Justia Aerospace/Defense Opinion Summaries

In 2008, the FBI issued its Domestic Investigations and Operations Guide (DIOG) to implement newly revised Department of Justice guidelines, addressing use of race and ethnicity in investigations. Under this guidance, the FBI may identify and map “locations of concentrated ethnic communities” to “reasonably aid the analysis of potential threats and vulnerabilities … assist domain awareness,” and collect “[f]ocused behavioral characteristics reasonably believed to be associated with a particular criminal or terrorist element of an ethnic community.” The ACLU submitted a Freedom of Information Act request, seeking release of documents concerning policy on collecting such information, and records containing information actually collected. The FBI initially released 298 pages (48 partially redacted) of training material, previously released for a similar request by the ACLU’s Atlanta affiliate. The ACLU filed suit. With additional releases, the FBI identified 1,553 pages of potentially responsive records: training materials, “domain intelligence notes,” “program assessments,” “electronic communications,” and maps. The district court held that the FBI appropriately withheld records under a FOIA exemption for law enforcement information whose release could “interfere with enforcement proceedings,” 5 U.S.C. 552(b)(7)(A). The Sixth Circuit affirmed; release of publicly available information selectively used in investigations may reveal law-enforcement priorities and methodologies and interfere with enforcement. The ACLU’s proposed procedure for resolving the dispute was inadequately protective of sensitive information; in camera review was appropriate. View "Am. Civil Liberties Union v. Fed. Bureau of Investigation" on Justia Law

Based on misconduct that he allegedly committed in his previous positions as a police officer and deputy sheriff, the Transportation Security Administration suspended and ultimately revoked Gargiulo’s security clearance, which was necessary for his job as a Federal Air Marshall. The Merit Systems Protection Board affirmed. On appeal, Gargiulo argued that the agency deprived him of constitutional due process by not timely providing him with documentary materials relied upon in deciding to suspend his security clearance. Although he was given notice of the reasons for the suspension of his security clearance as early as August 2008, he was not provided with copies of the documentary materials until May 2009, three months after he was suspended from his job. The Federal Circuit affirmed, stating that security clearance decisions do not implicate any due process rights. View "Gargiulo v. Dep't of Homeland Sec." on Justia Law

DIRECTV sold business segments. In 1997 it sold defense units to Raytheon, transferring $5,774,655,148 in pension assets and $3,310,028,559 in pension liabilities, a net transfer of $2,464,626,589 in surplus pension assets. In a 2000 sale of satellite business units to Boeing, DIRECTV transferred $1,843,930,981 in pension assets and $1,037,344,156 in liabilities, a net transfer of $806,586,825 in surplus assets. In both transactions, DIRECTV retained a small portion of surplus pension assets. The Government asserted noncompliance with Cost Accounting Standard 413.50(c)(12) (41 U.S.C. 422(f)(1)), which regulates assignment of actuarial gains and losses, valuation of assets of a pension fund, and allocation of pension costs to a contractor’s business segments, and demanded payments of $68,695,891 and of $12,197,704. The Court of Federal Claims granted DIRECTV summary judgment. The Federal Circuit affirmed. The claims court correctly determined that DIRECTV's segment closing obligations could be satisfied by cost savings realized by the Government in successor contracts. The court rejected arguments that the trial court erred by calculating segment closing adjustments based on assets and liabilities of the entire segment, rather than only assets and liabilities that DIRECTV retained and that the Federal Acquisition Regulation required DIRECTV itself to pay any amount due as a segment closing adjustment.View "DIRECTV Group, Inc. v. United States" on Justia Law

Republic challenged an order of the DOT withdrawing two Republic "slot exemptions" at Reagan National and reallocating those exemptions to Sun Country. "Slots" were take-off and landing rights. In both an informal letter to Republic and a final order, DOT held that Republic's parent company engaged in an impermissible slot-exemption transfer with Midwest. In so holding, DOT summarily dismissed Republic's argument that, under DOT and Federal Aviation Administration precedent, the Republic-Midwest slot-exemption transfer was permissible because it was ancillary to Republic Holdings' acquisition of Midwest. The court held that because DOT had departed from its precedent without adequate explanation, its decision could not survive arbitrary and capricious review. Accordingly, the court granted Republic's petition for review and vacated DOT's order. View "Republic Airline Inc. v. U.S. Dept. of Transportation" on Justia Law

The airline sued federal employees, including an FAA principal maintenance inspector, claiming that intentional and improper delays with respect to inspections and certifications substantially destroyed its business. The district court dismissed most claims, but did not dismiss "Bivens" claims of violation of procedural due process rights and of retaliation for protected First Amendment activity. The First Circuit reversed, holding that the allegations were not sufficient to support denial of qualified immunity. View "Air Sunshine, Inc.v. Carl" on Justia Law

In 2006, plaintiff, employed as an auditor at the Department of Defense was removed from his position for failing to maintain his Secret level security clearance. His loss of security clearance was based on his wife's status as a diplomat for Honduras. The Merit Systems Protection Board affirmed. The Federal Circuit affirmed. The DoD complied with its internal procedures in revoking plaintiff's security clearance and the decision was supported by substantial evidence. View "Romero v. Dep't of Def." on Justia Law

The Electronic Privacy Information Center (EPIC) and two individuals petitioned for review of a decision by the Transportation Security Administration (TSA) to screen airline passengers by using advanced imaging technology (AIT) instead of magnetometers. EPIC argued that the use of AIT violated various federal statutes and the Fourth Amendment and, in any event, should have been the subject of notice-and-comment rulemaking before being adopted. The court granted the petition for review with respect to claims that the TSA had not justified its failure to initiate notice-and-comment rulemaking before announcing it would use AIT scanners for primary screening at airports. None of the exceptions urged by the TSA justified its failure to give notice of and receive comment upon such a rule, which was legislative and not merely interpretive, procedural, or a general statement of policy. The court denied the petition with respect to EPIC's statutory arguments and their claim under the Fourth Amendment, except their claim under the Religious Freedom Restoration Act, 42 U.S.C. 2000bb et seq., which the court dismissed for lack of standing. Finally, due to the obvious need for the TSA to continue its airport security operations without interruption, the court remanded the rule to the TSA but did not vacate it. View "Electronic Privacy Info. Center, et al. v. Dept. of Homeland Security, et al." on Justia Law

Appellant appealed a conviction on one count of committing an act affecting a personal financial interest in violation of 18 U.S.C. 208(a) and 216(a)(2) and two counts of making false statements in violation of 18 U.S.C. 1001(a)(2) where the convictions arose from his involvement in the allocation of a $15 million congressional earmark while serving as the interim Associate Administrator of the National Aeronautics and Space Administration ("NASA"). At issue was whether there was sufficient evidence to support his convictions under section 208(a) and whether the district court properly charged the jury with the section 208(a) violation. The court held that there was sufficient evidence to support appellant's conviction under section 208(a) where there was ample evidence from which the jury could conclude that the allocation of the earmarked funds was indeed a "particular matter" within the meaning of the statute; that appellant participated both "personally and substantially" in the distribution of the earmarked funds; and that appellant knew he had a financial interest in the "particular matter." The court also held that even if the district court erred by not including the "direct and predictable effect" language in the jury charge, its error was harmless.View "USA v. Courtney Stadd" on Justia Law

Appellant filed suit against the United States Department of Homeland Security, the Coast Guard, and the Assistant Commandant of the Coast Guard (collectively "the Government") challenging the Coast Guard's determination to terminate his appointment as an unaffiliated, independent pilot. At issue was whether the Government's action violated the Administrative Procedures Act ("APA"), 5 U.S.C. 706(2)(A), as well as appellant's First Amendment and Fifth Amendment rights. The court held that the Coast Guard's interpretation of the term "voluntary association" in the Great Lakes Pilotage Act ("GLPA"), 46 U.S.C. 9304(a), easily survived review under Chevron. The court also held that appellant's First Amendment claim appeared to be precluded by the Second Circuit's judgment and failed on the merits. The court further held that the Coast Guard did not act arbitrarily and capriciously in determining that appellant's dispatch as an independent pilot expired after the 2003 navigation season. The court also rejected appellant's Fifth Amendment due process claim where he had no constitutionally protected entitlement to continued dispatch by the Coast Guard. Finally, the court held that the district court did not abuse its discretion in denying appellant's request for extra-record discovery. View "Richard Menkes v. US Dept. of Homeland Security, et al" on Justia Law

After petitioners fell behind schedule in developing a stealth aircraft (A-12) for the Navy, the contracting officer terminated their $4.8 billion fixed-price contract for default and ordered petitioners to repay approximately $1.35 billion in progress payments for work the Government never accepted. Petitioners filed suit in the Court of Federal Claims ("CFC"), challenging the termination decision under the Contract Disputes Act of 1978, 41 U.S.C. 609(a)(1). The CFC held that, since invocation of the state-secrets privilege obscured too many of the facts relevant to the superior-knowledge defense, the issue of that defense was nonjusticiable, even though petitioners had brought forward enough unprivileged evidence for a prima facie showing. Accordingly, at issue was what remedy was proper when, to protect state secrets, a court dismissed a Government contractor's prima facie valid affirmative defense to the Government's allegations of contractual breach. The Court concluded that it must exercise its common-law authority in this situation to fashion contractual remedies in Government-contracting disputes and held that the proper remedy was to leave the parties where they were on the day they filed suit. View "General Dynamics Corp. v. United States; The Boeing Co. v. United States" on Justia Law