Grano v. Sodexo, Inc.

CourtDistrict Court, S.D. California
DecidedAugust 16, 2022
Docket3:18-cv-01818
StatusUnknown

This text of Grano v. Sodexo, Inc. (Grano v. Sodexo, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grano v. Sodexo, Inc., (S.D. Cal. 2022).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10 11 VINCENT GRANO, et al., Case No.: 3:18-cv-1818-RSH-BLM

12 Plaintiffs, ORDER PARTIALLY GRANTING 13 v. AND DENYING PARTIES’ MOTIONS TO FILE DOCUMENTS 14 SODEXO MANAGEMENT, INC., et al., UNDER SEAL 15 Defendants. [ECF Nos. 333, 335, 354, & 366] 16 AND ALL RELATED CASES 17 18 There have been four motions for leave to file documents under seal pending in this 19 case for nearly a year. The motions to seal all relate to summary judgment motion briefing. 20 The Court addresses each motion to seal separately below, granting and denying the 21 motions in part. 22 I. Legal Standard 23 Courts have historically recognized a “general right to inspect and copy public 24 records and documents, including judicial records.” Nixon v. Warner Commc’ns, Inc., 435 25 U.S. 589, 597 & n.7 (1978). “Unless a particular court record is one ‘traditionally kept 26 secret,’ a ‘strong presumption in favor of access’ is the starting point.” Kamakana v. City 27 & Cnty. of Honolulu, 447 F.3d 1172, 1178 (9th Cir. 2006) (quoting Foltz v. State Farm 28 Mut. Auto. Ins. Co., 331 F.3d 1122, 1135 (9th Cir. 2003)). 1 To overcome this strong presumption and seal a judicial record related to a 2 dispositive motion, a party must articulate “compelling reasons supported by specific 3 factual findings that outweigh the general history of access and the public policies favoring 4 disclosure, such as the public interest in understanding the judicial 5 process.” Kamakana, 447 F.3d at 1178–79 (internal quotation marks and citations 6 omitted).1 Compelling reasons “exist when such ‘court files might have become a vehicle 7 for improper purposes,’ such as the use of records to gratify private spite, promote public 8 scandal, circulate libelous statements, or release trade secrets.” Id. at 9 1179 (citing Nixon, 435 U.S. at 598). “The mere fact that the production of records may 10 lead to a litigant’s embarrassment, incrimination, or exposure to further litigation will not, 11 without more, compel the court to seal its records.” Id. (citing Foltz, 331 F.3d at 1136). 12 Once a party articulates their compelling reasons, courts must then “conscientiously 13 balance[] the competing interests of the public and the party who seeks to keep certain 14 judicial records secret.” Id. (quoting Foltz, 331 F.3d at 1135). 15 However, even if it may be appropriate to seal a document in its entirety, a party 16 should still redact records whenever possible. See Kamakana, 447 F.3d at 1183 (noting a 17 preference for redactions so long as they “have the virtue of being limited and clear”); 18 Murphy v. Kavo Am. Corp., No. 11–cv–00410, 2012 WL 1497489 at *2–3 (N.D. Cal. Apr. 19 27, 2012) (denying motion to seal exhibits but directing parties to redact confidential 20 information). See also Chambers Civ. Proc. § VIII (Protective Orders and Requests to File 21 Under Seal). 22 As further explained in this Order, the Parties have articulated common bases for 23 requesting that the Court seal certain records, including trade secrets, proprietary business 24

25 26 1 “[A] particularized showing under the good cause standard of [Federal Rule of Civil Procedure 26(c)] will suffice to warrant preserving the secrecy of sealed discovery material 27 attached to non-dispositive motions.” Kamakana, 447 F.3d at 1180 (internal quotation 28 marks and citations omitted). 1 information, and confidentiality designations under the Court’s December 6, 2019, 2 Amended Protective Order, ECF No. 55. Accordingly, the Court addresses the legal 3 standard for sealing court records as applied to each of these categories of material below. 4 A. Trade Secrets 5 Federal Rule of Civil Procedure 26(c) (“Rule 26(c)”) grants trial courts broad 6 discretion to seal court documents to protect “a trade secret or other confidential research, 7 development, or commercial information.” Fed. R. Civ. P. 26(c)(1)(G); see Kamakana, 447 8 F.3d at 1179 (“In general, ‘compelling reasons’ sufficient to outweigh the public’s interest 9 in disclosure and justify sealing court records exist when such ‘court files might have 10 become a vehicle for improper purposes,’ such as the use of records to . . . release trade 11 secrets.”) (quoting Nixon, 435 U.S. at 598). In the Ninth Circuit, “[a] trade secret may 12 consist of any formula, pattern, device or compilation of information which is used in one’s 13 business, and which gives him an opportunity to obtain an advantage over competitors who 14 do not know or use it.” Clark v. Bunker, 453 F.2d 1006, 1009 (9th Cir. 15 1972) (quoting Restatement (First) of Torts § 757 cmt. b (Am. L. Inst. 1939)). 16 B. Proprietary Business Information 17 Courts may also justify sealing court filings to prevent judicial documents from 18 being used “as sources of business information that might harm a litigant’s competitive 19 standing.” Nixon, 435 U.S. at 598; see In re Elec. Arts, Inc., 298 F. App’x 568, 569 (9th 20 Cir. 2008) (reversing district court order not to seal “pricing terms, royalty rates, and 21 guaranteed minimum payment terms” from licensing agreements). Nevertheless, “[a]n 22 unsupported assertion of ‘unfair advantage’ to competitors without explaining ‘how a 23 competitor would use th[e] information to obtain an unfair advantage’ is insufficient.” 24 Ochoa v. McDonald’s Corp., No. 14-CV-02098, 2015 WL 3545921, at *1 (N.D. Cal. June 25 5, 2015) (quoting Hodges v. Apple, Inc., No. 13–cv–01128, 2013 WL 6070408, at *2 (N.D. 26 Cal. Nov. 18, 2013)). See In re Pac. Fertility Ctr. Litig., No. 18-CV-01586, 2021 WL 27 1081129, at *2 (N.D. Cal. Feb. 18, 2021) (holding that “generalized statement that 28 exposure of ‘commercially sensitive business information would allow potential 1 competitors to gain insight into . . . operations and business relationships such that its 2 business could be significantly and irreparable harmed’ fails to satisfy the compelling 3 reasons standard.”). 4 As such, courts will seal records containing detailed confidential business 5 information where the parties articulate a concrete, non-speculative harm. Compare FTC 6 v. Qualcomm Inc., No. 17–CV–220, 2019 WL 95922, at *2–3 (N.D. Cal. Jan. 3, 2019) 7 (granting motion to seal under the compelling reasons standard where records “contain[ed] 8 detailed, non-public and confidential . . . information” regarding “commercial negotiations 9 and agreements with customers, [] competitive strategy, and [] research and development 10 activities”), with Ochoa, 2015 WL 3545921, at *1–2 (declining to seal “franchise 11 agreements” because supporting declaration “simply sa[id] that the documents ‘contain 12 confidential and proprietary business information, including financial terms’ that if 13 disclosed ‘may be exploited by competitors.’”), and Apple Inc. v. Samsung Elecs. Co., No. 14 11-CV01846, 2013 WL 412864, at *2 (N.D. Cal. Feb. 1, 2013) (“Although Samsung 15 recites boilerplate terms that this information is proprietary and confidential, it does not 16 provide a particularized showing of how this information would be detrimental if 17 disclosed.”). 18 Additionally, the fact that parties contract or agree to treat certain information or 19 material as confidential is an insufficient basis in and of itself for a court to seal a judicial 20 record and override the public’s interest in understanding the judicial process. See, e.g., 21 Rumble, Inc. v. Daily Mail & Gen. Tr. PLC, No.

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