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02/19/2019

Cause of Action Institute Sues VA for Failing to Release Documents Concerning Tomah Medical Center

2017 Pharmacy Malfunction Could Have Put Veterans Lives At-Risk

Washington, D.C. (Feb. 19, 2019) – Cause of Action Institute (CoA Institute) today filed a lawsuit against the U.S. Department Veteran Affairs for failing to properly respond to a Freedom of Information Act (FOIA) request relating to the scandal-ridden Tomah VA Medical Center. The FOIA request, filed more than a year ago, concerned pharmacy operations that could have put countless veterans’ lives at risk.

John Vecchione, president and CEO of Cause of Action Institute:

“Our nation’s veterans deserve the utmost care and respect, and news reports of the Tomah VA Medical Center’s pharmacy center distributing potentially spoiled medicines are deeply concerning. Our veterans and taxpayers demand full transparency about existing and previous challenges concerning this facility and the services the Tomah VA provides to our veterans. Cause of Action Institute is dedicated to exposing corruption and holding government officials accountable, and ensuring our veterans receive the care, concern, and respect they deserve.”

Background:

In 2018, Cause of Action Institute submitted a FOIA request to the Tomah VA Medical Center after news reports indicated the center’s outpatient pharmacy center had suffered a “climate-control malfunction” resulting in temperatures in the facility housing medication reaching “97 degrees for at least an hour.” The high temperatures at the facility led to spoilage of the pharmacy’s medical stock, but VA officials continued to distribute medicine “for about four hours.” CoA Institute submitted a FOIA request for all records concerning the failure of the climate control system, as well as efforts to investigate the improper dispensing of potentially damaged medicines.

In May 2018, the VA Great Lakes Health Care System, which oversees the Tomah VA Medical Center, responded to CoA Institute’s FOIA, but withheld and redacted countless documents. CoA Institute filed a timely appeal on Aug. 6, 2018, explaining that the agency had “improperly relied on Exemptions 3, 5, and 6; failed to segregate non-exempt material from responsible records; failed to meet its burden under the FOIA’s “foreseeable harm” standard; improperly redacted portions of records as “non-responsive”; and failed to conduct an adequate search for responsive records.”

To date, the VA has failed to respond to the appeal despite numerous attempts to remind the agency of its statutory responsibility to respond in a timely manner.

Additional Documents:

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Cause of Action Institute is a 501(c)(3) non-profit working to enhance individual and economic liberty by limiting the power of the administrative state to make decisions that are contrary to freedom and prosperity by advocating for a transparent and accountable government.

Media Contact: Matt Frendewey, media@causeofaction.org 

 

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02/19/2019

Cause of Action Institute Files FOIA Requests for Commerce’s Section 232 Auto-Tariff Report

Washington, D.C. (Feb. 19, 2019) – Cause of Action Institute (CoA Institute) filed two Freedom of Information Act (FOIA) requests seeking a copy of the Department of Commerce (Commerce) Secretary’s final report to the President regarding the Section 232 investigation into the national security impacts of the Administration’s proposed automobile tariffs. The Administration has recently stated that it will not make the report public and has no obligation to do so.  CoA Institute disagrees and filed FOIA requests so that the public can see the report.

“The public has a right to see the Commerce report that purports to justify the Administration’s escalating tariffs, which are nothing more than taxes on American consumers,” said CoA Institute Director of Investigations Kevin Schmidt. “A 25 percent tariff on imported cars and automobile parts will harm American consumers and businesses and is likely to provoke retaliation from our trade allies. Cause of Action Institute intends to use all avenues available to ensure that this report is released to the public, including litigation if necessary.”

The Section 232 National Security Investigation of Imports of Automobiles, Including Cars, SUVs, Vans and Light Trucks, and Automotive Parts will provide recommendations for the Administration’s proposal to impose a 25% tariff on imports of cars and car parts. CoA Institute sent requests to both the Department of Commerce and the Bureau of Industry and Security for a copy of this report.

Background:

Documents:

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Cause of Action Institute is a 501(c)(3) non-profit working to enhance individual and economic liberty by limiting the power of the administrative state to make decisions that are contrary to freedom and prosperity by advocating for a transparent and accountable government.

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12/13/2018

Cause of Action Institute Defends Fisheries from New Proposed Rule

CoA shared concerns about financial burden and legality of proposed rule

Today, Ryan Mulvey, counsel at Cause of Action Institute, spoke before the Mid-Atlantic Fishery Management Council (Council) in Annapolis, MD, about an Omnibus Amendment that would create new economic burdens on fishermen. The new rule, if enacted by the federal government, could increase costs on fishermen by as much as $810 per sea day. Mulvey also questioned whether the federal government had the authority to implement the new rule.

Ryan Mulvey issued the following statement:

“The federal government lacks clear statutory authorization to pass the Omnibus Amendment, and this rule could have devastating economic consequences on fishermen. I urged the Mid-Atlantic Council to investigate the serious legal ramifications of industry-funded monitoring schemes, and to protect the economic interests of small-business fishing firms in the Mid-Atlantic regions by asking the federal government to reject the Omnibus Amendment.”

A copy of Mulvey’s written comments for Cause of Action on the rule can be found here.

A blog about the rule and its legal and economic challenges can be found here.

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Media Contact: Matt Frendewey, matt.frendewey@causeofaction.org | 202-699-2018

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11/26/2018

FTC v. Vylah Tec: Magistrate Orders FL AG to Produce 30(b)(6) Witness for Second Time

Court cites improper behavior and objections in first depositions, allows for new deposition in ongoing “Cupo Case”

A Federal District Court ruled partially in favor of Cause of Action Institute’s motion for sanctions against the state of Florida, instructing a Florida assistant attorney general to re-appear for the second time at a new deposition due to the improper and invalid objections made during the first deposition.

“Nobody is above the law. Even lawyers working at the Florida Attorney General’s Office who appear as witnesses in depositions must follow the same rules as any other witness,” said Cynthia Crawford, senior counsel at Cause of Action Institute. “This case boils down to government officials who aggressively used their powers to unfairly crackdown on a family business by using questionable techniques and procedures and then tried to stonewall questions about the case they have brought. We hope the government will be more forthcoming and cooperative in the second deposition as we seek to defend our client and resolve this dispute.”

In August 2018, a Federal Court denied Florida’s motion for a protective order in which it tried to prevent Cause of Action from examining Florida’s role in the raid and prosecution of Vylah Tec LLC. In September, a senior assistant attorney general was selected to sit as the “30(b)(6)” witness for the state of Florida.

The Court ruled that the Florida Office of Attorney General “improperly instructed [the witness] not to answer numerous other questions posed by defense counsel.” In some instances, the Florida Office of Attorney General refused to cite a reason for their objection, as required. The Court also noted that instructions to the witness not to answer on the basis that “the document speaks for itself,” were improper.

As a result, the Court granted the defense a new deposition on limited topics, instructing the State to re-appear.

Parties have until Friday, Dec. 14, 2018, to hold a new deposition.

 

The Vylah Tec case demonstrates the vast power of the federal government and the ability of the Federal Trade Commission (FTC) to use a court order obtained in secret to deny a family-run company due process by swooping in and seizing assets—including the money they need to hire a lawyer and mount a defense. Cause of Action Institute firmly believes a prosperous society allows all individuals, entrepreneurs, and companies an opportunity to succeed, but far too often when facing the FTC, companies or individuals have their livelihoods threatened and must defend themselves against a regulatory authority with near endless resources and no motive to render justice.

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10/18/2018

Cause of Action Institute Files Lawsuit Against Commerce Department for Failing to Release Tariff Exemption Material & Information

Washington, D.C. (Oct. 18, 2018) – Cause of Action Institute (CoA Institute), a government watchdog organization, today filed a lawsuit against the U.S. Department of Commerce for failing to turn over public documents related to trade tariffs and tariff exemptions. CoA Institute first launched the investigation into the tariff exemption process after it was reported that some of the largest steel and aluminum manufacturers in the country had successfully blocked every tariff exemption filed by smaller U.S manufacturing companies.

John Vecchione, president and CEO of CoA Institute, issued the following statement:

“Tariffs manipulate the free market by creating government-controlled barriers that harm hardworking Americans and putting the economic health of our country at risk. We now have a system where the Executive Branch has the power to pick winners and losers. Our investigation seeks to uncover the process by which tariff exemptions are approved and denied, ensure the tariff-exemption exclusion process is free of political and corporate influence, and seek to uncover any communication between government officials and the companies successfully blocking tariff exemptions.”

Background and timeline:

Attachments:

  • Complaint – Cause of Action Institute v. U.S. Department of Commerce, No. 18-2397. Tariff Exemptions
  • FOIA #1 – Request for work calendars of staff and leadership at the U.S. Department of Commerce that may create or influence tariff and tariff exemption policy
  • FOIA #2 – Employee records relating to tariff exemption process, guidance and employees involved in the decision-making process
  • FOIA #3 – Any and all communication between staff and leadership at the U.S. Department of Commerce and companies benefiting from tariffs and those filing tariff exemptions

See also:

About Cause of Action Institute

Cause of Action Institute is a 501(c)(3) non-profit working to enhance individual and economic liberty by limiting the power of the administrative state to make decisions that are contrary to freedom and prosperity by advocating for a transparent and accountable government.

Media Contact:
Matt Frendewey
matt.frendewey@causeofaction.org
202-699-2018

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10/15/2018

Cause of Action Institute Lawsuit Seeks to Overturn DOJ’s restrictive FOIA guidance

CoA seeks to correct the definition of a “record” to prevent federal agencies from unnecessarily redacting public information

Washington, D.C. (Oct. 15, 2018) – Cause of Action Institute (CoA Institute), a government watchdog organization, today filed a lawsuit against the U.S. Department of Justice (DOJ), challenging the Department’s definition of a “record” under the Freedom of Information Act (FOIA). DOJ’s guidance document classifies “records” only as the material requested in a FOIA request. This allows agencies to break a single record into multiple smaller records, redacting information that would otherwise be public and not meet allowable exemptions under the FOIA statute (e.g. releasing a single paragraph while redacting the rest of an email as a “nonresponsive record”). DOJ’s policy unnecessarily restricts public information that should not be redacted.

James Valvo, counsel and senior policy advisor at CoA Institute, issued the following statement:

“DOJ’s FOIA policy and misreading of the definition of a record under FOIA actively seeks to restrict access to public information beyond the scope of federal law. This is poor public policy, and an attempt to undermine laws that require the government remain transparent and accountable.”

Background:

  • The U.S. Department of Justice FOIA guidance document allows the agency, and others that rely on its guidance, to segment unified records into multiple smaller records to avoid disclosure.
  • This case seeks to establish, for the first time, a binding definition of a “record” under the FOIA.
  • Courts have held numerous times that FOIA contains only nine exemptions and agencies may not use “nonresponsive” as a tenth. (for example, personal identifying information, records that pertain to national security, etc.)
  • For more background on the legal issue, click here.

Attachments:

About Cause of Action Institute

Cause of Action Institute is a 501(c)(3) non-profit working to enhance individual and economic liberty by limiting the power of the administrative state to make decisions that are contrary to freedom and prosperity by advocating for a transparent and accountable government.

Media Contact:
Matt Frendewey
matt.frendewey@causeofaction.org
202-699-2018

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09/20/2018

Dennis Cupo Officially Dismissed from FTC v. Vylah Tec LLC

WASHINGTON D.C. In a major victory, Cause of Action Institute (CoA Institute) today, celebrated the decision by a federal district court to dismiss, with prejudice, all claims against Dennis Cupo in an ongoing case, FTC v. Vylah Tec LLC. The Federal Trade Commission moved to dismiss Mr. Cupo from the case after the U.S. District Court Middle District of Florida ruled the FTC had failed to produce any evidence linking him to any alleged wrongdoing and denied the FTC’s motion to re-freeze his assets.

“We applaud today’s decision to dismiss Mr. Dennis Cupo from this case so he can rebuild his life after being unfairly targeted by the government,” said John Vecchione, president and CEO of Cause of Action Institute. “While we celebrate today’s dismissal, the FTC is still casting overbroad nets to freeze the assets of Americans and illustrates the urgent need to reform the agency from the top down.”

After obtaining a secret court order, Vylah Tec, a family-run tech support company owned by Dennis’ brother Robert Cupo, was targeted by the Federal Trade Commission as part of “Operation Tech Trap” because it bore a superficial resemblance to other companies with illegitimate practices. Failing to take into account Vylah Tec’s substantial well-regarded services, the Government sought to shut the company down, depriving thousands of customers of pre-paid technical support services. The FTC aggravated that overreach by implicating Dennis Cupo, for whom the FTC failed to establish any meaningful relationship to the business. Despite this, it took a year of litigation and a court order to motivate the Federal Trade Commission to finally dismiss an innocent bystander from the case.

The case highlights much-needed reform in the FTC due to its aggressive, overbearing, and unfair enforcement process. Cause of Action Institute recently filed more than 15 pages of recommended changes that can read here.

About Cause of Action Institute

Cause of Action Institute is a 501(c)(3) non-profit working to enhance individual and economic liberty by limiting the power of the administrative state to make decisions that are contrary to freedom and prosperity by advocating for a transparent and accountable government free from abuse.

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