第四巡迴上訴法院審理美教師聯合會訴貝森特案( 音頻)

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美東5月5日下午,美國第四巡迴上訴法院將審理美教師聯合會訴財政部長貝森特(Scott Bessent)案(DOGE),新唐人、大紀元進行網絡直播(即時翻譯字幕)。
法定人數不足
在今天下午的法庭上,我們有一個有趣的案件
有很好的律師
美國教育聯盟和斯大林教育聯盟的法官
史塔切爾先生
為政府
我們可以短暫地稱呼他為政府嗎?
當然
很高興有史塔切爾先生
謝謝,很高興能在這裡
法官大人,請
法庭,史塔切爾先生
在美國的名義上
法庭在這裡犯下了許多錯誤
釋出了一項妨礙性的判決
第二次猜測和監管
內部公司的決定
關於公司員工需要做的工作
最令人驚訝的
可能是法庭的決定
不斷地在自己的
新地點
沒有任何前提
在最後的公司行動上
和在遵守私隱法規則的
必須要知道的
除此之外
特別是在法官
或在下層的責任下
能夠實現
一個明確的獲得
他們尋求和獲得的
這些多次
獨立的
致命的錯誤
在任何一項
都會提供
廣泛的基礎
以保證
法庭的
回報和裁決
在這裡
我願意開始
因為我們認為
這可能是
最簡單的
基礎
來裁決
法庭的
決定
法庭的決定
根本不能
法庭的裁決
說
法庭同意
在Gary的決定下
這足夠
來
建立
立場
這對
法官
我認為
這
這不可能
和Gary
或和
這個法庭的
隨後的決定
為了某些原因
或和
TransUnion
這件事
我認為
就如同
這個委員提到的
在這個決定下
很難理解
這個事實
在Gary
那裡的
裁判
明確提出
他們的資訊
不是隻是
看了
而是用來
發
郵件
給
那裡的裁判
而這個事實
在Gary的裁決裁判中
明顯地重要
您看到了
在法庭對Gary的裁決中
那裡提出的立場問題
幾乎都相同
那是法庭的說話
在
The court distinguished a couple of subsets of plaintiffs and Gary,
one of which did not, or I guess they disclaimed a use component for standing,
and it was simply the access for that particular group.
So that's right.
I mean, that's certainly what the district court said.
This court and Gary, in the context of explaining
why none of the plaintiffs and Gary had established standing
for forward-looking injunctive relief, the court discussed this,
but in the portion of Gary where it did find standing,
and that was on the sort of retroactive damages,
it made very clear, I think, that it was relying on the allegations,
and to be clear, both plaintiffs and Gary,
sets of plaintiffs and Gary,
whatever sort of theories of recovery they disclaimed
for forward-looking or prospective relief,
both plaintiffs, sets of plaintiffs,
clearly alleged that they had received these mailings.
That was part of the complaint.
If you look at the second amended complaint in Gary,
which is the paragraph that's quoted in the decision
where it's discussing sort of intrusion upon seclusion,
if you look at that paragraph in full,
that's what paragraph 127,
that paragraph says very clearly that each plaintiff owner,
in that case, sustained actual damages
by having his or her privacy invaded,
by having their names and other information accessed,
and used, and this is a direct quote,
and used for marketing purposes without his or her consent.
So the very paragraph that Gary cites
from the amended complaint there
makes clear that those plaintiffs certainly did
alleged use in addition to mere access.
And again, I think as this court pointed out,
the court's reference to Krakauer doesn't make any sense
unless that was front of mind for the court
in its analogy to intrusion upon seclusion.
The court's comment that the core of intrusion upon seclusion
reflects an individual's right, quote,
to be left alone,
that reference doesn't make any sense
unless there was something done by the defendants in Gary
to intrude upon that right to be left alone.
And then again, I think even if Gary was somehow unclear on this,
which I don't think it really is,
but if it were,
I think the court's subsequent decision in O'Leary
while confronting somewhat different facts,
I think the court's observation there
that the core of intrusion upon seclusion...
Well, the judge first relied on transunion, I think.
She did the spring court case.
That intangible harms can be concrete, correct?
Correct.
They include injuries such as reputational harms,
disclosure of private information,
and intrusion upon seclusion.
That's certainly correct,
and the government isn't contesting
that intrusion upon seclusion could...
That's in the Supreme Court of the United States.
Yep. I certainly agree with that.
Private information.
What are we talking about here?
A lot of private information, my friend.
So the Supreme Court...
Stacks on stacks of private information.
Right.
And so the Supreme Court in transunion
referenced a number of different,
as you noted in that list,
the final of that list is intrusion upon seclusion.
There are other common law analogs
that the court sort of averted.
When did this intrusion start?
On January 20th, right?
I think you can...
The administrative record shows
that I think these individuals
all sort of joined these agencies
and became employed on something of a rolling basis,
but that's right.
It started on January 20th with...
January 20th. January 24th,
there's one of the...
With the executive order.
Of the agencies.
There's an agreement or something.
January 24th, and it was ongoing
until February the 24th.
I believe that's right.
I mean, I think it's a little...
Because of TRO.
Right, and there was...
So for one of the three agencies, Treasury, right,
there was another...
It was ongoing until the TRO on February 24th,
and then the TRO was replaced
by the preliminary injunction...
That's right.
On March the 24th.
So there was access to all the information
between January the 20th and February 24th,
and it was...
Did the TRO and the preliminary injunction
cease the access?
I mean, these plaintiffs,
about 2 million of them,
but there are many, many more billions
who have records within these agencies, correct?
That's right, and just to answer your question...
How many more million?
Over and above that are represented by these plaintiffs?
I don't know the answer to that,
and I think, you know, I believe...
You don't know the answer to that?
I don't know the total...
What you had access after the TRO
and during the TRO
and the preliminary injunction
was access to the non-representative plaintiffs
or non-representative individuals terminated
or would the access continue?
No, so, you know, the injunction ran
and the TRO, I think, also...
But the injunction didn't cover everybody.
That's what I'm getting at.
It covered the DOJ team members
who had been identified.
How do you pronounce that? DOJ?
That's how I pronounce it.
Department of Government Efficiency...
Pardon?
Department of Government Efficiency, I think, is the...
OK.
I've been figuring out how to pronounce it.
I'm from West Virginia,
and I think the part of West Virginia I'm from,
we would call it dog or doggy or something.
But DOJ, I've heard on television.
Yeah.
That's how I've been pronouncing it,
but I'm not the expert in the pronunciation.
We'll go by your term.
But DOJ had access as to everybody
except the ones covered by these labor unions,
represented by these labor unions
and these six veterans
ever since January 20th.
It's never stopped.
No, no.
That's just to be clear.
I'm sorry for misunderstanding the question.
So first, one point of clarification.
Treasury obviously was not covered by the TRO
because the Treasury DOJ team
was covered by a separate...
It still is.
By a separate preliminary injunction out of SDNY
that predated...
I think predated the TRO here.
I'm pretty sure.
And then once the TRO issued,
the government complied with it.
The terms of the TRO pretty clearly...
I don't have the text in front of me,
but the TRO and the PI both ran
not against information of the individuals
and these entities,
but against the DOJ team members
and their ability to access these databases as a whole.
And I don't know,
given that some of the plaintiffs
are sort of many, many multi-member organizations,
I don't know if it would have been feasible
to sort of pair off just records
belonging to people who are members of those entities.
So this really was quite disruptive
and these team members who...
So they didn't have access to many more
than those represented by these plaintiffs?
That's right.
But you don't know which ones they had access to,
which one they didn't?
Well, it was none.
It was...
Again, and I don't have the text in front of me.
But they had access from January 20th to February 24th.
That's right, except for the asterisk
that the Treasury people were covered
by a different PI that issued...
And then there was...
The stay was entered on April the 7th.
That'd be 4 weeks ago.
So they've had access for over 2 months.
So adding together, I see.
Yeah, and again...
And they were...
At the beginning, there's a document
in your administrative record
that says all they needed access for
was 4 to 6 weeks.
I don't know about that.
I mean, and again...
You don't know about that?
I can look at the JA page if you have it.
But I think just to take a step back here,
the injunction runs against these individuals.
The injunction has prevented
all of these individuals
who were directed to do a very specific job
by an executive order,
by a direct, clear pronouncement of the president.
They have all been prevented
from accessing these systems
while the TRO or the PI were in effect.
That's very disruptive,
and I think that disruption
more than calls into question
the district court's sort of final balancing
of the equities at the back end
of the preliminary injunction analysis.
But, you know, those balancing of the harms
only comes into play
once the plaintiffs have shown
a clear entitlement to the relief they sought.
And again, there are numerous
independently fatal problems.
Do you take the standing question
to be part of Winter's first prong,
the sort of likelihood of success?
Because you could imagine
standing to be a threshold question, right?
If it doesn't exist,
there's no Winter to be done.
If that was sort of a ruling
there was no standing,
or it could be done
as part of Winter Factor I,
sort of a likelihood of establishing standing.
Do you think both of those
permissible ways of doing it?
I think so.
I guess I'll say that I usually think
of standing as part of the Winter
likelihood of success inquiry
sort of mirroring the fact that, you know,
the showing of standing
has to sort of,
as the case progresses through,
match up with, you know,
motion to dismiss, summary judgment.
I sort of think of
preliminary injunctive relief
as the same way.
But again,
preliminary injunctions are unique.
It's the plaintiffs who bear a burden
of showing a clear establishment.
So even if there are...
But preliminary injunctions are reviewed
for abuse of discretion.
That's true, although legal errors
are always abuses of discretion.
Legal errors always...
But the overall review,
standard of review
applicable to our review
of a preliminary injunction
is abuse of discretion.
That's correct.
By the district court.
We defer to the district court
in awarding a TRO,
awarding a preliminary injunction in particular.
That's certainly correct.
And, you know, as explained...
Well, I think a real red flag
here in this case
on the district court's analysis
of three different
independently fatal problems
with plaintiffs, you know, theory.
We've already talked about standing
the government's position
and I think we've explained why
is that there is no case
that has ever found standing
in this intrusion upon seclusion analog.
I think there, you know,
the Eighth Circuit's decision in Equifax,
which we cite in our reply brief,
I think is helpful to explain
some of the many axes
upon which this theory of intrusion
upon seclusion
that plaintiffs put forward
is nothing like...
Well, the judge recited
the restatement second on that tort.
And it seemed to me
that it fit like a glove.
I disagree.
And I know you disagree with me.
I just want to say that.
Yeah, you know, I think none of the...
But Judge Boardman wrote that in her opinion.
That's true.
The district court
certainly cited the restatement.
I think the district court
took the wrong lessons
from the restatement.
You know, I think if you look at
really everything of the restatement,
the way it frames
what the traditional injury requires,
the, you know, sort of exemplars it gives,
as we pointed out in our reply brief,
if you sort of drop down
to the notes of the exemplars,
one of the notes makes very clear
that internal review of documents
that an entity was allowed
to have access to,
in the sense of...
I don't think anyone is arguing
that the treasury or OPM or education
unlawfully retained or has these records.
The restatement indicates
that that's not shocking,
that's not surprising,
that's not the sort of eyebrow-raising
or highly offensive conduct
that is the sort of lodestar
of an intrusion upon seclusion.
I just also...
I see my time is about up,
so I won't say too much more than that,
but I appreciate your questions.
Thank you, Mr. Starcher.
Mr. Schwab.
Good to have you with us, Mr. Schwab.
Thank you, Your Honor.
Good afternoon, Your Honors.
May it please the Court,
John Schwab on behalf of plaintiffs' appellees.
Defendant's position here is very simple.
It's that neither my clients,
nearly 2 1⁄2 million veterans,
health care workers,
government employees and teachers,
nor any other American citizen
has any ability to stop the government
from sharing their most sensitive information
within the government,
no matter how illegal that sharing may be.
Defendants take that position
despite the fact that in 1974,
Congress passed the Privacy Act
specifically to guard against...
I thought their position was
that they did have authority
to access the information.
I'm sorry, Your Honor?
I thought the government's position
was that they did have authority
to access the information.
That is the government's position, Your Honor.
But their argument is that we don't have standing.
But that would contradict what you just said.
Well, no, Your Honor.
I'm referring to their standing argument.
And at standing, this Court assumes
that my clients prevail on the merits.
And what the government is saying
is that even if we were to prevail,
we can't show an injury from this harm,
and therefore, we can't bring this case home.
Can you take the government to argue
that you can't bring a Privacy Act claim
for damages?
No, Your Honor.
This is not a damages case.
Right.
It's not that your clients can't do anything,
that they can't seek relief,
but they have to seek relief, if at all,
through the means that Congress has provided.
That is correct.
I don't think the government
has argued otherwise, Your Honor.
Can I ask...
I'm just trying to understand
the sort of intrusion of seclusion idea
a little bit,
and sort of understand
where you think the lines are.
Imagine for a minute
that I go to the post office
and I steal a bag of mail.
Or let me make it
my law clerk steals it
because I don't want to steal stuff.
But he steals the bag of mail
and takes it to his house
and puts them all over the table,
but he doesn't open any of the letters.
Do you think that states an injury
for this purpose?
I'm not talking about
whether you can actually recover, right?
But is that an injury
under intrusion of seclusion
from your perspective?
So I think, Your Honor,
I think it would be an intrusion
upon seclusion.
You're assuming that my...
Let's say it's me.
My mail is in there.
Yours and everybody else in this courtroom
and let's just claim
two and a half million other people.
It's a big bag.
So I don't think that there is a...
there is an intrusion upon seclusion.
I don't think there's a privacy interest
when I put a piece of mail in a mailbox.
However...
And what...
Just help me understand.
So in that instance,
I take you to be saying
there's no intrusion into...
Even though he has the piece of mail
and it's sitting on his table,
it's closed.
You agree that's not the type of injury
that would qualify under transunion
for intrusion of seclusion?
I don't think transunion
actually addresses intrusion upon seclusion.
It's asking about the nature of the injury.
I'm trying to get away from the cause of action.
Could he recover in state court?
I don't...
Does it bother me?
What I'm trying to ask
is it the type of injury
that would satisfy transunion's analogy task?
I don't think so, Your Honor,
because, again, I don't...
I think that when you are
simply placing a piece of mail
into that...
into your post office box
outside your house,
I don't think you have
the expectation of privacy.
Now, if he had taken it from my...
OK.
PO box, I would say yes.
And so...
But that's true
even though he now has unfettered access
to your mail, right?
So he has unfettered access.
You've written a love letter to your wife
and he has that unfettered access to it.
It's sitting on his table.
He's chosen not to open it and read it,
but that wouldn't be the type of injury.
What happens if he does open it?
So imagine he takes it from the post office,
same bag of mail,
brings your letter out,
sort of at random,
puts it on the table,
opens it up and reads it.
Yeah.
I think if the...
If what's inside of that
is private information,
let's say it's my private financial information
or a letter to my lawyer
about some issue,
then yes, he's invaded my privacy
when he has done it.
And that's the type of injury
that would qualify.
I think that is a type of injury
that would qualify.
What happens if you're, like,
sophisticated in discussing things
with your spouse
and you write it in code?
You use, like, cryptography, right?
And so you've written the letter
and it's very private details,
but you've written it
in sort of cryptographic means.
Same other hypothetical applies.
Is that the type of injury?
No, I don't think so.
In fact, Your Honor,
what I would say is here,
you know, there's record evidence.
That's not the type of injury?
But before you go to the record,
I'm happy for you to talk about the record.
But this is hypothetical.
I'm not trying to...
This isn't the record, right?
Obviously there are no letters.
There's no cryptographic code
that I'm aware of.
But tell me why you think that is not?
That would not be intrusion.
He has opened your private mail.
He has pulled out the letter to your wife.
He's not able to understand it.
But in your view,
that would not be intrusion?
That would not be an injury
sufficient to bring an intrusion
upon seclusion claim?
I'm taking the assumption to be
that that is some kind of cryptography
that is not breakable by him or anybody else.
It's just between me and my wife.
And so what I'm saying is no.
He has no access
to my personal information there?
Even though he's opened your mail?
So your view is that this claim
is solely about the information.
It's not about the intrusion at all?
Well, it is about the intrusion
because it's the intrusion
where that information resides.
What about if instead...
And I'll stop with hypotheticals in a minute.
But what about if instead
after you write the letter to your wife
and it's not in code,
it's just a letter to your wife,
and my law clerk finds it in the trash
or in a cafe,
and he opens it up.
It's not sealed.
It's just the letter itself.
He reads the letter
and it includes all the information from before.
Is that the type of injury that would qualify?
I don't know what my privacy expectation
would be in that instance
because I threw the letter away.
OK.
So I would say no.
No.
So no injury there.
All right.
And that's true in your mind
whether it's in the garbage
or if it's just left sitting on the cafe table.
Again, I don't know what...
Where I just say like I've read the letter.
I'm done with it.
And I leave it on the cafe table.
It's the same thing.
It's not about the garbage.
OK.
And tell me why you think that's no injury.
I understand you may not recover, right?
So that's a different question
as to whether you could recover under the tort.
But why is that not an injury in the same way?
Because you just suggested
in the previous hypothetical.
I'm just trying to understand your lines here.
In the previous hypothetical,
you said it's just about the information, right?
Because it was in code.
That doesn't count.
But here he's got all the information.
He's read everything that you've said.
Right.
So the line that I'm drawing here, Your Honor,
is a simple expectation of privacy line.
So I've taken something.
I've bundled it up.
I've sent it to my wife.
I haven't expected anyone else to see it.
If I read something and I leave it on the table
and I walk away...
Your wife has abandoned...
In other words, what you're saying
because your wife has abandoned it...
Or I have, yeah.
Or whoever...
I misunderstood the hypothetical.
Right.
Somebody abandons it because...
It makes no difference from my perspective, I don't think.
But it's been abandoned.
In that context, you think there's no injury to you.
I don't think there's an expectation of privacy,
so there is no privacy harm.
All right.
Let me make one variation
on Judge Richardson's hypothetical.
So you've written the letter.
His law clerk has stolen it.
But you've written the letter in German.
And the law clerk doesn't speak German,
can't read German, has no idea what it says.
Is that an intrusion upon seclusion at that point?
I would argue that that is, Your Honor.
Although I think that's a very close call.
And I'll tell you why I'm drawing a difference
between that and the cryptography example.
The cryptography example I understood to be one
in which it couldn't be broken.
So you've got something,
but there's like a lock on the words.
And I apologize to Judge Richardson's law clerk.
You shouldn't apologize to him.
I don't.
Fair enough.
But still my apologies.
He could easily turn perhaps to another one of the clerks
who does speak German and have that translated.
The information is easily accessible,
just he has to take one additional step.
Okay.
So I'd like to turn to where the government started as well,
which is the Gary case.
And I understood Mr. Starcher to be arguing that,
to be conceding, first of all,
that the Gary plaintiffs,
there were two plaintiffs, Gary and Hatch,
that the Gary plaintiffs had amended their complaint
so that they were not proceeding on a claim of use
when they came before the Fourth Circuit.
And that's correct.
In fact, what this court says in Gary
is that having abandoned that theory of liability,
they cannot then use that to justify standing.
That is in the opinion.
And we therefore think that those Gary plaintiffs,
not the Hatch plaintiffs,
this court found Article III standing for them
based solely on the defendants there
obtaining their information,
which in that case was their home addresses.
Now . . .
Well, that's partially correct.
They did obtain the information,
but it was information,
and the rationale there was
that it was information obtained
for an impermissible purpose in violation of law.
So even if we were to accept that view of standing,
if the government prevails on its,
for instance, need to know
in order to perform the functions of their job
aspect under the Privacy Act,
would that then counteract a finding of standing?
Because they've obtained it for a permissible purpose,
theoretically.
Well . . .
So, Your Honor, yes.
I think the answer is yes,
that if we conceded here,
which we do not,
that they had obtained it for a permissible purpose,
then that would not fit under Gary,
but that is not what we have alleged.
And again,
this court assumes that we're going to prevail
on the merits simply for analyzing standing.
And if we're going to prevail,
they won't show that they had a need to know
or that a routine use applied,
and our clients would then be injured
by the mere obtaining of the information
exactly as in Gary.
But that seems to read out
part of the specific finding in Gary.
I don't agree with that, Your Honor.
I think that . . .
Because it's all in one line,
followed by the phrase
obtained for an impermissible purpose.
So there wasn't a segregation
between simply obtaining it
and obtaining it for an impermissible purpose.
But the line is,
the quote from the Gary complaint
is that they had alleged
that it was obtained for an impermissible purpose.
My clients have alleged the exact same thing.
What was the impermissible purpose in Gary?
The impermissible purpose in Gary
was to use the home address . . .
Marketing.
For unsolicited mailing.
Marketing.
I believe so, Your Honor,
or that kind of outreach.
And that's the point of Gary, right?
It's the marketing that's the intrusion.
It's not the information itself.
I disagree that that's the point of Gary, Your Honor.
And in fact, Krakauer says
that what we are to look to,
what this court is to look to,
is whether or not the statutory violation
protects the same types of harms,
the same types of harms,
as a common law tort.
And what the issue in Gary is,
is for those plaintiffs,
is obtaining.
They didn't allege.
They didn't seek.
They didn't say they were harmed by use.
They said they were harmed by the obtaining.
And this court found enough there
to make a concrete injury sufficient
for Article III standing.
And the same has to follow here.
So just to be clear,
is it your view on standing
that obtaining the material,
even for a permissible purpose,
is sufficient to grant a plaintiff standing?
Obtaining a material for . . .
I mean, that seems to be what you're arguing,
but I'm a little confused here.
Okay.
So I'm not arguing that.
What I am arguing is obtaining material . . .
What I am arguing is that
the unauthorized obtaining of anyone's
personal private information,
which they have a legitimate privacy interest,
is sufficiently analogous
to the tort of intrusion upon seclusion
to satisfy Article III.
That is what I am saying.
But if there was a permissible purpose,
then there could not be a tort of intrusion upon seclusion.
But not in this fact pattern, no.
Can I ask you a question?
I hate to distract you a little bit,
but I don't hate it enough not to do it.
With the Privacy Act,
so moving to that claim, right,
the sort of issues like
do they have a need for the record
and the performance of their duties?
Do you read the Privacy Act in any way
to limit the scope of the duties
of a government employee?
No, Your Honor, I don't.
Okay.
And so what I'm trying to understand a little bit
is whether the breadth of the duties
informs the need.
Just in the abstract.
I'm not talking about this case in particular,
but you could imagine the scenario
that is a narrow duty
and that would make it difficult
and require great specificity
to show the need for that very specific duty.
And in the other hand,
you could envision a broad duty or mandate
that is open-ended
and thus requires less specificity.
Okay.
I'm not sure that I have a view
as to whether either one would necessarily
impact the Privacy Act
because I think what it would impact
is the analysis, Your Honor,
of the question the Privacy Act asks
on the need-to-know basis,
which is could, does the employee
need that particular piece of information
to do their job?
And how does it affect,
in your view, how does it affect the analysis?
You said it affects the analysis.
Yes.
In what way?
Because, Your Honor,
a broader analysis might,
sorry, a broader duty
might require a different showing
to show why this employee
or a set of employees
needed that information
in order to perform that particular function,
whereas a very narrow one
might require some different showing.
So what in your view here
should the government have been required
to show to meet the need-to-know requirement?
I think the government was required
to show why each individual
to whom it was granted access
under this policy
to grant access to all DOJ affiliates
needed access to my client's PII
in every single one of these databases
because, again,
they were granted access
to every single database.
So did they need to,
in your view,
did the government need to
give the district court
the algorithms that they proposed to use
to carry out their searches?
Or what...
I'm having difficulty understanding
the degree in which
a trial court or our court
is permitted to get into the weeds
of these sorts of things
beyond what the government represented here.
So maybe you can help with that.
Sure.
So I think obviously it would depend
on a case-by-case basis
the exact specifics.
But here what the trial court found
correctly
is that there is no basis
at all in the record
for a need to know.
And quite frankly,
in none of the briefs
the government has set forward,
have they set forward
a cogent explanation
for why each of these individuals
needed to know my client's
personally identifying information
in order to modernize technology.
They haven't even attempted it.
Why is this...
So imagine for a minute
that I read...
Let me give it a hypothetical, right?
So we'll stay away
from the particulars, right?
So imagine that I issue a mandate
to the local library
and I tell them that
I want them to hire my law clerk
to come in
and I want him to modernize
and improve the efficiency
of the local library.
But I don't tell him in what way
or how to do that.
It strikes me
as the natural read of that
is that there's a host of things
that he might do,
but he doesn't know
what he needs to do
until he gets there.
It might be that
they're not using the Dewey Decimal System.
It might be that
they don't have enough stacks on the board.
It might be that
their staffing is a problem.
It might be they're not using
enough online services, right?
But until he gets in the library,
it's really difficult to know
what he needs to do
to help improve the local library.
And so this broad mandate
to improve the library
includes the preliminary step
of determining what needs improving,
what the limitations are.
And so I guess
I'm having a little trouble
understanding in that hypothetical
where it might be staffing,
it might be online services,
it might be the organizational system
or the Dewey Decimal System.
How an employee is supposed to do that?
How am I a law clerk
supposed to do that?
If he's told on the front end
he can't go in the library.
Like you can't look at the books.
You can't determine the staffing.
You can't ask
what the online services are.
How is he supposed to then determine
what it is that needs to be updated,
modernized and improved?
I'm not sure, Your Honor, honestly,
that that hypothetical
maps at all onto this.
Totally understand,
but answer the hypothetical first, right?
So how is he supposed to know
in my hypothetical?
It's a hypothetical.
The nature of a hypothetical
is it might not match the facts.
I understand that
and I'm happy for you to explain
why you think the library is different.
But in my hypothetical,
how is my law clerk supposed to know
on the front end
whether he needs access to the staffing
or he needs access to the subscribers
or users of the library
until he has some idea
of what the problems are?
And to know what the problems are,
he has to be able to go in the library.
He has to go look at the books.
He has to talk to the staff.
I understand, Your Honor.
What I would say is
I think it depends.
So if there was a duly enacted
piece of legislation by Congress
that said you can't look at the books
when you go in there
and he couldn't look at the books
and he would have to figure out
a different way to do that.
OK.
And what I'm asking is...
So what's the irreparable harm here?
OK.
I'm sorry.
Can I finish with this question first?
Go ahead, Mr. King.
I apologize.
So what is...
So back to my hypothetical.
I understand you want to go to
a different hypothetical, right?
But what I'm asking is
how is my law clerk supposed to know
what he's supposed to do in the library
to improve it,
to make it better for all the patrons
if he can't go in the library, right?
In other words,
he needs access to the library
and the staffing
in order to determine
what needs to be done, right?
How is he supposed to know
how to improve the library
without access to the library?
That's what I'm asking.
Sure.
One thing he could do
is he could ask the librarian
what issues should I look at
and what issues may I or may I not look at
and the librarian could tell him.
Because he's being sent in
to a library that's fundamentally broken.
That's the problem he's got.
And so asking the person
who's running the library that's broken
how to fix it
isn't naturally the best way to resolve it, right?
Like we don't typically say
this restaurant's failing, right?
It's in bankruptcy.
You know what we should do?
We should ask the bartender how to run it, right?
No.
Like we bring people in to evaluate it
not to take the word of the people
that have run it into the ground, right?
So I'm back to my question
of how is he supposed to do it
without access to the library?
So, Your Honor, in your hypothetical
in which no law prevents him from doing that,
he can't trust anyone there,
he can't ask anyone,
he can get no other information,
he does need to walk into the library
and look around.
Now, can you just, in the final,
tell me why that's different here
just so I understand your argument,
why you think this is not the scenario
where my law clerk is walking into a system
that, at least according to our elected officials,
is fundamentally broken
and needs to be modernized and improved
and he needs to know what needs to be done.
Yes, Your Honor.
I did note that I was past time.
I just want to make sure I'm OK doing that.
As long as you get questions, you answer them.
OK.
I was just warned about the red light.
OK. Thank you, Your Honor.
So the difference in my view here
is the Privacy Act
because Congress passed the Privacy Act
it's very clear what their concern was
and the concern was to bring it into the library.
You can't come in and look at these books
unless each author says
you have my permission
unless an exception applies.
That's the rule.
And one of the exceptions is what?
You need to know.
And you just said my law clerk
needs to know those things in the library.
Correct.
And why does he not need to know it
when he's going in to try to figure out
a fundamentally broken government agency?
Because to look inside the book
to read each and every book
he has to justify why
he needs to read the book
to figure out why the library's not working.
And that's what's happening here.
They're looking at our clients
personally identifiable information
without any basis, without any need to know.
And in fact, in OPM, they admitted
that they gave them access to databases
that they didn't need to.
They just gave, they opened up
every filing cabinet in the government
and said you can look.
You say they look
without any need to know.
But they have to know something to look.
They have to know a name
or have a social security number
or something to look?
If they want to look at my record,
do they need to know my name?
If they want to look at your record,
they need to know some way
to look at your record.
How will they find me?
I think maybe Judge Richardson
described one row of various databases
that are millions and millions of rows long.
But to find a particular person,
do they need to know a name?
They need to know a social security number?
A military serial number?
So two different answers to that, Your Honor.
If they're going in simply looking at the data,
and they see Judge King,
they will see your name.
Without a need to know, they're looking.
That's what you're saying.
Right.
They want to look at Judge King.
All right.
What do they have to do?
Just put in Judge King and look?
Well, if they want to look at you, yes.
But they also could simply open up the database
and say, oh, that's interesting.
Here's Judge King's financial information.
What can they look for Judge King?
They find everything about me?
Well, if you're in those databases,
they could find out your social security.
If you're in all of the databases,
your social security information,
your financial information,
your family's financial information.
That's what I want you to get after.
And social security numbers?
Social security numbers.
Serial numbers in the military?
Serial numbers in the military.
Your pay, your financial information.
Your bank records.
There's health and medical records.
There's mental health records for the veterans
and so on and so forth.
And you've got veterans that are plaintiffs with you.
I'm sorry?
You've got some veterans that are plaintiffs with you.
We have named veterans.
But they can find about every veteran.
Yes.
Medical records.
Yes.
And they do that without a need to know
is what you're alleging.
That is the harm that we are alleging
and that it is ongoing.
Right, you're saying it's ongoing
and the preliminary injunction has been stayed
and they're looking now.
That is correct.
At anybody's records is what you're saying.
That is what I am saying.
And as a result of that
whatever happens here today
it doesn't end this lawsuit.
No, Your Honor.
You haven't finished discovery yet
or haven't done any discovery yet.
We have not, Your Honor.
Then there's a permanent injunction issue.
And there's a related case now
pending in the Supreme Court.
Yes, Your Honor.
We have a motion or an application for a stay
pending appeal.
And do you...
I'll ask whether you agree
that that could have an impact on what happens here?
You mean if the Supreme Court
were to take that application and make a ruling?
Well, whatever they do.
Yes, I think it should happen.
I think it would.
I think the cases are very closely related
as Judge Richardson said in his dissent in that case.
Well, Judge Richardson said it's a twin.
And I don't agree with him that it's completely a twin.
That twin might be related.
Maybe brother or something.
I just said related, Your Honor.
But closely related I think is fair.
But that could have an impact on this proceeding.
Yes, Your Honor.
These proceedings.
Yes, Your Honor. I think they could.
Now and hereafter.
Yes, Your Honor.
Can I just ask one procedural question
that didn't occur to me
until Judge King started asking?
I know I could look at the docket,
but I get to ask you instead.
Where are we in the permanent injunction proceeding?
Has that proceeding begun?
Is discovery ongoing?
Is that being held pending this matter?
Can you just update me from a procedural perspective?
The case has been stayed.
There is no discovery.
Has it been formally stayed
or is this like a pocket stay?
Not sure.
Your Honor, I don't know the answer.
I think there's an agreement.
I think there's an agreement
that nothing's going to happen
until 30 days after this appeal is resolved.
We had a stipulation about discovery.
A stipulation or something.
There's something in the record that I read
that refers to 30 days later.
We did stipulate that.
I didn't know that the court.
I couldn't recall the court.
So that was a stipulation in the district court
with regard to further proceedings
on the permanent injunction?
Yes, Your Honor.
Okay.
Is there no further questions?
Thank you very much, sir.
Thank you.
Good to have you.
Mr. Starcher.
Thank you, Your Honor.
Just 4 short points to you on standing
to you on the Privacy Act merits.
So starting with Gary,
I do just want to highlight the parts.
Let me ask you something.
Is this case going to be mooted
by Dodge finishing its work?
I said there's a reference to 4 to 6 weeks
is all it's going to take.
If they finish their work,
would that moot this litigation?
I guess.
I mean, are we wasting time here?
No, no, certainly not.
I mean, I guess conceivably at some point,
you know, the work could be finished.
But I think as represented in...
We'll waste time for that reason.
We may be wasting time for some other reason.
I think as represented in the government's briefs,
Dodge needs this access to do its work.
And so the work is not going to be completed
or certainly not all of the tasks
that these individuals...
I read in the newspaper
that the Dodge guy runs it and quit.
So the individuals who are...
Musk, Mr. Musk.
Right.
So the individuals who are subject of this injunction
have not quit.
I think some of them are SGEs
whose time might be coming up soon.
I think it's 130 days.
So we still have a little bit.
But the executive order refers to...
I can't remember how many months.
But it puts the sort of conclusion
of the Dodge work at July 2026.
So we still have a long time
until the sort of modernization
that is contemplated and directed.
The plaintiffs have an alleged mootness
and there's been no finding in that regard.
In fact, it hasn't come up.
Sorry.
So there's been no allegation that it's moot.
There's been no finding that it's moot.
Right.
It's simply not been raised
in the district court or here.
That's right.
And if...
That's right.
That's another basis.
I agree with that.
I agree 100% with what Judge Aziz said.
I'm asking you for your...
Yeah.
I don't see that this would become...
I'm referring to that 4 to 6 weeks
that's in the record here.
And I would...
And I can give you the page number
and the page if you want.
I can paint 16 or something like that.
That's OK.
Again, I think, you know...
The court won't paint 16
of the district court opinion.
I don't have the...
I can look at it.
But, you know, the executive order
that's the basis of all of this
makes clear that this effort goes on
until July of 2026, I think,
is when the timing ends.
And again, as we've represented,
a lot of this work is held up
or was held up precisely because
this access had been interrupted.
But just...
I want to ask a question
that was sort of asked to opposing counsel
with regard to the pending appeal
on the Supreme Court
that relates to the social security
administrations also from this court.
Of course, the Supreme Court may just say
we're not going to take it up.
But they could also say, you know,
we're granting a stay in this case
pending further appeal
or they could deny it.
And if either...
If they either granted it or denied it,
what effect would that have
on the termination of this case?
Sure.
So no direct binding precedential effect.
But I think particularly
if the court were to grant the stay in that case,
I think that would strongly indicate
that this panel on the merits of the P.I.
should rule in our favor for the following reason.
We are the applicants.
Wouldn't that depend on whether...
like if they explain themselves?
I mean, one of the challenges that we get there.
They deny it.
They may deny it
because they don't think it's cert-worthy.
If they grant it, absent an explanation,
it's hard for us to know exactly what it means.
If they give us an explanation,
if they said, for example,
there's no standing in that case,
well, that would obviously inform a great deal.
But it seems like to me
it would depend a great deal
on what was done
and to what degree there was an explanation provided.
I guess I agree to some extent.
I think if the court grants the application,
we, as the government,
bear the burden of showing our entitlement
to the extraordinary relief
of a stay pending appeal.
That means that in front of the Supreme Court,
we have the burden of showing
our likelihood of success
and the balancing of the equities in our favor.
So if the court grants us our stay,
the Supreme Court, I should say,
grants the stay,
they must have found
that we showed to a high degree of certainty
that we were likely to succeed
on the merits of the arguments
that we're making in the Supreme Court.
And if you look at the Supreme Court filing,
the standing final agency action,
all of the arguments match
really almost identical
to the arguments we're making here.
And so I don't see how if they grant the stay...
But neither you or opposing counsel
are asking us to hold this case in advance.
No, and I see my time is up.
You answered questions.
Yeah, no.
We think that you can resolve this case
based on the precedent of this court and others,
and we don't expect, you know...
We feel confident that the Supreme Court
will agree with us,
but we don't think you need to wait for them.
Can I ask, with the judge's indulgence,
you said you had 4 points.
Can you make them quickly
so I can just understand what you were responding?
We didn't give you much of a chance to talk,
but what are the 4 points that you're trying to...
I can go really quickly.
The first was the part of the Gary decision
that we were discussing earlier
was from a portion of that opinion
finding that there was no standing
to seek an injunction in that case.
This is a case exclusively about an injunction,
no damages,
so that's sort of a strange place to put reliance.
I'll skip over 2 in the interest of time.
On the Privacy Act, just 2 quick points.
Just at Treasury alone, I asked them,
hundreds of employees have access to these systems.
Prior to this, these are not DOJ people,
these are just employees of Treasury
who have access to these systems for lots of reasons.
The implication of this case
is that suddenly every single one of those decisions
is subject to some sort of specific
need-to-know judicial supervision
that's never happened before
and we think is not consistent with the Privacy Act.
And then finally, to your hypothetical
of the sort of library hypothetical you were giving,
we don't rely on the declarations
submitted to the district court
because those aren't in the administrative record,
but I would just direct you,
if you're interested, to the Krauss Declaration
which is docket number 27-1
is discussing the need-to-know in Treasury
and it looks a lot like,
what he's describing is a lot like that hypothetical
of we need to know what we don't know
to figure out how to modernize these systems,
which is pretty broad.
Can I ask one more?
We gave his colleague a few minutes.
I take the government here has not challenged
the preliminary injunction bond.
It was set at $10,000.
I'm not sure how that relates to the cost
or damages that would result,
but you haven't raised it,
so I'm not trying to.
The question I have is,
do you think that that amount,
which seems low given the things
that are at stake here,
that that low injunction bond
affects the irreparable harm discussion
that we should be having?
No.
I haven't thought through this.
My initial reaction is,
it might have at this stage of these proceedings
where we, the government,
were seeking a stay
and therefore we bore the burden.
Under McKeon, it might affect it.
But now we're looking at
the district court's conclusions
about the plaintiff's showing
of irreparable harm.
But why would it be
at the back end of winter,
which is sort of the balance of equities
when we're looking at the government's harm
and we're weighing that
as against the plaintiff's potential harm,
that when we're doing that balancing
or that weighing at three and four,
sort of together here,
that we would consider the sort of
paltry sum that was issued as an appeal bond
in considering that balance?
In other words,
the district court's conclusion
that that amount was sufficient
suggests that the harms
the government suffers here
are not high?
Correct.
And that if in fact
it turns out that the court is wrong,
that the government is unlikely
to be fully compensated
based on the small bond amount?
Sure.
I mean, we haven't made that argument
and as you know, we haven't sort of challenged.
I know we asked,
I believe we asked for significantly more
probably in district court.
I don't have the number in front of me,
but I certainly agree that,
you know, as other cases have recognized,
the government is sort of in a unique position
where when it is enjoying
from doing things that are legal,
it suffers unique and difficult
to recompense harms
for every sort of day
that it's enjoying from executing
otherwise lawful conduct.
Thank you.
Thank you, Your Honor.
Thank you, Mr. Starcher.
One of our traditions here in the Fourth Circuit
is that at the conclusion of each argument,
the judges leave the bench
and come down and dwell in the court
and re-counsel.
And we will do that.
Madam Clerk, you may adjourn the court.
Sign a die,
and we will go down and re-counsel.
This honorable court stands adjourned
until tomorrow morning.
God save the United States
and this honorable court.
