DNA Genotek Inc. v. Spectrum Solutions L.L.C.

District Court, S.D. California·Decided November 3, 2022·No. 3:21-cv-00516·Unknown

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10 11 DNA GENOTEK INC., a Canadian Case No.: 21-cv-516-RSH-DDL Corporation, 12 ORDER ON MOTIONS TO SEAL Plaintiff, 13 v. [Dkt. Nos. 149, 151, 165] 14 SPECTRUM SOLUTIONS L.L.C., 15 a Utah Limited Liability Company, 16 Defendant. 17

AND RELATED COUNTERCLAIM. 18 19 20 Before the Court are three pending motions to seal (the “Motions to Seal”). 21 Dkt. Nos. 149, 151 and 165. Having considered the parties’ arguments and the 22 applicable law, and for the reasons explained below, the Court GRANTS IN PART 23 and DENIES IN PART Defendant Spectrum Solutions LLC’s Motion for Leave to 24 File Under Seal Documents in Support of Spectrum’s Motion to Compel DNA 25 Genotek to Produce Documents [Dkt. No. 149], DENIES Plaintiff DNA Genotek 26 Inc.’s Motion for Leave to File Documents Under Seal [Dkt. No. 151] and DENIES 27 Spectrum’s Motion for Leave to File Under Seal Joint Submission Supplementing 28 Motions to Seal [Dkt. No. 165]. 1 I. 2 BACKGROUND 3 On September 30, 2022, Defendant moved to compel further responses to 4 its request for “documents that [Plaintiff] provided to third parties in furtherance of 5 a potential acquisition of [Plaintiff] or its parent.” See Dkt. Nos. 148, 150 at 5. In 6 connection with that motion,1 the parties each moved to seal certain of their 7 supporting exhibits and portions of any briefing that cited to, or revealed the 8 contents of, those exhibits. See Dkt. Nos. 149, 151. The assertedly sealable 9 information largely related to the potential acquisition referenced above, although 10 Defendant also sought to seal certain other non-public data regarding the revenue 11 Defendant generates from the allegedly infringing products (the “Revenue 12 Information”). See Dkt. No. 149 at 3. 13 On October 17, 2022, the Court tentatively denied the Motions to Seal due 14 to “the parties’ failure to make a particularized showing that the information is 15 protectable under Ninth Circuit law.” See Dkt. No. 157. The Court held a hearing 16 on Defendant’s motion to compel on October 21, 2022. Dkt. No. 159. During that 17 hearing, the Court requested supplemental briefing on the Motions to Seal, 18 specifically directing the parties to address the concrete, particularized harm that 19 would result from disclosure of the allegedly sealable information. See Dkt. No. 20 160. The parties timely filed the supplemental briefing (the “Supplemental 21 Submission”), which was itself accompanied by a further request to seal. See Dkt. 22 Nos. 164, 165. 23 / / / 24 / / / 25 26 27 1 The Court has since denied the motion to compel, finding that the information sought was relevant, but was responsive to other document requests for which Plaintiff had already 28 1 II. 2 LEGAL STANDARDS 3 The public enjoys “a general right to inspect and copy public records and 4 documents, including judicial records and documents.” Nixon v. Warner 5 Commc’ns, Inc., 435 U.S. 589, 597 (1978). This longstanding principle “is ‘based 6 on the need for federal courts, although independent—indeed, particularly 7 because they are independent—to have a measure of accountability and for the 8 public to have confidence in the administration of justice.’” Ctr. for Auto Safety v. 9 Chrysler Grp., LLC, 809 F.3d 1092, 1096 (9th Cir. 2016). Thus, when evaluating a 10 request to seal judicial records, courts in this Circuit start with “a ‘strong 11 presumption in favor of access’” to those records. Kamakana v. City & Cty. of 12 Honolulu, 447 F.3d 1172, 1178 (9th Cir. 2006) (citation omitted). 13 The party requesting sealing bears the burden of overcoming this strong 14 presumption. Id. The showing required depends upon whether the underlying 15 motion is closely related to the merits of the case – in which case the party must 16 demonstrate “compelling reasons” to seal – or is only “tangentially related” to them, 17 which requires a less demanding showing of good cause. See Ctr. for Auto Safety, 18 809 F.3d at 1097. Most courts apply the “good cause” standard to discovery 19 motions. Although less demanding than the “compelling reasons” standard, “good 20 cause” nevertheless requires a “particularized showing that specific prejudice or 21 harm will result” if the information is disclosed. 2 See Phillips ex rel. Estates of Byrd 22 v. Gen Motors Corp., 307 F.3d 1206, 1210-11 (9th Cir. 2002). “Broad allegations 23 of harm, unsubstantiated by specific examples of articulated reasoning,” do not 24 25 26 2 The undersigned’s Chambers Rules require the designating party to join the motion to seal 27 because that party will often be in the best (if not the only) position to make the required “particularized” showing of a concrete, non-speculative harm that will from disclosure. See 28 Chambers Rules for the Honorable David D. Leshner (“Chambers Rules”), § III.G. 1 satisfy the good cause standard. Beckman Indus., Inc. v. Int’l Ins. Co., 966 F.2d 2 470, 476 (9th Cir. 1992). 3 III. 4 DISCUSSION 5 The parties request sealing, in whole or in part, of a total of six exhibits,3 6 certain other business information, and any part of their briefing on the motion to 7 compel or the Supplemental Submission that reveal their allegedly confidential 8 information. The parties’ requests are as follows: 9 10 Document to Be Sealed Exhibit or Docket Number(s) 11 Documents for Which Redactions Are Requested 12 13 Defendant’s Third Set of Requests for Production to Def. Ex. 1 Plaintiff 14 Pl. Ex. 2 15 Plaintiff’s Responses to Defendant’s Third Set of Def. Ex. 2 Requests for Production 16 Pl. Ex. 3 17 Meet and confer correspondence between counsel, Def. Ex. 6 18 dated 7/26/22-9/13/22 Pl. Ex. 4 19 References to the above exhibits in Defendant’s Dkt. Nos. 150, 20 Motion to Compel (the “Motion”), Plaintiff’s Opposition 152, and 152-1, (the “Opposition”) and the Declaration of Brian M. passim 21 Kramer in Support of the Opposition (“Kramer Decl.” 22 and, collectively, the “Moving Papers”) 23 24

25 26 3 The parties’ filings are complicated by their filing of duplicate copies of the supporting exhibits, which needlessly proliferated the parties’ sealing requests. Compare Defendant’s Exhibit (“Def. 27 Ex.”) 1 with Plaintiff’s Exhibit (“Pl. Ex.”) 2; Def. Ex. 2 with Pl. Ex. 3; Def. Ex. 3 with Pl. Ex. 5; Def. Ex. 4 with Pl. Ex. 8; Def. Ex. 6 with Pl. Ex. 4. For future motions, the parties are instructed not 28 1 Revenue Information Dkt. No. 150 at page 8, line 17 2 Supplemental Submission Dkt. No. 164 at 2 3 4 Documents Requested to Be Sealed in Their Entirety 5 Plaintiff’s Responses to Defendant’s First Set of Def. Ex. 4 6 Requests for Production Pl. Ex. 84 7 Plaintiff’s Responses to Defendant’s First Set of Def. Ex. 5 8 Interrogatories 9 Mutual Confidentiality Agreement (“MCA”) Pl. Ex. 7 10

11 The parties advance three main arguments in support of their various 12 requests for sealing. First, as to Defendant’s Exhibits 1, 2, 4, 5, and 6; Plaintiff’s 13 Exhibits 2, 3 and 4; the Revenue Information; the Moving Papers; and the 14 Supplemental Submission, the parties assert that the documents contain 15 confidential business information that would be detrimental to their respective 16 business interests if disclosed. Second, as to all documents for which they request 17 sealing, the parties state these were designated as “Confidential” or “Highly 18 Confidential” by one or more parties under the operative Protective Order. See 19 Dkt. No. 34-1. Third, as to Plaintiff’s Exhibit 7, Plaintiff states that the parties to 20 this contract agreed to keep it confidential, irrespective of its designation under the 21 Protective Order.5 The Court addresses each of these arguments in turn.

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DNA Genotek Inc. v. Spectrum Solutions L.L.C., (S.D. Cal. 2022).

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