Public Investors Arbitration Bar Ass'n v. Securities & Exchange Commission
413 U.S. App. D.C. 116
D.C. Cir.2014Background
- PIABA FOIA request seeks SEC records related to audits, inspections, and reviews of FINRA's arbitration program.
- SEC contends the records are exempt under Exemption 8 for materials contained in or related to examination reports.
- District court granted summary judgment for SEC, holding records relate to SEC examinations of FINRA and are exempt.
- Court of appeals reviews de novo whether records are exempt, interpreting Exemption 8's scope and the 2010 amendments.
- Statutory amendments in 2010 clarified SEC's broad authority over financial institutions, affecting the scope of Exemption 8.
- Court concludes documents collected during examinations of entities the SEC regulates fall within Exemption 8 if related to an examination report.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Exemption 8 shields records related to SEC examinations of FINRA. | PIABA: records relate to arbitration program, not financial examinations. | SEC: Exemption 8 covers examination reports of any financial-institution regulator’s oversight; broad interpretation applies. | Yes; records exempt as related to SEC examinations of financial institutions. |
| Whether Exemption 8 requires a specific examination report linkage for each document. | Declarations do not tie every document to a single report. | Declarations show documents relate to four examinations and possibly customer complaints. | No; it suffices that documents relate to an examination, with each tied to a report through the examination process. |
| Whether 2010 amendments to FOIA/Exchange Act alter the scope of Exemption 8 to include entities the SEC regulates as financial institutions. | Amendments not intended to expand beyond definitions; could narrow disclosure. | Amendments reaffirm SEC's reach; any entity the SEC regulates is a financial institution for Exemption 8 purposes. | Yes; amendments reaffirm SEC's broad application, extending Exemption 8 to related examination reports. |
Key Cases Cited
- Consumers Union of United States, Inc. v. Heimann, 589 F.2d 531 (D.C. Cir. 1978) (Exemption 8 is broad and all-inclusive)
- Gregory v. FDIC, 631 F.2d 896 (D.C. Cir. 1980) (Exemption 8 interpreted broadly; protect without narrowing)
- Vaughn v. Rosen, 484 F.2d 820 (D.C. Cir. 1973) (Narrow interpretation generally applied to FOIA exemptions)
- Landstar Express America, Inc. v. Federal Maritime Commission, 569 F.3d 493 (D.C. Cir. 2009) (Avoid absurd interpretations; interpret statutory text sensibly)
- Judicial Watch, Inc. v. Department of Treasury, 796 F. Supp. 2d 13 (D.D.C. 2011) (Some documents may relate to examinations without requiring a single report linkage)