In re TRW, Inc.

• Decision Date: 06 November 1978
• Docket Number: 78-334.,Misc. No. 78-330
• Citation: 460 F. Supp. 1007
• Parties: In re Subpoena Duces Tecum to Testify Before Grand Jury Directed to TRW, INC., With Regard to Linda Woods, et al.
• Court: U.S. District Court — Western District of Michigan

460 F. Supp. 1007

In re Subpoena Duces Tecum to Testify Before Grand Jury Directed to TRW, INC., With Regard to Linda Woods, et al.

Misc. Nos. 78-330, 78-334.

United States District Court, E. D. Michigan, S. D.

November 6, 1978.

James K. Robinson, U. S. Atty., by Harold Z. Gurewitz, Asst. U. S. Atty., Detroit, Mich., for plaintiff.

Keywell & Rosenfeld by Stephen E. Handelman, Sidney L. Frank, Troy, Mich., for defendant.

OPINION

FEIKENS, District Judge.

On June 20, 1978, TRW, Inc. (TRW), a consumer credit reporting agency subject to the provisions of the Fair Credit Reporting Act, 15 U.S.C. § 1681 (F.C.R.A.), was served with a subpoena duces tecum requiring it to appear before a federal grand jury in this district and to produce the credit records of seven named individuals. TRW promptly moved to quash the subpoena on the ground that it could not comply without violating the provisions of the F.C.R.A. The parties agreed to postpone TRW's appearance before the grand jury until its motion to quash could be decided.

F.C.R.A. allows a consumer credit reporting agency to furnish credit information to third parties under the following circumstances:

A consumer reporting agency may furnish a consumer report under the following circumstances and no other:

(1) In response to the order of a court having jurisdiction to issue such an order. (emphasis supplied)

(2) In accordance with the written instructions of the consumer to whom it relates.

(3) To a person which it has reason to believe —

(A) intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer; or

(B) intends to use the information for employment purposes; or

(C) intends to use the information in connection with the underwriting of insurance involving the consumer; or

(D) intends to use the information in connection with a determination of the consumer's eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant's financial responsibility or status; or

(E) otherwise has a legitimate business need for the information in connection with a business transaction involving the consumer.

15 U.S.C. § 1681b.

Both parties agree that the grand jury is not seeking the subpoenaed materials to further any credit-related commercial purpose, 15 U.S.C. § 1681b(3). The narrow issue in this case is whether a grand jury subpoena is a court order within the meaning of 15 U.S.C. § 1681b(1).

TRW argues that it cannot comply with the subpoena unless it has been authorized to do so by a specific order of a federal judge. This argument assumes that the grand jury is essentially an arm of the office of the United States Attorney requiring judicial intervention to render its subpoenas "court orders" within the meaning of F.C.R.A. In direct opposition to this approach the government submits that the grand jury is an arm of the federal judiciary which can issue enforceable subpoenas without the imprimatur of a federal judge. According to the government the grand jury is best able to determine whether a subpoena is necessary or reasonable and, since it is part of the federal judiciary, further intervention by a federal judge would be redundant.

As the federal judges concluded in deciding In Re Miscellaneous Grand Jury Proceedings, Misc. No. 6366 (C.D.Cal. Jan. 13, 1978) and In the Matter of Subpoena Duces Tecum to Testify Before Grand Jury, No. 77 Misc. 29 (E.D.Mo. March 22, 1977), so I am persuaded that the government's analysis in this regard is correct.

A federal grand jury is a judicial body which is created and functions because of the Fifth Amendment to the United States Constitution. No person may be accused of a federal crime, without consent, except by a federal grand jury. A federal grand jury comes into being only through the actions of a federal court. It is empanelled by a federal judge, usually the chief judge of the district in which it sits. Grand jurors so empanelled are carefully instructed as to their powers and duties by a federal judge. They are advised...