Admiral Insurance Company v. Vitus Group LLC

CourtDistrict Court, S.D. Georgia
DecidedMay 30, 2024
Docket4:24-cv-00021
StatusUnknown

This text of Admiral Insurance Company v. Vitus Group LLC (Admiral Insurance Company v. Vitus Group LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Admiral Insurance Company v. Vitus Group LLC, (S.D. Ga. 2024).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF GEORGIA SAVANNAH DIVISION

ADMIRAL INSURANCE ) COMPANY, ) ) Plaintiff, ) ) v. ) CV424-021 ) VITUS GROUP LLC, et al., ) ) Defendants. )

ORDER Before the Court are two intertwined motions to seal. See docs. 49 & 53. The motions seek to seal a series of letters negotiating a settlement agreement1 among Plaintiff Admiral Insurance Company (“Admiral”); an excess insurance carrier, non-party James River Insurance Company; and Defendant Jamie Burton’s Estate and family.2 The time to respond to both motions has passed without any opposition. See S.D. Ga. L. Civ.

1 There is a dispute as to whether the letters themselves constitute a settlement agreement. See doc. 46 at 14-19 (arguing that there is not a binding settlement agreement). 2 Jamie Burton is deceased. See doc. 1 at 8. Nidyria Clay and Dexteria Washington, natural guardians to Burton’s surviving minor children, answered the Complaint as “the Estate of Jamie Burton.” See doc. 35 at 1. Burton’s Answer indicates that any settlement negotiations were conducted “on behalf of the Estate and family of Jamie Burton.” Id. at 17. R. 7.5; see generally docket. Despite there being no opposition, the Court must still determine whether sealing is appropriate, since “the parties to

a lawsuit lack the authority to determine which documents outweigh the public’s common law right of access.” Usry v. EquityExperts.org, LLC,

2020 WL 9127714, at *2 (S.D. Ga. Apr. 13, 2020) (citing Wilson v. Am. Motors Corp., 759 F.2d 1568, 1571 (11th Cir. 1985)). Defendants Vitus Group LLC; Westlake Linwood Housing

Partners, LP; Westlake Linwood Housing Management LLC; Vitus Development IV, LLC; The Pines Housing Partners LP; and Hilton Head Housing Partners LP (collectively, “the Vitus Defendants”) move to file

under seal two settlement letters, docs. 46-1 & 46-2, marked as exhibits to their Motion to Dismiss the Claim of Jamie Burton, doc. 46. Doc. 49. The Vitus Defendants indicate they only moved to seal the letters “[o]ut

of an abundance of caution and because Burton has alleged an interest in confidentiality.” Doc. 49 at 2; see also doc. 35 at 17-18 (Burton’s Answer and “Counterclaim,”3 characterizing the letter exchange as “The

Offer and Acceptance” and alleging they contain “highly sensitive

3 There is a dispute as to whether Burton has asserted a counterclaim or crossclaim. Compare doc. 35 at 17 (asserting a counterclaim) with doc. 46 at 11-14 (arguing that the counterclaim is a crossclaim that the Vitus Defendants can move to dismiss). financial information concerning a confidential settlement involving payment to minors”). The Vitus Defendants offer no support for their

motion to seal and instead argue that because Burton “asserted an interest in confidentiality . . . it is Burton’s burden to assert the grounds

for sealing the letters[.]” Id. at 2-3. Burton urges the Court to grant the Vitus Defendants’ motion to seal. See doc. 53 at 1, 3. Burton also seeks to seal a third letter marked

as an exhibit to his response to the Vitus Defendant’s motion to dismiss his claim, doc. 52-1. Doc. 53. Burton argues that all three letters should be sealed because the settlement negotiations implicate minors’ privacy

rights; if the amount of the settlement was public, it “could result in the minors and/or their family members being improperly solicited and/or targeted in connection with the settlement proceeds.” Doc. 53 at 2.

The Eleventh Circuit has explained that “[t]he operations of the courts and the judicial conduct of judges are matters of utmost public concern . . . and the common-law right of access to judicial proceedings,

an essential component of our system of justice, is instrumental in securing the integrity of the process.” Romero v. Drummond Co., 480 F.3d 1234, 1245 (11th Cir. 2007) (internal quotation marks omitted) (quoting Landmark Commc’ns, Inc. v. Virginia, 435 U.S. 829, 839 (1978), and Chi. Tribune Co. v. Bridgestone/Firestone, Inc., 263 F.3d 1304, 1311

(11th Cir. 2001)). “[T]he common-law right of access includes the right to inspect and copy public records and documents.” Chi. Tribune Co., 263

F.3d at 1311 (citing Nixon v. Warner Commc’ns, Inc., 435 U.S. 589, 597 (1978) (referencing specifically the right to inspect and copy “judicial records and documents.”)). “Material filed in connection with any

substantive pretrial motion, unrelated to discovery, is subject to the common law right of access.” Romero, 480 F.3d at 1245. The Eleventh Circuit reaffirmed this standard, finding that the public right of access is

presumed for “judicial records,” which include “documents filed with pretrial motions that require judicial resolution of the merits of an action.” Callahan v. United Network for Organ Sharing, 17 F.4th 1356,

1363 (11th Cir. 2021) (internal citation and quotations omitted). The Vitus Defendants’ Motion to Dismiss the Claim of Jamie Burton, doc. 46, Burton’s response, doc. 52, and supporting documents are judicial

records. A party can overcome the common-law right of access by a showing of good cause. Callahan, 17 F.4th at 1363. A good cause determination “requires balancing the asserted right of access against the other party’s interest in keeping the information confidential.” Romero, 480 F.3d at

1246 (internal quotation marks and alterations omitted). In weighing these competing interests, the Court considers “a number of important

questions,” which the Eleventh Circuit discussed in Callahan: [W]hether allowing access would impair court functions or harm legitimate privacy interests, the degree of and likelihood of injury if made public, the reliability of the information, whether the information concerns public officials or public concerns, and the availability of a less onerous alternative to sealing the documents. Concerns about trade secrets or other proprietary information, for example, can overcome the public interest in access to judicial documents. Indeed, a court should consider whether the records are sought for such illegitimate purposes as to promote public scandal or gain unfair commercial advantage.

Callahan, 17 F.4th at 1363 (internal quotation marks and citations omitted). The decision of whether good cause exists rests with the sound discretion of the district court judge, is based on the “nature and character of the information in question,” and “should be informed by a sensitive appreciation of the circumstances that led to the production of the particular document in question.” Chi. Tribune Co., 263 F.3d at 1311 (quoting Nixon, 435 U.S. at 603) (internal quotation marks and alterations omitted), 1315. “For cases involving the privacy of children, the interest in secrecy is compelling.” Enzor v. Kroger Co., 2024 WL 1591025, at *2 (S.D. Ga.

Mar. 28, 2024); see also Eigenberger v. Tokyo Statebsoro GA, LLC, 2018 WL 206592, at *2 (S.D. Ga. May 3, 2018); Clark v. Bamberger, 2016 WL

1183180, at *2 (M.D. Ala. Mar. 28, 2016) (“Protecting the privacy of minors is undoubtedly an important concern.”). Rule 5.2 of the Federal Rules of Civil Procedure

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Related

Michael D. Van Etten v. Bridgestone/Firestone, Inc
263 F.3d 1304 (Eleventh Circuit, 2001)
Juan Aquas Romero v. Drummond Co. Inc.
480 F.3d 1234 (Eleventh Circuit, 2007)
Nixon v. Warner Communications, Inc.
435 U.S. 589 (Supreme Court, 1978)
Landmark Communications, Inc. v. Virginia
435 U.S. 829 (Supreme Court, 1978)
Barbara D. Wilson v. American Motors Corp., Jean Decker
759 F.2d 1568 (Eleventh Circuit, 1985)
Randall Callahan v. United Network for Organ Sharing
17 F.4th 1356 (Eleventh Circuit, 2021)

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