672 F.3d 1142
9th Cir.2012Background
- Indictments against Steven and Linda Cheung for tax and related offenses; they fled the U.S. and are believed in China.
- IRS began civil tax examinations while criminal proceedings stalled due to fugitive status.
- Shannahan, counsel for the Cheungs and related entities, sought IRS documents via FOIA.
- IRS denied, citing Exemptions 3 and 7(A) and fugitive disentitlement; produced Vaughn index and declarations.
- District court granted partial summary judgment to IRS on Exemptions 3 and 7(A) and declined to reach fugitive disentitlement; on appeal, the Ninth Circuit affirmed.
- Court did not resolve whether fugitive disentitlement applies to FOIA requests.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Exemptions 3 and 7(A) justify withholding documents | Shannahan argues disclosures would not significantly impair tax administration | IRS shows disclosure would seriously impair tax administration and interdict enforcement | Yes; exemptions apply and disclosure is justified |
| Whether the district court properly approved the Vaughn index and harm showing | Shannahan contends the index and harm showings are adequate | IRS provided tailored, specific reasons and representative sampling | Yes; proper application of Exemptions 3 and 7(A) and Vaughn requirements |
| Whether the fugitive disentitlement doctrine should bar FOIA claims | Shannahan asserts FOIA rights independent of criminal status | Doctrinal bar applies to FOIA when requester is a fugitive | Not reached on appeal; court affirms on Exemptions 3 and 7(A) without addressing fugitive disentitlement |
Key Cases Cited
- NLRB v. Robbins Tire & Rubber Co., 437 U.S. 214 (U.S. 1978) (purpose of Exemption 7(A) to prevent harm to government’s case in court)
- Lewis v. IRS, 823 F.2d 375 (9th Cir. 1987) (disclosure general showing suffices to invoke Exemption 7(A))
- Chamberlain v. Kurtz, 589 F.2d 827 (5th Cir. 1979) (protects tax collection and prevents disclosure from aiding defendant)
- Linsteadt v. IRS, 729 F.2d 998 (5th Cir. 1984) (disclosure of interview summaries can impair enforcement)
- Pac. Fisheries, Inc. v. United States, 539 F.3d 1143 (9th Cir. 2008) (requires tailored factual showings and representative sampling)