Yes. It was argued in court that they couldn't be expected to go into the trash to pull out documents. But they were later. The case was settled on some ground, I can't remember what. Maybe they handed over the documents in the end. This was a decade ago, so I'm hazy on what the final outcome was.
A lot of public bodies will play games like this. It's not even clear to me why they do it. It'll be documents that aren't even controversial that they will resist. Ask them what brand of coffee they buy for the break room and they'll immediately get defensive and find some random exemption to apply. Law enforcement bodies are by far the worst, I think because the public are seen as terminal nuisances all the way down through the bodies.
Just curious, did they pull it out of the trash later on?