E. Schoenberg v. Fbi ( 2021 )


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  •                      FOR PUBLICATION
    UNITED STATES COURT OF APPEALS
    FOR THE NINTH CIRCUIT
    E. RANDOL SCHOENBERG,                              No. 20-55607
    Plaintiff-Appellant,
    D.C. No.
    v.                           2:18-cv-01738-
    JAK-AGR
    FEDERAL BUREAU OF
    INVESTIGATION,
    Defendant-Appellee.                   OPINION
    Appeal from the United States District Court
    for the Central District of California
    John A. Kronstadt, District Judge, Presiding
    Submitted May 11, 2021 *
    Pasadena, California
    Filed June 30, 2021
    Before: John B. Owens, Ryan D. Nelson, and
    Bridget S. Bade, Circuit Judges.
    Opinion by Judge R. Nelson
    *
    The panel unanimously concludes this case is suitable for decision
    without oral argument. See Fed. R. App. P. 34(a)(2).
    2                      SCHOENBERG V. FBI
    SUMMARY **
    Freedom of Information Act / Attorney’s Fees
    The panel affirmed the district court’s order denying
    plaintiff’s request for attorney’s fees following his
    successful suit under the Freedom of Information Act
    (“FOIA”) to obtain redacted information from the Federal
    Bureau of Investigation related to a 2016 search warrant,
    investigating then-Secretary of State Hillary Clinton’s email
    practices.
    A plaintiff must show entitlement to fees, and four
    factors inform the entitlement inquiry. The district court
    held that the first three factors – public benefit, plaintiff’s
    commercial benefit, and the nature of plaintiff’s interest in
    the information – favored fees. As to the fourth factor – the
    legal reasonableness of the FBI’s withholding – the district
    court held this factor disfavored fees and outweighed the
    other factors. The district court concluded that plaintiff was
    a prevailing party for attorney’s fees under FOIA, but denied
    fees after balancing the relevant factors.
    The panel reviewed the district court’s denial of
    attorney’s fees under FOIA for abuse of discretion.
    Concerning whether the fourth entitlement factor
    favored fees, the panel held the FBI was reasonable to think
    that the District Court for the Southern District of New York
    (“SDNY”)’s order sealing the warrant and its related
    **
    This summary constitutes no part of the opinion of the court. It
    has been prepared by court staff for the convenience of the reader.
    SCHOENBERG V. FBI                         3
    materials limited its ability to disclose information to
    plaintiff. The panel held that because the FBI’s reliance on
    the SDNY sealing order was reasonable, the district court’s
    same conclusion was reasonable too.
    Concerning whether the district court erred in balancing
    the factors, the panel held that the district court did not abuse
    its discretion in analyzing the individual factors. The panel
    held further that the record did not suggest that this was a
    rare case when reversal was warranted. Accordingly, the
    district court reasonably held that the fourth factor
    outweighed the other three factors.
    COUNSEL
    Paul D. Murphy and Jodi M. Newberry, Murphy Rosen LLP,
    Santa Monica, California, for Plaintiff-Appellant.
    Nicola T. Hanna, United States Attorney; Daniel Tenny and
    Joseph F. Busa, Appellate Staff; Civil Division, United
    States Department of Justice, Washington, D.C.; for
    Defendant-Appellee.
    4                   SCHOENBERG V. FBI
    OPINION
    R. NELSON, Circuit Judge:
    After a successful suit under the Freedom of Information
    Act (“FOIA”), E. Randol Schoenberg obtained redacted
    information related to a 2016 search warrant, investigating
    then-Secretary of State Hillary Clinton’s email practices.
    Though Schoenberg was a prevailing party eligible for
    attorney’s fees under FOIA, the district court denied fees
    after balancing the relevant factors.        Applying our
    deferential standard of review, we affirm.
    I
    In October 2016, the District Court for the Southern
    District of New York (“SDNY”) issued a search warrant as
    part of a confidential investigation into then-Secretary
    Clinton’s email practices. Specifically, the warrant allowed
    the FBI to recover emails on former Congressman Anthony
    Weiner’s laptop. To further the “confidential nature of this
    investigation,” the FBI asked the SDNY to seal the warrant
    and its related materials “until the Court orders otherwise.”
    The SDNY granted the request.
    Schoenberg filed a FOIA request with the FBI, seeking
    to obtain the warrant, the application for the warrant, the
    supporting affidavit, and the warrant receipts (“warrant
    materials”). Schoenberg also asked the SDNY to unseal the
    warrant materials. The FBI agreed to unseal but asked the
    SDNY to redact Weiner’s and an FBI agent’s identifying
    information. Again, the SDNY granted the FBI’s request.
    But the SDNY also independently redacted other
    information about Weiner’s wife “to protect a person, who
    ha[d] not been publicly identified by the government” and
    because “the strong common law presumption of access
    SCHOENBERG V. FBI                               5
    ha[d] been overcome” by countervailing privacy interests.
    The SDNY then placed the redacted warrant materials on its
    public docket (“first release”).
    When the FBI gave Schoenberg a copy of the first
    release, it justified the redactions because (1) they fell within
    FOIA Exemption 7(C) as disclosure could invade reasonable
    expectations of privacy; and (2) they were part of sealed
    court records, ineligible for release under FOIA.
    Schoenberg administratively appealed, and the FBI denied
    the request on the same grounds.
    In March 2018, Schoenberg filed a FOIA suit in the
    Central District of California to obtain the information
    redacted in the first release. Around that time, the Office of
    the Inspector General was working on a report that related,
    in part, to the warrant materials (“2018 IG Report”). So the
    FBI asked the SDNY to unseal some of the information
    redacted in the first release to facilitate the 2018 IG Report’s
    publication. The SDNY granted the request, redacting only
    the FBI agent’s name and Weiner’s wife’s personal email
    address (“second release”). The FBI sent Schoenberg a copy
    of the second release, and the 2018 IG Report went public. 1
    Back in the Central District of California, Schoenberg
    moved for attorney’s fees under FOIA, arguing he had
    “substantially prevailed” by obtaining the information
    disclosed between the first and second releases. See 
    5 U.S.C. § 552
    (a)(4)(E).    The district court recognized that
    Schoenberg was not responsible for all the unredactions
    1
    After the second release, the Central District of California granted
    the FBI’s motion for summary judgment in Schoenberg’s FOIA suit on
    the remaining redactions, and we affirmed. Schoenberg v. FBI, No. LA
    CV18-01738, 
    2019 WL 2605629
     (C.D. Cal. Apr. 29, 2019), aff’d, 820 F.
    App’x 609 (9th Cir. 2020).
    6                   SCHOENBERG V. FBI
    since the 2018 IG Report had disclosed most of the same
    information. Instead, Schoenberg was only responsible for
    the information unredacted in the second release but not
    included in the 2018 IG Report. This information consisted
    of an FBI agent’s background information, identifying
    information of Weiner and his wife, and Weiner’s laptop
    serial and service tag numbers (“unredacted information”).
    Analyzing Schoenberg’s eligibility for fees, the district
    court held that the FBI’s reasons for withholding the
    unredacted information were legally insufficient. In other
    words, the SDNY sealing order and Exemption 7(C) did not
    justify the FBI’s decision to withhold unredacted
    information from Schoenberg.           As to Schoenberg’s
    entitlement, however, the district court held that the relevant
    factors balanced against awarding fees. The first three
    factors—public benefit, Schoenberg’s commercial benefit,
    and the nature of Schoenberg’s interest in the information—
    favored fees.       But the fourth factor—the legal
    reasonableness of the FBI’s withholding—disfavored fees
    and outweighed the other factors. Schoenberg appealed.
    II
    We have jurisdiction under 
    28 U.S.C. § 1291
    . We
    review a district court’s denial of attorney’s fees under FOIA
    for abuse of discretion and questions of law de novo. See
    Hiken v. Dep’t of Def., 
    836 F.3d 1037
    , 1042 (9th Cir. 2016).
    Generally, abuse of discretion review means we will not
    reverse unless “the district court reaches a result that is
    illogical, implausible, or without support in inferences that
    may be drawn from the record.” United States v. Hinkson,
    
    585 F.3d 1247
    , 1262 (9th Cir. 2009) (en banc) (citation
    omitted).
    SCHOENBERG V. FBI                         7
    III
    FOIA allows courts to assess “reasonable attorney fees
    and other litigation costs” against the federal government
    when a plaintiff has “substantially prevailed.” 
    5 U.S.C. § 552
    (a)(4)(E)(i). This occurs when a plaintiff obtains
    information as part of a FOIA suit through either “a judicial
    order, or an enforceable written agreement or consent
    decree” or “a voluntary or unilateral change in position by
    the agency.”       
    Id.
     § 552(a)(4)(E)(ii).      If a plaintiff
    substantially prevails, the plaintiff is eligible for fees. Id.
    § 552(a)(4)(E).
    That said, granting fees to an otherwise eligible plaintiff
    is still “within the sound discretion of the trial court.” Hiken,
    836 F.3d at 1044 (citation omitted); see also 
    5 U.S.C. § 552
    (a)(4)(E)(i) (a district court “may assess” fees even if a
    plaintiff substantially prevails). Thus, a plaintiff must show
    entitlement to fees as well. Hiken, 836 F.3d at 1043. Four
    factors inform this entitlement inquiry: “(1) the public
    benefit from disclosure, (2) any commercial benefit to the
    plaintiff resulting from disclosure, (3) the nature of the
    plaintiff’s interest in the disclosed records, and (4) whether
    the government’s withholding of the records had a
    reasonable basis in law.” Id. at 1044 (citation omitted).
    These factors are not exhaustive. “[T]he court may take into
    consideration whatever factors it deems relevant in
    determining whether an award of attorney’s fees is
    appropriate.” Long v. IRS, 
    932 F.2d 1309
    , 1313 (9th Cir.
    1991) (per curiam) (internal quotation marks and citation
    omitted).
    We have not previously explained how abuse of
    discretion review applies in the FOIA attorney’s fees
    context. We find the two-step approach in Morley v. CIA,
    
    894 F.3d 389
     (D.C. Cir. 2018) (per curiam), persuasive.
    8                   SCHOENBERG V. FBI
    First, “we review for abuse of discretion the district court’s
    analysis of each of the four individual factors.” 
    Id. at 391
    .
    Second, “we review for abuse of discretion the district
    court’s balancing of the four factors.” 
    Id.
    On appeal, the parties do not dispute Schoenberg’s
    eligibility or that the first three entitlement factors favored
    fees. Instead, this case turns on two issues: whether the
    fourth entitlement factor favored fees and whether the
    district court erred in balancing the factors. We see no error
    on either issue and affirm the denial of attorney’s fees.
    A
    Under the fourth entitlement factor, “a court would not
    award fees where the government’s withholding had a
    colorable basis in law but would ordinarily award them if the
    withholding appeared to be merely to avoid embarrassment
    or to frustrate the requester.” Church of Scientology of Cal.
    v. U.S. Postal Serv., 
    700 F.2d 486
    , 492 n.6 (9th Cir. 1983)
    (citation omitted), abrogated in part on other grounds as
    recognized in First Amendment Coal. v. U.S. Dep’t of Just.,
    
    878 F.3d 1119
    , 1127 (9th Cir. 2017). Thus, an agency must
    “analyze the relevant law” and base its nondisclosure on
    legal authority that reasonably applies. United Ass’n of
    Journeymen & Apprentices of Plumbing & Pipefitting
    Indus., Loc. 598 v. Dep’t of Army, Corps of Eng’rs, 
    841 F.2d 1459
    , 1463 (9th Cir. 1988), abrogated in part on other
    grounds as recognized in First Amendment Coal., 878 F.3d
    at 1126. Similarly, the district court must decide whether it
    was reasonable for the agency to rely on that authority. Id.
    The district court can only consider authority the agency
    relied on and any contrary authority the plaintiff cites. Id.
    Again, the lodestar of this analysis is not whether the agency
    was correct, but whether the application of its legal basis was
    SCHOENBERG V. FBI                            9
    “colorable.” Church of Scientology, 
    700 F.2d at
    492 n.6
    (citation omitted).
    As a reviewing court, our analysis is slightly different.
    Instead of analyzing an agency’s reasonableness in the first
    instance, we review whether the district court was
    reasonable in its conclusions. See Hiken, 836 F.3d at 1042.
    As the D.C. Circuit in Morley put it: “The question for us is
    whether the District Court reasonably (even if incorrectly)
    concluded that the agency reasonably (even if incorrectly)
    withheld documents.” 894 F.3d at 393. Thus, our review of
    the district court’s fourth-entitlement-factor determination is
    highly deferential.
    Schoenberg argues that the district court failed to explain
    why the FBI’s reliance on Exemption 7(C) and the SDNY
    sealing order was reasonable. Though the district court’s
    analysis was not expansive, we can affirm the denial of
    attorney’s fees “on any ground supported by the record.”
    Classic Media, Inc. v. Mewborn, 
    532 F.3d 978
    , 990 (9th Cir.
    2008) (citation omitted). And here, the record supports the
    finding that the FBI reasonably relied on the SDNY sealing
    order to withhold the unredacted information from
    Schoenberg. 2
    In its correspondence to Schoenberg, the FBI cited GTE
    Sylvania, Inc. v. Consumers Union of the United States, Inc.,
    
    445 U.S. 375
     (1980), for the proposition that the SDNY
    sealing order disallowed disclosure under FOIA. And as
    Schoenberg points out, the FBI’s nondisclosure policy stems
    2
    Schoenberg also argues that the FBI’s reliance on Exemption 7(C)
    was unreasonable. Because an agency needs only “a reasonable basis in
    law,” Hiken, 836 F.3d at 1044 (emphasis added) (citation omitted), our
    analysis of the SDNY sealing order answers the issue presented.
    10                   SCHOENBERG V. FBI
    in part from Morgan v. U.S. Department of Justice, 
    923 F.2d 195
     (D.C. Cir. 1991). Applied to the facts surrounding the
    SDNY sealing order, these cases reasonably justified the
    FBI’s decision to withhold the unredacted information.
    GTE Sylvania held that when an agency is enjoined from
    disclosing information, it has “no discretion . . . to exercise.”
    
    445 U.S. at 386
    . Thus, the agency could not have
    “improperly” withheld documents under FOIA because it
    could not disclose them in the first place. Id.; see also
    
    5 U.S.C. § 552
    (a)(4)(B). An injunction prevents disclosure
    under FOIA “even if [an agency] ha[s] proper grounds to
    object to the order.” GTE Sylvania, 
    445 U.S. at 386
    (citations omitted).
    Morgan explained how GTE Sylvania applies to a court
    sealing order. In that case, the district court had dismissed
    the FOIA action solely because the requested records were
    under court seal. 
    923 F.2d at 195
    . But the D.C. Circuit
    reversed, holding “that the mere existence of a court seal is,
    without more, insufficient to justify nondisclosure under the
    FOIA.” 
    Id. at 199
    . Instead, a sealing order only justifies
    nondisclosure if it is “intended to operate as the functional
    equivalent of an injunction prohibiting disclosure.” 
    Id.
     To
    determine a sealing order’s intended function, a court
    considers the totality of the circumstances, including the
    sealing order, transcripts and papers filed with the sealing
    court, sealing orders in similar cases, and the issuing court’s
    general rules governing sealed records. 
    Id. at 198
    .
    Ultimately, this analysis boils down to two inquiries:
    (1) Does the agency have discretion to disclose the
    information under seal? And (2) would disclosing the
    information show disrespect for the judicial process? 
    Id.
    at 197–98.
    SCHOENBERG V. FBI                       11
    Correct or not, the FBI’s reliance on the SDNY sealing
    order was reasonable. Initially, the FBI asked the SDNY to
    seal the warrant materials. The FBI then asked the SDNY to
    remove the seal with few exceptions. The SDNY could have
    simply granted that request. But it independently redacted
    additional information, repeatedly explaining how privacy
    interests other than the government’s justified redacting that
    information. Put differently, the SDNY did not leave parts
    of the warrant materials sealed because of the FBI’s requests
    alone; it had additional and independent reasons to protect
    the redacted information in the first release. The FBI was
    therefore not unreasonable to think its discretion to disclose
    the redacted information was limited or that disclosing
    without permission would offend the judicial process.
    Otherwise, why did the FBI ask the SDNY for further
    unredactions before publishing the 2018 IG Report?
    Whether obligated or acting out of comity for another
    branch of government, the FBI was reasonable to think the
    SDNY sealing order limited its ability to disclose
    information to Schoenberg. See Morgan, 
    923 F.2d at
    197–
    98. And because the FBI’s reliance on the SDNY sealing
    order was reasonable, the district court’s same conclusion
    was reasonable too.
    B
    Schoenberg also argues that the district court abused its
    discretion in balancing the four factors. True, the first three
    factors favored fees and only the fourth disfavored fees. But
    the district court acted within its discretion to deny
    Schoenberg fees.
    Though a district court has discretion to balance these
    factors, we have not clarified how to review that balancing
    when, as here, the factors point in different directions. See
    12                      SCHOENBERG V. FBI
    Church of Scientology, 
    700 F.2d at
    492 & n.6. Again, we
    find Morley instructive. A district court’s discretion is “very
    broad” when the factors point in different directions. See
    Morley, 894 F.3d at 391–92. And so long as the district court
    did not abuse its discretion in analyzing each individual
    factor, “it will be the rare case” that we reverse a district
    court’s balancing analysis. Id. We owe this deference
    precisely because the four factors are not equally weighted—
    they each involve a sliding scale, allowing one or more
    factors to outweigh the others. Thus, unless the rare case
    presents itself where we have a “definite and firm
    conviction” that the district court clearly erred, we leave the
    relative weighing of those sliding scales to the district court.
    United States v. Mixon, 
    930 F.3d 1107
    , 1110 (9th Cir. 2019)
    (citation omitted).
    The district court did not abuse its discretion in analyzing
    the individual factors. See supra Part III.A. And the record
    does not suggest this is a rare case when reversal is
    warranted. If anything, the district court’s balancing was
    reasonable. In Morley, though the first three factors favored
    fees, the agency’s bases in law were “hardly unreasonable”
    and “tilted the balance in favor of denying attorney’s fees,”
    even if ultimately incorrect. 894 F.3d at 394, 396. The same
    is true here. Accordingly, the district court here reasonably
    held that the fourth entitlement factor outweighed the other
    three. 3
    3
    Schoenberg also argues the district court contradicted itself. We
    disagree. The district court described the unredacted information as
    “significant to the public,” but later said that the public benefit was
    “limited.” These statements are not inherently contradictory. It was well
    “within [the] broad range of permissible conclusions” to conclude that
    the unredacted information, while holding some quantum of public
    significance, conferred only a limited public benefit. See Kode v.
    SCHOENBERG V. FBI                        13
    IV
    The district court reasonably concluded that the FBI
    reasonably based its nondisclosure on the SDNY sealing
    order. The district court also acted within its discretion in
    balancing the four entitlement factors.
    AFFIRMED.
    Carlson, 
    596 F.3d 608
    , 612 (9th Cir. 2010) (per curiam) (citation
    omitted).