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Lockheed Martin IMS Corp. v. New York State Department of Family Assistance

Citations: 256 A.D.2d 847; 681 N.Y.S.2d 656; 1998 N.Y. App. Div. LEXIS 13574

Court: Appellate Division of the Supreme Court of the State of New York; December 16, 1998; New York; State Appellate Court

Narrative Opinion Summary

The case involves a private corporation challenging a decision by the Office of Temporary and Disability Assistance (OTDA) regarding the disclosure of information under the Freedom of Information Law (FOIL). The corporation, which had submitted a proposal in response to a Request for Proposals (RFP) issued by the New York State Department of Family Assistance for a child support payment system, sought to prevent the disclosure of certain technical and cost information, arguing that it was protected under FOIL exemptions for commercial or financial information. However, OTDA denied most of the exemption requests, leading the petitioner to file a CPLR article 78 proceeding to annul OTDA’s determination. The Supreme Court dismissed the petition, ruling that the petitioner had waived its right to claim an exemption by failing to request it when the proposal was submitted. The court highlighted that under FOIL, agency records are generally open to the public unless a narrowly construed exemption applies. The proposal submission conditions clearly indicated that confidentiality could not be guaranteed, and any exemptions needed to be identified and justified upon submission. Consequently, the appellate court affirmed the dismissal of the petition, holding that there was no merit in the other claims presented by the petitioner, and the judgment was affirmed without costs.

Legal Issues Addressed

FOIL Exemption for Commercial or Financial Information

Application: The petitioner sought exemption from disclosure under FOIL, claiming that the release of certain information could harm its competitive standing.

Reasoning: Petitioner sought protection from disclosure, citing the FOIL exemption for commercial or financial information that could harm competitive standing.

Presumption of Openness under FOIL

Application: The court emphasized that records held by public agencies are presumptively open under FOIL unless a valid exemption is claimed.

Reasoning: The ruling emphasized that under FOIL, public agency records are presumptively open unless exempted, and exemptions must be narrowly construed.

Proposal Submission Conditions and Public Interest

Application: Petitioner was informed that proposals would become property of the Department and could be disclosed if deemed in the public interest, requiring identification and justification of any exemptions.

Reasoning: The RFP explicitly stated that proposals would become property of the Department and could be disclosed if deemed in the public interest.

Waiver of FOIL Exemption Rights

Application: The court found that the petitioner waived its right to a FOIL exemption by failing to request it at the time of proposal submission.

Reasoning: The Supreme Court dismissed the petition, ruling that petitioner waived its right to exemption by not requesting it at the time of the proposal submission.