Wp Company LLC v. U.S. Small Business Administration

CourtDistrict Court, District of Columbia
DecidedJanuary 21, 2021
DocketCivil Action No. 2020-1240
StatusPublished

This text of Wp Company LLC v. U.S. Small Business Administration (Wp Company LLC v. U.S. Small Business Administration) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wp Company LLC v. U.S. Small Business Administration, (D.D.C. 2021).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

WP COMPANY LLC d/b/a THE WASHINGTON POST, et al.,

Plaintiffs, v. Civil Action No. 20-1240 (JEB) U.S. SMALL BUSINESS ADMINISTRATION,

Defendant.

MEMORANDUM OPINION

The history of this Freedom of Information Act case is straightforward. In May 2020,

Plaintiffs — a host of national news organizations — filed a lawsuit seeking the release of

various data concerning the Paycheck Protection Program (PPP) and the Economic Injury

Disaster Loans (EIDL) program. Following a round of briefing, this Court granted judgment to

Plaintiffs and ordered the Small Business Administration to release the names, addresses, and

precise loan amounts for successful borrowers. Several weeks later, after a failed attempt to put

the Court’s Order on hold, the agency did just that.

One final matter remains: Plaintiffs’ bid for attorney fees and costs. Although the Court

agrees that the news organizations are eligible for and entitled to fees, it finds that their requested

sum is somewhat excessive and must be reduced by around 20%.

I. Background

As past Opinions detail the full background of this suit, see WP Co. LLC v. U.S. Small

Bus. Admin., Nos. 20-1240, 20-1614, 2020 WL 6504534 (D.D.C. Nov. 5, 2020) (WP I); WP Co.

1 LLC v. U.S. Small Bus. Admin., Nos. 20-1240, 20-1614, 2020 WL 6887623 (D.D.C. Nov. 24,

2020) (WP II), the Court need only briefly recount the facts relevant to the present Motion.

Throughout April and May 2020, the eleven Plaintiffs in this case submitted FOIA

requests seeking data regarding loans approved pursuant to the PPP and EIDL program, bringing

suit in this Court after SBA declined to fulfill them. WP I, 2020 WL 6504534, at *3. Although

the agency eventually published some loan-level information in July, it refused, much to

Plaintiffs’ displeasure, to release certain key details. Specifically, SBA did not provide both

dollar figures and borrower names and addresses for any PPP loan, and it adopted a similar

partial-disclosure approach for EIDL data. Id. at *3–4. According to the Government, its

withholdings were based on FOIA Exemptions 4 and 6, which protect, respectively, confidential

commercial information and information the disclosure of which would constitute a clearly

unwarranted invasion of personal privacy. Id. (citing 5 U.S.C. § 552(b)(4), (6)).

Believing those withholdings lacked merit, Plaintiffs moved for summary judgment, and

this Court ultimately agreed that neither of SBA’s claimed exemptions covered the requested

information. Id. at *4, 9, 18. It accordingly ordered the agency to release the “names, addresses,

and precise loan amounts” for all individuals and entities that had received PPP or EIDL loans

during the COVID-19 pandemic by November 19, 2020. See ECF No. 22 (11/5/20 Order) at 2.

A week before that deadline, SBA moved to stay this Court’s Order pending its

determination of whether to appeal. WP II, 2020 WL 6887623, at *2. After issuing a temporary

stay in order to consider the agency’s request, the Court denied it in full, finding that “the

overriding public interest” in prompt release of the withheld information rendered a stay

inappropriate. Id. at *5. Although the Court put SBA’s disclosure obligation on hold for another

week, see id., thus providing the agency time to notice an appeal and seek a stay from the D.C.

2 Circuit if it so desired, the Government took neither step. Instead, on December 1, 2020 — and

no doubt to Plaintiffs’ satisfaction — it publicly produced the full dataset containing the names,

addresses, and precise loan amounts for millions of recipients of PPP and EIDL COVID-related

loans totaling hundreds of billions of dollars. See SBA, 120120 EIDL, EIDL Advance, and PPP

Data, https://bit.ly/38RJtsR (last visited Jan. 19, 2021).

Claiming that they “substantially prevailed” in this litigation, see 5 U.S.C.

§ 552(a)(4)(E)(i), Plaintiffs have now filed a Motion for Attorney Fees and Costs, see ECF No.

27 (Pl. Mot.), which SBA opposes. See ECF No. 32 (Def. Opp.).

II. Legal Standard

FOIA provides that courts “may assess against the United States reasonable attorney fees

and other litigation costs reasonably incurred in any case . . . in which the complainant has

substantially prevailed.” 5 U.S.C. § 552(a)(4)(E)(i); see Brayton v. Off. of the U.S. Trade Rep.,

641 F.3d 521, 524 (D.C. Cir. 2011). “This language naturally divides the attorney-fee inquiry

into two prongs, which our case law has long described as fee ‘eligibility’ and fee ‘entitlement.’”

Brayton, 641 F.3d at 524 (quoting Judicial Watch, Inc. v. U.S. Dep’t of Commerce, 470 F.3d

363, 368–69 (D.C. Cir. 2006)). Plaintiffs are “eligible” to receive fees if they have “substantially

prevailed.” Id.; Negley v. FBI, 818 F. Supp. 2d 69, 72–73 (D.D.C. 2011). If Plaintiffs are

eligible, the Court must then “consider[] a variety of factors” to determine whether they are

“entitled” to fees. Brayton, 641 F.3d at 524–25; see also Davy v. CIA, 550 F.3d 1155, 1158–59

(D.C. Cir. 2008). If they are both eligible for and entitled to receive fees, the Court proceeds to

“analyze whether the amount of the fee request is reasonable.” Elec. Privacy Info. Ctr. v. U.S.

Dep’t of Homeland Sec., 811 F. Supp. 2d 216, 237 (D.D.C. 2011).

3 III. Analysis

At least some of the usual attorney-fee legwork is already in the rearview mirror here, as

SBA concedes — as it must — that Plaintiffs are “eligible” to receive fees on account of their

complete success in the underlying suit. See Def. Opp. at 4; see also Oil, Chem. & Atomic

Workers Int’l Union, AFL-CIO v. Dep’t of Energy, 288 F.3d 452, 456–57 (D.C. Cir. 2002)

(explaining that plaintiff is eligible for fees if it is “awarded some relief by a court,” such as “a

judgment on the merits”) (cleaned up). It disputes, however, whether they are “entitled” to fees,

as well as — should the Court so determine — whether their claimed fees are reasonable. The

Court takes each in turn.

A. Entitlement

The entitlement inquiry is designed to ensure that attorney fees are distributed in a

manner consistent with the purpose of FOIA’s fee provision, which “was not enacted to provide

a reward for any litigant who successfully forces the government to disclose information it

wished to withhold.” Davy, 550 F.3d at 1158 (quoting Nationwide Bldg. Maint., Inc. v.

Sampson, 559 F.2d 704, 711 (D.C. Cir. 1977)). Instead, it serves the “more limited purpose” of

“remov[ing] the incentive for administrative resistance to disclosure requests based not on the

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

Related

Blum v. Stenson
465 U.S. 886 (Supreme Court, 1984)
Role Models Amer Inc v. White, Thomas
353 F.3d 962 (D.C. Circuit, 2004)
Davy v. Central Intelligence Agency
550 F.3d 1155 (D.C. Circuit, 2008)
Fox v. Vice
131 S. Ct. 2205 (Supreme Court, 2011)
Tax Analysts v. United States Department of Justice
965 F.2d 1092 (D.C. Circuit, 1992)
Citizens for Responsibility & Ethics v. U.S. Department of Justice
820 F. Supp. 2d 39 (District of Columbia, 2011)
Negley v. Federal Bureau of Investigation
818 F. Supp. 2d 69 (District of Columbia, 2011)
Laffey v. Northwest Airlines, Inc.
572 F. Supp. 354 (District of Columbia, 1983)
Eley v. District of Columbia
999 F. Supp. 2d 137 (District of Columbia, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
Wp Company LLC v. U.S. Small Business Administration, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wp-company-llc-v-us-small-business-administration-dcd-2021.