Wickwire Gavin PC v. US Postal Service

CourtCourt of Appeals for the Fourth Circuit
DecidedJanuary 30, 2004
Docket02-2310
StatusPublished

This text of Wickwire Gavin PC v. US Postal Service (Wickwire Gavin PC v. US Postal Service) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wickwire Gavin PC v. US Postal Service, (4th Cir. 2004).

Opinion

PUBLISHED

UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT

WICKWIRE GAVIN, P.C.,  Plaintiff-Appellant, v.  No. 02-2310 UNITED STATES POSTAL SERVICE, Defendant-Appellee.  Appeal from the United States District Court for the Eastern District of Virginia, at Alexandria. James C. Cacheris, Senior District Judge. (CA-01-1900-A)

Argued: September 25, 2003

Decided: January 30, 2004

Before WILKINSON, TRAXLER and GREGORY, Circuit Judges.

Affirmed by published opinion. Judge Gregory wrote the opinion in which Judge Wilkinson joined. Judge Traxler wrote a separate con- curring opinion.

COUNSEL

ARGUED: David P. Hendel, WICKWIRE GAVIN, P.C., Vienna, Virginia, for Appellant. Steven E. Gordon, Assistant United States Attorney, Alexandria, Virginia, for Appellee. ON BRIEF: Stephanie M. Himel-Nelson, WICKWIRE GAVIN, P.C., Vienna, Virginia, for Appellant. Paul J. McNulty, United States Attorney, Alexandria, Vir- ginia, for Appellee. 2 WICKWIRE GAVIN v. USPS OPINION

GREGORY, Circuit Judge:

Wickwire Gavin, P.C., ("WG") serves as counsel for T&S Prod- ucts, Inc. ("T&S"), a former supplier of packing supplies to the United States Postal Service ("USPS" or "Postal Service"). In 2000, T&S lost its bid to supply packaging materials to the Postal Service. Thereafter, WG represented T&S in an unsuccessful bid protest action. See T&S Prods. Inc. v. United States, 48 Fed. Cl. 100 (2000). On July 3, 2001, WG submitted a request pursuant to the Freedom of Information Act ("FOIA") seeking USPS’s contract with Hallmark Cards, Inc., whose former subsidiary was the successful bidder for the packaging contract, as well as other documents related to purchases under the contract. USPS produced the contract and other responsive documents, but citing exceptions to FOIA, USPS withheld thirteen pages of spreadsheets detailing quantity and pricing information. WG initiated a challenge in federal court to USPS’s withholding. On cross-motions for summary judgment, the district court held that USPS properly invoked FOIA Exemptions 3 and 4 in withholding the spreadsheets. For the reasons stated below, we affirm.

I.

In the bidding process through which T&S unsuccessfully bid to become USPS’s exclusive provider of mailing supplies, USPS chose the Ensemble Company (hereinafter "Hallmark"), a former subsidiary of Hallmark Cards, Inc., which Hallmark has now fully absorbed, to be the exclusive provider. As noted above, WG then represented T&S in an unsuccessful bid protest action following USPS’s decision to award the contract to Hallmark. See T&S Prods., Inc. v. United States, 48 Fed. Cl. 100 (2000).

On July 3, 2001, WG submitted a FOIA request seeking a copy of USPS’s contract with Hallmark and other documents related to the sales and revenue generated under the contract.1 USPS provided docu- 1 The FOIA request sought: (1) the contract awarded to Hallmark; (2) all modifications and changes to the contract; (3) the most current pricing WICKWIRE GAVIN v. USPS 3 ments responsive to the first three requests on August 1, 2001, and forwarded the other two requests to another internal department. On August 29, 2001, USPS denied access to items four and five, citing 39 C.F.R. §§ 265.6(b)(3), 265.6(b)(5). On November 26, 2001, USPS denied WG’s administrative appeal.

Thereafter, WG filed a complaint in federal court, seeking review of USPS’s partial denial of the FOIA request. The withheld informa- tion at issue is redacted from thirteen pages of spreadsheets relating to USPS’s Ready Post Initiative ("RPI"), a program through which Hallmark is the exclusive supplier of packaging products to USPS for sale at its facilities.2 The spreadsheets concern purchase information pursuant to the Hallmark/USPS contract. Specifically, they include income statements under the RPI and list item retail value of the prod- ucts shipped. Through the RPI, postal consumers can purchase pack- ing materials and arrange for shipment at one location. Thus, USPS’s services are directly pitted against competitors such as Mail Boxes Etc., UPS, and other all-in-one outlets.

USPS and WG both filed motions for summary judgment. The dis- trict court denied the parties’ cross-motions for summary judgment pending completion of discovery. Thereafter, the parties renewed their motions for summary judgment, and both parties submitted affi- davit testimony and other evidence relevant to the data in question.

After in camera review of the withheld documents, the district

and product schedule for all product line items being supplied to USPS by Hallmark; (4) "Any document showing a summary of: (a) the quantity of each product line item purchased by USPS under the contract; and (b) the total purchase price paid by USPS for each product line item pur- chased by USPS under the contract"; and (5) "Any document showing the most current figures for USPS net revenue from USPS’s retail sale of items supplied under the above contract. (Note: "net revenue" means USPS sales revenue minus USPS costs.)" (J.A. 25-26.) Only the fourth and fifth requests are at issue on appeal. See Appellant’s Br. at 3. 2 Appellee states that "[t]hrough the RPI, USPS sells packaging materi- als to consumers (e.g., postal consumers may buy envelopes and other packaging materials in post offices)." Appellee’s Br. at 3 n.2. 4 WICKWIRE GAVIN v. USPS court granted summary judgment for USPS. The district court held USPS properly withheld the data pursuant to FOIA Exemptions 3 and 4, 5 U.S.C. §§ 552(b)(3), 552(b)(4).3 First, the court found Exemption 3 applicable because the Postal Reorganization Act, 39 U.S.C. § 410(c)(2), contains an exception to the FOIA disclosure requirement whereby the postal service is not required to disclose "information of a commercial nature, including trade secrets, whether or not obtained from a person outside the Postal Service, which under good business practice would not be publicly disclosed." Dist. Ct. Op. at 8 (quoting 39 U.S.C. § 410(c)(2)) (J.A. 697.) This provision comports with Con- gress’s overall purposes in passing the Postal Reorganization Act, which include assuring that USPS "be run more like a business than had its predecessor, the Post Office Department." Franchise Tax Bd. of Cal. v. United States Postal Serv., 467 U.S. 512, 520 (1984); see also Nat’l Ass’n of Greeting Card Publishers v. United States Postal Serv., 462 U.S. 810, 822 (1983) (noting that under the Act "Congress sought to ensure that the Postal Service would be managed in a busi- nesslike way" (internal quotation marks and citation omitted).4 Based on USPS’s showing that other companies do not disclose such data, the district court held that Exemption 3 was applicable. Dist. Ct. Op. at 17-18 (J.A. 706-07.)

The district court also held that Exemption 4, § 552(b)(4), which protects privileged or confidential trade secrets or other commercial 3 Section 552(b)(3) provides that FOIA does not apply to matters "spe- cifically exempted from disclosure by statute . . . ." 5 U.S.C. § 552(b)(3).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Federal Bureau of Investigation v. Abramson
456 U.S. 615 (Supreme Court, 1982)
Franchise Tax Board v. United States Postal Service
467 U.S. 512 (Supreme Court, 1984)
Loeffler v. Frank
486 U.S. 549 (Supreme Court, 1988)
United States v. Ron Pair Enterprises, Inc.
489 U.S. 235 (Supreme Court, 1989)
Robinson v. Shell Oil Co.
519 U.S. 337 (Supreme Court, 1997)
United States v. John Timothy Miller
903 F.2d 341 (Fifth Circuit, 1990)
David Miscavige v. Internal Revenue Service
2 F.3d 366 (Eleventh Circuit, 1993)
Milner v. Bolger
546 F. Supp. 375 (E.D. California, 1982)
National Western Life Insurance v. United States
512 F. Supp. 454 (N.D. Texas, 1980)

Cite This Page — Counsel Stack

Bluebook (online)
Wickwire Gavin PC v. US Postal Service, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wickwire-gavin-pc-v-us-postal-service-ca4-2004.