Document: 415 U.S. 1 94 S.Ct. 1028 39 L.Ed.2d 123 The RENEGOTIATION BOARD, Petitioner,v.BANNERCRAFT CLOTHING COMPANY, INC., et al. No. 72—822. Argued Oct. 17, 1973. Decided Feb. 19, 1974. Syllabus (1) Respondents, whose profits on defense contracts are undergoing renegotiation pursuant to the Renegotiation Act of 1951, sued in District Court under Freedom Information (FOIA) enjoin petitioner Board from withholding documents that respondents had requested and conducting any further proceedings until were produced. each case granted injunctive relief. cases consolidated appeal Appeals affirmed, holding jurisdiction FOIA administrative before order production documents. Though noting nowhere authorizes injunctions agency proceedings, court concluded Congress intended confer broad equitable upon district courts 'temporary stays pending procedures may be necessary occasion enforce policy.' also contractors exhaust their remedies only but not they able request relief against contractors' de novo Claims as provided inadequate prevent irreparable harm. Petitioner contends Act's provision 5 U.S.C. § 552(a)(3) for enjoining an its records ordering improperly withheld a complainant is sole method judicial enforcement. Held: 1. does limit inherent powers equity grant relief, manifest statutory language used, with emphasis disclosure, carefully delineated exemptions, fact 552(a) vests courts. Pp. 16—20. 2. In contractor must pursue remedy cannot through resort preliminary litigation over claim obtain interference set forth Act. Aircraft & Diesel Equipment Corp. v. Hirsch, 331 752, 67 1493, 91 L.Ed. 1796; Lichter United States, 334 742, 68 1294, 92 1694; Macauley Waterman S.S. Corp., 327 540, 66 712, 90 839. 20—25. (a) It would contravene legislative purpose if review by way allowed interrupt process bargaining inheres scheme delay Government's recovery excessive profits. (b) proceeding Claims, where discovery available, limited exercising normal rights. 23—24. 151 U.S.App.D.C. 174, 466 F.2d 345, reversed remanded. Harriet S. Shapiro, petitioner. Robert L. Ackerly Burton A. Schwalb, Washington, D.C., respondents. Mr. Justice BLACKMUN delivered opinion Court. Three cases, hearing below, raise issue effect (FOIA), 552, c. 15, 65 Stat. 7, amended, 50 App. 1211 seq. particular, concern federal resolved. 2 * three respondents, Bannercraft Clothing Company, Inc., Astro Communication Laboratory, division Aiken Industries, David B. Lilly Co., successor Delaware Fastener Corporation, all possessed national 'Department' defined 103(a) Act, 1213(a). These agreements, therefore, 102 1212, subject renegotiation. 3 Bannercraft. 1966 1967, this respondent manufactured uniforms at plant Philadelphia. fiscal year was calendar year. Because most renegotiation, company, two years, timely filed financial statement required 105(e)(1) 1215(e)(1). Representatives Eastern Regional then reviewed Bannercraft's operations conferred president. On February 20, 1970, Board, letter, advised it recommending 1967 realized amount $1,400,000, usual adjustment state taxes measured income tax credit which entitled 1481 Internal Revenue Code 1954, 26 1481.1 4 promptly furnished, 32 CFR 1477.3 (1970),2 'written summary facts reasons' determination based. asserted, however, 'it possible (as Regulation's proviso required) whether relevant evidence has been submitted since we have never writting basis you made determination.' replied because 'the regulation' submitted, 'your defective.' response 'submitted believes proceedings,' 'without prejudice opportunity offer issues disclosed (Regional Board's) Summary Facts Reasons' 'somewhat meaningless when do written your finding.' 6 March 16, Bannercraft, FOIA, six categories produced.3 No forthcoming. 7 late April, letters, notified determinations $75,000 (the same figure determined Board) $1,450,000 (an increase $50,000 Board's determination). 8 went court. May 1, complaint States Columbia, praying enjoined opposed application temporary moved dismiss. Judge Smith issued restraining and, thereafter, injunction, without opinion, stayed proceedings. 9 May, Statement Reasons years 1967. related factual conclusions reflected Statement. July, responded. produced some respect others, claimed exemption 552(b)4 or asserted information sought covered Act.5 10 August 4, dissolve injunction. took position requests fulfilled obligations FOIA. denied motion. appealed. 11 Astro. This respondent's essentially Bannercraft's. ended September 30, Astro, five material.6 At conference held 12, tentative $225,000. Astro's request. 12 Columbia. prayed similar Pratt continuing ordered allow within 30 days, inspect copies no objection turning over, submit court, camera, objected producing, reasons objection. 13 C. Lilly. other two. June predecessor interest, renegotiator he $200,000 $500,000.7 29, corporations asked furnish certain information.8 14 immediately forthcoming Board. July 9, compelling produce demanded acting requiring elect procedure given reasonable time study them. Thereafter, information. 15 31, Jones temporarily Delaware. Subsequently, dismiss or, alternative, judgment. injunction issued. 16 appeals heard together Columbia Circuit. Appeals, one judge dissenting, affirmed decisions. 345 (1972). appropriate that, 'although undeniably true principally interested opening processes scrutiny press general public' enacted 'Congress troubled plight those forced litigate agencies secret laws incomplete information.' Id., 181, F.2d, 352. described latter congressional 'subsidiary purpose,' citing excerpts S.Rep.No.813, 89th Cong., 1st Sess., (1965), H.R.Rep.No.1497, 2d (1966), U.S.Code Cong. Admin.News 1966, p. 2418, 552(a)(2). See infra, n. 9. reasoned despite terms . injunctions' enacting statute equitable. courts, policy' U.S.App.D.C., 181—183, 352—354. 17 turned exhaustion-of-administrative-remedies question. observed there rule always improper interfere McKart 395 185, 193, 89 1657, 1662, 23 194 (1969). thta 'when purposes doctrine individually these plain legitimate policy served depriving appellees seek.' 184, 355. effect, need condition precedent requesting found 18 dissenting began accepted proposition stated majority's observation, 'existence present intervention bearing both exhaustion,' 'an error bordering constitutional dimensions,' appellees' 'is wholly irrelevant Courts cases.' 191, 362. 19 dissent principle creates right provides special remedy, exclusive. Thus, gave public express access Federal Government exempted categories. enforceable specific, narrow, affirmative such withheld.' Ibid. Court, Nothing reports cited majority justified contrary conclusion. suggestion litigants agencies, what concerned make available 'to member showing therefor.' 192, 363. 20 odds disposition exhaustion issue. seriously misconstrued functioning procedures, namely, controlled concerning plays significant role process; interruption totally destroys balance negotiating strength; attempt ongoing negotiations really challenge themselves. 194—195, 365—366. 21 We certiorari, 410 907, 93 967, 35 269 (1973), importance impact long-established II 22 Before considering Court's helpful provisions 1951: statute, 80 383, revision Administrative Procedure 1002 (1964 ed.). 3—4 (1965); Cong.,2d 1—6 (1966). amended Pub.L. 90—23, adopted 5, 81 54. 24 Section states, 'Each shall enumerated covers virtually specifically 552(b). 552(a)(2)9 sanction 'final order, policy, interpretation, staff manual instruction' relied party unless indexed either pblished,' 'actual notice thereof.' places burden sustain action; empowers punish responsible employee contempt event ofnoncompliance; suit generally take precedence court's docket expedited calendar.10 25 1951.11 §§ 1211—1233, shortly after close World War height Korean conflict, recites 'extensive funds' execution program 'sound execution' requires elimination subcontracts.' 101, 1211. established independent Executive Branch accomplish objective. 107, 1217(a). functions excluded operation (5 551 seq., 701 seq.) except section thereof 552), 111, 1221. operates primarily informal negotiation formal hearing. directed 'endeavor agreement profits.' 105(a), 1215(a). file, year, detailed statement. 105(e)(1), U.S.C.App. initial made. From date filing statement, commence proceedings12 exceptions, completed following commencement 'all liabilities commenced thereupon discharged.'13 105(c), 1215(c). 27 If agree, determines contractor, 'with determination, used therefor, initiate Claims,14 exclusive determine contractor's 108, 1218 (1970 ed., Supp. II). action 'shall treated Board,' ibid., proof therein,' 1215(a) 28 itself initiated assignment report 1472.2 (1972).15 Personnel prepare 'Report Renegotiation' includes 'recommendation amount, any, review.' 1472.3(d). first several steps structure. Thereafter reviewed, succesively, panel itself, finally Rengotiation level consultation preparation analysis, submission next higher recommendation ss1472.3(d) (f) (i), 1472.4(b)—(d). stage, recommendation. Each free new findings bound below; recommended settlement decrease level. III 29 clear, think, entity, exempt applicable course, 'independent establishment' Branch. 107(a) But 'agency' broadly mean 'each authority States,' Congress, territorial governments, government entities functions. 551(1). among excepted. Further, House Committee's discussion requirement 552(a)(2), agency's concurring opinions well final discloses reason 'a recent survey indicated agencies—including Board—do minority views members.' supra, 8, 2425. unique operational methods, falls definition 551(1).16 So conclude, provide automatically answer question claims 31 As question, assert although power terms, implied capacity hand, emphasizes expressly authorized compel withheld, placed action, suits 'over causes' expedition 'in every way.' 552(a)(3). constitute enforcing disclosure requirements implication power, behest litigant agency, inconsistent language. Clearly, held, 352, 'was passed Act.' Second Circuit 'ultimate purpose' enable sufficient informtion able, electroal process, intelligent, informed choices nature, scope, fedeal governmental activities' (footnote omitted). Frankel SEC, 460 813, 816, cert. denied, 409 889, 125, 34 146 Senate Report, too, expressed electorate.' (1965).17 33 (3), explicitly confers jurisdiction18 type, complainant.' addition, specific noncompliance. primary way, coupled sanction, might suggest compelled enforcement method. 'where exclusive.' Babcock, 250 328, 331, 464, 465, 63 1011 (1919). And own decided protection 'right' created. selected precise machinery fashioned tool deemed suited end.' Switchmen's Union National Mediation 320 297, 301, 64 95, 97, 88 61 (1943). Railroad Passenger Assn. Passengers, 453, 458, 690, 693, 38 (1974). One therefore argue, argued here, situation utilized proposed exercise consistent background interest.' Porter Warner Holding 328 395, 403, 1086, 1091, 1332 (1946). There points opposite recognizing kind Babcock applicable, U.S., S.Ct., upheld authorizing 'or order,' did so, presence 'other order' language, 'traditional court.' 400, 1090. Emphasis even face silent appears Mitchell Demario Jewelry, 361 288, 290—291, 332, 334—335, 323 (1960); Scripps-Howard Radio, Inc. FCC, 316 62 875, 86 1229 (1942); Arrow Transportation Co. Southern R. 372 658, 671 22, 83 984, 991, 52 (1963); see Jaffe, Judicial Control Action, 659 sometimes All Writs 1651(a). FTC Dean Foods 384 597, 603—604, 1738, 1742—1743, 802 36 obvious exemptions exceptions; truism knows how deprive chooses so do, Scripps-Howard, 883; definite degree, makes arm sttute, 552(a)(3), persuade us babcock statutorily prescribed cases. With vesting 552(a), little suggest, purpose, IV 37 find unnecessary, decide whether, circumstances, proper resolution claim. hold obliged fails attain ends route interference. nature mandates result, otherwise, aims, supplanted defeated suit.19 adoption consistently design proceed expeditiously review, prior process. result challenged grounds, 1796 (1947); united 789—793, 1318—1320, 1694 (1948), Crop., 839 (1946), procedural Lichter, 791, 1319. absence 'lawful function' part anticipate decison own,' Aircraft, 767, 1501; availability due post-administrative Tax Macauley, 543, 714, nonconstitutional could resolved, 769 1501, Cong.Rec. 9930 (1943),20 771, 1502; expeditious 'from tedious litigation.' 770, 1502. rejected arguments substantially advanced id., 758 1496 (inability participate effectively lack relied, O.T.1946, Tr. R., Vol. 141), refused permit enjoined. 'To countenance short-circuiting here be, circumstances more especially view Congress' command long overreaching equity's strong arm.' 781, 1507. 40 Reflection fortifies conclusions. character entire atmosphere negotiation—that is, renegotiation—of existing contract. give take, stress use strengths one's weaknesses party. phrase 'leading strength' transferred practical card table world commerce. warp woof production. pure permitted already produces union- employer transfer substantial property willing seller buyer. 41 nothing impinges settled law Aircraft-Lichter-Macauley warrants exception espouse. emerged therein indicates wished change purposeful review. FOIA's sure, public, Environmental Production Agency Mink, 73, 80, 827, 832, 119 self-interested contractor. 86, 835; K. Davis, Law Treatise 3A.4, 120, 3A.29, 171 (Supp.1970). 1971 substituted effected. S.Rep.No.92—245 (1971), accompanying H.R. 8311, 1971, 1130, became amending 92—41, 85 97. 42 say, urge, relate merits vested instance read decisions otherwise. 43 Seeking during pendency encourages imaginary ultimate consequence. example this, now than years. foreclosed taking recover entered; then, interest begin run days entry order. 1215(b)(1) (2). delay, lose much gain. 44 limitation denial rights end. institute unfettered supported evidence. available.21 parties 1218. That adequate injury. Note, Geo.Wash.L.Rev. 1072, 1084 (1973). note become obligated remit termination suit, elects course. jury suffered, absent risk being unsuccessful incurrence expense incident renegotiation.22 Mere expense, unrecoupable cost, Myers Bethlehem Shipbuilding 303 41, 51—52, 58 459, 82 638 (1938); Action 429 (1965). Without clear injury, Virginia Petroleum Jobbers FPC, 104 106, 259 921, 926 (1958), failure serves bar Myers, supra; Sears Roebuck NLRB, 153 380, 382, 473 91, 45 Interference opens discovery, Sears, 433 210, 211 (CA6 1970), beyond regulations 1480.1—1480.12 (1972).23 Discovery Protection afforded bestowed 46 predecessors obviously awareness vastness expenditure overcharging misappropriation funds unscrupulous fortuitously perform needed work almost inevitable. target legislation profit, fair one. anticipated accepted. line between profit easily ascertained brightly lit. ascertainment duty instance. thus fulcrum enables initially consult contract it, modification profits, whenever materialize, violation Due Process Clause Fifth Amendment. disgorging tax, unlike imposition equivalent placing contractor-initiated finale indicative relationship. 47 Of uncertainty And, lessened eliminated like poker player, ascertain cards hand. risk, also, accepts risks, risks voluntary dispute. who pays possibly pay less resorts factfinder instead making settlement. more. calculated takes. ungenerously laid counterbalanced profound recapture flow contracts. 48 stress, conclusion, us. They yet Whether demand vague 'request identifiable records,' material 552(b), questions remain open decision remand. 49 judgment reversed, remanded opinion. ordered. 51 DOUGLAS, whom STEWART, MARSHALL, POWELL concur, dissenting. reverses saying respondent-contractors exhausted remedies. data possession controversy should raises I submit, known channels. remained done Today's decision, says act. Hence, remedy. end dead letter area. Hence my dissent. 53 so-called aspects problems unique. aim, subcontractors Detailed decides proceed, refers tentatively 1472.3(e).1 A arranged. agree contest it. latter, second hears submits recommendations greater lesser original 1472.3(f), (h), (i). Thereupon recommendation, 1472.3(i). still dissatisfied, can itself. assigned finding 1472.4(b). studies than, equal to, determinations, 1472.4(d). Even continues, seeking agreement. Only effort determining made, ibid. 54 road; redetermine are, II); certiorari 1218a 55 history inferred just described—that chose negotiation, confrontation traditional adjudication, desirable route. subcontractor profits,' pressure settle, successive step liability increased. standards rather imprecise, 1213(e)(1)—(6),2 stating '(r) easonable will over-all evaluation particular factors fixed formula rate otherwise,' 1460.8. vagueness powerful coercive influence. Approximately 88% agreement, orders entered 12% Fifteenth Annual (1970). 56 involved stay gauntlet sense them another negotiate lower counting Claims. 57 want documents, said, reveal strength weakness assumptions relies assessing liability. meaningful envisioned difficult impossible. Future meaningful, completely dark considerations dispute, available. Disclosure aids aim carry out properly holds meaning 552(a). grants complainant,' denies ground 'administrative remedy' going 59 1796, vintage 'hands off' reached (now Claims) stage. antedated says, 'discovery purposes.' lifted veil secrecy surrounding litigants. According designed 'prevent citizen losing obscure hidden about unavailable citizens simply discover it,' 7. 60 deals lawyer's term, leave formulation rules exclusively themselves but, noted, Exhaustion skeins various colors, 193—194, 1662—1663, 194. Ordinarily 194, 1663, else clearly exceeded jurisdiction,' entail supplanting expertise merits. tendered procedure. errs strenuously mandated obtaining full now, forever lost. For seek tier reviewing body consider negotiated settlements here. J. Skelly Wright said below: '(I)t apparent momentum carries point harm undone. declaration seriously, supposed excess levels. seemingly endless reviews work, substitute negotiation. occur, lost forever. To say compulsory awards imposed ignore difference freely arrived at, preferred law.' 186, 357. proscribes Title II) states: 'A novo.' (Emphasis added.) remand cure irregularity procedures. never. accelerates furthers judges excessive. relative prices, costs, companies germane low (front office' overhead, executive officer president secretary. rest employees engaged 'front penalized efficiency, reduced scale high expense. Regulations 'available inspection copying summaries 1480.5(a). decisions,3 real activities know why cuts 95%, criteria settle continue up escalator hierarchy. plaintiff defendant ever having disclose reasons. today's put game 'blind man's buff' Enforcement intrusion merely describes followed judiciary into declare whole renegotiating unconstitutional adjudication Granting gutted statutes. Denial establishes regime gives degree absolution4 war philosophy 69 trend evolution principalities power. 237, antidote development. contained 3, ed.), agencies. soon criticized 'full loopholes deny public. shown innumerable times often cover embarrassing mistakes irregularities phrases as—'requiring interest,' 'required good cause confidential,' 'properly directly concerned." S.Rep.No. 1219, 88th 8. Report support 'Government bear 'good cause' secrecy.'5 2423. respects stated: 70 'The propriety restricted sanctioning discretion. considers withheld. justify withholding. private prove action.' 2426. 71 reluctance require live calls mind admonition Stone speaking Morgan, 307 183, 795, 799, 1211: 72 'Court means end, far duties words construed co-ordinated action. Neither repeat day mistake struggling recognition ameliorating system justice; neither rightly regarded alien intruder, tolerated encouraged aided attainment common aim.' 73 affirm below. Shortly thereto, $75,000. '§ Furnishing statements. 'When Class unable enter refund recommended, based assist agreement: Provided, states proceedings.' earlier, Grumman Engineering 138 147, 425 578 (1970), accessible deletions light provisions. remand, 325 F.Supp. 1146, aff'd, 157 121, 482 710 were: communications renegotiable 1967; (2) investigatory prepared 'containing contracts' years; (3) opinions, like, 1962 1968 named manufacture; (4) pricing unreasonable; (5) identification manufacturers cost compared, cross-reference comparable manufacturers; (6) 'procurement information,' contended effective price competition. 552. '(b) apply matters are— '(3) statute; '(4) trade secrets commercial obtained person privileged confidential; '(5) inter-agency intra-agency memorandums letters agency; '(7) files compiled extent ..' Board-agency communications, reports, information' (to consisted records), first, second, sixth items specified 552(b)(3), (4), (5), (7); concluding unreasonable, fourth item manufacturers, fifth item, 'for records'; (c) clearance notices, orders, agreements third request, called identifying details deleted, supplied therewith. Beyond refused. constituted year; file analyzed (bore) upon' treatment selling expenses; 'Information received,' referred communication Astro; denying untimely exemption; generated custody either' merged 1970 corporation begun, Lilly's instituted. corporation; sections Board; analyses comparing reflecting relating comparisons'; betwen firms subcontracts performance; memoranda consisting connection Public Information; rules, records, '(a) follows: '(2) accordance published copying— '(A) '(B) statements interpretations '(C) manuals instructions affect public; '. instruction affects on, if— '(i) paragraph; '(ii) actual pertinent part, provides: 'On complaint, complainant. matter denovo noncompliance .. Except causes imortance, paragraph, trial earliest practicable was.' Predecessor statutes 745 1297, (1948). 1215(c), fraud, malfeasance, willful misrepresentation, discharged 'proceeding expiration filed.' agreed suspend periods claims. 190 Until 21. citations throughout 1972 version Appeal's decision. fall 1972. pts. 1400—1599 recognized applicability Fisher 398, 109 (1972); Lykes Bros. 459 1393, 1401, 198 Ct.Cl. 312, Among emphasizing Ethyl EPA, 478 47, (CA4 1973); Sterling Drug, FTC, 242, 450 698, 703 (1971); Soucie David, 145 144, 153, 448 1067, 1076 LaMorte v.Mansfield, 438 448, 451 (CA2 1971); Bristol—Myers 25, 424 935, 938, 400 824, 46, S.1666, 28, 1964, 110 17086—17089, reconsidered again 17666—17668. insufficient time, consideration House. S.1160, 1666.' provided. accompanied 1666 explains, power.' S.Rep.No.1219, (1964). discussing provision, 'This addition avoid misunderstanding courts' powers.' 1973 U.Ill.L.F. 180, 191 (1973); Tex.L.Rev. 757, 765 committee aggrieved old law, cooperative closing not, issues, (Remarks Disney.) described, 'by virtue field contracts,' 'uniquely qualified supervise Board.' allegation bad faith ultra vires. allegations present. Since institution suits, expand contractors. 1470.3, 1472.3 1472.6, 1474.3 1474.5 1970. 1213(e) 'In favorable efficiency subcontractor, regard quantity quality production, reduction economy materials, facilities, manpower; taken factors: '(1) Reasonableness costs volume earnings, comparison peacetime products; net worth, source capital employed; Extent assumed, including policies; Nature contribution effort, inventive developmental cooperation supplying technical assistance; Character business, complexity manufacturing technique, subcontracting, turnover; '(6) Such dealing require, adopted.' case, hygienic 1221, case. account Archibald, Access Information—The Right First Amendment, Amendment News Media, Final Warren Conference Advocacy 8—9,

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