Gc Micro Corporation v. Defense Logistics Agency

Appellant GC Micro Corporation brought an action under the Freedom of Information Act (“FOIA”), 5 U.S.C. § 552 (a)(4)(B), challenging appellee Defense Logistics Agency’s (“the DLA”) denial of access to certain records that the DLA maintains regarding the utilization, of small disadvantaged businesses by federal defense contractors. The district court granted summary judgment in favor of the DLA, finding that the DLA properly withheld records under 5 U.S.C. § 552 (b)(4) (“FOIA Exemption 4”), which allows the withholding of government documents where disclosure would likely result in substantial competitive injury to private businesses. GC Micro appeals the district court’s decision. We have jurisdiction pursuant to 28 U.S.C. § 1291 and we reverse.

BACKGROUND

GC Micro is a small computer software and hardware distributor based in Novato, California. The owner and chief executive officer of GC Micro, Belinda Guadarrama, is a woman of Mexiean-American descent. GC Micro therefore qualifies as a “Small Disadvantaged Business” (“SDB”) within the meaning of the Small Business Act, 15 U.S.C. §§ 637 (a), 644(g) — i.e., it is “owned and controlled by [a] socially and economically…