Hill Phoenix, Inc. v. Classic Refrigeration SoCal, Inc.

District Court, C.D. California·Decided August 21, 2019·No. 8:19-cv-00695·Unknown

Opinion

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA HILL PHOENIX INC., a Delaware Case No. 8:19-cv-00695-DOC (JDEx) corporation, PROTECTIVE ORDER Plaintiff,

v. [Discovery Document: Referred to Magistrate Judge John D. Early] INC., a California corporation; THOMAS DAVID LOWE, an individual; DAVID ROGERS, an individual; and TRAVIS VANDERLOON, an individual, Defendants.

1. PURPOSES AND LIMITATIONS Discovery in this action is likely to involve production of confidential, proprietary, or private information for which special protection from public disclosure and from use for any purpose other than pursuing this litigation may be warranted. Accordingly, the following Protective Order is necessary to safeguard against public disclosure of the confidential and proprietary information at issue in this dispute. The parties acknowledge that this Order does not confer blanket protections on all disclosures or responses to discovery and that the protection it affords from public disclosure and use extends only to the limited information or items that are entitled to confidential treatment under the applicable legal principles. 2. GOOD CAUSE STATEMENT AND FACTUAL BACKGROUND This is an action for trade secret misappropriation and for breach of certain confidentiality agreements. Plaintiff alleges that this action is likely to involve the production, exchange, and examination of confidential information (including information that Plaintiff alleges is trade secret) or other confidential research, development, or commercial information (including information implicating privacy rights of third parties), information otherwise generally unavailable to the public, or which may be privileged or otherwise protected from disclosure under state or federal statutes, court rules, case decisions, or common law. The disclosure of this information, according to Plaintiff, has the potential to cause competitive harm to Plaintiff. Accordingly, special protection of this information from public disclosure and from use for any purpose other than prosecution of this action is warranted. By way of example, Plaintiff alleges that its trade secret and confidential information includes customer and pricing lists, wage and hour margin information, job costing templates, and past confidential bids made by Plaintiff to its customers or potential customers, all of which Plaintiff has accused Defendants of misappropriating—an allegation that Defendants deny. Plaintiff further alleges that the information will include internal business information concerning the individual and corporate Defendants, including bids they have made to customers, corporate financial information, and individual wage and salary details. Defendants, again, dispute that any information in this case is highly confidential or constitutes trade secret information. Nevertheless, to expedite the flow of information, to facilitate the prompt resolution of disputes over confidentiality of discovery materials, to adequately protect information the parties are entitled to keep confidential, to ensure that the parties are permitted reasonable and necessary uses of such material in preparation for and in the conduct of trial, to address their handling at the end of the litigation, and to serve the ends of justice, this Protective Order should be entered as an order of the Court. The parties shall not designate information as confidential for tactical reasons. The parties may designate information as confidential only when there is a good faith belief that the information has been maintained in a confidential, non- public manner, and there is good cause why it should not be part of the public record of this case. 3. ACKNOWLEDGMENT OF UNDER SEAL FILING PROCEDURE The parties further acknowledge, as set forth in Section 14.3, below, that this Protective Order does not entitle them to file confidential information under seal; Local Civil Rule 79-5 sets forth the procedures that must be followed and the standards that will be applied when a Party seeks permission from the court to file material under seal. There is a strong presumption that the public has a right of access to judicial proceedings and records in civil cases. In connection with non- dispositive motions, good cause must be shown to support a filing under seal. See Kamakana v. City and County of Honolulu, 447 F.3d 1172, 1176 (9th Cir. 2006), Phillips v. Gen. Motors Corp., 307 F.3d 1206, 1210-11 (9th Cir. 2002), Makar- Welbon v. Sony Electrics, Inc., 187 F.R.D. 576, 577 (E.D. Wis. 1999) (even stipulated protective orders require good cause showing), and a specific showing of good cause or compelling reasons with proper evidentiary support and legal justification, must be made with respect to Protected Material that a Party seeks to file under seal. The parties’ mere designation of Disclosure or Discovery Material as CONFIDENTIAL does not—without the submission of competent evidence by declaration, establishing that the material sought to be filed under seal qualifies as confidential, privileged, or otherwise protectable—constitute good cause. Further, if a Party requests sealing related to a dispositive motion or trial, then compelling reasons, not only good cause, for the sealing must be shown, and the relief sought shall be narrowly tailored to serve the specific interest to be protected. See Pintos v. Pacific Creditors Ass’n., 605 F.3d 665, 677-79 (9th Cir. 2010). For each item or type of information, document, or thing sought to be filed or introduced under seal, the Party seeking protection must articulate compelling reasons, supported by specific facts and legal justification, for the requested sealing order. Again, competent evidence supporting the application to file documents under seal must be provided by declaration. Any document that is not confidential, privileged, or otherwise protectable in its entirety will not be filed under seal if the confidential portions can be redacted. If documents can be redacted, then a redacted version for public viewing, omitting only the confidential, privileged, or otherwise protectable portions of the document, shall be filed. Any application that seeks to file documents under seal in their entirety should include an explanation of why redaction is not feasible. 4. DEFINITIONS 4.1 Action: this pending federal lawsuit. 4.2 Challenging Party: a Party or Non-Party that challenges the designation of information or items under this Order. 4.3 “CONFIDENTIAL” Information or Items: information (regardless of how it is generated, stored or maintained) or tangible things that qualify for protection under Federal Rule of Civil Procedure 26(c), and as specified above in the Good Cause Statement. 4.4 “HIGHLY CONFIDENTIAL – ATTORNEYS’ EYES ONLY” Information or Items: information (regardless of how it is generated, stored or maintained) or tangible things that qualify for protection under Federal Rule of Civil Procedure 26(c), as specified above in the Good Cause Statement, and the disclosure of which would put the Producing Party at a competitive disadvantage. 4.5 Counsel: Outside Counsel of Record and House Counsel (as well as their support staff). 4.6 Designating Party: a Party or Non-Party that designates information or items that it produces in disclosures or in responses to discovery as “CONFIDENTIAL” or “HIGHLY CONFIDENTIAL – ATTORNEYS’ EYES ONLY.” 4.7 Disclosure or Discovery Material: all items or information, regardless of the medium or manner in which it is generated, stored, or maintained (including, among other things, testimony, transcript

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Hill Phoenix, Inc. v. Classic Refrigeration SoCal, Inc., (C.D. Cal. 2019).

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Pintos v. PACIFIC CREDITORS ASS'N
605 F.3d 665 (Ninth Circuit, 2010)
Kamakana v. City and County of Honolulu
447 F.3d 1172 (Ninth Circuit, 2006)
Makar-Wellbon v. Sony Electronics, Inc.
187 F.R.D. 576 (E.D. Wisconsin, 1999)