AAA Max 1 Limited v. The Boeing Company

District Court, W.D. Washington·Decided March 1, 2024·No. 2:23-cv-01356·Unknown

Opinion

THE HONORABLE RICARDO S. MARTINEZ WESTERN DISTRICT OF WASHINGTON AAA MAX | LIMITED, AAA MAX 2 No. 2:23-cv-01356-RSM LIMITED, AAA MAX 3 LIMITED, AAA MAX 4 LIMITED, AAA B787 2 LIMITED JOINT STIPULATED MOTION AND and AAA B787 3 LIMITED, ORDER FOR LEAVE TO FILE AMENDED COMPLAINT UNDER Plaintiffs, SEAL v. NOTE ON MOTION CALENDAR: February 29, 2024 THE BOEING COMPANY, Defendant. Pursuant to Local Civil Rule 5(g)(2), Plaintiffs AAA Max 1 Limited, AAA Max 2 Limited, AAA Max 3 Limited, AAA Max 4 Limited, AAA B787 2 Limited, and AAA B787 3 Limited (“Plaintiffs”) and Defendant The Boeing Company (“Boeing”) respectfully move this Court for leave to file Plaintiffs’ Amended Complaint under seal because it contains excerpts from and sum- maries of documents which contain confidential contractual terms. Boeing’s position 1s that the full disclosure of this information is highly likely to result in harm to Boeing’s and its airline customers’ commercial interests. After Plaintiffs have filed the Amended Complaint, the parties will promptly meet and confer to assess which redactions could adequately protect those confiden- tiality concerns and file a motion to seal (if necessary) with the Court.

Perkins Coie LLP STIPULATED MOTION AND ORDER FOR LEAVE TO 1201 Third Avenue, Suite 4900 FILE UNDER SEAL Seattle, WA 98101-3099

LCR 5(G)(3)(A) CERTIFICATION The parties have met and conferred and agree about the need for initially sealing the Plain- tiffs’ forthcoming Amended Complaint. In accordance with Local Civil Rule 5(g)(3)(A), the un- dersigned counsel certify that on February 27 and 28, 2024, Michael Hatley, on behalf of Plaintiffs, and Ulrike B. Connelly and Marten King, on behalf of Boeing, conferred regarding Plaintiffs’ intention to include references or excerpts of documents that contain confidential contract terms relating to the purchase and/or lease of commercial aircraft and associates services, the disclosure of which is likely to result result in commercial harm to, at a minimum, Boeing and its airline customers. The parties therefore agree that Plaintiffs’ Amended Complaint would need to be filed under seal in the first instance, subject to this Court’s approval. The parties further agree that, following Plaintiffs’ filing of the Amended Complaint under seal, as well as this accompanying stipulated motion and proposed order, (1) the parties will meet and confer to discuss appropriate redactions to Plaintiffs’ Amended Complaint, and, if needed, (2) Boeing will file a motion to seal those portions of the Amended Complaint that warrant permanent redaction from the public record within seven days of the filing of the Amended Complaint. LCR 5(G)(3)(B) LEGAL STANDARD AND ARGUMENT When deciding whether to seal court records, courts “start with a strong presumption in favor of access to court records.” Cntr. for Auto Safety v. Chrysler Grp., LLC, 809 F.3d 1092, 1097 (9th Cir. 2016) (quoting Foltz v. State Farm Mut. Auto Ins. Co., 331 F.3d 1122, 1135 (9th Cir. 2003)). “Nonetheless, access to judicial records is not absolute,” and a court may seal its records if there are “compelling reasons” for doing so. Kamakana v. City & County of Honolulu, 447 F.3d 1172, 1178-79 (9th Cir. 2006); see also Center for Auto Safety, 809 F.3d at 1101-02 (applying “compelling reasons” standard to any motion that “is more than tangentially related to the merits of a case”). Examples of “compelling reasons” include “when a court record might be used ‘to gratify private spite or promote public scandal,’ to circulate ‘libelous’ statements, or ‘as sources Perkins Coie LLP STIPULATED MOTION AND ORDER FOR LEAVE TO 1201 Third Avenue, Suite 4900 FILE UNDER SEAL Seattle, WA 98101-3099

of business information that might harm a litigant’s competitive standing.’” Center for Auto Safety, 809 F.3d at 1097 (quoting Nixon v. Warner Comme’ns, Inc., 435 U.S. 589, 598-99 (1978)). Here, sealing is warranted given the commercially sensitive nature of the excerpted agree- ments (documents with which the parties are familiar), all of which are covered by contractual confidentiality provisions. The excerpts of the agreements set out the contractual terms on which Boeing sells aircraft to customers, including the terms of delivery, pricing, rebates, and product warranties. Boeing contends that it does not publicly disclose information of this kind, and that the information is particularly sensitive because Boeing and its customers negotiate contracts with the understanding that their commercial terms will not be disclosed to the public. Boeing’s position is that disclosure of the commercially sensitive terms in the excerpted agreements would result in competitive harm to Boeing and its customers. If another aircraft man- ufacturer learns of these terms, Boeing asserts that it would be unfairly disadvantaged because the competitor could craft its offers with full knowledge of and unilateral insight into the confidential package of pricing, services, and other terms that Boeing offers its customers. That unfair ad- vantage would arise by virtue of the litigation process, not through any business advantage that the competitor earned. Likewise, Boeing maintains that disclosure of the excerpted agreements would give other airline customers access to confidential pricing, services, and other contract terms that Boeing offers. According to Boeing, such access would afford airline customers unearned leverage in negotiations with Boeing—leverage that would arise by virtue of a routine filing in a litigation unrelated to those business entities, rather than through any competitive advantage that the busi- ness entities earned. Plaintiffs do not take a position at this time about whether permanent sealing is warranted, but agree it is appropriate to file the Amended Complaint under seal in the first instance to allow Boeing further time to assess the pleading and its need to be redacted or sealed. This Court has previously approved of sealing in very similar circumstances. See, e.g., Polskie Linie Lotnicze LOT S.A. v. Boeing Co., No. C21-1449-RSM, Dkt. Nos. 44 (approving a Perkins Coie LLP STIPULATED MOTION AND ORDER FOR LEAVE TO 1201 Third Avenue, Suite 4900 FILE UNDER SEAL Seattle, WA 98101-3099

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