contractors. 2 J.A. at 18-19. The NRC did not respond within the statutory ten day time period, and UCS thus treated the failure to respond as a denial, filing an administrative appeal on April 5, 1984. J.A. at *1221 20-21. On May 24 and June 2, 1984, the NRC advised UCS that the PRA and related documents contained information GE deemed to be proprietary. J.A. at 26, 28, 30. On June 25, 1984, the NRC notified UCS that it had decided to withhold the entire text of the GESSAR-II PRA and three review documents, stating that it agreed with GE that the documents were exempt from disclosure under Section 552b(c)(4) of FOIA (“Exemption 4”) (protecting from disclosure “trade secrets and commercial or financial information obtained from a person and privileged and confidential”). J.A. at 37-39.

UCS filed an administrative appeal of the denial on August 6,1984, claiming that GE had not taken consistent positions with respect to the proprietary nature of the information withheld. J.A. at 44-49. 3 The NRC agreed, indicating that it was necessary for GE and the NRC to re-review all of the documents. J.A. at 50, 58,144-45. Due to the volume of pages, the NRC stated that it would be unable to respond to the appeal within the statutory twenty day period, and that it would inform UCS of the NRC’s final decision. Id.

UCS filed suit in District Court on September 12, 1984 seeking 40 documents and approximately 4,000 pages. J.A. at 69-76. On December 3, 1984, the NRC released over 2,000 partial pages. J.A. at 53, 55-57. By a court-approved stipulation on December 17, 1984, the parties agreed to limit the litigation to seven primary documents consisting of the PRA and supplementary documentation for GESSAR-II. This stipulation reduced the 4,000 pages originally at issue to approximately 1,600. J.A. at 84. The NRC submitted a Vaughn index on February 1, 1985. J.A. at 86-98. See National Treasury Employees Union v. U.S. Customs Service, 802 F.2d 525, 527 (D.C.Cir.1986) (generally describing a Vaughn index and citing authorities). The NRC released approximately 110 full and partial pages of the 1,600 total pages sought. J.A. at 64.

GE intervened in this action on February 8,1985. On February 21,1985, GE and the NRC filed motions for summary judgment. Appellants claimed that the withheld materials in the PRA contained information that, if disclosed, would cause substantial injury to GE’s competitive position and that these materials therefore were exempt from disclosure under Exemption 4. 5 U.S.C. § 552b(c)(4). J.A. at 99-102. UCS filed a cross-motion for partial summary judgment urging, inter alia, that (1) the NRC and GE had failed to demonstrate competitive injury and, thus, were not entitled to summary judgment; (2) the NRC, in violation of 10 C.F.R. § 2.790(b)(5) (1985), had failed to make a discretionary release of exempt material despite the asserted overriding public interest; and (3) ten categories of quantitative results could be publicly released without competitive harm to GE, entitling UCS to partial summary judgment. See Br. of Appellants at 6.

The District Court, on June 6, 1985, granted GE and the NRC partial summary judgment on the NRC’s exercise of its discretion in refusing to release voluntarily materials claimed to be exempt under Exemption 4. Slip op. at 6. The lower court denied the NRC summary judgment on the Exemption 4 claims, finding that although GE made a “substantial” showing of harm, UCS had controverted this showing, creating a factual dispute. Id. at 5. A trial was deemed necessary to determine the issue of substantial competitive harm to GE’s position. Id.

On July 18, 1985, GE agreed to release six of the ten categories of documents on which UCS had sought summary judgment — a total of eleven pages — in return for UCS dropping its action. 4 J.A. at 131- *1222 34, 151-61. GE released the eleven pages and the court dismissed the suit with prejudice. See Br. of Appellants at 7. 5

The parties then litigated the issue of attorney’s fees. At the center of the controversy giving rise to this appeal is the District Court’s Memorandum Opinion and Order of October 22, 1985, which granted UCS the full amount of attorney’s fees and costs that it sought, totalling $18,876.04. J.A. at 148-49.

II.

A. Bifurcation of Phases of Litigation for Award of Attorney’s Fees Under the FOIA

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824 F.2d 1219, 263 U.S. App. D.C. 239, 18 Envtl. L. Rep. (Envtl. Law Inst.) 20168, 1987 U.S. App. LEXIS 10140, Counsel Stack Legal Research, https://law.counselstack.com/opinion/union-of-concerned-scientists-v-us-nuclear-regulatory-commission-cadc-1987.