Aya Healthcare Services, Inc. v. AMN Healthcare, Inc.

District Court, S.D. California·Decided April 20, 2020·No. 3:17-cv-00205·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA

AYA HEALTHCARE SERVICES, INC., Case No. 17cv205-MMA (MDD) and AYA HEALTHCARE, INC., GRANTING IN PART AND Plaintiffs, DENYING DEFENDANTS’ MOTION v. TO FILE DOCUMENTS UNDER SEAL; AMN HEALTHCARE, INC., et al., [Doc. No. 96] Defendants. GRANTING IN PART AND DENYING IN PART PLAINTIFFS’ MOTION TO FILE DOCUMENTS UNDER SEAL;

[Doc. No. 123]

GRANTING IN PART AND DENYING IN PART PLAINTIFFS’ MOTION TO FILE DOCUMENTS UNDER SEAL; AND [Doc. No. 128] GRANTING IN PART AND DENYING DEFENDANTS’ MOTION TO FILE DOCUMENTS UNDER SEAL;

[Doc. No. 131]

Plaintiffs Aya Healthcare Services, Inc. and Aya Healthcare, Inc. (collectively, “Plaintiffs” or “Aya”) and Defendants AMN Healthcare, Inc., AMN Healthcare Services, Inc., AMN Healthcare Services LLC, Medefis, Inc. (“Medefis”), and Shiftwise Inc. (“Shiftwise”), (collectively, “Defendants” or “AMN”) move to file under seal certain documents and exhibits in connection with Defendants’ motion for summary judgment and motion to exclude certain opinion testimony by Patricia G. Donohoe (“Daubert motion”). See Doc. Nos. 96, 123, 128, 131. Plaintiffs raised objections to Defendants’ initial motion to seal (Doc. No. 96), see Doc. No. 102, and Defendants responded to those objections. See Doc. No. 105. Plaintiffs also raised objections to Defendants’ confidentiality designations in connection with Plaintiffs’ opposition to Defendants’ motion for summary judgment. See Doc. Nos. 129, 130. The parties have provided declarations withdrawing some of their designations and supporting other designations. See Doc. Nos. 96, 101, 121, 127, 131, 139. Upon review of the parties’ submissions, the Court finds these matters suitable for determination on the papers and without oral argument. See SD CIVLR 7.1.d.1; Fed. R. Civ. P. 78(b). For the reasons set forth below, the Court GRANTS IN PART and DENIES IN PART Defendants’ motions to file documents under seal (Doc. Nos. 96, 131) and GRANTS IN PART and DENIES IN PART Plaintiffs’ motions to file documents under seal (Doc. Nos. 123, 128). Courts have historically recognized 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 n.7 (1978). “Unless a particular court record is one ‘traditionally kept secret,’ a ‘strong presumption in favor of access is the starting point.” Kamakana v. City and Cnty. of Honolulu, 447 F.3d 1172, 1178 (9th Cir. 2006) (quoting Foltz v. State Farm Mut. Auto. Ins. Co., 331 F.3d 1122, 1135 (9th Cir. 2003)). “The presumption of access is ‘based on the need for federal courts, although independent— indeed, particularly because they are independent—to have a measure of accountability and for the public to have confidence in the administration of justice.” Ctr. for Auto Safety v. Chrysler Grp., LLC, 809 F.3d 1092, 1096 (9th Cir. 2016) (quoting United States v. Amodeo, 71 F.3d 1044, 1048 (2d Cir. 1995)). When a party moves to file under seal a motion or documents attached to a motion, the focus is on the underlying motion and whether it is “more than tangentially related to the underlying cause of action.” Ctr. for Auto Safety, 809 F.3d at 1099. If the motion is more than tangentially related to the merits, like here, the movant must show compelling reasons for overcoming the presumption in favor of public access. See id. at 1096-99. Generally, a party seeking to seal a judicial record can overcome the presumption in favor of access by “articulat[ing] compelling reasons supported by specific factual findings . . . that outweigh the general history of access and the public policies favoring disclosure, such as the public interest in understanding the judicial process.” Kamakana, 447 F.3d at 1178 (citations omitted) (internal quotation marks omitted). “In turn, the court must ‘conscientiously balance[ ] the competing interests’ of the public and the party who seeks to keep certain judicial records secret.” Id. at 1179 (quoting Foltz, 331 F.3d at 1135). “Compelling reasons must continue to exist to keep judicial records sealed.” In re Midland Nat. Life Ins. Co. Annuity Sales Practices Litig., 686 F.3d 1115, 1119 (9th Cir. 2012) (citing Kamakana, 447 F.3d at 1179). “What constitutes a ‘compelling reason’ is ‘best left to the sound discretion of the trial court.’” Ctr. For Auto Safety, 809 F.3d at 1097 (quoting Nixon, 435 U.S. at 599). “Examples include when a court record might be used to ‘gratify private spite or promote public scandal,’ to circulate ‘libelous’ statements, or ‘as sources of business information that might harm a litigant’s competitive standing.’” Id. (quoting Nixon, 435 U.S. at 598- 99). “The mere fact that the production of records may lead to a litigant’s embarrassment, incrimination, or exposure to further litigation will not, without more, compel the court to seal its records.” Kamakana, 447 F.3d at 1179 (citing Foltz, 331 F.3d at 1136). Defendants move to file under seal various exhibits in support of their motion for summary judgment and Daubert motion, as well as portions of their motion for summary judgment, reply memorandum in support thereof, Separate Statement of Undisputed Material Facts, Response to the Separate Statement of Undisputed Material Facts, Daubert motion, and reply in support thereof. See Doc. Nos. 96, 131. Plaintiffs also move to file under seal their opposition memorandum to Defendants’ motion for summary judgment, exhibits submitted in support thereof, and memoranda objecting to certain of Defendants’ confidentiality designations. See Doc. Nos. 123, 128. 1. Defendants’ Motions to File Documents Under Seal (Doc. Nos. 96, 131) Defendants move to file under seal three categories of information in exhibits submitted in connection with their motion for summary judgment and Daubert motion and in the motions themselves. Such categories are: (a) information that Defendants have designated as confidential, (b) purportedly confidential information from Staffing Industry Analysts (“SIA”), and (c) information that Plaintiffs have designated as confidential. Plaintiffs object to Defendants’ motion to seal information to the extent Defendants seek to file under seal (1) Defendants’ confidentiality and non-solicitation agreements with their employees, and (2) Defendants’ contracts with other healthcare staffing agencies. See Doc. Nos. 102, 103, 106. Defendants responded to Plaintiffs’ objections by (1) agreeing to de-designate references to confidentiality and non- solicitation agreements with employees that were previously filed publicly in state court proceedings, and (2) maintaining the propriety of their designations of contracts with other healthcare staffing agencies. See Doc. No. 105. The Court addresses each exhibit and source of information subject to Defendants’ requests in turn. a. Exhibit 1 Exhibit 1 is a contract memorializing an agreement between Defendants and Plaintiffs to terminate their “prior agreements” and extend certain services provided by Plaintiffs under such prior agreements. Defendants assert that the termination agreement is among those contracts properly designated by Defendants as “Confidential” or “Highly Confidential – Attorneys’ Eyes Only” under the Protective Order because it, like the other designated contracts, contains “detailed, non-public,

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Aya Healthcare Services, Inc. v. AMN Healthcare, Inc., (S.D. Cal. 2020).

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