BBK Tobacco & Foods LLP v. Central Coast Agriculture Incorporated

District Court, D. Arizona·Decided July 13, 2022·No. 2:19-cv-05216·Unknown

Opinion

1 WO 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE DISTRICT OF ARIZONA

9 BBK Tobacco & Foods LLP, No. CV-19-05216-PHX-MTL

10 Plaintiff, ORDER

11 v.

12 Central Coast Agriculture Incorporated, et al., 13 Defendants. 14 15 I. 16 Before the Court are numerous motions to seal various documents and exhibits 17 (Docs. 294, 313, 319, 339, 343, 357, 361, 365, 370, 381, 402). The motions are fully 18 briefed, and the Court rules as follows. 19 II. 20 The public has a right to inspect and copy public judicial records and documents. 21 Nixon v. Warner Commc’ns, Inc., 435 U.S. 589, 567 (1978). Although the right is not 22 absolute, there is a “strong presumption in favor of access to court records.” Ctr. for 23 Auto Safety v. Chrysler Grp., LLC, 809 F.3d 1092, 1096 (9th Cir. 2016) (quoting Foltz 24 v. State Farm Mut. Aut. Ins. Co., 331 F.3d 1122, 1135 (9th Cir. 2003)). The party 25 requesting to seal a judicial record bears the burden of overcoming that presumption 26 by either showing “compelling reasons” if the record is a dispositive pleading or “good 27 cause” if the record is a non-dispositive pleading. See Kamakana v. City & Cnty. of 28 Honolulu, 447 F.3d 1172, 1179–80 (9th Cir. 2006); see also Ctr. for Auto Safety, 809 F.3d 1 at 1096–97. Motions to seal a summary judgement motion or its exhibits must meet the 2 compelling reasons standard. See Kamakana, 447 F.3d at 1179, 1181. 3 In Doc. 294, BBK seeks to seal certain sensitive financial information and 4 settlement strategies, including sales numbers and ratios for certain RAW products, 5 taxes and duties paid by BBK, and settlement terms exchanged between BBK and 6 CCA. The motion is unopposed by CCA. (Doc. 334.) Compelling reasons justify sealing 7 this information. Sources of business information that might harm a litigant’s competitive 8 standing may be filed under seal despite the public’s general right to inspect and copy 9 judicial records. Warner Commc’ns, Inc., 435 U.S. at 598–99; see also MD Helicopters 10 Inc. v. Boeing Co., No. CV-17-02598-PHX-JAT, 2019 WL 2184762, at *2 (D. Ariz. 11 May 21, 2019). 12 With respect to three of its pending motions to seal (Docs. 313, 339, 357), CCA 13 filed a Motion for Leave to File Amended Documents in Connection with a Partial 14 Withdrawal of Motions to Seal (Doc. 362). In that motion, CCA informs the Court that, 15 following conferral with BBK’s counsel, it has elected to withdraw certain portions of its 16 motions to seal. CCA also requests leave to file new versions of the redacted documents 17 previously filed on the public docket, in order to un-redact the portions CCA no longer 18 requests be filed under seal. CCA’s motion is unopposed (Doc. 371) and will be granted. 19 Thus, the Court will consider CCA’s motions to seal (Docs. 313, 339, 357) only as 20 amended.1 21 In Doc. 313, CCA moves to seal portions of its motion to exclude Dr. On Amir 22 and exhibits 3–5 thereto, along with portions of its motion to exclude Francis Burns and 23 exhibits 1–5 thereto. (Docs. 313, 362, 375.) In Doc. 339, CCA moves to seal portions of 24 its opposition to BBK’s motion to exclude Khurshid Kohja; portions of its opposition 25 to BBK’s motion to exclude Dr. David Blackburn and exhibits A–C thereto; and portions 26 of its opposition to BBK’s motions to exclude Dr. Elisabeth Honka and Dr. Tülim 27 Erdem and exhibits B and I thereto. (Docs. 339, 375) In Doc. 357, CCA moves to seal 28 1 In its reply (Doc. 375), CCA agreed to withdraw additional portions of its motions to seal. 1 portions of its reply in support of its motion to exclude Dr. Jeffrey Stec; portions of its 2 reply in support of its motion to exclude Dr. On Amir; and portions of its reply in support 3 of its motion to exclude Francis Burns. (Docs. 357, 375.) These motions to seal are 4 unopposed (except as described above). Because the motions and exhibits are non- 5 dispositive, CCA need only show “good cause” for limiting the public’s access. See 6 Kamakana, 447 F.3d at 1180. CCA has done so. The information CCA seeks to file 7 under seal involves the company’s past sales and financial data, strategic plans, and market 8 research. For the same reasons the Court has previously ordered that such information may 9 be filed under seal (see Doc. 259), the motions will be granted. 10 In Doc. 319, CCA moves to seal portions of BBK’s motion for partial summary 11 judgment; exhibits 3, 4, and 21 to BBK’s motion for partial summary judgment; portions 12 of BBK’s motion to exclude Dr. David Blackburn and exhibits 1–6 thereto; and portions 13 of BBK’s motion to exclude Dr. Tülim Erdem and exhibits 3, 6, and 7 thereto. BBK 14 opposes CCA’s motion to seal with respect to portions of Craig Bobzin’s deposition, 15 which appears as exhibit 21 to BBK’s motion for partial summary judgment. (Doc. 320.) 16 Upon review, the Court holds that the following two excerpts of Bobzin’s deposition are 17 not confidential and that, accordingly, “compelling reasons” do not justify filing them 18 under seal: 72:0–73:5 and 80:12–83:18. Accordingly, CCA’s motion to seal those 19 excerpts will be denied. CCA’s motion will otherwise be granted. 20 In Doc. 343, CCA moves to seal portions of BBK’s opposition to CCA’s motion 21 to exclude Dr. On Amir; portions of BBK’s opposition to CCA’s motion to exclude Dr. 22 Jeffrey Stec, including exhibit A; and portions of BBK’s opposition to CCA’s motion to 23 exclude Francis Burns, including exhibits A and C. BBK opposes CCA’s motion to seal 24 with respect to its opposition to the Dr. Amir motion, its opposition to the Stec motion, 25 and exhibit C to its opposition to the Burns motion. (Doc. 369.) CCA has withdrawn its 26 requests to seal portions the Amir opposition, exhibit C to the Burns opposition, and 27 portions of the Stec opposition. (Doc. 374.) Thus, it requests only that the Court seal 28 portions of the Stec opposition and exhibit A to the Burns opposition. That narrower 1 request is unopposed, and the Court finds good cause justifying limiting public access. 2 Accordingly, CCA’s motion to seal will be granted in part and denied in part as moot. 3 In Doc. 361, CCA moves to seal portions of BBK’s reply in support of its motion 4 to exclude Dr. David Blackburn. The portions of the reply CCA moves to seal contain 5 CCA’s past sales and other financial data. The motion is unopposed, and good cause 6 justifies limiting public access to such sensitive information. (Doc. 259 at 7.) The motion 7 will be granted. 8 In Doc. 365, CCA requests that the Court seal portions of CCA’s opposition to 9 BBK’s motion for partial summary judgment and portions of exhibits 5, 8, and 18–24 to 10 CCA’s opposition. BBK opposes CCA’s requests to seal exhibits B–C and F to exhibit 5 11 and exhibits 19, 20, and 30. (Doc. 376.) BBK’s arguments are unpersuasive, and 12 compelling reasons support sealing the challenged exhibits, as they contain emails between 13 CCA employees and third parties regarding CCA’s business plans and 14 potential partnerships. CCA’s motion will therefore be granted. 15 In Doc. 370, BBK moves to seal footnote 26 to CCA’s opposition to BBK’s motion 16 for partial summary judgment. The motion is unopposed and compelling reasons justify 17 granting the motion. Footnote 26 contains sensitive financial information—sales ratios 18 based on non-public sales figures—that must remain confidential to protect 19 BBK’s competitive interests. The motion will be granted. 20 In Doc.

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BBK Tobacco & Foods LLP v. Central Coast Agriculture Incorporated, (D. Ariz. 2022).

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