ALTRIA CLIENT SERVICES LLC v. R.J. REYNOLDS VAPOR COMPANY

District Court, M.D. North Carolina·Decided October 25, 2022·No. 1:20-cv-00472·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF NORTH CAROLINA

ALTRIA CLIENT SERVICES LLC, ) ) Plaintiff, ) v. ) 1:20CV472 ) R.J. REYNOLDS VAPOR COMPANY, ) ) Defendant. )

MEMORANDUM OPINION AND ORDER Pending before the Court are numerous motions to seal documents related to discovery and summary judgment motions. Defendant has moved to seal portions of Exhibits E and G to its brief in support of its motion to strike Plaintiff’s expert opinions on secondary considerations [Doc. #130], portions of its motion to strike Plaintiff’s expert opinions on marking and accompanying Exhibits D, F, and G [Docs. #158, #159 (sealed)]1, portions of its brief in support of the motion to amend the scheduling order and accompanying Exhibits A and B [Doc. #256], portions of its opposition to Plaintiff’s motion for partial summary judgment and accompanying Exhibits 7, 9, and 10 [Doc. #232], portions of its opposition to Plaintiff’s supplemental brief and accompanying Exhibit 1 [Doc. #274], and portions of its brief in support of its motion for partial summary judgment and accompanying Exhibit 2 [Doc. #219].

1 This motion amends Doc. #145. That motion is now moot. Plaintiff has moved to seal portions of its brief in opposition to Defendant’s motion to strike [Doc. #153], portions of its brief in opposition to Defendant’s motion to strike and accompanying Exhibits 9 and 13 [Doc. #168], portions of its

brief in support of its motion to strike [Doc. #175], portions of its reply in support of its motion to strike [Doc. #226], portions of its brief in support of partial summary judgment and accompanying Exhibit 2 [Doc. #196], portions of Exhibit 1 and all of Exhibit 4 to its brief in support of filing a supplemental summary judgment brief [Doc. #264], portions of its reply brief in support of summary

judgment [Doc. #280], and portions of its brief in opposition to Defendant’s motion for summary judgment [Doc. #237]. Related to Docket No. 153 is Plaintiff’s motion to correct the docket [Doc. #161]. The parties were afforded an opportunity to supplement their evidentiary support for sealing if they disagreed with the Court’s draft opinion on these motions. Only Plaintiff did so [Docs. #478, 478-1, 478-2], and Plaintiff’s only

disagreement was with the Court’s proposal to deny the motions to seal a product summary chart submitted at Doc. #146-7 at 14, Doc. #159-4 at 14, Doc. #170-1, Doc. #227 at 12, and Doc. #238 at 12. I. There is both a common law right and a First Amendment right of access to

judicial records and documents, defined as documents that “play a role in the adjudicative process, or adjudicate substantive rights.” In re U.S. for an Order Pursuant to 18 U.S.C. Section 2703(d), 707 F.3d 283, 290 (4th Cir. 2013); accord In re Policy Mgmt. Sys. Corp., 67 F.3d 296 (table), 1995 WL 541623, at *3-4 (4th Cir. Sept 13, 1995) (finding that documents submitted to, but not considered by, the court did “not play any role in the adjudicative process” and

“are [therefore] not subject to” the common law or First Amendment right of access). As for the common law, “the courts of this country recognize a general right to inspect and copy public records and documents, including judicial records and documents.” Nixon v. Warner Commc’ns, Inc., 435 U.S. 589, 597 (1978)

(footnotes omitted). This presumption of access can be rebutted “if competing interests outweigh the interest in access”. Stone v. Univ. of Md. Med. Sys. Corp., 855 F.2d 178, 180 (4th Cir. 1988). Factors to weigh “include whether the records are sought for improper purposes . . . ; whether release would enhance the public’s understanding of an important historical event; and whether the public has already had access to the information contained in the records.” In re Knight Pub.

Co., 743 F.2d 231, 235 (4th Cir. 1984). On the other hand, “the First Amendment guarantee of access has been extended only to particular judicial records and documents” such as those filed with a summary judgment motion. Id. To overcome such access, there must be “a compelling governmental interest” and “the denial [must be] narrowly tailored to

serve that interest.” Id. The moving party “must present specific reasons in support of its position.” Va. Dep’t of State Police v. Washington Post, 386 F.3d 567, 575 (4th Cir. 2004). Documents that “could provide a ‘source[] of business information that might harm a litigant’s competitive standing’” may, with the proper showing, be restricted from public access. Woven Elecs. Corp. v. Advance Group, Inc., 930 F.2d 913 (Table), 1991 WL 54118, at *6 (4th Cir. Apr. 15,

1991) (quoting Nixon, 435 U.S. at 598). A court must first determine whether the common law or the First Amendment provides access to documents. Stone, 855 F.2d at 181. Then the court weighs the associated competing interests by giving notice to the public of the request to seal “and a reasonable opportunity to challenge the request”,

considering “less drastic alternatives to sealing”, and, if it decides to seal, stating “the reasons (and specific supporting findings) for its decision and the reasons for rejecting alternatives to sealing.” Id. The Local Civil Rules require that a party claiming confidentiality support the motion to seal with evidence, “including affidavits or declarations”. L. Civ. R. 5.4(c)(3). Attorneys’ arguments in briefs are not evidence, but their

“representation to the Court that documents contain confidential business information can be considered as some evidence” that is “weighed against competing interests.” Cochran v. Volvo Group N.A., LLC, 931 F. Supp. 2d 725, 730 (M.D.N.C. 2013).2

2 Except for its supplemental filing at Docket No. 478, Plaintiff never supported its instant requests to seal with affidavits or declarations despite the clarity of the Local Rule. Its counsel’s arguments were “considered as some evidence”, though. II. The documents submitted in conjunction with the four motions to strike, the

motion to amend the scheduling order, and the motion for leave to file a supplemental brief are protected by the common law right of access. The public has had notice of these motions for months. The earliest was filed in September 2021, and the most recent was filed in May 2022. Despite a reasonable opportunity to challenge the sealing requests, no objections appear on the record.

It is also noted that the parties have commendably and carefully limited the information they request to be sealed with each motion.3 A. Defendant has moved to seal portions of Exhibits E and G to its brief in support of striking Plaintiff’s expert opinions. [Doc. #130. 4] Exhibit E is an excerpt of the August 4, 2021 Report of Plaintiff’s expert,

Joseph McAlexander. Nearly all of the material in Exhibit E that Defendant wants

3 Pursuant to the Local Rules, the party that filed a document under seal (and, therefore, moved to seal) identified the information considered confidential. If it was that party’s confidential information, it also filed a brief in support of sealing.

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ALTRIA CLIENT SERVICES LLC v. R.J. REYNOLDS VAPOR COMPANY, (M.D.N.C. 2022).

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Related

Nixon v. Warner Communications, Inc.
435 U.S. 589 (Supreme Court, 1978)
ATI Industrial Automation, Inc. v. Applied Robotics, Inc.
801 F. Supp. 2d 419 (M.D. North Carolina, 2011)
United States v. Appelbaum
707 F.3d 283 (Fourth Circuit, 2013)
Cochran v. Volvo Group North America, LLC
931 F. Supp. 2d 725 (M.D. North Carolina, 2013)