LYMAN D. SPURLOCK, Plaintiff-Appellee, v. THE FEDERAL BUREAU OF INVESTIGATION, Defendant-Appellant. No. 94-55506 United States Court of Appeals for the Ninth Circuit D.C. No. CV-91-05602-R Appeal from the United States District Court for the Central District of California Manuel L. Real, District Judge, Presiding Argued and Submitted October 17, 1995--Pasadena, California Before: Procter Hug, Jr., Arthur A. Alarcon, and Edward Leavy, Circuit Judges COUNSEL John P. Schnitker, United States Department of Justice, Washington, D.C., for defendant-appellant. Kendrick L. Moxon, Bowles & Moxon, Los Angeles, California, for the plaintiff- appellee. Filed November 7, 1995 ALARCON, Circuit Judge: The Federal Bureau of Investigation ("FBI") appeals from the portion of the district court's order requiring that the FBI produce certain documents pursuant to the Freedom of Information Act ("FOIA"), 5 U.S.C. section 552, in an action filed by Lyman D. Spurlock ("Spurlock") seeking "all FBI records concerning himself." The FBI contends that reversal is compelled because the district court erred in ordering the FBI to produce documents contained in its investigative files once it determined those documents were properly withheld from disclosure pursuant to FOIA exemptions. We affirm the portion of the order that holds that the documents at issue are exempt from disclosure pursuant to FOIA, and reverse the portion of the order requiring the FBI to disclose exempt information. I On October 15, 1991, Spurlock filed a complaint for injunctive relief alleging that he had filed a request under FOIA for "all FBI records concerning himself," that the FBI failed to produce all documents in response to his request, and that he was entitled to an order directing production of these records. On March 24, 1992, the FBI filed a motion for summary judgment on the ground that the disputed documents were each subject to one or more FOIA exemptions as detailed in its Vaughn Index.[FOOTNOTE 1] The Vaughn Index in this case consisted of the declaration of Special Agent J. Gary Boutwell, and the exhibits attached thereto, which specified in detail the nature of the information withheld, and the FBI's claims of exemption from disclosure under FOIA. Boutwell's declaration explained that the FBI had located four investigative files responsive to Spurlock's request: two were in its Los Angeles office, and two were located at the FBI headquarters in Washington, D.C. Two of the files (LA 72-271 & FBIHQ 72-3383) concerned an investigation resulting from allegations by a third party that Spurlock, along with other members of the Church of Scientology (COS), attempted to blackmail an individual working within the federal court system. The FBI investigated these allegations for possible obstruction of justice charges, and presented its findings to the Department of Justice. The Department of Justice ultimately declined to prosecute. The second pair of files (LA 62-8822 & FBIHQ 63-1970) were opened as a result of a request for FBI assistance in identifying the Church of Spiritual Technology ("CST") from the Bureau of Land Management ("BLM") and a law enforcement agency, in connection with their investigation of a potential trespassing violation. After conducting an investigation, the FBI advised the BLM and the law enforcement agency that the CST was affiliated with the Church of Scientology. Boutwell alleged that these files contained 379 unduplicated pages which referred to Spurlock. After careful review, the FBI released to Spurlock 183 pages in redacted form and 10 pages in their entirety. Copies of the redacted pages, along with a page-by-page explanation of both the redactions and any documents withheld in their entirety, were attached to Boutwell's declaration. Boutwell further alleged that the withheld information fell within one or more of the exemptions specified in 5 U.S.C. section 552(b)(2), (5), 7(C), 7(D), and 7(E) of FOIA.[FOOTNOTE 2] In his opposition to the FBI's motion for summary judgment, Spurlock argued that Joseph Yanny, a former COS counsel, informed the FBI that Spurlock and other COS members had attempted to influence the outcome of COS-related litigation through improper ex parte communications with a federal judge. Spurlock also theorized that Yanny was assisted in this effort by Vicki Aznaran, a former president of the Religious Technology Center, and her husband, Richard Aznaran. In support of this theory, Spurlock submitted, inter alia, portions of deposition and reporters' transcripts from other COS cases. Spurlock further argued that based on the FBI's "deep-rooted prejudice and animus . . . against the Scientology religion and its churches," the FBI used its investigation of Yanny's "knowingly false allegations as to the Church and the [federal judge]" as a "pretext for harassment of the Church, and for gathering and spreading additional falsehoods." Spurlock also asserted, without supporting evidence, that the FBI continued to gather information improperly concerning the BLM inquiry about the Church of Spiritual Technology long after its "investigation" of the BLM matter was closed. The FBI filed a reply, objecting to Spurlock's factual assertions on the ground that they were inadmissible as hearsay. In support of its exemption claims, the FBI also submitted a supplemental declaration executed by Boutwell. At the pretrial conference on April 20, 1993, the district court partially granted the FBI's motion for summary judgment, authorizing the withholding of some of the records under FOIA Exemptions 2, 5, and 7(C), and denying the motion regarding other information ostensibly on the ground that a genuine issue of fact had been raised concerning whether FOIA Exemptions 7(D) and 7(E) were applicable. A bench trial was held to determine whether the remaining disputed documents were subject to FOIA Exemptions 7(D) and 7(E). After the presentation of evidence was completed, the district court requested the parties to submit briefs setting forth their argument. Spurlock filed post-trial briefs, along with a listing of documents which he claimed remained at issue. The FBI also filed post-trial briefs objecting, inter alia, to some of Spurlock's factual submissions. Additionally, the FBI filed a notice of release with regard to page 84 of Defendant's Exhibit 100, explaining that, as a result of a clerical error, certain information had been redacted which should have been released. Finally, the FBI submitted the remaining documents at issue under FOIA Exemptions 7(D) and 7(E) to the district court under seal. On June 8, 1993, the district court ordered the parties to discuss settlement of the remaining issues in the case in light of the ruling by the United States Supreme Court on the scope of Exemption 7(D) in Department of Justice v. Landano, 113 S. Ct. 2014 (1993).[FOOTNOTE 3] The district court also directed the parties to file additional briefing discussing the applicability of Landano to the matter under submission should their settlement efforts prove unsuccessful. On August 9, 1993, the parties filed additional briefs. At that time, the FBI also filed a third declaration executed by Boutwell. In his third declaration, Boutwell alleged that the FBI had reviewed all documents in which an Exemption 7(D) claim was still challenged by Spurlock in light of the standard set forth in Landano, and released portions of five additional pages. Boutwell also explained that Spurlock had provided a privacy waiver from Jeffrey S. Gordon, a COS attorney. As a result, the FBI no longer withheld Gordon's name and information provided by him under FOIA Exemption 7(C). Boutwell's affidavit set forth the justifications, under the post-Landano criteria, for withholding of the identities of, and information received from, "confidential sources" under FOIA Exemption 7(D). On November 30, 1993, the district court issued an order directing that "[j]udgment pursuant to this order shall be entered in favor of defendant." After noting the documents which remained at issue, and stating that it had considered the submissions of the parties on the applicability of Landano, the district court held that "[a]ll the remaining documents are well within the exemptions claimed" by the FBI. The district court also stated, however, that the F.B.I. should be sensitive to the possibility that Mr. Yanny and the Aznarans may have falsified any information either in their public statements of what they may or may not have said to the F.B.I. The F.B.I., perhaps with the help of plaintiff of what Mr. Yanny or the Aznarans may have testified to in depositions or court hearings that may be [in] conflict with statements made to the F.B.I., in each of those cases defendant is to release so much of documents claimed to be protected and protested herein by exemptions to plaintiff for such use as plaintiff may require. The FBI sought reconsideration or clarification of the above-quoted portion of the district court's order. At the hearing on the motion held on January 18, 1994, the district court stated: [The FBI] has an obligation, if these people have lied in their depositions, to come forward . . . and let [Spurlock] know whether or not as a matter of fact . . . [Yanny's or the Aznaran's statements in depositions or news reports] conflict with the statements they made to the FBI . . . . I am directing you to do that. I suggested it to you, but since you want clarification, I will direct you to do it. (emphasis added).[FOOTNOTE 4] On January 31, 1994, the district court signed an order prepared by Spurlock's counsel styled as "Order Regarding Motion to Clarify Judgment." The order directed the FBI to meet with plaintiff's counsel "for the purpose of assisting the government to determine what information in the records at issue in this case may constitute evidence that false statements were made by Joseph Yanny, Richard Aznaran and/or Vicki Aznaran, either to the FBI or in their sworn testimony or statements in other proceedings" and "to produce to plaintiff . . . such falsified statements made by Yanny or the Aznarans." The order further stated: The Court finds that where the government possesses evidence that certain individuals have provided testimony or obstructed justice to the possible injury of another or others, it has an obligation to make such evidence known to the injured party or parties so that they may seek corrective action. The court further finds that it has both statutory and inherent power to order the relief herein. Moreover, it is in the interest of all for investigative files to reflect accurate information. "[I]t is well settled that where legal rights have been invaded and a federal statute provides for a general right to sue for such invasion, federal courts may use any available remedy to make good the wrong done." Bell v. Hood, 327 U.S. 678, 684 (1946)[.] The FBI timely appealed from the order entered December 1, 1993, and from the order regarding the motion to clarify the judgment entered January 31, 1994. II As a threshold matter, we must determine whether the FBI's appeal is properly before us. See Professional Programs Group v. Department of Commerce, 29 F.3d 1349, 1352 (9th Cir. 1994) (an appellate court must consider sua sponte its proper jurisdiction). The FBI maintains that this court has jurisdiction over the appeal pursuant to 28 U.S.C. section 1291.[FOOTNOTE 5] The district court, however, failed to enter a separate judgment in this action. Rule 58 of the Federal Rules of Civil Procedure provides, in pertinent part, that "[e]very judgment shall be set forth on a separate document. A judgment is effective only when so set forth and when entered as provided for in Rule 79(a)."[FOOTNOTE 6] In this case, there is no question regarding the finality of the district court's order. The district court disposed of the entire action by stating in its November 30, 1993 order that "[j]udgment pursuant to this order shall be entered in favor of defendant." Therefore, the absence of a Rule 58 judgment does not prohibit our review of this matter. See Bankers Trust Co. v. Mallis, 435 U.S. 381, 382-88 (1978) (if no question exists as to the finality of the district court's decision, the absence of a Rule 58 judgment will not prohibit appellate review). Accordingly, we have jurisdiction pursuant to 28 U.S.C. section 1291. III We must decide whether the district court exceeded its jurisdiction in ordering the FBI to produce documents contained in its files notwithstanding its ruling that those documents were exempt from disclosure under FOIA. We review the existence and extent of a district court's subject matter jurisdiction de novo. United States v. General Dynamics Corp., 61 F.3d 1402, 1406-07 (9th Cir. 1995). Because the district court asserted that it had "statutory and inherent authority" to order the disclosure of exempt records and information, we examine each of these alleged grounds for jurisdiction in turn. A It is undisputed that the sole statutory basis for Spurlock's claim is FOIA. The FBI contends that the district court was therefore limited to remedies set forth in FOIA. The FBI argues that once the district court determined that all the agency records at issue were exempt from disclosure under FOIA, the district court lacked jurisdiction to order further disclosure. "Federal courts are courts of limited jurisdiction. They possess only that power authorized by Constitution and statute, which is not to be expanded by judicial decree[.]" Kokkonen v. Guardian Life Ins. Co. of America, 114 S. Ct. 1673, 1675 (1994) (internal citations omitted). Congress enacted FOIA " 'to open agency action to the light of public scrutiny.' " Department of the Air Force v. Rose, 425 U.S. 352, 372 (1976). The Act's "basic purpose reflect[s] 'a general philosophy of full agency disclosure unless information is exempted under clearly delineated statut79(a) governs civil docket entries. FN7. We are mindful that section 552(b) provides as follows: Any reasonably segregable portion of a record shall be provided to any person requesting such record after deletion of the portions which are exempt under this subsection. Accordingly, a district court may retain jurisdiction to order disclosure of non- exempt, segregable portions of otherwise exempt documents. See Wiener v. F.B.I., 943 F.2d 972, 988 (9th Cir. 1991), cert. denied, 505 U.S. 1212 (1992). In the matter sub judice, the district court's order clearly requires disclosure of exempt information, not merely disclosure of non-exempt segregable portions of the documents.