Case Detail

FOIA Project Annotation: Judge Royce Lamberth has ruled that the IRS properly responded to a FOIA request from Grand Marina Investors, LLC for records related to their 2014 tax return. The IRS told Grand Marina that it would adjust its 2014 tax return. Grand Marina appealed to the IRS Independent Office of Appeals but reached an unfavorable settlement agreement in 2020. Grand Marina filed a FOIA request in 2020, seeking documents about the agency's examination of its 2014 taxes and its subsequent appeal to the Office of Appeals. Grand Marina submitted a second FOIA request in 2020, consisting of two parts. The IRS responded to Part 1a of the second request, locating 195 responsive pages, withholding two in full and 12 with redactions. The IRS identified the response as an interim response and did not notify Grand Marina of its right to file an administrative appeal because the agency was still working on processing the request. Nevertheless, the IRS responded to Grand Marina's administrative appeal, upholding its use of exemptions. The IRS subsequently responded to Part1b of Grand Marina's second request. This time, the IRS disclosed 934 pages of responsive records, withholding nine in full and 28 in part. Grand Marina did not file an administrative appeal of the final response but filed a FOIA suit instead. Lamberth found that Grand Marina had failed to exhaust its administrative remedies by failing to file an administrative appeal of the first request. He pointed out that "to the extent that Grand Marina still believes that the IRS's withholdings under the First Request were unlawful, its failure to appeal deprived the agency of the opportunity to apply its expertise to the matter and compile a record conducive to judicial review." Turning to Grand Marina's second request, Lamberth found that although Grand Marina had prematurely appealed the IRS's interim response to Part 1a of the second request, because the IRS had not been robbed of its ability to consider the appeal, it was ultimately appropriate. He noted that "although plainly not required to do so, the IRS accepted and processed Grand Marina's appeal of its adverse interim response to Part 1a. The IRS conducted a fulsome review and reconsideration of the production and exemption decisions contained within its Second Response and replied with a letter upholding each aspect of that response." However, Lamberth decided that because Grand Marina had not appealed the agency's later response to Part 1b of the Second request, it had failed to exhaust its administrative remedies as to that portion of the response.
Issues: Litigation - Jurisdiction - Failure to Exhaust

Date Filed	Doc #	Docket Text
2023-06-09	1	COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF against INTERNAL REVENUE SERVICE, DOUGLAS O'DONNELL IN HIS OFFICIAL CAPACITY AS ACTING COMMISSIONER OF INTERNAL REVENUE ( Filing fee $ 402 receipt number ADCDC-10128937) filed by GRAND MARINA INVESTORS, LLC. (Attachments: # 1 Civil Cover Sheet, # 2 Declaration, # 3 Summons, # 4 Summons, # 5 Summons, # 6 Summons)(Levin, Michelle) (Entered: 06/09/2023)
2023-06-09		Case Assigned to Judge Royce C. Lamberth. (zljn) (Entered: 06/09/2023)
2023-06-09	2	SUMMONS (4) Issued Electronically as to All Defendants, U.S. Attorney and U.S. Attorney General (Attachments: # 1 Notice and Consent)(zljn) (Entered: 06/09/2023)
2023-08-08	3	MOTION for Leave to Appear Pro Hac Vice :Attorney Name- Logan Abernathy, Filing fee $ 100, receipt number ADCDC-10261369. Fee Status: Fee Paid. by GRAND MARINA INVESTORS, LLC. (Attachments: # 1 Declaration, # 2 Exhibit)(Levin, Michelle) (Entered: 08/08/2023)
2023-08-08	4	MOTION for Leave to Appear Pro Hac Vice :Attorney Name- Gregory P. Rhodes, Filing fee $ 100, receipt number ADCDC-10261887. Fee Status: Fee Paid. by GRAND MARINA INVESTORS, LLC. (Attachments: # 1 Declaration, # 2 Exhibit)(Levin, Michelle) (Entered: 08/08/2023)
2023-08-10	5	MOTION for Leave to Appear Pro Hac Vice :Attorney Name- Howard Gardner Perdue, III, Filing fee $ 100, receipt number ADCDC-10266933. Fee Status: Fee Paid. by GRAND MARINA INVESTORS, LLC. (Attachments: # 1 Declaration, # 2 Exhibit)(Levin, Michelle) (Entered: 08/10/2023)
2023-08-11		MINUTE ORDER: It is hereby ORDERED that Motion 3 for Leave to Appear Pro Hac Vice is GRANTED. Counsel should register for e-filing via PACER and file a notice of appearance pursuant to LCvR 83.6(a) Click for instructions . SO ORDERED by Judge Royce C. Lamberth on 8/11/2023. (lcrcl2) (Entered: 08/11/2023)
2023-08-11		MINUTE ORDER: It is hereby ORDERED that Motion 4 for Leave to Appear Pro Hac Vice is GRANTED. Counsel should register for e-filing via PACER and file a notice of appearance pursuant to LCvR 83.6(a) Click for instructions . SO ORDERED by Judge Royce C. Lamberth on 8/11/2023. (lcrcl2) (Entered: 08/11/2023)
2023-08-11		MINUTE ORDER: It is hereby ORDERED that Motion 5 for Leave to Appear Pro Hac Vice is GRANTED. Counsel should register for e-filing via PACER and file a notice of appearance pursuant to LCvR 83.6(a) Click for instructions . SO ORDERED by Judge Royce C. Lamberth on 8/11/2023. (lcrcl2) (Entered: 08/11/2023)
2023-08-28	6	RETURN OF SERVICE/AFFIDAVIT of Summons and Complaint Executed. DOUGLAS O'DONNELL served on 8/18/2023 (Levin, Michelle) (Entered: 08/28/2023)
2023-08-28	7	RETURN OF SERVICE/AFFIDAVIT of Summons and Complaint Executed. U.S. INTERNAL REVENUE SERVICE served on 8/18/2023 (Levin, Michelle) (Entered: 08/28/2023)
2023-08-28	8	RETURN OF SERVICE/AFFIDAVIT of Summons and Complaint Executed on United States Attorney General. Date of Service Upon United States Attorney General 08/21/2023. (Levin, Michelle) (Entered: 08/28/2023)
2023-08-28	9	RETURN OF SERVICE/AFFIDAVIT of Summons and Complaint Executed as to the United States Attorney. Date of Service Upon United States Attorney on 8/21/2023. Answer due for ALL FEDERAL DEFENDANTS by 9/20/2023. (Levin, Michelle) (Entered: 08/28/2023)
2023-09-14	10	MOTION for Extension of Time to File Answer re 1 Complaint, by DOUGLAS O'DONNELL, U.S. INTERNAL REVENUE SERVICE. (Attachments: # 1 Text of Proposed Order)(Miller, Anna) (Entered: 09/14/2023)
2023-09-20	11	ORDER granting Motion 10 for Extension of Time to File Answer re 1 Complaint. Answer due by 10/4/2023. Signed by Judge Royce C. Lamberth on 9/20/2023. (lcrcl2) (Entered: 09/20/2023)
2023-10-04	12	MOTION to Dismiss by DOUGLAS O'DONNELL, U.S. INTERNAL REVENUE SERVICE. (Attachments: # 1 Memorandum in Support, # 2 Declaration, # 3 Text of Proposed Order)(Miller, Anna) (Entered: 10/04/2023)
2023-10-18	13	RESPONSE re 12 MOTION to Dismiss filed by GRAND MARINA INVESTORS, LLC. (Attachments: # 1 Text of Proposed Order)(Levin, Michelle) (Entered: 10/18/2023)
2023-10-25	14	REPLY to opposition to motion re 12 MOTION to Dismiss filed by DOUGLAS O'DONNELL, U.S. INTERNAL REVENUE SERVICE. (Miller, Anna) (Entered: 10/25/2023)
2024-07-30	15	MOTION for Discovery (Plaintiff's Motion to Propound Discovery) by GRAND MARINA INVESTORS, LLC. (Levin, Michelle) (Entered: 07/30/2024)
2024-08-13	16	Memorandum in opposition to re 15 Motion for Discovery filed by DOUGLAS O'DONNELL, U.S. INTERNAL REVENUE SERVICE. (Miller, Anna) (Entered: 08/13/2024)
2024-08-22	17	NOTICE of Appearance by Cheryl Howell Oswalt on behalf of GRAND MARINA INVESTORS, LLC (Oswalt, Cheryl) (Entered: 08/22/2024)
2024-09-20	18	MEMORANDUM OPINION re: Motion 12 to Dismiss and Motion 15 to Propound Discovery. Signed by Judge Royce C. Lamberth on 09/20/2024. (lcrcl2) (Entered: 09/20/2024)
2024-09-20	19	ORDER: Upon consideration of the defendants' Motion 12 to Dismiss and the plaintiff's Motion 15 to Propound Discovery, and the entire record herein, it is hereby ORDERED that the Motion to Dismiss Douglas O'Donnell as a party-defendant is GRANTED; and it is further ORDERED that the Motion to Dismiss is GRANTED as to plaintiff's claims arising from its First FOIA Request and Part 1b of its Second FOIA Request; and it is further ORDERED that the Motion to Dismiss is DENIED as to plaintiff's claims arising from Part 1a of its Second FOIA Request; and it is further ORDERED that the IRS shall file an answer to Grand Marina's complaint within 21 days of the issuance of this Order, and shall produce a Vaughn index and dispositive motion as to plaintiff's remaining claims within 30 days of the issuance of this Order; and it is further ORDERED that plaintiff's Motion to Propound Discovery is DENIED. Signed by Judge Royce C. Lamberth on 09/20/2024. (lcrcl2) Modified to correct chambers error on 9/23/2024 (smc). (Entered: 09/20/2024)
2024-10-11	20	Unopposed MOTION for Extension of Time to File Answer re 1 Complaint, by U.S. INTERNAL REVENUE SERVICE. (Attachments: # 1 Text of Proposed Order)(Miller, Anna) (Entered: 10/11/2024)
2024-10-15	21	ORDER: Upon consideration of the defendant's unopposed Motion 20 for an extension of time to file an answer to the Complaint, and the entire record herein, it is hereby ORDERED that the Motion is GRANTED; and it is further ORDERED that the defendant's deadline to file an answer shall be extended up to and including October 25, 2024, nunc pro tunc. Signed by Judge Royce C. Lamberth on 10/15/2024. (lcrcl2) (Entered: 10/15/2024)
2024-10-21	22	Unopposed MOTION for Extension of Time to File Dispositive Motion and Produce Vaughn Index by U.S. INTERNAL REVENUE SERVICE. (Attachments: # 1 Text of Proposed Order)(Miller, Anna) (Entered: 10/21/2024)
2024-10-25	23	ORDER: Upon consideration of the defendant's Motion 22 for an Extension of Time, and the entire record herein, it is hereby ORDERED that the Motion is GRANTED; and it is further ORDERED that the defendant shall produce a Vaughn index and file a dispositive motion on or before November 20, 2024. Signed by Judge Royce C. Lamberth on 10/24/2024. (lcrcl2) (Entered: 10/25/2024)
2024-10-25	24	ANSWER to Complaint by U.S. INTERNAL REVENUE SERVICE.(Miller, Anna) (Entered: 10/25/2024)
2024-11-20	25	MOTION for Extension of Time to File Dispositive Motion by U.S. INTERNAL REVENUE SERVICE. (Attachments: # 1 Text of Proposed Order)(Miller, Anna) (Entered: 11/20/2024)
2024-12-13	26	ORDER: Upon consideration of the Defendant's Motion 25 for an extension of time to file a dispositive motion, and the entire record herein, and no opposition having been filed, it is hereby ORDERED that the Motion is GRANTED; and it is further ORDERED that the Defendant shall file a dispositive motion on or before January 20, 2025. Signed by Judge Royce C. Lamberth on 12/12/2024. (lcrcl2) (Entered: 12/13/2024)
2025-01-21	27	MOTION for Summary Judgment by U.S. INTERNAL REVENUE SERVICE. (Attachments: # 1 Statement of Facts, # 2 Memorandum in Support, # 3 Declaration of Tera V. Klinger, # 4 Declaration of Andrew C. Keaton, # 5 Exhibit to Declaration of Andrew C. Keaton, # 6 Declaration of J. Benjamin Winburn, # 7 Exhibit to Declaration of J. Benjamin Winburn, # 8 Text of Proposed Order)(Miller, Anna) (Entered: 01/21/2025)
2025-02-03	28	Unopposed MOTION for Extension of Time to File Response/Reply as to 27 MOTION for Summary Judgment by GRAND MARINA INVESTORS, LLC. (Oswalt, Cheryl) (Entered: 02/03/2025)
2025-02-03	29	Amended MOTION for Extension of Time to File Response/Reply as to 27 MOTION for Summary Judgment by GRAND MARINA INVESTORS, LLC. (Attachments: # 1 Text of Proposed Order Granting Unopposed Motion for Extension)(Oswalt, Cheryl) (Entered: 02/03/2025)
2025-02-04	30	ORDER granting 28 , 29 Unopposed Motion for Extension of Time to File Response as to 27 MOTION for Summary Judgment. Plaintiff's Response due by 2/11/2025. Signed by Judge Royce C. Lamberth on 2/4/2025. (lcrcl3) Modified to correct year of deadline on 2/5/2025 (smc). (Entered: 02/04/2025)
2025-02-05		Set/Reset Deadlines: Response due by 2/11/2025. (smc) (Entered: 02/05/2025)
2025-02-11	31	RESPONSE re 27 MOTION for Summary Judgment filed by GRAND MARINA INVESTORS, LLC. (Attachments: # 1 Statement of Facts, # 2 Memorandum in Support, # 3 Text of Proposed Order)(Oswalt, Cheryl) (Entered: 02/11/2025)
2025-02-18	32	Unopposed MOTION for Extension of Time to File Reply in Support of Motion for Summary Judgment by U.S. INTERNAL REVENUE SERVICE. (Attachments: # 1 Text of Proposed Order)(Miller, Anna) (Entered: 02/18/2025)
2025-02-21	33	ORDER: Upon consideration of the Motion 32 for an extension of time to file a reply, and the entire record herein, it is hereby ORDERED that the Motion is GRANTED; and it is further ORDERED that the defendant shall file its reply on or before March 4, 2025. Signed by Judge Royce C. Lamberth on 02/21/2025. (lcrcl2) (Entered: 02/21/2025)
2025-03-04	34	REPLY to opposition to motion re 27 Motion for Summary Judgment, filed by U.S. INTERNAL REVENUE SERVICE. (Miller, Anna) (Entered: 03/04/2025)
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