Cause of Action v. Internal Revenue Service ( 2017 )


Menu:
  •                        81,7('67$7(6',675,&7&2857
    )257+(',675,&72)&2/80%,$
    BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
    &$86(2)$&7,21
    3ODLQWLII
    Y                               &LYLO$FWLRQ1R  $%-
    ,17(51$/5(9(18(6(59,&(
    'HIHQGDQW
    BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
    0(025$1'8023,1,21
    3ODLQWLII &DXVH RI $FWLRQ EURXJKW WKLV DFWLRQ XQGHU WKH )UHHGRP RI ,QIRUPDWLRQ $FW
    ³)2,$´DJDLQVWWKH,QWHUQDO5HYHQXH6HUYLFH³,56´3ODLQWLII VXVSHFWV WKDWVRPHRQHZLWKLQ
    WKH([HFXWLYH2IILFHRIWKH3UHVLGHQWXQODZIXOO\UHTXHVWHGWD[SD\HURU³UHWXUQLQIRUPDWLRQ´IURP
    WKH,56DQGLWVHHNVUHFRUGVWRSURYHLWVDOOHJDWLRQV &RPSO>'NW@ˆ  7KHSDUWLHVKDYHEHHQ
    EHIRUHWKH&RXUWEHIRUHRQ$XJXVWWKH&RXUWIRXQGWKHDJHQF\¶VVHDUFKHIIRUWV WREH
    LQDGHTXDWHDQGLW UHPDQGHGWKHPDWWHUWRWKH ,56VRWKDWWKH DJHQF\ FRXOGFRQGXFW DGGLWLRQDO
    VHDUFKHVDQGUHOHDVHDQ\QRQH[HPSWSRUWLRQVRIUHVSRQVLYHUHFRUGVWRSODLQWLIICause of Action
    v. IRS)6XSSG''&
    7KH DJHQF\ FRQGXFWHG DQRWKHU VHDUFK EXW LW GLG QRW ORFDWH DQ\ DGGLWLRQDO UHVSRQVLYH
    UHFRUGV6RWKHSDUWLHVKDYHDJDLQERWKPRYHGIRUVXPPDU\MXGJPHQWDQGSODLQWLIIKDVPRYHGWR
    VWULNH SDUW RI RQH RI WKH DJHQF\¶V GHFODUDWLRQV 'HI¶V 0RW IRU 6XPP- >'NW  @ ³'HI¶V
    0RW´0HPRI3	$LQ6XSSRI'HI¶V0RW>'NW@³'HI¶V0HP´3O¶V&URVV0RW
    IRU6XPP-	0RWWR6WULNH>'NW@³3O¶V0RW´3O¶V0HPRI3	$LQ2SSWR'HI¶V
    0RW	LQ6XSSRI3O¶V0RW>'NW@³3O¶V0HP´7KHPRWLRQWRVWULNHZLOOEHGHQLHG
    DQG EHFDXVH WKH &RXUW FRQFOXGHV WKDW WKH DJHQF\¶V VHDUFKHV ZHUH DGHTXDWH XQGHU DOO RI WKH
    FLUFXPVWDQFHVLWZLOOJUDQWGHIHQGDQW¶VPRWLRQ IRUVXPPDU\MXGJPHQW DQGGHQ\WKHPRWLRQILOHG
    E\SODLQWLII
    %$&.*5281'
    ,      &DXVHRI$FWLRQ¶V)2,$5HTXHVWDQGWKH&RXUW¶V5HPDQG
    2Q2FWREHUSODLQWLIIUHTXHVWHGHLJKWFDWHJRULHVRIUHFRUGVIURP GHIHQGDQW([
    WR&RPSO>'NW@³)2,$5HT´  2QO\WZRVHWVRIUHFRUGV ± FDWHJRULHVWKUHHDQGIRXURI
    SODLQWLII¶VRULJLQDOUHTXHVW± UHPDLQDWLVVXH
          $Q\FRPPXQLFDWLRQVE\RUIURPDQ\RQHLQWKH([HFXWLYH2IILFHRI
    WKH 3UHVLGHQW FRQVWLWXWLQJ UHTXHVWV IRU WD[SD\HU RU ³UHWXUQ
    LQIRUPDWLRQ´ZLWKLQWKHPHDQLQJRI† D WKDWZHUHQRWPDGH
    SXUVXDQWWR† J
          $OOGRFXPHQWVLQFOXGLQJQRWHVDQGHPDLOVUHIHUULQJRUUHODWLQJWR
    DQ\FRPPXQLFDWLRQGHVFULEHGLQUHTXHVW
    )2,$5HT DW  ,QRWKHUZRUGVWKH)2,$UHTXHVWVSHFLILFDOO\FDOOHGIRUUHFRUGVRIUHTXHVWVIRU
    FRQILGHQWLDOWD[SD\HULQIRUPDWLRQPDGHRXWVLGHRIQRUPDOFKDQQHOV
    ,QWKHSDUWLHVPRYHGIRUVXPPDU\MXGJPHQWRQLVVXHVUHODWLQJWRWKHDGHTXDF\RIWKH
    DJHQF\¶V VHDUFKHV DQG WKH DJHQF\¶V LQYRFDWLRQ RI FHUWDLQ VWDWXWRU\ H[HPSWLRQV WR UHGDFW
    LQIRUPDWLRQ IURPWKHUHFRUGVLWUHWULHYHG $WWKDWWLPHWKH&RXUWFRQFOXGHGWKDWWKHVHDUFKIRU
    UHFRUGVUHVSRQVLYHWRFDWHJRULHVWKUHHDQGIRXUZDVLQDGHTXDWHCause of Action)6XSSG
    DW± 7KHDJHQF\KDGVHDUFKHGIRUUHVSRQVLYHUHFRUGVLQWKH2IILFHRI/HJLVODWLYH$IIDLUV
    DQG LW DOVR VHDUFKHG WKH 6HUYLFHV DQG (QIRUFHPHQW 2IILFH WKH 6PDOO %XVLQHVV6HOI (PSOR\HG
         7KH&RXUW¶VSUHYLRXVRSLQLRQVHWVRXWWKHIXOOUHTXHVWCause of Action)6XSSGDW
    ±
           2Q 1RYHPEHU   WKH &RXUW JUDQWHG GHIHQGDQW¶V XQRSSRVHG PRWLRQ WR GLVPLVV
    SODLQWLII¶VFODLPVZLWKUHVSHFWWRFDWHJRULHVVHYHQDQGHLJKWSee 2UGHU1RY>'NW@
    &DWHJRU\VHYHQEHFDPHWKHVXEMHFWRIDVHSDUDWHODZVXLWE\SODLQWLIIDJDLQVWWKH7UHDVXU\,QVSHFWRU
    *HQHUDOIRU7D[$GPLQLVWUDWLRQDOVRNQRZQDV³7,*7$´See Cause of Action v. TIGTA)
    6XSSG''&Cause of Action v. TIGTA)6XSSG''&
    
    IXQFWLRQ WKH ,560HGLD5HODWLRQV2IILFH DQG WKH 2IILFHRI WKH&RPPLVVLRQHU 
    Id. DW ,W
    ORFDWHGDVHWRIGRFXPHQWVFDOOHG³WD[FKHFNV´ZKLFKDUHUHTXHVWVIRUWKHUHWXUQLQIRUPDWLRQRI
    LQGLYLGXDOVZKRDUHXQGHUFRQVLGHUDWLRQIRUYDULRXVDSSRLQWPHQWVWRSRVLWLRQVLQWKH([HFXWLYH
    %UDQFK EXW LW GLG QRW VHDUFK WKRVH GRFXPHQWV EHFDXVH LW FDWHJRULFDOO\ GHWHUPLQHG WKDW WKRVH
    UHFRUGVZRXOGEHH[HPSWIURPGLVFORVXUHXQGHU)2,$([HPSWLRQDQG86&† DId.
    7KH&RXUWIRXQG WKHDJHQF\¶V VHDUFKWREHLQDGHTXDWHEHFDXVHWKH GHFODUDWLRQVXEPLWWHG
    SURYLGHG³QRH[SODQDWLRQIRUWKH FRQFOXVLRQWKDWUHFRUGVRIUHTXHVWVPDGHE\WKH([HFXWLYH%UDQFK
    ZRXOGEHORFDWHGLQWKH2IILFHRILegislative $IIDLUVRULQDQ\RIWKHRWKHURIILFHV>WKHDJHQF\@
    QDPHGRUZK\WKH\ZRXOGQRWEHHOVHZKHUH´Id. DW7KH&RXUWDOVRIDXOWHGWKHDJHQF\IRU
    IDLOLQJWRLGHQWLI\NH\ZRUGVRUVHDUFKWHUPVWKDWPLJKWLGHQWLI\³UHTXHVWVIRUµWD[SD\HURUUHWXUQ
    LQIRUPDWLRQ¶ E\ WKH ([HFXWLYH 2IILFH RI WKH 3UHVLGHQW WKDW ZHUH not PDGH SXUVXDQW WR VHFWLRQ
    J´Id. 7KH&RXUWUHPDQGHGWKHPDWWHUWRWKHDJHQF\WRFRQGXFWDGGLWLRQDOVHDUFKHVIRU
    UHFRUGVUHVSRQVLYH WRLWHPVWKUHHDQGIRXURISODLQWLII¶VUHTXHVW 
    Id.  ,,
        7KHUHQHZHGVHDUFKIRUGRFXPHQWV
    7KHDJHQF\KDVSURIIHUHGWKUHH GHFODUDWLRQVWRVXSSRUWLWVVHFRQGVHWRI VHDUFKHIIRUWVLQ
    WKLVFDVHWZRGHFODUDWLRQV RI6DUDK7DWHDQ$WWRUQH\LQWKH2IILFHRI &KLHI&RXQVHODWWKH,56
    'HFORI6DUDK7DWH>'NW@³7DWH'HFO´ ˆˆ ±6HFRQG'HFORI6DUDK7DWH>'NW@
    ³G7DWH'HFO´ˆˆ ±DQG WKHGHFODUDWLRQRI /LQGD-0F&DUW\WKH'LUHFWRURIWKH2IILFHRI
    WKH([HFXWLYH6HFUHWDULDWLQWKH2IILFHRIWKH&KLHIRI6WDIIRIWKH,56 'HFORI/LQGD-0F&DUW\
    >'NW@³0F&DUW\'HFO´ˆ 
           7KH&RXUWDOVRUHPDQGHGWKHVHDUFKIRUGRFXPHQWVLQFDWHJRULHVILYHDQGVL[Cause of
    Action)6XSSGDWEXWWKHSDUWLHVODWHUVWLSXODWHGWKDWWKHDJHQF\KDG³VDWLVILHGLWV
    REOLJDWLRQVXQGHUWKH)2,$ZLWKUHJDUGWRLWHPVDQGRI3ODLQWLII¶V )2,$UHTXHVW´ -RLQW6WLS
    >'NW@DW
    
    7KH DJHQF\ DWWRUQH\ VWDWHG WKDW WKH ³2IILFH RI WKH &RPPLVVLRQHU LV WKH RQO\ RIILFH RU
    GLYLVLRQRIWKH,56OLNHO\WRUHFHLYHFRUUHVSRQGHQFHIURPWKH([HFXWLYH2IILFHRIWKH3UHVLGHQW
    WKDW LV UHVSRQVLYH WR LWHPV  DQG ´ RI SODLQWLII¶V UHTXHVW DQG WKDW WKH 2IILFH RI WKH ([HFXWLYH
    6HFUHWDULDW ZKLFK LV ZLWKLQ WKH 2IILFH RI WKH &RPPLVVLRQHU LV UHVSRQVLEOH IRU ³UHFHLYLQJ DQG
    WUDFNLQJFRUUHVSRQGHQFHIURPWKH([HFXWLYH2IILFHRIWKH3UHVLGHQWDQGGHWHUPLQLQJKRZHDFK
    LWHPVKRXOGEHKDQGOHG´7DWH'HFOˆ7KHUHIRUHDFFRUGLQJWRWKHGHFODUDWLRQVWKH2IILFHRI
    WKH([HFXWLYH6HFUHWDULDW LVWKHFRPSRQHQWZKHUHUHVSRQVLYHUHFRUGVZHUHPRVWOLNHO\WREHIRXQG
    0F&DUW\DYHUVWKDWWKH2IILFHRIWKH([HFXWLYH6HFUHWDULDW
    >5@HFHLYHGVHYHUDOFRPPXQLFDWLRQVHDFKPRQWKIURPWKH:KLWH+RXVHWKDW
    SHUWDLQHGWRWKHWD[PDWWHUVRIVSHFLILFWD[SD\HUV7KHVHFRPPXQLFDWLRQV
    ZHUHFRUUHVSRQGHQFHWKHVSHFLILFWD[SD\HUDGGUHVVHGWRWKH3UHVLGHQWWKH
    )LUVW/DG\RUWKH9LFH3UHVLGHQWVHHNLQJDVVLVWDQFHZLWKDWD[PDWWHU7KH
    :KLWH +RXVH IRUZDUGHG VXFK FRPPXQLFDWLRQV ZLWKRXW FRPPHQW WR WKH
    ,56IRUKDQGOLQJ,QHDFKLQVWDQFHVWDIIRIWKH,562IILFHRIWKH([HFXWLYH
    6HFUHWDULDW HQWHUHG WKH FRPPXQLFDWLRQ LQ WKH FRUUHVSRQGHQFHWUDFNLQJ
    V\VWHP(7UDNDQGWKHQIRUZDUGHGWKHFRPPXQLFDWLRQWRWKH,56RIILFHRU
    GLYLVLRQUHVSRQVLEOHIRUWKHWD[PDWWHUIRUGLUHFWUHVSRQVHWRWKHWD[SD\HU
    7KH :KLWH +RXVH GLG QRW UHTXHVW LQIRUPDWLRQ DERXW WKH WD[SD\HU RU WD[
    PDWWHUDQGZDVQRWLQIRUPHGLQZULWLQJRUYHUEDOO\DQ\WKLQJDERXWKRZWKH
    ,56KDQGOHGHDFKPDWWHU,WZDVWKHDSSDUHQWEXVLQHVVSUDFWLFHRIWKH:KLWH
    +RXVHWRVHQGDOOFRUUHVSRQGHQFHSHUWDLQLQJWRWD[SD\HUVSHFLILFPDWWHUVWR
    WKH2IILFHRIWKH([HFXWLYH6HFUHWDULDW
    0F&DUW\'HFO ˆ 
    7KHDJHQF\DOVRH[SODLQHG WKDWWKH³(7UDNGDWDEDVHSURYLGHVWKH6HUYLFH¶VOHDGHUVKLSDQG
    EXVLQHVV XQLWV WKH DELOLW\ WR PDQDJH LQFRPLQJ FRUUHVSRQGHQFH IURP DQG UHSOLHV WR inter alia
    WD[SD\HUV&RQJUHVVWKH7UHDVXU\'HSDUWPHQWWKH:KLWH+RXVHWKH*RYHUQPHQW$FFRXQWDELOLW\
    2IILFHDQGWKH7UHDVXU\,QVSHFWRU*HQHUDOIRU7D[$GPLQLVWUDWLRQ´7DWH'HFOˆ (DFKSLHFH
    RI FRUUHVSRQGHQFH LV VFDQQHG LQWR WKH (7UDN V\VWHP DQG LV FDWHJRUL]HG E\ VHQGHU GDWH DQG
    VXEMHFWPDWWHUWKHFRUUHVSRQGHQFHDORQJZLWKDQ\UHSOLHVWRWKDWFRUUHVSRQGHQFHFDQEHNH\ZRUG
    VHDUFKHG 
    Id.  7RLGHQWLI\UHVSRQVLYHGRFXPHQWVLQWKH(7UDNGDWDEDVHWKHDJHQF\XWLOL]HG
    WKHIROORZLQJ
    VHDUFKWHUPV :KLWH+RXVH3UHVLGHQWRIWKH8QLWHG6WDWHV32786%DUDFN  2EDPD%XVK (23
    DQG(23JRY7DWH'HFOˆ 7KRVHWHUPVZHUHXVHGEHFDXVHWKH\ZHUH³VXEVWDQWLDOO\WKHVDPH
    VHDUFKWHUPVWKDWWKH&RXUWKHOGFRQVWLWXWHGDQDGHTXDWHVHDUFKIRUUHFRUGVUHVSRQVLYHWRLWHPV
    DQGRISODLQWLII¶V)2,$UHTXHVW´LQWKHSULRURSLQLRQ Id. see also Cause of Action)6XSS
    GDW±,Q)HEUXDU\RIWKHSDUWLHVDJUHHGWKDWWKHVHDUFKIRUUHVSRQVLYHUHFRUGVFRXOG
    EH OLPLWHG WR VSHFLILF RIILFHV ZLWKLQ WKH ([HFXWLYH 2IILFH RI WKH 3UHVLGHQW  WKH &RXQFLO RI
    (FRQRPLF $GYLVRUV WKH ([HFXWLYH 5HVLGHQFH WKH 1DWLRQDO 6HFXULW\ &RXQFLO WKH 2IILFH RI
    $GPLQLVWUDWLRQWKH2IILFHRIWKH9LFH3UHVLGHQWDQGWKH:KLWH+RXVH2IILFHId. ˆ  7KHSDUWLHV
    DOVRDJUHHGWRDGGLWLRQDOVHDUFKHVLQ(7UDNXVLQJWKHIROORZLQJVHDUFKWHUPV([HF5HV&($
    16&2$:+2)(&:+:+&2([HFXWLYH2IILFHRIWKH3UHVLGHQW 6WUHOND2IILFHRIWKH9LFH
    3UHVLGHQW293DQG:KLWH+RXVH2IILFHId. 1HLWKHUVHDUFK\LHOGHGUHVSRQVLYHUHFRUGVId. ˆ 
    )LQDOO\ WKH DJHQF\ DWWRUQH\ EHFDPH DZDUH WKDW SODLQWLII KDG UHTXHVWHG WKDW WKH DJHQF\
    VHDUFKWZRRWKHUGDWDEDVHV± $)2,$DQG(',06± IRUUHVSRQVLYHUHFRUGV7DWH'HFOˆ  $)2,$
    ³LV WKH QDWLRQZLGH LQYHQWRU\ FRQWURO DQG FDVH PDQDJHPHQW V\VWHP XVHG E\ WKH ,56 2IILFH RI
    'LVFORVXUHWRWUDFNDQGSURFHVVUHTXHVWVIRUDJHQF\UHFRUGVPDGHSXUVXDQWWRVHFWLRQRIWKH
    ,QWHUQDO5HYHQXH&RGH)2,$DQGWKH3ULYDF\$FW´Id. ˆ $)2,$ZDVLPSOHPHQWHGLQWKH
    VXPPHURIId. (',06LVWKHOHJDF\V\VWHPWKDWZDVXVHGEHIRUHWKHLPSOHPHQWDWLRQRI
    $)2,$Id. 7KRXJKLWZDVWKHDJHQF\¶VSRVLWLRQ WKDWLW³GRHVQRWPDLQWDLQWKHUHFRUGVSODLQWLII
    VHHNV´LQHLWKHUGDWDEDVHLWYROXQWDULO\DJUHHGWRVHDUFKWKRVHGDWDEDVHV³LQDQH[FHVVRIFDXWLRQ
           7KHRULJLQDO7DWHGHFODUDWLRQWZLFHPLVVSHOOHG3UHVLGHQW2EDPD¶VILUVWQDPHDV³%DUDN´
    7DWH'HFOˆˆ :KLOHWKHDJHQF\FRQFOXGHGWKDWWKHLVVXHZDVZLWKWKHGHFODUDWLRQDQGQRW
    ZLWK WKH VHDUFK WKH DJHQF\ UHUDQ WKH VHDUFKHV XVLQJ WKH WHUP ³%DUDFN´ DQG GLG QRW ILQG DQ\
    UHVSRQVLYHUHFRUGV G7DWH'HFO ˆ 
    
    DQGWRIRUHVWDOOGLVSXWHVDERXWWKHVXIILFLHQF\RIWKHVHDUFKIRUUHVSRQVLYHUHFRUGV´Id. ˆ  7KH
    DJHQF\ VHDUFKHG ERWK GDWDEDVHV XVLQJ WKH IROORZLQJ WHUPV  :+ (23 :KLWH +RXVH 2EDPD
    %DUDFN 2EDPD *HRUJH %XVK DQG ([HFXWLYH2IILFHRIWKH3UHVLGHQW Id. ˆ  1RUHVSRQVLYH
    UHFRUGVZHUHIRXQGId.
    ,,,    3URFHGXUDO+LVWRU\
    $IWHUWKHVHVHDUFKHVZHUHFRPSOHWHWKHDJHQF\ PRYHGIRUVXPPDU\MXGJPHQWDWWDFKLQJD
    VWDWHPHQW RI IDFWV DQG WKH WZR GHFODUDWLRQV  'HI¶V 0RW 'HI¶V 0HP 'HI¶V 6WDWHPHQW RI
    8QGLVSXWHG0DWHULDO)DFWV>'NW@³'HI¶V62)´7DWH'HFO0F&DUW\'HFO 3ODLQWLIIWKHQ
    ILOHGDFURVVPRWLRQ IRUVXPPDU\MXGJPHQWDQGLW DOVRPRYHGWRVWULNHSRUWLRQVRIWKH0F&DUW\
    GHFODUDWLRQ3O¶V0RW3O¶V0HP ,WVXSSOLHGLWVRZQVWDWHPHQWRIXQGLVSXWHGPDWHULDOIDFWV
    3O¶V 6WDWHPHQW RI 8QGLVSXWHG 0DWHULDO )DFWV >'NW  @ ³3O¶V &URVV62)´ D UHVSRQVH WR
    GHIHQGDQW¶VVWDWHPHQWRIXQGLVSXWHGPDWHULDOIDFWV3O¶V5HVSWR'HI¶V62)>'NW @³3O¶V
    62)´ DQG D GHFODUDWLRQ IURP LWV FRXQVHO  'HFO RI 5\DQ 3 0XOYH\ >'NW  @ ³0XOYH\
    'HFO´ 2Q $XJXVWGHIHQGDQWILOHGDUHSO\LQVXSSRUWRILWVPRWLRQDQGLQRSSRVLWLRQWR
    SODLQWLII¶VFURVVPRWLRQDQGPRWLRQWRVWULNH5HSO\LQ6XSSRI'HI¶V0RW2SSWR3O¶V&URVV
    0RW>'NW@³'HI¶V5HSO\´DORQJZLWKDUHVSRQVHWRSODLQWLII¶VVWDWHPHQWRIIDFWV'HI¶V
    5HVSWR3O¶V&URVV62)>'NW@³'HI¶V&URVV62)´DQGDVHFRQGGHFODUDWLRQIURP7DWH
    G7DWH'HFO$QGRQ$XJXVWSODLQWLIIILOHGDFURVVUHSO\LQVXSSRUWRILWVFURVVPRWLRQ
    DQGLQVXSSRUWRILWVPRWLRQWRVWULNH3O¶V&URVV5HSO\LQ6XSSRI3O¶V&URVV0RW>'NW@
    ³3O¶V&URVV5HSO\´ 2Q$SULOWKH&RXUWKHOGDVWDWXVFRQIHUHQFHLQWKHPDWWHU7URI
    6WDWXV&RQIHUHQFH>'NW@³7U´
    
    67$1'$5'2)5(9,(:
    ,QD)2,$FDVHWKHGLVWULFWFRXUWUHYLHZVWKHDJHQF\¶VGHFLVLRQVde novo DQG³WKHEXUGHQ
    LVRQWKHDJHQF\WRVXVWDLQLWVDFWLRQ´86&†D%Military Audit Project v. Casey
     )G   '& &LU   ³>7@KH YDVW PDMRULW\ RI )2,$ FDVHV FDQ EH UHVROYHG RQ
    VXPPDU\MXGJPHQW´Brayton v. Office of U.S. Trade Rep.)G'&&LU
    6XPPDU\MXGJPHQWLVDSSURSULDWH³LIWKHPRYDQWVKRZVWKDWWKHUHLVQRJHQXLQHGLVSXWHDV
    WRDQ\PDWHULDOIDFWDQGWKHPRYDQWLVHQWLWOHGWRMXGJPHQWDVDPDWWHURIODZ´)HG 5&LY3
    D  7KH SDUW\ VHHNLQJ VXPPDU\ MXGJPHQW ³EHDUV WKH LQLWLDO UHVSRQVLELOLW\ RI LQIRUPLQJ WKH
    GLVWULFW FRXUW RI WKH EDVLV IRU LWV PRWLRQ DQG LGHQWLI\LQJ WKRVH SRUWLRQV RI WKH SOHDGLQJV
    GHSRVLWLRQVDQVZHUVWRLQWHUURJDWRULHVDQGDGPLVVLRQVRQILOHWRJHWKHUZLWKWKHDIILGDYLWVLIDQ\
    ZKLFKLWEHOLHYHVGHPRQVWUDWHWKHDEVHQFHRIDJHQXLQHLVVXHRIPDWHULDOIDFW´Celotex Corp. v.
    Catrett  86    LQWHUQDO TXRWDWLRQ PDUNV RPLWWHG  7R GHIHDW VXPPDU\
    MXGJPHQWWKHQRQPRYLQJSDUW\PXVW³GHVLJQDWHVSHFLILF IDFWVVKRZLQJ WKDWWKHUHLVDJHQXLQH
    LVVXHIRUWULDO´Id. DWLQWHUQDOTXRWDWLRQPDUNVRPLWWHG
    7KH PHUH H[LVWHQFH RI D IDFWXDO GLVSXWH LV LQVXIILFLHQW WR SUHFOXGH VXPPDU\ MXGJPHQW
    Anderson v. Liberty Lobby, Inc.86±$GLVSXWHLV³JHQXLQH´RQO\LID
    UHDVRQDEOHIDFWILQGHUFRXOGILQGIRUWKHQRQPRYLQJSDUW\DIDFWLV³PDWHULDO´ RQO\LILWLVFDSDEOH
    RIDIIHFWLQJWKHRXWFRPHRIWKHOLWLJDWLRQId. DW Laningham v. U.S. Navy)G
     '&&LU,QDVVHVVLQJDSDUW\¶VPRWLRQWKHFRXUWPXVW³YLHZWKHIDFWVDQGGUDZ
    UHDVRQDEOHLQIHUHQFHVµLQWKHOLJKWPRVWIDYRUDEOHWRWKHSDUW\RSSRVLQJWKHVXPPDU\MXGJPHQW
    PRWLRQ¶´Scott v. Harris86DOWHUDWLRQVRPLWWHGTXRWLQJUnited States
    v. Diebold, Inc.86SHUFXULDP ³7KHUXOHJRYHUQLQJFURVVPRWLRQVIRU
    VXPPDU\MXGJPHQW    LVWKDWQHLWKHUSDUW\ZDLYHVWKHULJKWWRDIXOOWULDORQWKHPHULWVE\ILOLQJ
    
    LWVRZQPRWLRQHDFKVLGHFRQFHGHVWKDWQRPDWHULDOIDFWVDUHDWLVVXHRQO\IRUWKHSXUSRVHVRILWV
    RZQ PRWLRQ´ Sherwood v. Wash. Post  )G   Q '& &LU  TXRWLQJ
    McKenzie v. Sawyer )GQ'& &LU  ,QDVVHVVLQJHDFKSDUW\¶VPRWLRQ³>D@OO
    XQGHUO\LQJIDFWVDQGLQIHUHQFHVDUHDQDO\]HGLQWKHOLJKWPRVWIDYRUDEOHWRWKHQRQPRYLQJSDUW\´
    N.S. ex rel. Stein v. District of Columbia ) 6XSS G''& FLWLQJAnderson
    86DW
    ³6XPPDU\ MXGJPHQW PD\ EH JUDQWHG RQ WKH EDVLV RI DJHQF\ DIILGDYLWV´ LQ )2,$ FDVHV
    ZKHQ WKRVH DIILGDYLWV ³FRQWDLQ UHDVRQDEOH VSHFLILFLW\ RI GHWDLO UDWKHU WKDQ PHUHO\ FRQFOXVRU\
    VWDWHPHQWV´DQGZKHQ³WKH\DUHQRWFDOOHGLQWRTXHVWLRQE\FRQWUDGLFWRU\HYLGHQFHLQWKHUHFRUG
    RUE\HYLGHQFHRIDJHQF\EDGIDLWK´Judicial Watch, Inc. v. U.S. Secret Serv.)G
    '&&LUTXRWLQJConsumer Fed’n of Am. v. Dep’t of Agric.)G'&&LU
    
    $1$/<6,6
    )2,$UHTXLUHVWKHUHOHDVHRIJRYHUQPHQWUHFRUGVXSRQUHTXHVW,WVSXUSRVHLV³WRHQVXUH
    DQLQIRUPHGFLWL]HQU\YLWDOWRWKHIXQFWLRQLQJRIDGHPRFUDWLFVRFLHW\QHHGHGWRFKHFNDJDLQVW
    FRUUXSWLRQ DQG WR KROG WKH JRYHUQRUV DFFRXQWDEOH WR WKH JRYHUQHG´ NLRB v. Robbins Tire &
    Rubber Co. 86$WWKHVDPHWLPH&RQJUHVVUHFRJQL]HG³WKDWOHJLWLPDWH
    JRYHUQPHQWDODQGSULYDWHLQWHUHVWVFRXOGEHKDUPHGE\UHOHDVHRIFHUWDLQW\SHVRILQIRUPDWLRQDQG
    SURYLGHG QLQH VSHFLILF H[HPSWLRQV XQGHU ZKLFK GLVFORVXUH FRXOG EH UHIXVHG´ FBI v.
    Abramson 86 see also Ctr. for Nat’l Sec. Studies v. DOJ )G
    '&&LU ³)2,$UHSUHVHQWVDEDODQFHVWUXFNE\&RQJUHVVEHWZHHQWKHSXEOLF¶VULJKW
    WRNQRZDQGWKHJRYHUQPHQW¶VOHJLWLPDWHLQWHUHVWLQNHHSLQJFHUWDLQLQIRUPDWLRQFRQILGHQWLDO´
    FLWLQJJohn Doe Agency v. John Doe Corp.86
    
    7RSUHYDLOLQD)2,$DFWLRQDQDJHQF\PXVWGHPRQVWUDWHWKDWLWKDVPDGH³DJRRGIDLWK
    HIIRUW WR FRQGXFW D VHDUFK IRU WKH UHTXHVWHG UHFRUGV XVLQJ PHWKRGV ZKLFK FDQ EH UHDVRQDEO\
    H[SHFWHGWRSURGXFHWKHLQIRUPDWLRQUHTXHVWHG´Oglesby v. U.S. Dep’t of Army)G
    '&&LU:KHQDQDJHQF\¶VVHDUFKLVTXHVWLRQHGLWPXVWVKRZ³EH\RQGPDWHULDOGRXEW
    WKDW LWV VHDUFK ZDV UHDVRQDEO\ FDOFXODWHG WR XQFRYHU DOO UHOHYDQW GRFXPHQWV´  Ancient Coin
    Collectors Guild v. U.S. Dep’t of State)G'&&LU, TXRWLQJValencia-
    Lucena v. U.S. Coast Guard)G'&&LUsee also Oglesby)GDW
    Weisberg v. DOJ)G'&&LU
    7RGHPRQVWUDWHWKDWLWKDVSHUIRUPHGDQDGHTXDWHVHDUFKIRUGRFXPHQWVUHVSRQVLYHWRD
    )2,$ UHTXHVW DQ DJHQF\ PXVW VXEPLW D UHDVRQDEO\ GHWDLOHG DIILGDYLW GHVFULELQJ WKH VHDUFK
    Oglesby)GDWsee also Defs. of Wildlife v. U.S. Border Patrol)6XSSG
    ''& $QDIILGDYLWLV³UHDVRQDEO\GHWDLOHG´LILW³VHW>V@IRUWKWKHVHDUFKWHUPVDQGWKH
    W\SHRIVHDUFKSHUIRUPHGDQGDYHU>V@WKDWDOOILOHVOLNHO\WRFRQWDLQUHVSRQVLYHPDWHULDOVLIVXFK
    UHFRUGVH[LVWZHUHVHDUFKHG´Oglesby)GDWsee also Defs. of Wildlife)6XSS
    GDW
    7R PHHWWKHVHUHTXLUHPHQWVWKHDIILGDYLWPXVWDWOHDVWLQFOXGHWKHDJHQF\¶V³UDWLRQDOHIRU
    VHDUFKLQJ FHUWDLQORFDWLRQVDQGQRWRWKHUV´ Defs. of Wildlife )6XSS G DW $JHQF\
    DIILGDYLWVDWWHVWLQJWRDUHDVRQDEOHVHDUFK³DUHDFFRUGHGDSUHVXPSWLRQRIJRRGIDLWK´SafeCard
    Servs., Inc. v. SEC)G'&&LU³LIWKH\DUHQRWFDOOHGLQWRTXHVWLRQE\
    FRQWUDGLFWRU\HYLGHQFHLQWKHUHFRUGRUE\HYLGHQFHRIDJHQF\EDGIDLWK´Judicial Watch 
    )GDW TXRWLQJConsumer Fed’n of Am.)GDW 
    $QDJHQF\¶VGHFODUDWLRQV³QHHGQRWµVHWIRUWKZLWKPHWLFXORXVGRFXPHQWDWLRQ WKHGHWDLOVRI
    DQHSLFVHDUFKIRUWKHUHTXHVWHGUHFRUGV¶´Defs. of Wildlife)6XSSGDWTXRWLQJPerry
    
    v. Block  )G   '& &LU  EXW WKH\ VKRXOG ³GHVFULEH ZKDW UHFRUGV ZHUH
    VHDUFKHGE\ZKRPDQGWKURXJKZKDWSURFHVVHV´ Id.TXRWLQJSteinberg v. DOJ)G
    '&&LU&RQFOXVRU\DVVHUWLRQVDERXWWKHDJHQF\¶VWKRURXJKQHVVDUHQRWVXIILFLHQW
    See Morley v. CIA)G±'&&LU
    ,     7KHPRWLRQWRVWULNHZLOOEHGHQLHG
    3ODLQWLIIKDVPRYHGWRVWULNHSRUWLRQVRIWKHGHFODUDWLRQRI/LQGD0F&DUW\ZKLFKZDVILOHG
    LQVXSSRUWRIWKHDJHQF\¶VPRWLRQIRUVXPPDU\MXGJPHQWVRWKH&RXUWZLOOWDNHXSWKDWLVVXHILUVW
    3ODLQWLIIFLWHV)HGHUDO5XOHRI&LYLO3URFHGXUHFZKLFK UHTXLUHVWKDWDGHFODUDWLRQXVHGWR
    VXSSRUWRURSSRVHDPRWLRQIRUVXPPDU\MXGJPHQW³EHPDGHRQSHUVRQDONQRZOHGJHVHWRXWIDFWV
    WKDWZRXOGEHDGPLVVLEOHDVHYLGHQFHDQGVKRZWKDWWKHDIILDQWRUGHFODUDQWLVFRPSHWHQWWRWHVWLI\
    RQWKHPDWWHUVVWDWHG´ )HG5&LY3F
    3ODLQWLIIREMHFWVWRWKHILQDOVHQWHQFHRISDUDJUDSKWKUHHRIWKH0F&DUW\GHFODUDWLRQDQGWR
    WKHHQWLUHW\RISDUDJUDSKILYHRIWKH0F&DUW\GHFODUDWLRQ,QWKHFKDOOHQJHGVHQWHQFHLQSDUDJUDSK
    WKUHH0F&DUW\DYHUVWKDW³>L@WZDVWKHDSSDUHQWEXVLQHVVSUDFWLFHRIWKH:KLWH+RXVHWRVHQGDOO
    FRUUHVSRQGHQFHSHUWDLQLQJWRWD[SD\HUVSHFLILFPDWWHUVWRWKH2IILFHRIWKH([HFXWLYH6HFUHWDULDW´
    0F&DUW\'HFOˆ 3ODLQWLIIDUJXHVWKDW0F&DUW\ZKR³LVQRWDQHPSOR\HHRIWKH:KLWH+RXVH
    >DQG@KDVQHYHUEHHQDQHPSOR\HHRIWKH:KLWH+RXVH´ODFNVSHUVRQDONQRZOHGJHWRWHVWLI\DERXW
    ³:KLWH+RXVHSUDFWLFHV´3O¶V0HPDW%XW0F&DUW\¶VXVHRIWKHZRUG³DSSDUHQW´PDNHVLW
    FOHDUWKDWVKHLVVSHDNLQJDERXWZKDWVKHKDVEHHQDEOHWRREVHUYH± VKHGRHVQRWSXUSRUWWRVSHDN
    RQEHKDOIRIWKH:KLWH+RXVHDQG VKHGRHVQRWSURIIHU DGHILQLWLYHVWDWHPHQWDERXWZKDWWKH:KLWH
    +RXVHGLGRUGLGQRWGR7KH&RXUWXQGHUVWDQGV0F&DUW\WREH PDNLQJWKHREVHUYDWLRQWKDWLQ
    KHUH[SHULHQFHWKH:KLWH +RXVHIRUZDUGHGPXOWLSOHWD[SD\HUVSHFLILFLQTXLULHV WRWKH2IILFHRI
    WKH([HFXWLYH6HFUHWDULDW $QGDVWKHKHDGRIWKHRIILFHWKDWUHFHLYHVWKRVHFRPPXQLFDWLRQVVKH
    
    KDV SHUVRQDO NQRZOHGJH RI WKDW SURFHVV  7KHUHIRUH WKH &RXUW ZLOO QRW VWULNH WKH VHQWHQFH LQ
    SDUDJUDSKWKUHH 7KH&RXUWQRWHVWKDWLQDQ\HYHQWWKH7DWHGHFODUDWLRQVXSSOLHVDQDGGLWLRQDO
    EDVLV IRU WKH ILQGLQJ WKDW WKH 2IILFH RI WKH ([HFXWLYH 6HFUHWDULDW LV WKH RIILFH UHVSRQVLEOH IRU
    KDQGOLQJUHTXHVWVIURPWKH([HFXWLYH2IILFHRIWKH3UHVLGHQW 7DWH'HFOˆ 
    3ODLQWLIIDOVRPRYHVWRVWULNHSDUDJUDSKILYH RIWKH0F&DUW\GHFODUDWLRQZKLFKVWDWHV
    >7@KH ,56 WDNHV VHULRXVO\ WKH FRQILGHQWLDOLW\ SURYLVLRQV RI  86&
    †  DQG WUDLQV LWV HPSOR\HHV DFFRUGLQJO\  ,I DQ ,56 HPSOR\HH QRW
    DVVLJQHG WR WKH 2IILFH RI WKH ([HFXWLYH 6HFUHWDULDW UHFHLYHG D
    FRPPXQLFDWLRQIURPVRPHRQHDWWKH:KLWH+RXVHVHHNLQJWD[LQIRUPDWLRQ
    WKDW HPSOR\HH ZRXOG KDYH NQRZQ WKDW KH GRHV QRW KDYH WKH DXWKRULW\ WR
    GLVFORVH WD[ LQIRUPDWLRQ WR WKH :KLWH +RXVH DQG ZRXOG KDYH SURPSWO\
    DUUDQJHG WR IRUZDUG VXFK FRPPXQLFDWLRQ WR WKH 2IILFH RI WKH ([HFXWLYH
    6HFUHWDULDWIRUDSSURSULDWHKDQGOLQJ,IVXFKDFRPPXQLFDWLRQZDVUHFHLYHG
    E\ WKH 2IILFH RI WKH ([HFXWLYH 6HFUHWDULDW VWDII ZRXOG IROORZ VWDQGDUG
    SUDFWLFHRIWKLVRIILFHDQGHQWHUWKHFRPPXQLFDWLRQLQ(7UDN
    0F&DUW\'HFOˆ 3ODLQWLIIFRQWHQGVWKDWWKRVHVWDWHPHQWVDUH³VSHFXODWLYH´DQGLWDUJXHVWKDW
    WKHUHLV³QRWKLQJLQKHUGHFODUDWLRQWRLQGLFDWHWKDW0V0F&DUW\KDVDQ\SHUVRQDONQRZOHGJHRI
    WKHVHWRSLFV´3O¶V0HPDW 7KH&RXUWILQGVWKDWVLQFH 0F&DUW\KDVZRUNHGDWWKH,56IRUWHQ
    \HDUVDQGVKHKDGVHUYHGDVWKH'LUHFWRURIWKH2IILFHRI([HFXWLYH6HFUHWDULDWIRUQLQHPRQWKVDW
    WKHWLPHRIKHUGHFODUDWLRQVKHKDVVXIILFLHQWSHUVRQDONQRZOHGJHWRGHVFULEH WKHDJHQF\SROLFLHV
    WKDWZHUHLQSODFHDQGKDGEHHQFRPPXQLFDWHGWRHPSOR\HHV2EYLRXVO\ QRGHFODUDQWFDQ UXOHRXW
    WKHSRVVLELOLW\WKDWDQHPSOR\HHPD\IDLOWRIROORZSURSHUSURFHGXUHDQGWKHUHIRUHLWZRXOGEH
    VSHFXODWLYHIRUKHUWRDYHUWKDWDQ\HPSOR\HHZKRHYHUDFWXDOO\UHFHLYHGDQLPSURSHUUHTXHVWLQ
    IDFWSURPSWO\IRUZDUGHGLWWRWKH2IILFHRIWKH([HFXWLYH6HFUHWDULDW %XWLWLVHTXDOO\ VSHFXODWLYH
    WRDVVXPHWKDWVXFKDUHTXHVWZDVPDGH 7KH&RXUWXQGHUVWDQGVWKLVSDUDJUDSKRIWKHGHFODUDWLRQ
    WR EH VLPSO\ D VWDWHPHQW RI ZKDW SURSHU SURFHGXUH ³ZRXOG KDYH´ UHTXLUHG LQ WKH K\SRWKHWLFDO
    VLWXDWLRQEHLQJGHVFULEHGDQGLWZLOOEHUHFHLYHGVROHO\RQWKDWEDVLV
    
    ,,    7KHVHDUFKIRUUHFRUGVUHVSRQVLYHWRUHTXHVWVWKUHH DQGIRXU ZDVDGHTXDWH
    ,QWKHWZRFDWHJRULHVRIWKH)2,$UHTXHVWWKDWUHPDLQ DWLVVXHSODLQWLIIVRXJKWGRFXPHQWV
    UHODWHGWR DQ\FRPPXQLFDWLRQVIURP WKH([HFXWLYH2IILFHRIWKH3UHVLGHQWDVNLQJIRUZKDWZRXOG
    FRQVWLWXWH FRQILGHQWLDOWD[SD\HURU³UHWXUQLQIRUPDWLRQ´XQGHU 86&† DWKDWZHUHQRW
    PDGHSXUVXDQWWRWKHSURFHGXUHVLQ† JWKDWJRYHUQRIILFLDOUHTXHVWVIRUWKLVLQIRUPDWLRQ
    7KLVUHTXLUHG WKHDJHQF\WRGHWHUPLQHZKHUHGRFXPHQWVUHODWHGWRWKHVHVRUWVRIUHTXHVWVIURPWKH
    ([HFXWLYH2IILFHRI WKH3UHVLGHQW± ZKLFKVKRXOGQRWH[LVW± ZRXOGEHOLNHO\WREHIRXQGLIWKH\
    GLGH[LVW DQGWRH[SODLQZK\LWORRNHGZKHUHLWGLGDQGXVHGWKHVHDUFKWHUPVLWVHOHFWHG
    ,Q LWV LQLWLDO RSLQLRQ WKH &RXUW IRXQG WKH RULJLQDO VHDUFKHV IRU UHFRUGV UHVSRQVLYH WR
    FDWHJRULHVWKUHHDQGIRXULQDGHTXDWHEHFDXVH
    >7KHGHFODUDQW@ SURYLGHVQRH[SODQDWLRQIRUKHUFRQFOXVLRQWKDWUHFRUGVRI
    UHTXHVWVPDGHE\WKH([HFXWLYH%UDQFKZRXOGEHORFDWHGLQWKH2IILFHRI
    /HJLVODWLYH$IIDLUVRULQDQ\RIWKHRWKHURIILFHVVKHQDPHGRUZK\WKH\
    ZRXOGQRWEHHOVHZKHUH $OVRWKLVSRUWLRQRIWKH)2,$UHTXHVWVRXJKWD
    EURDGUDQJHRIUHFRUGV ± WKRVHUHODWHGWRUHTXHVWVIRU³WD[SD\HURUµUHWXUQ
    LQIRUPDWLRQ¶´E\WKH([HFXWLYH2IILFHRIWKH3UHVLGHQWWKDWZHUHQRWPDGH
    SXUVXDQWWRVHFWLRQJ ± DQG >WKH GHFODUDQW¶V@ IDLOXUH WR LGHQWLI\DQ\
    NH\ ZRUGV RU VHDUFK WHUPV WKDW ZHUH XVHG RU WR GHVFULEH WKH W\SHV RI
    VHDUFKHVWKDWZHUHSHUIRUPHGLQDQ\GHWDLOXQGHUPLQHVDQ\FODLPWKDWWKH
    VHDUFKZDV³UHDVRQDEO\FDOFXODWHGWRXQFRYHUDOOUHOHYDQWGRFXPHQWV´
    Cause of Action)6XSSGDW± LQWHUQDOFLWDWLRQVRPLWWHG
    $IWHUWKHUHPDQGWKH,56WRRNVWHSVWRUHPHG\ WKHGHILFLHQFLHV GHVFULEHG LQWKH&RXUW¶V
    SULRURSLQLRQ ,WLGHQWLILHGWKHRIILFHWKDWUHJXODUO\FRPPXQLFDWHVZLWKWKH([HFXWLYH2IILFHRIWKH
    3UHVLGHQWDQGLWXWLOL]HGVHDUFKWHUPVWKDWZHUHDUULYHGXSRQWKURXJKGLVFXVVLRQVZLWKWKHSODLQWLII
    $QDJHQF\DWWRUQH\6DUDK7DWHKDVDYHUUHGWKDW
    7KH2IILFHRIWKH&RPPLVVLRQHULVWKHRQO\RIILFHRUGLYLVLRQRIWKH,56
    OLNHO\WRUHFHLYHFRUUHVSRQGHQFHIURPWKH([HFXWLYH2IILFHRIWKH3UHVLGHQW
    WKDW LV UHVSRQVLYH WR LWHPV  DQG  RI SODLQWLII¶V 2FWREHU   )2,$
    UHTXHVW  :LWKLQ WKH 2IILFH RI WKH &RPPLVVLRQHU LV WKH 2IILFH RI WKH
    ([HFXWLYH 6HFUHWDULDW  )RU WKH UHOHYDQW WLPH SHULRG    WKH 2IILFH RI WKH
    
    ([HFXWLYH 6HFUHWDULDW ZDV UHVSRQVLEOH IRU UHFHLYLQJ DQG WUDFNLQJ
    FRUUHVSRQGHQFH DGGUHVVHG WR WKH 2IILFH RI WKH &RPPLVVLRQHU LQFOXGLQJ
    FRUUHVSRQGHQFHIURPWKH([HFXWLYH2IILFHRIWKH3UHVLGHQWDQGGHWHUPLQLQJ
    KRZ HDFK LWHP VKRXOGEHKDQGOHG$OOFRPPXQLFDWLRQVDGGUHVVHGWRWKH
    2IILFHRIWKH&RPPLVVLRQHU ZHUHUHFRUGHGLQDFRPSXWHUL]HGWUDFNLQJ
    V\VWHPFDOOHG(7UDN
    7DWH'HFOˆ 
    7KH'LUHFWRURI([HFXWLYH6HFUHWDULDW/LQGD0F&DUW\VWDWHG WKDWDQ\FRPPXQLFDWLRQ KHU
    RIILFH UHFHLYHGIURPWKH:KLWH+RXVHZRXOGEHHQWHUHGLQWR(7UDN0F&DUW\'HFOˆˆ  7KH
    DJHQF\WKHQVHDUFKHG(7UDNXVLQJWKHVHDUFKWHUPVWKDWKDGEHHQDSSURYHGLQWKH&RXUW¶VRULJLQDO
    RSLQLRQDVZHOODVDQDGGLWLRQDOVHWRIWHUPVHVWDEOLVKHGWKURXJKDQDJUHHPHQWZLWKWKHSODLQWLII
    See 7DWH 'HFO ˆˆ ± %HFDXVH WKH DJHQF\ VHDUFKHG WKH UHOHYDQW GDWDEDVH XVLQJ DJUHHGXSRQ
    VHDUFKWHUPVLWKDVVKRZQWKDW³DOOILOHVOLNHO\WRFRQWDLQUHVSRQVLYHPDWHULDOV´ZHUHVHDUFKHGDQG
    WKH&RXUWILQGVWKDWWKHVHDUFKZDV³UHDVRQDEO\H[SHFWHGWRSURGXFHWKHLQIRUPDWLRQUHTXHVWHG´
    Oglesby)GDW 
    ,,,    3ODLQWLII¶VFKDOOHQJHVWRWKHDGHTXDF\RIWKHVHDUFKGRQRWFUHDWHDJHQXLQHLVVXHRI
    PDWHULDOIDFW
    3ODLQWLII FRQWLQXHVWRFKDOOHQJHWKHDGHTXDF\RIWKHVHDUFKDUJXLQJWKDWVLQFHWKHUHTXHVWV
    ZHUH DLPHG DW UHFRUGV RI XQDXWKRUL]HG GLVFORVXUHV LQ DGGLWLRQ WR GLVFORVXUHV WKURXJK SURSHU
    FKDQQHOV WKH DJHQF\ VKRXOG KDYH FRQGXFWHG D EURDG VHDUFK RI LWV HPDLO UHFRUGV WR ORFDWH
    UHVSRQVLYHPDWHULDOSee 3O¶V0HPDW± %HFDXVHWKHDJHQF\¶VGHFODUDWLRQVLQGLFDWHWKDWLW
    FRQGXFWHG ³UHDVRQDEO\ FDOFXODWHG´ VHDUFKHV LW IDOOV WR SODLQWLII WR ³LGHQWLI\ VSHFLILF DGGLWLRQDO
    SODFHVWKHDJHQF\VKRXOGQRZVHDUFK´Hodge v. FBI)G'&&LU6LQFH
    SODLQWLIIKDVIDLOHGWRPHHWWKDW EXUGHQRUFUHDWHDJHQXLQHLVVXHRIPDWHULDOIDFWDVWRWKHDGHTXDF\
    RIWKHVHDUFKVXPPDU\MXGJPHQWZLOOEHHQWHUHGIRUWKHDJHQF\
    ,QLWV)2,$UHTXHVWSODLQWLII DVNHGIRU³>D@Q\FRPPXQLFDWLRQVE\RUIURPDQ\RQHLQWKH
    ([HFXWLYH2IILFHRIWKH3UHVLGHQWFRQVWLWXWLQJUHTXHVWVIRUWD[SD\HURUµUHWXUQLQIRUPDWLRQ¶ ZLWKLQ
    
    WKHPHDQLQJRI† DWKDWZHUH QRWPDGHSXUVXDQWWR† J´)2,$5HTDW$QDJHQF\
    KDV³DGXW\WRFRQVWUXHD)2,$UHTXHVWOLEHUDOO\´PETA v. NIH )G'&&LU
    TXRWLQJNation Magazine v. U.S. Customs Serv.)G'&&LUDQGWKH
    '& &LUFXLW KDV GLVDSSURYHG RI DJHQFLHV QDUURZLQJ WKH VFRSH RI D )2,$ UHTXHVW WR H[FOXGH
    PDWHULDOVUHDVRQDEO\ZLWKLQWKHGHVFULSWLRQSURYLGHGE\WKHUHTXHVWRUSee, e.g., LaCedra v. Exec.
    Office for U.S. Att’ys)G'&&LU Nation Magazine)GDW ±
    
    %XWWKDWLVQRWWKHVLWXDWLRQKHUH,QWKLVFDVHSODLQWLIIGHPDQGVWKDWWKHDJHQF\VHDUFKIRU
    UHFRUGVRIVXVSHFWHGXQDXWKRUL]HGFRQGXFW ± WKDWLVUHTXHVWVIRUFRQILGHQWLDOLQIRUPDWLRQPDGH
    RXWVLGHRIWKHVWDWXWRU\IUDPHZRUNDQGWKH,56¶VSURFHGXUHVIRUWKHKDQGOLQJRIFRPPXQLFDWLRQV
    ZLWKWKH:KLWH+RXVH See 3O¶V0HPDW,QRWKHUZRUGVQRWRQO\GRHVSODLQWLIIQRWNQRZ
    ZKHWKHUWKHUHFRUGVLWVHHNVH[LVW± WKH\DUHQRWVXSSRVHGWRH[LVW%XWWKLVUDLVHVWKHTXHVWLRQ
    KRZZRXOGWKHDJHQF\EHDEOHWRUHDVRQDEO\LGHQWLI\ZKHUHUHFRUGVWKDWVKRXOGQRWH[LVWDUHOLNHO\
    WREHIRXQG"
    3ODLQWLII VXEPLWV WKDW WKH ,56 VKRXOG KDYH VHDUFKHG WKH 2IILFH RI 3ULYDF\ *RYHUQPHQW
    /LDLVRQDQG'LVFORVXUH3O¶V0HPDW±EXWLWSRLQWVWRQRIDFWVWKDWZRXOGHQDEOHWKH&RXUW
    WRFRQFOXGHWKDWLWZRXOGKDYHEHHQDQ\PRUHUHDVRQDEOHRUOLNHO\WKDWWKHUHFRUGVZRXOGEHWKHUH
    WKDQVRPHZKHUHHOVH
    3ODLQWLIIDOVRSURSRVHVWKDWWKHDJHQF\VKRXOG EHUHTXLUHGWRVHDUFK HPDLOUHFRUGV3O¶V
    0HP DW ± ,W DUJXHV WKDW ³>J@LYHQ WKH SROLWLFDO VHQVLWLYLW\ RI XQDXWKRUL]HG UHTXHVWV IRU
    GLVFORVXUH RI WD[ UHWXUQV RU UHWXUQ LQIRUPDWLRQ LQGLYLGXDOV LQYROYHG ZLWK VXFK UHTXHVWV ZRXOG
    OLNHO\HPSOR\OHVVIRUPDOPHWKRGVRIFRPPXQLFDWLRQLQFOXGLQJHPDLO´ 
    Id. DW3ODLQWLII SRLQWV
    WR WKH UHFHQW XQUHODWHG &RQJUHVVLRQDO LQYHVWLJDWLRQ LQWR WKH DJHQF\¶V KDQGOLQJ RI WD[H[HPSW
    
    HQWLWLHVDQGWKHIDFWWKDWWKHLQYHVWLJDWLRQXQHDUWKHGFRPPXQLFDWLRQVRQWKDW WRSLFPDGHYLDHPDLO
    DVDUHDVRQZK\LW LV³UHDVRQDEOHWRDVVXPHWKDWHPDLOFRUUHVSRQGHQFHZDVXVHGLQRWKHULQVWDQFHV
    RIDJHQF\ZURQJGRLQJ´Id. DW %XWWKHUHLVQRDFWXDOHYLGHQFHRIZURQJGRLQJLQWKLVFDVHDQG
    WKHREYLRXVIDFWWKDWHPSOR\HHVRIDQ\ JRYHUQPHQWRUSULYDWHHQWLW\DUHOLNHO\WRXVHHPDLO± IRU
    HLWKHUDSSURSULDWHRULQDSSURSULDWHFRPPXQLFDWLRQV± LVQRWHQRXJKWRVXSSRUWSODLQWLII¶VFDOOIRU
    DEURDGVHDUFKLQWRHPDLOLQWKLVSDUWLFXODULQVWDQFH
    $QGHYHQLIWKH&RXUWZHUHWRDJUHHZLWKWKHJHQHUDOSURSRVLWLRQWKDWUHTXHVWVIRUUHWXUQ
    LQIRUPDWLRQPDGHRXWVLGHRIWKHVWDWXWRULO\SUHVFULEHGFKDQQHOVFRXOGYHU\ZHOOEHFRPPXQLFDWHG
    WKURXJKHPDLOZKRVHHPDLOVKRXOGEHVHDUFKHG"3ODLQWLIIPDLQWDLQHGLQLWVSOHDGLQJVWKDWLWKDG
    PDGHQXPHURXVDWWHPSWVWRFROODERUDWHRQWKHLGHQWLILFDWLRQRISRWHQWLDOUHFRUGVFXVWRGLDQV3O¶V
    0HPDW± %XWZKHQWKH&RXUWVXPPRQHGWKHSDUWLHVWRDVWDWXVFRQIHUHQFHDQGLQYLWHGWKH
    SODLQWLIIWRSURYLGHPRUHGLUHFWLRQSODLQWLIIDFNQRZOHGJHGWKDWLWKDGQRSDUWLFXODUHPDLODFFRXQWV
    LQPLQG7U DW±*LYHQSODLQWLII¶V LQDELOLW\ ³WR LGHQWLI\ VSHFLILFDGGLWLRQDOSODFHV WKH
    DJHQF\VKRXOGQRZVHDUFK´Hodge)GDWSODLQWLIIKDVQRWSRLQWHGWRDQ\JHQXLQHLVVXH
    RIIDFWUHODWHGWRWKHDGHTXDF\RIWKHVHDUFK
    7KHODZLVFOHDUWKDW)2,$GRHVQRWSURYLGHUHTXHVWHUVZLWKDULJKWWRGHPDQG³DQ DOO
    HQFRPSDVVLQJILVKLQJH[SHGLWLRQ´RIILOHVLQHYHU\RIILFHZLWKLQDQDJHQF\Dale v. IRS)
    
    6XSSG''&  $QGWKHFRXUWQHHGQRW³HPEDUNRQDWLPHFRQVXPLQJDQGFRVWO\
    JRRVHFKDVHLQSXUVXLWRISKDQWRPUHSRUWV>IURPWKHDJHQF\@´ Twist v. Ashcroft)6XSSG
     ''&aff’d)$SS¶['&&LU3ODLQWLIILVRIIHULQJDVVXPSWLRQV
    DQG DOOHJDWLRQV EXW ³PHUH VSHFXODWLRQ WKDW DV \HW XQFRYHUHG GRFXPHQWV PD\ H[LVW GRHV QRW
    XQGHUPLQHWKHILQGLQJWKDWWKHDJHQF\FRQGXFWHGDUHDVRQDEOHVHDUFK´Hodge)GDW
    TXRWLQJSafeCard)GDW see also Wilbur v. CIA)G'&&LU
            :KLOHWKHDale FDVHDURVHLQWKHFRQWH[WRIDPRWLRQWRGLVPLVVLWLVLQVWUXFWLYH³'DOH
    DVVHUWV WKDW KH ZDV VXEMHFWHG WR UHWDOLDWRU\ DXGLWV E\ WKH ,56 GXULQJ 3UHVLGHQW &OLQWRQ
    V
    DGPLQLVWUDWLRQ IURP -DQXDU\   WKURXJK -DQXDU\   DQG VHHNV DFFHVV WR DQ\
    GRFXPHQWVLQWKHSRVVHVVLRQRIWKH,56WKDWKHEHOLHYHVZLOOHVWDEOLVKWKHSROLWLFDOQDWXUHRIWKHVH
    DFWLRQV´ Dale)6XSSGDW+HVRXJKW³DFFHVVWRµ>D@Q\DQGDOOGRFXPHQWVLQFOXGLQJ
    EXWQRWOLPLWHGWRILOHVWKDWUHIHURUUHODWHLQDQ\ZD\WR%LOO\5D\'DOH¶ 
    Id. DW'DOHVWDWHG WKDWKLVUHTXHVWLQFOXGHGµall
    ,QWHUQDO5HYHQXH6HUYLFHRIILFHVGHSDUWPHQWVGHWDFKPHQWVEXUHDXV
    RSHUDWLQJ ORFDWLRQV ILHOG RIILFHV DJHQFLHV GLYLVLRQV GLUHFWRUDWHV FHQWHU KHDGTXDUWHUV DQGRU
    RWKHU,QWHUQDO5HYHQXH6HUYLFHRUJDQL]DWLRQVDQGHQWLWLHV¶´ 
    Id. 7KHDJHQF\PRYHGWRGLVPLVV DUJXLQJWKDWSODLQWLIIGLGQRW³UHDVRQDEO\GHVFULEHWKHUHFRUGVVRXJKWLQKLVUHTXHVW´
    Id. DW
    7KHFRXUWDJUHHGZLWKWKHJRYHUQPHQWDQGJUDQWHGWKHPRWLRQWRGLVPLVVILQGLQJWKDWWKHIDLOXUH
    
    WRDGHTXDWHO\GHVFULEHWKHUHTXHVWDPRXQWHGWRDIDLOXUHWRH[KDXVWDGPLQLVWUDWLYHUHPHGLHVId.
    7KH&RXUWFRQFOXGHGWKDW³>V@LPSO\SXW'DOH¶VVHDUFKUHTXHVWDPRXQWHGWRDQDOOHQFRPSDVVLQJ
    ILVKLQJ H[SHGLWLRQ RI ILOHV DW ,56 RIILFHV DFURVV WKH FRXQWU\ DW WD[SD\HU H[SHQVH´ 
    Id. +HUH SODLQWLIIVXVSHFWVWKDWWKHUHZDVZURQJGRLQJLQFRQQHFWLRQZLWKDSDUWLFXODUWD[SD\HU¶VFRQILGHQWLDO
    LQIRUPDWLRQEXW)2,$GRHVQRWDXWKRUL]HZLGHUDQJLQJVHDUFKHVIRUUHFRUGVWKDWPD\RUPD\QRW
    HYHQH[LVW
    
    &21&/86,21
    )RUWKRVH UHDVRQVWKH&RXUWZLOOJUDQWWKHDJHQF\¶VPRWLRQIRUVXPPDU\MXGJPHQWDQGLW
    ZLOO GHQ\ SODLQWLII¶V FURVVPRWLRQ IRU VXPPDU\ MXGJPHQW DQG SODLQWLII¶V PRWLRQ WR VWULNH  $
    VHSDUDWHRUGHUZLOOLVVXH
    $0<%(50$1-$&.621
    8QLWHG6WDWHV'LVWULFW-XGJH
    '$7( 0D\
    
    

Document Info

Docket Number: Civil Action No. 2013-0920

Judges: Judge Amy Berman Jackson

Filed Date: 5/25/2017

Precedential Status: Precedential

Modified Date: 5/26/2017