BREITENBACH v. SAGESTREAM, LLC

District Court, E.D. Pennsylvania·Decided April 3, 2025·No. 2:24-cv-00893·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

JAMES BREITENBACH, Case No. 2:24-cv-00893-JDW

v.

SAGESTREAM, LLC,

MEMORANDUM

When a party seeks to put material under seal, it is up to that party to carry a burden to overcome the public’s presumptive right of access to judicial records. As with any other motion, that means making arguments, marshalling the required evidence, and directing the judge to the relevant information. For some reason, lawyers before me tend to treat motions to seal differently from other motions. They often don’t submit evidence to establish that disclosure of information will cause a concrete harm, or even spell out those harms. They just rely on generalized assertions of “competitive harm” and expect me either to take their word for it or to parse the record and figure it out for them. But judges aren’t advocates. It’s not my job (or any other judge’s job) to make a party’s arguments for it. Motions to seal pose a bit of a challenge because they are not adversarial in nature, and the party seeking closure of judicial records often faces no opposition from its adversary. Instead, those who have an interest in transparency—the public—have no representation of their own. So, judges must become “the primary representative[s] of the public interest in the judicial process[.]”

, 990 F.3d 410, 418 (5th Cir. 2021). Among other things, we do that by conducting a careful document-by-document review of every document that a party seeks to shield from the public. We do that with an eye towards balancing the private interests that a

movant raises against the public’s interest in transparency. But we can’t fulfill that role while also trying to ferret out the basis for sealing a document and hypothesizing the harm that might come from its disclosure. SageStream, LLC claims that I missed information that it provided that should have

led me to seal the materials it submitted. I guess we read different submissions. The materials that SageStream provided me when it filed its sealing motion fell short of the required showing. Now, SageStream seeks both to bolster that showing and to retcon the submissions it made. That’s not an appropriate use of a reconsideration motion. I will

therefore deny its Motion. I. RELEVANT BACKGROUND On March 12, 2025, the Parties filed cross-motions for summary judgment. At the

same time, SageStream moved to seal (or redact) its statement of facts, memorandum of law, and certain exhibits filed in connection with the cross-motions for summary judgment. Part of the motion asked me to seal information that SageStream deems commercially sensitive, including a declaration of Seth Partain, and various exhibits to that declaration. For each of those documents, SageStream claimed that it “contains confidential and proprietary business information of SageStream that it has labeled

Confidential, pursuant to the protective order entered in this case.” (ECF No. 45-1 at 4- 5.) It also argued that the disclosure of the information in those documents “could cause competitive harm to SageStream if disclosed to the public and its competitors.” ( at 7.)

It did not provide any more information in its sealing motion to justify its request. It did not cite any declaration, exhibit, or other document in the record that explained what harm SageStream would suffer if the information were disclosed. On March 17, 2025, I granted SageStream’s motion to seal in part and denied it in

part. I granted it to the extent SageStream filed materials that disclosed personally identifiable information about Plaintiff James Breitenbach and certain third parties. But I denied SageStream’s request that I permit it to redact or seal documents related to its business furnishing credit reports because SageStream failed to meet its burden to

demonstrate that disclosing the information would work a clearly defined and serious injury to SageStream. As a result, I ordered SageStream to file unredacted versions of those documents on the public docket.

On March 21, 2025, rather than comply with my Order, SageStream filed a motion for reconsideration, arguing that I “‘overlooked evidence and arguments’ that support [its] allegations of competitive harm.” (ECF No. 49-1 at 5.) To bolster its case, SageStream attaches a new declaration from Mr. Partain. It also cites an expert report of David Kalat, even though it did not cite Mr. Kalat’s report in its initial motion to seal. The reconsideration motion is ripe for disposition.

II. LEGAL STANDARD “The purpose of a motion for reconsideration is to correct manifest errors of law or fact or to present newly discovered evidence.” , 779 F.2d 906,

909 (3d Cir. 1985) (citation omitted). Accordingly, a court may reconsider a prior ruling if the moving party shows: “(1) an intervening change in the controlling law; (2) new evidence that was not available when the court issued its order, or (3) the need to correct a clear error of law or prevent manifest injustice.”

, 994 F.3d 182, 190 (3d Cir. 2021) (same). “[A] motion for reconsideration may address ‘only factual and legal matters that the Court may have overlooked’ and may not ‘ask the Court to rethink what it had already thought through—rightly or wrongly.’” , 185 F. Supp. 3d 612, 622 (E.D. Pa. 2016), , 783 F. App'x 223

(3d Cir. 2019) (quotation omitted). And given “the court's interest in the finality of judgments, motions for reconsideration ‘should be granted sparingly ….’” (same). III. ANALYSIS

The common law presumes that the public has a right of access to judicial records. , 924 F.3d 662, 672 (3d Cir. 2019). “A ‘judicial record’ is a document that ‘has been filed with the court ... or otherwise somehow incorporated or integrated into a district court’s adjudicatory proceedings.’” (quotation omitted). To overcome the strong presumption of access that attaches to judicial records, a movant must show that an interest in secrecy outweighs that presumption by

demonstrating that the material is the kind of information that courts will protect and that disclosure will work a clearly defined and serious injury to the party seeking closure. (emphasis added). A party seeking to file material under seal must make a specific

showing; “[b]road allegations of harm, bereft of specific examples or articulated reasoning, are insufficient.” at 673 (quotation omitted). Judges have a “solemn duty” to protect public access to judicial records and proceedings. , 990 F.3d at 420. To fulfill that obligation, a judge must engage

in “[c]areful factfinding and balancing of competing interests” to determine whether “the strong presumption of openness can be overcome by the secrecy interests of private litigants.” , 924 F.3d at 673 (quotation omitted). To that end, judges “must ‘conduct a document-by-document review’ of the contents of the challenged

documents.” (cleaned up). In other words, the primary purpose of the document-by- document review is to guard the public right of access—not to search for additional evidence or arguments to bolster a movant’s request for secrecy.

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BREITENBACH v. SAGESTREAM, LLC, (E.D. Pa. 2025).

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