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TPS, INC., Plaintiff-Appellant,
v.
UNITED STATES DEPARTMENT OF DEFENSE; DEFENSE LOGISTICS
AGENCY, Defendants-Appellees.
No. 00-15144
United States Court of Appeals for the Ninth Circuit
D.C. No. CV-99-01825-CAL
Appeal from the United States District Court for the Northern
District of California Charles A. Legge, District Judge, Presiding
Argued and Submitted April 9, 2003--San Francisco, California
Before: John T. Noonan, M. Margaret McKeown, and Johnnie B. Rawlinson,
Circuit Judges.
COUNSEL
George Mac Vogelei, Novato, California, for the plaintiff-appellant.
Kevin V. Ryan, United States Attorney, and Abraham A.
Simmons, Assistant United States Attorney, San Francisco, California,
for the defendants-appellees.
Filed June 3, 2003
McKEOWN, Circuit Judge:
Under the Freedom of Information Act ("FOIA"
), a federal government agency must provide documents in "any
form or format requested" that is "readily reproducible
by the agency." 5 U.S.C. § 552(a)(3)(B). Regulations
governing production of electronic data under FOIA dictate "a
standard of reasonableness" and "business as usual"
as guiding principles. 32 C.F.R. § 286.4(g)(2). The focus
of this controversy is interpretation of "business as usual"
in the context of records that are requested in a particular
electronic format. We conclude that "business as usual"
is not restricted solely to response practices under FOIA but
instead encompasses the normal business of the agency. Because
material issues of fact exist regarding whether the Department
of Defense regularly generates documents in the format at issue
here, we reverse the district court's grant of summary judgment
in favor of the government.
Background
FOIA establishes the conditions under which government
agencies "shall make available to the public information"
and the methods by which agencies supply the information. 5 U.S.C.
§ 552. Under the 1996 amendments to FOIA, an agency responding
to a FOIA request "shall provide the record in any form
or format requested by the person if the record is readily
reproducible by the agency in that form or format."
Id. at § 552(a)(3)(B) (emphasis added); see also
Pub. L. No. 104-231 (Electronic Freedom of Information Act
Amendments of 1996). The regulations applicable to electronic
data further provide that
when responding to FOIA requests for electronic
data where creation of a record, programming, or particular format
are questionable, Components should apply a standard of reasonableness.
In other words, if the capability exists to respond to the request,
and the effort would be a business as usual approach, then the
request should be processed. However, the request need not
be pro cessed where the capability to respond does not exist
without a significant expenditure of resources, thus not being
a normal business as usual approach. As used in this sense, a
significant expenditure of resources in both time and manpower,
that would cause a significant interference with the operation
of the Component's automated information system would not be
a business as usual approach.
32 C.F.R. § 286.4(g)(2) (emphasis added).
Total Procurement Systems, Inc. ("TPS" ),
a company that gathers and markets information about government
procurement contracts, sent a FOIA request to the Defense Logistics
Information Service ("DLIS" ), a unit of the Department
of Defense ("DOD" ) in Battle Creek, Michigan. TPS
sought the transmission of two files in "zipped" format.
[FOOTNOTE 1] The DOD responded that it could provide the file
in one of two other electronic media, but that providing zipped
files was not "business as usual" as defined by 32
C.F.R. § 286.4(g)(2), and that it therefore was not required
to provide files in that form. Because of its previous experience
in receiving zipped files from the agency, TPS filed suit in
federal court, asking the court to order the DOD to provide the
files in the format requested. The DOD moved for dismissal or,
in the alternative, summary judgment, on the grounds that the
data were not "readily reproducible" under 5 U.S.C.
§ 552(a)(3)(B) in the format requested by TPS due to the
"significant time and expense" required, and that the
reproduction therefore was not "business as usual."
In support of its motion, the DOD submitted a declaration from
Jeffrey Greger, a supply systems analyst with the DLIS, who claimed
that TPS's request was "unique." [FOOTNOTE 2] The government
also offered twelve supporting exhibits. [FOOTNOTE 3]
In response, TPS supplied two declarations stating that
the DOD routinely provides files in zipped format. The first
was from K.C. Chemelstrand, the president of a company providing
services related to government information. Chemelstrand stated
that since 1984, his company had received computer files from
the DOD in the compressed format requested by TPS. The second
declaration came from Richard Snyder, the president of TPS, who
described TPS's procedures for gathering information and asserted
that "TPS is only one (1) of thirteen (13) different businesses,
that I am aware of, that receive ' zipped' files on a daily basis."
In analyzing the parties' proffered evidence, the district
court reasoned that because neither of TPS's declarations indicated
whether the zipped files had been obtained pursuant to a FOIA
request or under a separate contract with the government, they
did not answer whether sending zipped files was "business
as usual" in the context of satisfying FOIA requests. The
court accordingly struck the TPS declarations as insufficient
and relied only on the evidence supplied by the DOD. Concluding
that the information was not "readily reproducible"
by the agency in zipped form, and that the compressed reproduction
therefore was not "business as usual," the court granted
summary judgment for the government. [FOOTNOTE 4]
Standard of Review
In the Ninth Circuit, we approach FOIA summary judgment
appeals in a different manner from the typical de novo review
of a grant of summary judgment. We generally conduct a two-step
review, [FOOTNOTE 5] in which the first step is an inquiry into
whether the district court's ruling is supported by an adequate
factual basis. See Fiduccia v. United States Dep' t of Justice
, 185 F.3d 1035, 1040 (9th Cir. 1999). If an adequate factual
basis exists, we variously use de novo review or clear error
review. See Maricopa Audubon Soc' y v. United States Forest
Serv., 108 F.3d 1082, 1085 (9th Cir. 1997) ("Our standard
of review in FOIA cases is unclear. Recent cases in this circuit
have applied different standards: some have reviewed the summary
judgment de novo, while others have decided only whether the
district court's ruling was clearly erroneous." (internal
citations omitted)).
Because the threshold issue before us on this appeal
is a legal interpretation of "business as usual," and
not a review of the contents of the document itself, de novo
review is appropriate. See Monjaraz-Munoz v. INS , __
F.3d __, 2003 U.S. App. LEXIS 8006 at *7 (9th Cir. Apr. 28, 2003)
("Questions of law are reviewed de novo . . . ." ).
Once the legal issue is resolved, it falls to the district court
to benchmark the evidence against the legal standard. Because
this case does not involve deference to factual findings, de
novo review is consistent with our prior cases.
Discussion
The question before us is interpretation and application
of the "business as usual" standard in the regulations
related to electronic data. The district court's restrictive
reading of this phrase provided the foundation for both its evidentiary
ruling excluding TPS's declarations and its ultimate conclusion
in favor of the DOD. The court determined that the two TPS declarations
did not address whether the parties received zipped files in
the context of FOIA requests or pursuant to separate contracts
with the government. The court therefore granted the government's
motion for summary judgment because "[t]he record reflects
that, under FOIA, the transmission of ' zipped' files or the
compressing of files to be transmitt[ed] electronically is not
common; indeed, the record reflects the agency, under FOIA
, do[es] not produce zipped files. Production to plaintiff
by this manner would not be business as usual for the agency"
(emphasis added).
I. Legal Standard--" Business as Usual"
The language of FOIA does not support a reading that
distinguishes between "business as usual" for FOIA
requests and "business as usual" for activities that
are part of the agency's business. FOIA requires that a government
agency supply documents in any format requested as long as the
information is "readily reproducible by the agency in that
form or format." 5 U.S.C. § 552(a)(3)(B). Under the
regulations, a FOIA request must be processed if "the capability
exists to respond to the request." 32 C.F.R. § 286.4(g)(2).
The statute, on its face, requires that the agency satisfy a
FOIA request when it has the capability to readily reproduce
documents in the requested format. We see no reason to give FOIA
the narrow reading crafted by the district court. Indeed, it
would seem anomalous for an agency that is regularly reproducing
documents in a particular format as part of its ongoing business
to be able to shield itself from similar production under FOIA.
The regulations also specify that an agency need not
process requests that would involve a "significant interference
with the operation" of the agency's information system.
Id. The language suggests that these provisions
are intended simply to preclude requestors from forcing unusual
requests that would impose unreasonable or additional burdens
on an agency's data system, personnel, or resources. When an
agency already creates or converts documents in a certain format--be
it for FOIA requestors, under a contract, or in the ordinary
course of business--requiring that it provide documents in that
format to others does not impose an unnecessarily harsh burden,
absent specific, compelling evidence as to significant interference
or burden.
This interpretation is bolstered by the statute's history
and purpose. Congress prefaced the 1996 FOIA amendments with
a statement of Findings and Purposes:
(a) Findings. The Congress finds that
(1) the purpose of [FOIA] . . . is to require
agencies of the Federal Government to make certain agency information
available for public inspection and copying and to establish
and enable enforcement of the right of any person to obtain access
to the records of such agencies, subject to statutory exemptions,
for any public or private purpose;
. . .
(5) Government agencies increasingly use
computers to conduct agency business and to store publicly valuable
agency records and information; and
(6) Government agencies should use new
technology to enhance public access to agency records and information.
Pub. L. No. 104-231 at *2 (Electronic Freedom of Information
Act Amendments of 1996). The statements reflect a Congressional
choice to expand, rather than narrow, the agencies' obligations
under FOIA and to encourage government agencies to use advancing
computer technology--such as zipping files--not only to conduct
agency business and store data but also "to enhance public
access" to records.
In addition, the circuits agree that Congress' intent
is best realized by interpretations of FOIA that favor disclosure
over secrecy. See, e.g., Perlman v. United States Dep' t of
Justice, 312 F.3d 100, 104 (2d Cir. 2002) ("The [FOIA]
adopts as its most basic premise a policy strongly favoring public
disclosure of information in the possession of federal agencies."
(citation and internal quotation marks omitted)); Maricopa
Audubon Soc' y , 108 F.3d at 1085 (noting that FOIA "mandates
a policy of broad disclosure of government documents" )
(quoting Church of Scientology v. Dep' t of the Army,
611 F.2d 738, 741 (9th Cir. 1980)); Detroit Free Press, Inc.
v. United States Dep' t of Justice, 73 F.3d 93, 95 (6th Cir.
1996) ("By enacting the FOIA, Congress evidenced a general
philosophy of full agency disclosure unless information is exempted
under clearly delineated statutory language." (citation
and internal quotation marks omitted)). Although these cases
speak in terms of whether to disclose rather than the
format in which to disclose, their presumption in favor
of public access to information suggests that we should invoke
the same presumption in requiring disclosure in the requested
format so as to "enhance public access to agency records."
II. Factual Inquiry
The DOD does not dispute that it has the technical "capability,"
see 32 C.F.R. § 286.4(g)(2), to respond to the format
request. Whether the DOD in fact does provide zipped files as
a "normal business as usual approach," id. ,
is impossible to resolve as a matter of law, and the district
court's determination of this issue on summary judgment was in
error, primarily because it invoked a restrictive, incorrect
legal standard.
On a motion for summary judgment, we must view the evidence
in the light most favorable to the non-moving party. See Lopez
v. Smith , 203 F.3d 1122, 1131 (9th Cir. 2000) (en banc).
A review of the two TPS declarations highlights the factual issue:
whether, as TPS's declarations indicate, zipped files are part
of the DOD's usual mode of computerized transmission, or whether,
as the government argues, zipped files are not produced in the
normal course of business and are burdensome to create. For example,
Chemelstrand stated:
I am familiar with the process of compressing
computerized files and the transmitting of compressed computerized
files over telecommunication lines. My company has been receiving
compressed computer files from the US Government via . . . DAASC
[the Defense Automated Addressing System Center], in Dayton,
Ohio since 1994. These compressed computer files originated in
the Defense Information System Agency ["DISA" ], in
Columbus, Ohio and were transmitted to DAASC for transmission
to my company.
The district court dismissed the declaration as insufficient
because "it really doesn' t establish whether the information
in a compressed form was provided to [Chemelstrand] under FOIA
or was provided to him under a separate contract that he had
with the agency." The court resolved this factual uncertainty
by deciding "that [Chemelstrand' s] company does receive
information under a contract and not under FOIA."
This determination was in error. Chemelstrand's declaration
was sufficient to raise a factual issue regarding the DOD's ability
to transmit zipped files and its practice of regularly providing
such files, as Chemelstrand's company and TPS deal with the same
DOD subagencies in obtaining electronic files. Even if Chemelstrand's
company did receive the zipped files under a non-FOIA-related
contract, that fact is not dispositive of whether the DOD's provision
of the files in zipped format is "business as usual."
Chemelstrand's assertions therefore raised a factual question
that cannot be resolved in summary judgment.
The declaration from Richard Snyder, TPS's president,
was similarly relevant to the determination of the DOD's "business
as usual" practices, and the court erred in applying its
limited reading of the "business as usual" standard.
Snyder stated that he had received a notice from the DOD informing
him that all FOIA requests transferred over electronic lines
were to be zipped; he further stated that that notice, rather
than TPS's own requirements, was the impetus for his requesting
files in zipped format. Snyder also declared that "[t]he
zipping and electronic transfer of a computer file is a common
occurrence within most US Government Agencies . . . . The activity
of transferring and maintaining computer files is the main role
of DAASC." The district court concluded that "Mr. Snyder's
declaration . . . fails because, again, it doesn' t answer the
questions whether that information was provided in accordance
with the contract and not under FOIA."
As with the Chemelstrand declaration, however, Snyder
"set forth specific facts" regarding the frequency
of the DOD's supplying zipped files and therefore "show[ed]
. . . a genuine issue for trial." Fed. R. Civ. P. 56(e).
A fact-finder construing the evidence in the light most favorable
to TPS could thus conclude that the DOD's provision of the information
in zipped format was "business as usual." Put another
way, viewing the evidence in the light most favorable to TPS,
one cannot conclude as a matter of law that the DOD's production
of computer files in zipped format would not be "a business
as usual approach" as outlined in the statute and regulations.
Summary judgment was thus inappropriate.
Conclusion
We resolve as a matter of law that FOIA does not restrict
the "business as usual" inquiry to whether a government
agency regularly reproduces documents in a specified format solely
for FOIA requests. Instead, the relevant inquiry is whether,
in general, the format is one that is "readily reproducible"
by the agency. In evaluating reproducibility, the agency should
employ a standard of reasonableness that is benchmarked against
the agency's "normal business as usual approach" with
respect to reproducing data in the ordinary course of the agency's
business.
REVERSED AND REMANDED.
::::::::::::::::::::::::::::: FOOTNOTE(S):::::::::::::::::::::::::::::
FN1. A "zipped" file is a computer file that
has been compressed. Dictionary of Computer and Internet Terms
421 (Barron's 5th ed. 1996). A compressed file can be stored
in less space and transmitted using less bandwidth than a non-compressed
file. Microsoft Computer Dictionary 102 (Microsoft
Press 4th ed. 1999).
FN2. TPS objected to Greger's declaration as hearsay
and contends on appeal that the district court failed to consider
this objection. It is unclear from the hearing transcript whether
the judge considered TPS's objection. Because Greger's declaration
was based on personal knowledge and did not in fact contain hearsay,
any failure to consider the issue was not prejudicial.
FN3. TPS claims that the district court failed to consider
its objections to the government's exhibits for relevance, lack
of probative value, hearsay, failure of authentication, and government
interpretation of the documents. TPS did not explain the grounds
for its objections or the application of its objections to particular
exhibits, either in its brief on appeal or in the original objections.
We can evaluate potential error only if we know the specific
grounds for the objections and whether prejudice existed. See
Duran v. City of Maywood , 221 F.3d 1127, 1130 (9th Cir.
2000) (noting that erroneous evidentiary rulings may be reversed
only if the error caused prejudice). Because TPS provides no
foundation for its claims, it is impossible to link the objections
to specific documents or to evaluate prejudice. We therefore
treat this claim as forfeited.
FN4. The district court ruled on requests for two separate
files and found that the first one was administratively unexhausted.
TPS does not appeal that ruling. Only the file known as the H6
file is at issue in this appeal.
FN5. The Second, Sixth, Eighth, Tenth, and D.C. Circuits,
by contrast, employ a de novo standard of review in FOIA cases.
See Missouri ex rel. Garstang v. United States Dep' t of the
Interior, 297 F.3d 745, 749 n.2 (8th Cir. 2002) (listing
the circuits' standards of review and illustrative cases); Perlman
v. United States Dep' t of Justice , 312 F.3d 100, 104 (2d
Cir. 2002).
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