Robbins, Geller, Rudman & Dowd Llp v. Vincent T. Gresham ( 2014 )

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2014 MAR – 4 APB 9: 18
IN THE COURT OF APPEALS OF THE STATE Of WXkKN%T0NW
DIVISION II __ + P- T Y
ROBBINS, GELLER, RUDMAN & DOWD, No. 44520 -4 -II
LLP,
Respondent,
v
STATE OF WASHINGTON, and OFFICE OF
THE ATTORNEY GENERAL, PUBLISHED OPINION
Respondents,
VINCENT T. GRESHAM,
Abbellant.
WORSWICK, J. — Vincent Gresham appeals an order permanently enjoining the
Washington Attorney General' s Office (AGO) from releasing records Gresham requested under
the Public Records Act (PRA), chapter 42. 56 RCW. _
Law firm Robbins Geller Rudman &
Dowd, LLP (Robbins Geller) sought the injunction to protect information it submitted to the
AGO seeking eligibility to provide future securities litigation and related services to the
Washington State Investment Board ( WSIB). , Gresham also appeals a summary judgment order
dismissing his PRA claim for penalties and costs against the AGO. Because Robbins Geller
failed to prove that any exemption protected the information from production, we vacate the
challenged portions of the permanent injunction and order the AGO to produce the withheld
records. Because the AGO withheld the records in accordance with a court order, Gresham did
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not prevail against the AGO, and thus summary judgment dismissal of his claims for penalties,
attorney fees, and costs was proper.
FACTS
Wishing to build a roster of private law firms able to represent the WSIB in potential
future securities litigation and provide related services such as portfolio monitoring, the AGO
published a request for qualifications and quotations ( RFQQ). The RFQQ warned firms that
their responses were subject to disclosure under the PRA. The RFQQ informed firms-that they
could designate portions of their responses as " proprietary" information and that the AGO would
notify firms if an agency received a public records request for any of the designated proprietary
information and allow such firms an opportunity to obtain a court order enjoining disclosure.
Robbins Geller and about two dozen other law firms responded to the 2010 RFQQ. Robbins
Geller indicated that certain portions of its response ( hereafter " 2010 Washington Response ")
were proprietary. Robbins Geller was one of six firms selected to execute a " Master Securities
Litigation Services Agreement" with the AGO and the WSIB. 1 Clerk' s Papers ( CP) at 1763.
On two prior occasions, government agencies had released information Robbins Geller' s
predecessor firm had provided in response to previous RFQQs. First, Robbins Geller' s
predecessor firm responded to a similar RFQQ in 2004 ( hereafter " 2004 Washington Response ")
that was subsequently disclosed in response to public records requests. Second, the firm' s
predecessor provided a response to an invitation to negotiate issued by the State Board of
1 If future securities litigation services were to be needed, the AGO could, but need not, select a
law firm from the roster. If the WSIB became actively involved in securities litigation, the AGO
would then negotiate a separate engagement agreement for that representation.
2
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Administration of Florida in 2009 ( Florida Submittal) that was published in a national legal trade
publication available on the Internet.
Under the PRA, Gresham requested the AGO produce any information related to requests
for proposals from securities law firms and for any responses from the firms. The AGO then
notified Robbins Geller that it had received Gresham' s request and would release Robbins
Geller' s 2010 Washington Response, including the designated proprietary information, unless
Robbins Geller obtained an injunction.
Robbins Geller filed a lawsuit. against the AGO to enjoin production of its ( 1) past and
proposed fee agreements with WSIB, ( 2) amount of and carriers of professional liability
2
insurance, ( 3) " Portfolio Monitoring Program " client list, and ( 4) names and contact information
of 16 institutional investor clients used as references for securities litigation work. Gresham was
joined as a necessary party. The AGO did not oppose Robbins Geller' s request for injunctive
relief as to the designated proprietary information.3 Gresham filed a cross claim against the
AGO alleging violation of the PRA.
The trial court permanently enjoined the AGO from producing the information at issue
hereafter " the protected information ") based on two PRA exemptions and the Uniform Trade
Secrets Act (UTSA), chapter 19. 108 RCW. The trial court' s order provided:
2
The Portfolio Monitoring Program is a complimentary service that Robbins Geller developed to
alert institutional clients to misconduct related to their investments that may cause losses.
3
However, the AGO denied that past executedfee agreements between Robbins Geller and the
State were exempt from disclosure. Robbins Geller agreed and sought to protect only its fee and
costs proposal. The past executed fee agreements are not relevant to this appeal.
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The Protected Information qualifies as valuable formulae, designs and
research data, the disclosure of which would result in private gain and public loss,
and is exempt from disclosure under RCW 42. 56. 270( 1).
The Protected Information qualifies as trade secrets under RCW
19. 108. 010( 4), and are exempt from disclosure under RCW 42. 56.270( 11)( a) -( b)
as proprietary data and trade secrets essential to Robbins Geller' s method of
conducting business and the services the Firm offers its clients.
CP at 1343. The AGO then successfully moved for summary judgment of Gresham' s PRA claim
against it. Gresham appealed directly to our Supreme Court which transferred the case to this
4
court.
ANALYSIS
I. PUBLIC RECORDS ACT
The PRA requires state and local agencies to produce all public records upon request
unless a specific PRA exemption or other statutory exemption. applies. RCW 42. 56. 070( 1);
Gendler v. Batiste, 174 Wash. 2d 244, 251, 274 P.3d 346 ( 2012). Exemptions are narrowly
construed to promote the strong public policy favoring disclosure. RCW 42. 56. 030; Franklin
County Sheriffs Office v. Parmelee, 175 -Wn.2d 476, 479, 285 P.3d 67 ( 2012), text. denied, 133
S. Ct. 2037 ( 2013). If an agency intends to produce records to a requester under the PRA, a
person who is named in the record or to whom the record specifically pertains, may seek a
judicial determination that the records are exempt from production. RCW 42. 56. 540; King
County Dep' t ofAdult & Juvenile Det. v. Parmelee, 162 Wash. App. 337, 350, 254 P.3d 927
2011), review denied, 175 Wash. 2d 1006 ( 2012), cent. denied, 133 S. Ct. 1732 ( 2013). Under
4 We accepted an amicus curiae brief on behalf of the McClatchy Company, Washington
Newspapers Publishers Association, and Pioneer News Group.
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No. 44520 -4 -II
RCW 42. 56. 540, a court may enjoin production of requested records if an exemption applies and
examination would clearly not be in the public interest and would substantially and irreparably
damage any person, or would substantially and irreparably damage vital governmental functions.
Parmelee, 162 Wn. App. at 350 -51. The party seeking to prevent production —in this case
Robbins Geller —has the burden to prove that the requested documents fall within the scope of
an exemption. Dragonslayer, Inc. v. Wash. State Gambling Comm' n, 139 Wash. App. 433, 441,
161 P.3d 428 ( 2007).
Il. STANDARD OF REVIEW
The PRA provides that " U] udicial review of all agency actions taken or challenged under
RCW 42. 56. 030 through 42. 56. 520 shall be de novo." RCW 42. 56. 550( 3). Where the record
consists only of affidavits, memoranda of law, and other documentary evidence, an appellate
court stands in the same position as the trial court in reviewing agency action challenged under
S
the PRA. Progressive Animal Welfare Soc' y v. Univ. of Wash., 125 Wash. 2d 243, 252, 884 P.2d
592 ( 1994) ( lead opinion). Here, the trial court' s decision granting a permanent injunction under
the PRA was based solely on documentary evidence. Thus, we are not bound' by the trial court' s
factual findings.• Dragonslayer, Inc., 139 Wash. App. at 441 -42; see Ames v. City offircrest, 71
Wn. App. 284, 292 -93, 857 P.2d 1083 ( 1993) ( appellate review of PRA decisions based solely
5 " This principle was drawn from the general rule that `where the record both at trial and on
appeal consists entirely of written and graphic material —documents, reports, maps, charts,
official data and the like — and the trial court has not seen nor heard testimony requiring it to
assess the credibility or competency of witnesses, and to weigh the evidence, nor reconcile
conflicting evidence, then on appeal a court of review stands in the same position as the trial
court in looking at the facts of the case and should review the record de novo.
Progressive Animal Welfare Soc' y v. Univ. of Wash., 125 Wash. 2d 243, 253, 884 P.2d 592 ( 1994)
lead opinion) ( quoting Smith v. Skagit County, 75 Wash. 2d 715, 718, 453 P.2d 832 ( 1969)).
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on documentary evidence without testimony is de novo and the appellate court may decide both
issues of fact and law); ef. Zink v. City ofMesa, 140 Wash. App. 328, 336 -37, 166 P.3d 738 ( 2007)
where live testimony is presented in actions under the PRA, appellate courts review trial courts'
factual findings to determine whether substantial evidence supported them). Also, we review
injunctions issued under the PRA de novo. RCW 42. 56. 550( 3); Parmelee, 162 Wash. App. at 351.
III. STATUTORY INTERPRETATION PRINCIPLES
Our fundamental objective in interpreting a statute is to ascertain and carry out the
legislature' s intent or the collective intent of the voters acting in their legislative capacity (for
statutes enacted through the initiative process). Am. Legion Post No. 149 v. Dep 't ofHealth, 164
Wash. 2d 570, 585, 192 P.3d 306 ( 2008); Dept' t of Ecology v. Campbell & Gwinn, LLC, 146
Wash. 2d 1, 9, 43 P.3d 4 ( 2002). If the statute' s meaning is plain on its face, then we give effect to
that plain meaning as an expression of legislative intent. Campbell & Gwinn, LLC, 146 Wash. 2d at
9 - 11. When determining a statute' s plain meaning, it is appropriate to look to the language of
the statute itself and the context of the statute, including related statutes or other provisions
within the same act. Campbell & Gwinn, LLC, 146 Wash. 2d at 10 -12. For example, in
interpreting the PRA, we look at the act in its entirety to enforce the law' s overall purpose.
Rental Hous. Ass' n ofPuget Sound v. City ofDes Moines, 165 Wash. 2d 525, 536, 199 P.3d 393
2009).
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IV. APPLICATION OF STATUTORY EXEMPTIONS
A. " Other Statute " Exemption —Uniform Trade Secrets Act
Gresham argues that the trial court erred by deciding that the protected information was a
trade secret under the Uniform Trade Secrets Act [UTSA], and therefore concluding that it was
exempt from disclosure under the " other statute" provision of RCW 42. 56. 070( 1). We agree.
The PRA provides that a public record is exempt from disclosure if the record falls within
any " other statute" which exempts or prohibits disclosure of specific information or records.
RCW 42. 56. 070( 1). The UTSA, which protects trade secrets, qualifies as an " other statute"
under RCW 42. 56. 070( 1). Progressive Animal Welfare Soc' y, 125 Wash. 2d at 262. The PRA may
not be used to acquire knowledge of a trade secret. Progressive Animal Welfare Soc' y, 125
Wash. 2d at 262. A "trade secret" is
information, including a formula, pattern, compilation, program, device, method,
technique, or process that:
a) Derives independent economic value, actual or potential, from not
being generally known to, and not being readily ascertainable by proper means
by, other persons who can obtain economic value from its disclosure or use; and
b) Is the subject of efforts that are reasonable under the circumstances to
maintain its secrecy.
RCW 19. 108. 010( 4). " To be a trade secret, information must be ` novel' in the sense that the
information must not be readily ascertainable from another source." Spokane Research & Def.
Fund v. City of Spokane, 96 Wn. App. 5% 578, 983 P.2d 676 ( 1999). " A key factor in
determining whether information has ` independent economic value' under the statute is the effort
and expense that was expended in developing the information." McCallum v. Allstate Prop. &
Cas. Ins. Co., 149 Wn. App. 412, 424, 204 P.3d 944 ( 2009). The alleged unique, innovative, or
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novel information must be described with specificity and, therefore, " conclusory" declarations
that fail to " provide concrete examples" are insufficient to support the existence of a trade secret.
McCallum, 149 Wash. App. at 425 -26. Compilations of customer information may be a trade
secret. See, e. g., Ed Nowogroski Ins., Inc. v. Rucker, 137 Wash. 2d 427, 436, 442, 449, 971 P.2d
936 ( 1999) ( trial court finding that customer list was trade secret was not at issue on appeal —
only issue was whether memorized information could be a trade secret).
In Woo v. Fireman' s Fund Ins. Co., 137 Wash. App. 480, 484, 154 P.3d 236, rev' d in part
on other grounds, 161 Wash. 2d 43, 164 P.3d 454 ( 2007), Division One of this court addressed
whether the Fireman' s Fund insurance claim manuals were trade secrets. To prove novelty and
independent economic value, the Fireman' s Fund submitted declarations claiming that the
manuals "` took several thousand people hours to produce and have evolved over several years, "'
disclosure would result in "` a serious loss of [their] property interest "' and that the manuals
contained "` claims handling philosophies and strategies believed to be unique to Fireman' s
Fund. "' Woo, 137 Wn. App. at 488. Fireman' s Fund also claimed that allowing competitors to
gain access to the materials "` would result in economic value to the competitor and place it in a
competitive advantage "' and that smaller insurance companies in particular would gain a
competitive advantage by copying Fireman' s Fund materials. Woo, 161 Wash. 2d at 488. The
court held that the declarations were too conclusory to prove that the manuals compiled the
information in an innovative way because they failed to provide concrete examples to illustrate
how the Fireman' s Fund strategies or philosophies in claims handling were materially different
from those of other insurers. Woo, 137 Wash. App. at 489. Also, it held that the Fireman' s Fund
declarations failed to prove that competitors would want the manuals or quantify in any
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4
meaningful way the competitive advantage that the hypothetical plagiarizer would enjoy. Woo, .
137 Wash. App. at 489. Accordingly, the court held that the claim manuals were not trade secrets.
Woo, 137 Wash. App. at 492.
Similarly, in McCallum we considered whether an insurance company' s claim manuals,
training manuals, and claim bulletins qualified as trade secrets. 149 Wash. App. at 416, 424, 426.
As in Woo, we held that the documents did not qualify for protection as trade secrets because the
insurance company failed to provide concrete examples to illustrate how its strategies or
procedures in handling claims were materially different from those of its competitors.
McCallum, 149 Wash. App. at 426 -27. Instead, the evidence consisted of conclusory statements
that it devoted considerable time, manpower, and finances in developing the documents and that
its competitors would gain an unfair advantage if they could reproduce its materials. McCallum,
149 Wash. App. at 426 -27.
1. Fee Proposal & Insurance Information
In support of exempting its fee proposal and insurance information from the PRA,
Robbins Geller asserts that its approach to evaluating and setting potential fees is unique, the
firm' s fee proposals are specific to each client and case, and the proposals require substantial
time and effort to formulate. Robbins Geller also argues that release of the protected information
could give its competitors an unfair competitive advantage by allowing them to mimick its fee .
proposal and insurance coverage to make themselves more attractive to clients and to use the
information to outbid Robbins Geller for future work. Gresham and the amici argue that a
pricing schedule is not a protectable idea under trade secrets law. The record before us includes
evidence that securities law firms often use a sliding scale of fees based on the recovery amount
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and the stage of the litigation' s resolution and that many firms have significant malpractice .
insurance coverage. Moreover, although the fee grid in the 2010 Washington Response contains
more detail and is of a larger scale, Robbins Geller' s predecessor firm included sample fee grids
in its 2004 Washington Response, which were disclosed to Gresham. And Robbins Geller' s
2004 Washington Response stated, that the firm carried a high amount of professional liability
insurance coverage— between $ 50 and $ 100 million. Robbins Geller has not shown that its
general insurance information and fee proposal in its 2010 Washington Response differs
significantly from other such proposals already in the public arena. As in McCallum and Woo,
we reject Robbins Geller' s conclusory assertions of uniqueness and competitor unfair advantage
as to its fee and insurance information and conclude that this information has not been shown to
constitute trade secrets.
2. Portfolio Monitoring Program Client List
A Portfolio Monitoring Program client list was included in the 2004 and 2010
Washington Responses and the Florida Submittal. The client list included in the Florida
Submittal was disclosed and later published on The American Lawyer website. And the client
list in the 2004 Washington Response was partially disclosed in response to a 2005 public
records request— Robbins Geller' s predecessor sought injunctive relief from the disclosure
request. Robbins Geller' s predecessor argued and trial court concluded that 118 client names not
previously published were exempt from disclosure.
Here, Gresham did not oppose Robbins Geller' s request to enjoin the disclosure of client
names not previously published. Stated another way, client names not previously published are
protected from disclosure by the permanent injunction and their status is not before us.
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But Robbins Geller has not shown that it took reasonable efforts to maintain secrecy of
the portion of the list previously published. The previously published names were disclosed in
the Florida Submittal and the 2004 Washington Response. Robbins Geller responds that it was
unaware of the publication of the Florida Submittal. But the record contains no evidence of
efforts to have the list removed from The American Lawyer website. Moreover, Robbins Geller
does not point to evidence of its efforts to keep the list secret in it responds only
other contexts —
to Gresham' s mention of the Florida and Washington Responses. See Calisi v. Unified Fin.
Servs., LLC, 302 P.3d 628, 632 ( Ariz. Ct. App. 2013) ( "[ c] ourts have considered the extent to
which the claimant divulged its customer list externally and internally, i.e., to people outside of
its business as well as to its own employees "). Based on Robbins Geller' s failure to demonstrate
that it has made reasonable attempts to keep the names of its previously published Portfolio
Monitoring Program clients secret, we conclude that the previously published list of client names
does not qualify for protection as a trade secret.
3. Client Reference List
Robbins Geller did not demonstrate that the firm' s list of client references from past
litigation is a trade secret. By its very nature, a list of references is created for dissemination
outside the firm. It is not clear how a reference list derives independent economic value from not
being generally known to others. Moreover, a portion of the reference list at issue here includes
references and contact information previously disclosed, which is evidence that Robbins Geller
uses the list for its traditional purpose ( disclosure to third parties) and does not treat its reference
list as secret. Accordingly, Robbins Geller has not demonstrated that its list of references
qualifies for protection as a trade secret.
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4. Injunction Standard
6
No court has addressed whether the PRA injunction standard, RCW 42. 56. 540, applies
when a court relies on an " other statute" exemption, such as the UTSA, rather than a PRA
exemption to bar disclosure. 7 Gresham and the amici contend that a party seeking to enjoin
disclosure of records requested under the PRA must meet the requirements of RCW 42. 56. 540
regardless of whether a claimed exemption is pursuant to the " other statute" provision, such as
the UTSA. Conversely, the AGO and Robbins Geller contend that " other statutes" incorporated
into the PRA provide independent bases for enjoining disclosure and, thus, courts should look
exclusively to the dictates of the " other statutes." Because Robbins Geller' s information does
not qualify for exemption under the UTSA, we need not decide whether the PRA injunction
6 Under RCW 42.56. 540, a trial court may issue an injunction only if it finds that disclosure
would clearly not be in the public interest and would substantially and irreparably damage any
person, or would substantially and irreparably damage vital governmental functions."
7
The parties did not direct this court to any cases where the court addresses whether a.party
asserting an " other statute" exemption is required to prove the RCW 42.56. 540 injunction
requirements. The AGO asserts that our Supreme Court already rejected application of RCW
42. 56. 540 to " other statute" exemptions in Ameriquest Mortg. Co. v. Office ofAttorney Gen., 170
Wash. 2d 418, 440, 241 P.3d 1245 ( 2010). If the Supreme Court decided the issue, it did so sub
silentio. See Ameriquest, 170 Wash. 2d at 440 ( holding, without discussing RCW 42. 56. 540, that
the " other statute" provision supplements the PRA' s exemptions by allowing a separate statute to
prohibit redactions or disclosures that the PRA would otherwise not allow). And on appeal from
remand of Ameriquest, our Supreme Court held, without discussing the RCW 42. 56. 540
injunction standard, that records containing information protected by the " other statute" were
exempt from disclosure. Ameriquest Mortg. Co. v. Office ofAttorney Gen., 177 Wash. 2d 467, 499,
300 P.3d 799 ( 2013) ( the court discussed the RCW 42. 56. 540 injunction standard only in regard
to the PRA exemptions); see also Wright v. Dep' t of Soc. & Health Servs., 176 Wash. App. 585,
596 -97, 309 P.3d 662 ( 2013), review denied, No. 89396 -9 ( Wash. Feb. 6, 2014) ( holding that
juvenile records at issue were exempt from disclosure under an " other statute," chaptef 13. 50
RCW, which provides the exclusive means of obtaining juvenile justice and care records,
without discussing the PRA injunction standard).
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standard, RCW 42. 56. 540, must also be met. Although the parties and the amici urge us to
provide guidance on this issue, we decline to do so in dicta.
B. PRA Exemptions
To enjoin production of records under the PRA, "` [t] he court must find that a specific
exemption applies and that disclosure would not be in the public interest and would substantially
and irreparably damage a person "' or vital government function. Bainbridge Island Police Guild
v. City of Puyallup, 172 Wash. 2d 398, 420, 259 P.3d 190 ( 2011) ( lead opinion) ( emphasis added)
alteration in original) ( quoting Yakima County v. Yakima Herald-Republic, 170 Wash. 2d 775, 808,
246 P.3d 768.( 2011)); RCW 42. 56. 540. We first consider whether the specific PRA exemptions
asserted by Robbins Geller apply. If no exemption applies, we do not need to reach the other
part of the test ( referred to as the " injunction standard ")
8
1. RCW 42. 56.270( 1)
Gresham argues the trial court erred when it ruled that the protected information was
exempt from production under RCW 42. 56. 270( 1). RCW 42. 56. 270 provides in part:
The following financial, commercial, and proprietary information is exempt from
disclosure under this chapter:
1) Valuable formulae, designs, drawings, computer source code or object
code, and research data obtained by any agency within five years of the request
for disclosure when disclosure would produce private gain and public loss;
We agree.
8
Formerly RCW 42. 17. 310( 1)( h). LAWS of 2005, ch. 274, § 402, 407.
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a. Private Party May Assert RCW 42. 56.270( 1) Exemption
As a threshold matter, Gresham argues that a private party, here Robbins Geller, may not
invoke the RCW 42. 56. 270( 1) exemption to block disclosure when the public agency holding the
records is willing to disclose the records. 9 We disagree.
Whether a private party may invoke the RCW 42.56 270( 1) exemption is an issue of first
impression, and thus Gresham cites no authority for the proposition that it is only available
where a public agency opposes the disclosure. 10 We begin by determining whether the statute' s
text and context reflect a plain meaning. Campbell & Gwinn, LLC, 146 Wash. 2d at 10 -12.
Gresham points to the exemption' s requirement that disclosure must cause a public, rather than
private loss. See RCW 42. 56. 270( l). Although the statute' s language expressly requires that
disclosure would cause public loss, it does not prohibit its assertion by private parties.
We also consider the purpose of RCW 42. 56. 270( 1), which is to prevent unfair private
gain derived from the exploitation of potentially valuable intellectual property placed in the
public domain for a public benefit. Evergreen Freedom Found. v. Locke, 127 Wash. App. 243,
9 Gresham acknowledges that private parties may assert other PRA exemptions regardless of
state agency position. See RCW 42. 56. 540 ( providing that any party to whom the requested
records specifically pertain may seek an injunction).
to Gresham correctly points out, however, that in all cases applying the RCW 42. 56.270( 1)
exemption, the agency opposed disclosure. See, e. g., Servais v. Port ofBellingham, 127 Wash. 2d
820, 823 -24, 829 -33, 904 P.2d 1124 ( 1995) ( Port of Bellingham opposed disclosure of cash flow
analysis study); Progressive Animal Welfare Soc' y, 125 Wash. 2d at 250, 254 -55 ( university
opposed disclosure of an unfunded grant proposal); Evergreen Freedom Found. v. Locke, 127
Wn. App. 243, 245, 249, 110 P.3d 858 ( 2005) ( the agency and Boeing opposed disclosure of
facility in Everett); Spokane
portions of their agreement to develop an airplane assembly
Research & Def. Fund, 96 Wash. App. at 571 -72, 574 (the city and developers opposed disclosure
of several records including a lease and credit and financial studies).
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245, 249, 110 P.3d 858 ( 2005); Spokane Research & Def.Fund, 96 Wash. App. at 576. Gresham
argues that because the purpose of the exemption is to protect the State' s ownership rights in
intellectual property, the exemption only applies if the agency opposes disclosure. But Gresham
does not explain why a private party' s assertion of the exemption — so as long as the private party
can demonstrate that disclosure would cause sufficient public loss —would not further the
purpose of protecting the State' s ownership rights in intellectual property.
Because there is nothing in the text of the exemption that could be interpreted to restrict
its application to public agencies and because the unrestricted application is not inconsistent with
the purpose of the statute, we hold that under RCW 42. 56. 270( 1)' s plain meaning, the exemption
may be invoked by a private party. See Cerrillo v. Esparza, 158 Wash. 2d 194, 201, 142 P.3d
155 ( 2006) ( holding that when a statute is not ambiguous, only a plain meaning analysis of a
statute is appropriate).
b. Private Party May Assert Public Loss Regardless ofAgency Position
Similarly, Gresham asserts that a private party, here Robbins Geller, should not be able to
assert the public loss component of RCW 42. 56. 270( 1) when the state agency chooses not to do
so. 11 Gresham points to two federal cases for support. In Orion Research Inc. v. Envtl. Prot.
Agency, 615 F.2d 551, 554 ( 1st Cir. 1980), the court recognized that the agency was a credible
11 The AGO did not take an official position on whether the protection information qualified for
an exemption. However, the AGO' s response to Gresham' s request to admit provides:
The AGO believes, among other things, that disclosure could, as the law firms
have asserted, inhibit firms' desire to compete for the State' s legal work. This is
because the firms may be reluctant to provide proprietary information as part of
the procurement process if they believe that information will be made available to
their competitors. If that is indeed the case, there would be a public loss
attributable to the inability to procure the best outside legal services.
CP at 922 -23.
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source on whether disclosure would cause public loss even in the absence of extrinsic evidence.
This case does not help Gresham, because here, the AGO acknowledged in its discovery
response that disclosure could cause public loss.
Gresham also cites Hercules, Inc. v. Marsh, 839 F.2d 1027, 1028 ( 4th Cir. 1988), where a
government contractor sought to prevent the Army from releasing a telephone directory that the
contractor prepared at the government' s expense. The contractor argued that disclosure would
impair the government' s ability to obtain necessary information in the future and cause
substantial harm to the contractor' s competitive position. Hercules, 839 F.2d at 1029. The court
rejected both arguments, stating that the contractor' s assertion of competitive injury was
conclusory or speculative and that if the Army was so concerned about disclosure harming its
access to information in the future, it could have employed that rationale to preclude disclosure.
Hercules, 839 F.2d at 1029 -30. The court stated that because the Army failed to do so, the
contractor would not be permitted to raise the issue on the Army' s behalf. Hercules, 839 F.2d at
1030.
Hercules could be interpreted either as barring private parties from asserting government
harm on the government' s behalf or merely as a failure of proof to assert government harm.
Either way, Gresham is correct that there is federal support for the proposition that a third party
12
has no " standing" to assert federal Freedom of Information Act ( FOIA) exemptions that appear
to protect government interest. See, e. g., United Techs. Corp., Pratt & Whitney Aircraft Grp. v.
Marshall, 464 F. Supp. 845, 852 -53 ( D. Conn. 1979).
12
5 U.S. C. § 552
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The federal case law Gresham cites is not persuasive because our PRA differs from FOIA
in important respects. Congress did not create a private cause of action under FOIA. Hercules,
839 F.2d at 1029. Because of this, judicial review of agency action alleged to be in violation of
FOIA is governed by 5 U.S. C. § 706, which allows courts to interfere with an agency' s decision
only if the agency' s decision is arbitrary or capricious. Hercules, 839 F.2d at 1029. On the other
hand, the voters of Washington State created a privately enforceable cause of action under the
PRA and expressly directed courts to review de novo agency action taken or challenged under
the PRA. RCW 42. 56. 540, . 550. These substantial differences evidence a conscious choice of
the voters of our state to constrain agency discretion and empower private parties to enforce the
provisions of the PRA, including the exemptions therein. Because the PRA includes an express
provision giving interested parties the right to seek judicial determination that records are exempt
and an injunction preventing their disclosure, Robbins Geller is not barred from asserting the
exemption or its public loss component. See RCW 42. 56. 540.
c. Robbins Geller Does Not Prove Public Loss
The parties dispute whether disclosure would cause public loss. Robbins Geller' s
assertion of public loss is based on an assistant attorney general' s deposition testimony in which
he testified that "` some of these law firms have pointed out that they may be less likely to
participate or — in the State' s procurement process and may be — if we are unable to protect -
or— if they are unable to protect the information that they deem proprietary and important ... it
could reduce the State' s ability to procure the best legal services "' and the AGO' s similar
clearly
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4
13
admission that disclosure could inhibit firms' desire to compete for the State' s legal work. Br.
of Resp' t (Robbins Geller) at 15 ( emphasis omitted) ( quoting CP at 1181). Gresham argues that
Robbins Geller' s evidence does not demonstrate the requisite public loss because it is speculative
and contradicted by prior experience. Gresham points out that ( 1) the AGO successfully
conducted the 2010 RFQQ process despite disclosing Robbins Geller' s predecessor' s and other
firms' 2004 RFQQ responses to numerous requesters; ( 2) Robbins Geller and approximately two
dozen other firms responded to the 2010 RFQQ, despite the AGO' s warning that it would
disclose the responses to PRA requesters unless the firms obtained an injunction preventing
disclosure; and ( 3) although Gresham sought all of the 2010 RFQQ responses, only two firms
sought an injunction to prevent the AGO from disclosing their responses. Gresham also argues
that the disclosure of RFQQ responses is unlikely to deter firms from future participation
because of the possibility of being selected for a lucrative litigation contract from the State. See,
e. g., Milgo Gov' t Sys., Inc.
Racal - v. Small Bus. 4dmin., 559 F. Supp. 4, 6 ( D. D. C. 198 1)
recognizing that disclosure of prices charged the government is the cost of doing business with
the government and that disclosure is unlikely to deter competition for government contracts).
Here, the AGO' s willingness to disclose, notwithstanding their supposition that it could inhibit
participation in future RFQQs, along with other law firms' decisions not to seek an injunction to
13 Gresham asserts that the trial court erred in giving weight to a state employee' s opinion and
urges that the employee' s opinion should have been disregarded because it was not shared by the
agency. But the employee at issue had experience with such matters, and his concern seems
reasonable. There is no apparent reason the court should have disregarded it. There is no
apparent reason why the statement of the assistant attorney general or similar statement of the
AGO cannot be used as evidence by Robbins Geller to assert a public loss notwithstanding that
the AGO itself does not take an official position on whether or not the exemption applies.
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protect their submissions tends to show that disclosure of RFQQ responses is not a meaningful
deterrent to future participation in RFQQs. As the party asserting the exemption, Robbins Geller
had the burden to prove that disclosure would cause public loss. Because its assertion of public
loss is merely conjecture and it does not respond to Gresham' s specific contradictions, we hold
that Robbins Geller failed to prove the requisite public loss.
2. RCW 42. 56.270( 11)
Gresham next argues that the trial court erred in ruling that the records at issue were
exempt under RCW 42. 56. 270( 11). RCW 42. 56. 270 provides in part:
The following financial, commercial, and proprietary information is exempt from
disclosure under this chapter:
11) Proprietary data, trade secrets, or other information that relates to: ( a)
A vendor' s unique methods of conducting business; ( b) data unique to the product
or services of the vendor; or ( c) determining prices or rates to be charged for
services, submitted by any vendor to the department of social and health services
for ... state purchased heath care.
The trial court concluded that the records here were exempt under subsections ( a) and ( b)
as " proprietary data and trade secrets essential to Robbins Geller' s method of conducting
business and the services the Firm offers its clients." CP at 1343.
a. Subsection ( a): Unique Methods of Conducting Business
Gresham argues that the protected information does not disclose Robbins Geller' s
business methods.
Robbins Geller argues that the way that it determines its pricing and insurance is part of
its method of doing business. But Robbins Geller has not demonstrated that the protected
information contains its " methods" rather than the end result. Certainly a list of client names and
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references does not reveal Robbins Geller' s methods for doing business. And even if the fee and
insurance information could be considered methods of conducting business, Robbins Geller has
not shown that its methods are unique. For example, the record reflects that many of Robbins
Geller' s competitors use a sliding scale of fees depending on the recovery amount and the stage
of the litigation. Although the amount of insurance and amount of fees will vary by law firm, the
method of conducting business is not unique.
b. Subsection ( b): Data Unique to the Product or Services
The trial court also held that the protected information was exempted under RCW
42. 56. 270( 11)( b), which protects " data unique to the product or services of the vendor." CP at
1343. Robbins Geller did not provide evidence proving that the fee proposal, insurance list,
client or reference list fit the description of data unique to a product or service. The protected
information could be considered data, but it is not data unique to Robbins Geller' s services. In
order to be unique to Robbins Geller' s services, the data must reveal some unique aspect about
the services. The names of Robbins Geller' s clients, references, and insurance carriers reveals
little about its legal and portfolio monitoring services, let alone something unique. Similarly, the
inexact amount of Robbins Geller' s professional liability insurance coverage and its pricing
approach of its legal services is not information unique to its services. As we discussed above,
other competing law firms carry liability insurance and use a similar approach to fee setting. We
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4
hold that Robbins Geller did not prove that the protected information was data unique to its
14
product or services qualifying for exemption under RCW 42. 56. 270( 11)( b).
3. RCW 42. 56.270( 6)
Robbins Geller also argues that disclosure may be enjoined under RCW 42. 56. 270( 6),
which exempts "[ f]inancial and commercial information supplied to the state investment board
by any person when the information relates to the investment of public trust or retirement funds
and when disclosure would result in loss to such funds or in private loss to the providers of this
information." The trial court did not rely on RCW 42. 56. 270( 6) for issuance of the injunction.
RCW 42. 56. 270( 6) is inapplicable because the protected information was not " supplied
to the state investment board." It was provided to the AGO, which has exclusive authority to
retain attorneys for state agencies, including the WSIB. RCW 43. 10. 067. Robbins Geller has
not pointed to evidence that the documents were supplied to or used by the WSIB. Accordingly,
we agree with the trial court' s determination that RCW 42. 56.270( 6) does not apply here.
14 Gresham also argues that the phrase " submitted by any vendor to the department of social and
health services for ... state purchased health care," which follows the comma in subsection ( c),
applies to subsections ( a) and ( b). RCW 42. 56. 270( 11). We disagree. Here, the subparts of
RCW 42. 56. 270( l 1) are set off by semicolons indicating that they are independent clauses. See
Elgin Nursing & Rehab. Dr. v. U.S. Dep' t of Health & Human Servs., 718 F.3d 488, 494 -95 ( 5th
Cir. 2013). Therefore, the provision at the end of the subsection ( c) stating that the information
must be " submitted by any vendor to the department of social and health services" applies only
to that subsection and not subsections ( a) and ( b). Moreover, the subsections are disjunctive,
which also supports that the clauses are separate. If the legislature had intended to limit the
exemption to information submitted to the department of social and health services, it could have
included that language in each of the subsections or placed the language at the beginning of the
sentence preceding the three subsections.
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V. SUMMARY JUDGMENT DISMISSAL OF GRESHAM' S CROSS CLAIM AGAINST THE AGO
Gresham argues that the trial court erred in granting summary judgment on his cross
claim against the AGO because the claim became moot when the trial court ruled that he was not
entitled to the public records. The AGO argues that the cross claim was not moot and that
summary judgment was proper. We agree with the AGO.
We review a trial court' s order granting summary judgment de novo. Loeffelholz v. Univ.
of Wash., 175 Wash. 2d 264, 271, 285 P.3d 854 ( 2012). Summary judgment is appropriate where,
viewing the evidence in the light most favorable to the nonmoving party, there is no genuine
issue of material fact and the moving party is entitled to judgment as a matter of law.
Loeffelholz, 175 Wash. 2d at 271. " A genuine issue of material fact exists where reasonable minds
could differ on the facts controlling the outcome of the litigation." Ranger Ins. Co. v. Pierce
County, 164 Wash. 2d 545, 552, 192 P.3d 886 ( 2008).
The PRA requires the trial court to award attorney fees and costs to a party who " prevails
against an agency in any action in the courts seeking the right to inspect or copy any public
record or the right to receive a response to a public record request within a reasonable amount of
time." RCW 42. 56. 550( 4). A PRA claimant " prevails" against an agency only if the agency
wrongfully withheld the documents. Germeau v. Mason County, 166 Wash. App. 789, 811, 271
P.3d 932, review denied, 174 Wash. 2d 1010 ( 2012). RCW 42. 56. 550( 4) does not authorize an
award of costs, attorney fees, or penalties in an action brought by a private party to prevent
disclosure of public records held by an agency where the agency has agreed to release the
records but is prevented from doing so by court order. Bainbridge Island Police Guild, 172
Wash. 2d at 421 n. 14. This interpretation is consistent with the purpose of the attorney fees
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provision, which is to encourage broad disclosure and to deter agencies from improperly denying
access to public records. Lindberg v. Kitsap County, 133 Wash. 2d 729, 746, 948 P.2d 805 ( 1997).
Gresham argues that his cross claim became moot after the trial court enjoined the AGO
from disclosing the records. Gresham cites Diversified Indus. Dev. Corp. v. Ripley, 82 Wash. 2d
811, 514 P.2d 137 ( 1973), for support. In Diversified, our Supreme Court dismissed a lessor' s
action seeking a declaratory judgment that its lessee would be liable for projected claims of a
lessee' s social guest who had been injured on the premises. 82 Wash. 2d at 812 -13. Because the
injured party' s claim was an unpredictable contingency, the declaratory action was not ripe.
Diversified, 82 Wash. 2d at 815. There is no apparent similarity between Gresham' s cross claim
here and the unripe declaratory suit in Diversified, and Gresham does not explain why his cross
claim is moot or otherwise not justiciable. The trial court' s order granting the injunction did not
address whether the AGO could be held liable for the failure to produce the protected
information, nor did it dispose of Gresham' s cross claim against the AGO. The injunction did
not render the cross claim moot, the cross claim was merely unsuccessful. Because Gresham' s
cross claim was not moot, we affirm summary judgment dismissal in favor of the AGO.
ATTORNEY FEES
Finally, Gresham argues that he should be awarded costs, attorney fees, and penalties if
he becomes the prevailing party in this action. Specifically, Gresham argues that the AGO
should be liable for penalties based on a theory of respondeat superior for its employees
interference with Gresham' s attempt to obtain public records that the AGO was willing to
produce. Gresham supports his argument with two tort cases involving employers' responsibility
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for their employees' actions, but neither relates to whether the AGO' s ( or its employees') action
gives rise to liability under the PRA.
The PRA requires the trial court to award attorney fees and costs to a parry who prevails
against an agency, which occurs when an agency wrongfully withholds documents. Gronquist v.
Dep' t of Licensing, 175 Wn. App. 729, 756, 309 P.3d 538 ( 2013). Here, the AGO was willing to
produce the protected information, but was prevented from doing so by a court order. As
previously discussed, even if Gresham succeeds in overturning the injunction, Gresham will not
have prevailed over the AGO for purposes of awarding costs, attorney fees, and penalties under
RCW 42. 56. 550( 4). Bainbridge Island Police Guild, 172 Wash. 2d at 421 n.14. Accordingly, we
deny his request for attorney fees, costs, and penalties against the AGO even though we vacate
most of the trial court' s permanent injunction order.
We vacate the trial court' s permanent injunction, except for the unchallenged portion that
protects not previously published names of Portfolio Monitoring Program clients, and order the
AGO to produce the records at issue. We also affirm summary judgment dismissal of Gresham' s
cross claim against the AGO.
Worswick, C. J.
Verellen, J.
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