Exxon Shipping Co. v. United States Department of Interior

Exxon Corp. and Exxon Shipping Co. (“Exxon”) appeal the dismissal of their complaint against five federal administrative agencies and their employees seeking to compel discovery. Exxon made the discovery requests as part of its defense in an underlying damage action arising out of the Exxon Valdez oil spill.

The government instructed eight federal employees not to submit to depositions and restricted the testimony of two others. Exxon contends that the government’s action violated the Federal Housekeeping Statute, 5 U.S.C. § 301 , and the Administrative Procedure Act (APA), 5 U.S.C. § 706 (2)(A). The district court found that § 301 authorized the agencies’ actions, and that the actions were not arbitrary or capricious under § 706(2)(A). We reverse and remand.

I.

In 1989, commercial fishermen, landowners, local governments, businesses, and others sued Exxon seeking compensatory and punitive damages for injuries they allegedly suffered as a result of the Exxon Valdez oil spill. SeaHawk Seafoods, Inc. v. Exxon Corp., No. A89-0095-CV (D. Alaska); Exxon Valdez Litigation, 3AN-89-2533CI (Alaska Sup.Ct.).

Between June and November 1992, Exxon issued a notice of deposition and…