CONTOUR DATA SOLUTIONS LLC v. GRIDFORCE ENERGY MANAGEMENT LLC

District Court, E.D. Pennsylvania·Decided August 29, 2024·No. 2:20-cv-03241·Unknown

Opinion

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

CONTOUR DATA SOLUTIONS, LLC Plaintiff, v. CIVIL ACTION NO. 20-3241 GRIDFORCE ENERGY MANAGEMENT LLC, et al. Defendants.

MEMORANDUM OPINION Rufe, J. August 28, 2024 After the Court identified serious shortcomings regarding the parties’ previous motions to seal, the Court ordered the parties to meet and confer before filing renewed motions to seal that comply with the high standard set forth in In re Avandia Marketing, Sales Practices, and Products Liability Litigation.1 The parties have complied with the Court’s Order and refiled their motions for summary judgment, motions to exclude experts, and motions to seal.2 Before the Court are the following six sealing motions: (1) Contour’s Motion to Seal Certain Information and Exhibits;3 (2) Gridforce’s First Motion to Seal;4 (3) Contour’s Second Motion to Seal Certain Information and Exhibits;5 (4) Gridforce’s Second Motion to Seal;6

1 924 F.3d 662 (3d Cir. 2019); see also Order, Aug. 7, 2023 [Doc. No. 331]. 2 CDW Corporation and CDW Direct, LLC (together, “CDW”) are no longer parties to this case. Plaintiff Contour resolved its claims against CDW and filed a motion to dismiss all claims against CDW, which the Court granted. Contour’s Mot. Dismiss [Doc. No. 388]; Order, Jan. 31, 2024 [Doc. No. 390]. Gridforce then notified the Court that it intended to prosecute CDW’s Motion to Exclude the Opinion of Joseph J.T. Thompson and adopted all arguments raised therein. See Gridforce’s Notice [Doc. No. 391]. 3 Contour’s First Mot. Seal [Doc. No. 337]. 4 Gridforce’s First Mot. Seal [Doc. No. 340]. 5 Contour’s Second Mot. Seal [Doc. No. 355]. 6 Gridforce’s Second Mot. Seal [Doc. No. 359]. (5) Gridforce’s Third Motion to Seal;7 and (6) Gridforce’s Motion to Seal Response to Record Supplement.8 I. LEGAL STANDARD The common law presumes that the public has a right of access to judicial materials. “In both criminal and civil cases, a common law right of access attaches ‘to judicial proceedings and records.’”9 “Whether the common law right of access applies to a particular document or record

‘turns on whether that item is considered to be a judicial record.’”10 “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.’”11 For example, “documents filed in connection with a motion for summary judgment are judicial records” with a “presumptive right of public access . . . .”12 To overcome the common law presumption of the public’s right to access, a movant must show “that the interest in secrecy outweighs the 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.”13 “In delineating the injury to be prevented, specificity is essential.”14 “Broad allegations of

harm, bereft of specific examples or articulated reasoning, are insufficient.”15 “[C]areful

7 Gridforce’s Third Mot. Seal [Doc. No. 372]. 8 Gridforce’s Mot. Seal Resp. R. Suppl. [Doc. No. 394]. 9 In re Avandia Mktg., Sales Pracs. & Prods. Liab. Litig., 924 F.3d 662, 672 (3d Cir. 2019) (quoting In re Cendant Corp., 260 F.3d 183, 192 (3d. Cir. 2001)). 10 Id. (quoting In re Cendant Corp., 260 F.3d at 192). 11 Id. (quoting In re Cendant Corp., 260 F.3d at 192). 12 Id. (citing Republic of the Phil. v. Westinghouse Elec. Corp., 949 F.2d 653, 660–62 (3d Cir. 1991); quoting In re Cendant Corp., 260 F.3d at 192–93). 13 Id. (emphasis added) (quoting Bank of Am. Nat’l Tr. & Sav. Ass’n v. Hotel Rittenhouse Assocs., 800 F.2d 339, 344 (3d Cir. 1986); Miller v. Ind. Hosp., 16 F.3d 549, 551 (3d Cir. 1994)). 14 Id. at 673 (quoting In re Cendant Corp., 260 F.3d at 194). 15 Id. (quoting In re Cendant Corp., 260 F.3d at 194). factfinding and balancing of competing interests is required before the strong presumption of openness can be overcome by the secrecy interests of private litigants.”16 “To that end, the District Court must ‘conduct[ ] a document-by-document review’ of the contents of the challenged documents.”17

II. DISCUSSION A. Contour’s Sealing Motions 1. Contour’s Motion to Seal Certain Information and Exhibits in the Opening Motions Contour filed its first Motion to Seal, and Gridforce responded in partial opposition.18 These sealing requests revolve around the parties’ opening summary judgment and Daubert briefs. Contour separates its sealing requests into three general categories of information: (1) Contour’s purported “trade secrets” relating to Contour’s IT System; (2) confidential financial and business information; and (3) personal and financial information of non-party Contour personnel.19 The Court addresses each in turn. First, Contour seeks to seal numerous documents and exhibits because—according to Contour—they disclose trade secrets in Contour’s IT System, including primary source banners, coding, scripts, and an explanation of the chronology of events that led to the creation of the IT System.20 Contour argues that these documents must be kept under seal because “disclosure

16 Id. (quoting Leucadia, Inc. v. Applied Extrusion Techs., Inc., 998 F.2d 157, 167 (3d Cir. 1993)). 17 Id. (quoting Leucadia, Inc., 998 F.2d at 167). 18 See Contour’s First Mot. Seal [Doc. No. 337]; Gridforce’s Resp. Opp’n Contour’s First Mot. Seal [Doc. No. 373]. 19 Contour’s Mem. Supp. First Mot. Seal [Doc. No. 337] at 7. 20 Id. at 9–10. Specifically, Contour seeks to seal the following: (1) Contour’s Statement of Facts in Support of its Motions for Summary Judgment Nos. 83, 85, 88, 116, 124, and 129; (2) Contour’s Ex. 4: Affidavit of Rocco Guerriero Regarding Contour’s Creation of IT System; (3) Contour’s Ex. 12, CDW’s Ex. 23 (Duplicate): Contour Data Solutions LLC’s Objections and Responses to CDW Corp.’s First Set of Interrogatories; (4) Contour’s Ex. 17, Gridforce Ex. 26 (Duplicates): Contour Data Solutions LLC’s Objections and Responses to Gridforce Energy Management, LLC’s Fourth Set of Interrogatories; (5) Contour’s Ex. 18: Contour Data Solutions LLC’s Objections and Responses to Gridforce Energy Management, LLC’s First Set of Interrogatories; (6) Contour’s Ex. 19: Contour would harm Contour by increasing risks to the security of Contour’s business, System, and clients, and would damage the market value of the System . . . .”21 Trade secrets are “a noted exception to the presumption of public access.”22 However, as the Court has articulated in detail in its Memorandum Opinion on Contour and Gridforce’s cross-

motions for summary judgment, Contour has failed to establish that the IT System constitutes a trade secret. Therefore, applying the standards set forth by the Court of Appeals, the Court does not find that Contour’s interest in secrecy outweighs the strong presumption of openness of judicial records as to these documents.

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CONTOUR DATA SOLUTIONS LLC v. GRIDFORCE ENERGY MANAGEMENT LLC, (E.D. Pa. 2024).

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