Jones v. PGA Tour, Inc.

District Court, N.D. California·Decided May 22, 2023·No. 5:22-cv-04486·Unknown

Opinion

MATT JONES, et al., Case No. 22-cv-04486-BLF

Plaintiffs, ORDER ON MOTIONS TO SEAL v. DOCUMENTS SUBMITTED WITH MOTIONS TO STAY [Re: ECF Nos. 414, 421, 422] Defendant.

Before the Court are three administrative motions to consider whether another party’s material should be sealed. The motions concern materials submitted with briefing on motions to stay discovery. Defendant PGA Tour, Inc. (the “TOUR”) filed an Administrative Motion to Consider Whether Another Party’s Material Should Be Sealed. TOUR Mot., ECF No. 414. Plaintiff LIV Golf, Inc. filed a statement in support of sealing. LIV Statement, ECF No. 419. Plaintiffs LIV, Matt Jones, and Bryson DeChambeau filed two administrative motions to consider whether another party’s material should be sealed. Plaintiffs’ first administrative motion seeks to seal materials that the TOUR designated as confidential. Pls. Mot. Re TOUR Materials, ECF No. 421. The TOUR has filed a statement in support of sealing. TOUR Statement, ECF No. 429. Plaintiffs’ second administrative motion seeks to seal materials that non-party Clout Public Affairs LLC designated as confidential. Pls. Mot. Re Clout Materials, ECF No. 422. Clout filed a statement in support of sealing. Clout Statement, ECF No. 427. For the following reasons, the TOUR’s administrative motion (ECF No. 414) is GRANTED; Plaintiffs’ motion concerning the TOUR’s materials (ECF No. 421) is GRANTED No. 422) is GRANTED IN PART and DENIED IN PART. “Historically, courts have recognized a ‘general right to inspect and copy public records and documents, including judicial records and documents.’” Kamakana v. City and Cnty. of Honolulu, 447 F.3d 1172, 1178 (9th Cir. 2006) (quoting Nixon v. Warner Commc’ns, Inc., 435 U.S. 589, 597 & n.7 (1978)). Consequently, access to motions and their attachments that are “more than tangentially related to the merits of a case” may be sealed only upon a showing of “compelling reasons” for sealing. Ctr. for Auto Safety v. Chrysler Grp., LLC, 809 F.3d 1092, 1101-02 (9th Cir. 2016). Filings that are only tangentially related to the merits may be sealed upon a lesser showing of “good cause.” Id. at 1097. Under this Court’s Civil Local Rules, a party moving to seal a document in whole or in part must file a statement identifying the legitimate private or public interests that warrant sealing, the injury that will result if sealing is denied, and why a less restrictive alternative to sealing is not sufficient. See Civ. L.R. 79-5(c)(1). A supporting declaration shall be submitted if necessary. See Civ. L.R. 79-5(c)(2). Finally, the moving party must submit “a proposed order that is narrowly tailored to seal only the sealable material[.]” Civ. L.R. 79-5(c)(3). Where the moving party requests sealing of material that has been designated confidential by another party, the designating party has the burden to establish that the material should be sealed. See Civ. L.R. 79-5(f) II. DISCUSSION The good cause standard applies here because the sealing request relates to briefing on motions to stay discovery, which is only tangentially related to the merits of the case. Cf. Ctr. for Auto Safety, 809 F.3d at 1097; cf. also LELO, Inc. v. Standard Innovation (US) Corp., No. 13-CV- 01393-JD, 2014 WL 2879851 (N.D. Cal. June 24, 2014) (applying “good cause” standard to evaluate sealing of documents submitted with a motion to stay); E. W. Bank v. Shanker, 2021 WL 4916729, at *1 (N.D. Cal. Aug. 31, 2021) (same). Courts in this Circuit have held that confidential business information in the form of “license agreements, financial terms, details of confidential licensing negotiations, and business strategies” satisfies the “compelling reasons” standard. See Exeltis USA Inc., 2020 WL 2838812, at *1; see also In re Qualcomm Litig., No. 3:17-cv-0108-GPC-MDD, 2017 WL 5176922, at *2 (S.D. Cal. Nov. 8, 2017) (observing that sealing is warranted to prevent competitors from “gaining insight into the parties’ business model and strategy”); In re Hydroxycut Mktg. & Sales Pracs. Litig., No. 09MD2087 BTM AJB, 2011 WL 864897 (S.D. Cal. Mar. 11, 2011) (finding compelling reasons to seal “e-mails which reveal business and marketing strategy”). Such information is therefore sealable under the “less exacting” good cause standard. See Ctr. for Auto Safety, 809 F.3d at 1097. LIV Materials: LIV has demonstrated good cause to seal the material it seeks to seal. LIV requests to seal confidential information related to (1) confidential negotiations with broadcasters and sponsors, and (2) investor operations pursuant to rights under the Shareholder Agreement. See LIV Statement (citing Davidson Decl. ¶¶ 2-3, ECF No. 419). LIV’s declarant explains that disclosure would cause competitive harm to LIV by prejudicing LIV’s ability to obtain outside funding, restricting its ability to pursue a franchise model, and deterring of potential business partners from entering negotiations with or for LIV. Davidson Decl. ¶¶ 2-3. The Court finds that LIV’s Statement and Mr. Davidson’s declaration set forth good cause to seal the material LIV requests to seal. The Court’s rulings on specific documents are set forth as follows: ECF No. Document Portion(s) to Seal Court’s Ruling 414-1 TOUR’s 3:16-17; 3:19; 3:22-23 GRANTED. Contains confidential Opposition to PIF negotiations with potential business and HE’s Motion partners the disclosure of which to Stay would cause competitive harm, including by hampering future negotiations. 414-1 TOUR’s 4:5-6; 7:4-5; 7:13-17 GRANTED. Describes investor Opposition to PIF rights under LIV’s Shareholder and HE’s Motion Agreement, the disclosure of which to Stay would harm LIV by prejudicing LIV’s ability to negotiate with future investors. TOUR Materials: In general, the TOUR has demonstrated good cause to seal the material it seeks to seal. The TOUR requests to seal information that includes: (1) summaries of and communications with consultants that reflect competitively sensitive information about internal TOUR operations and corporate decision making; (2) confidential communications between TOUR employees; (3) communications between the TOUR and nonparties, and (4) strategy communications between a TOUR employee and the TOUR commissioner. TOUR Statement 5. The TOUR’s declarant explains that allowing public access to this confidential information could harm the TOUR’s competitive standing and business relationships by revealing sensitive details about the way the TOUR operates. Shetty Decl. ¶¶ 3-12. The Court finds that, for the most part, the TOUR’s Statement and Ms. Shetty’s declaration set forth good cause to seal the material the TOUR requests to seal. However, as discussed below, the TOUR has not made the requisite showing of good cause to seal certain documents in their entirety. The TOUR has not demonstrated good cause to seal Exhibit F to the Surprenant Declaration (ECF No. 421-4) in its entirety. “The ‘good cause’ standard requires a ‘particularized showing’ that ‘specific prejudice or harm will result’ if the information is disclosed.” Steshenko v. Gayrard, No. 13-CV-03400-LHK, 2015 WL 602396, at *2 (N.D. Cal. Feb. 11, 2015) (quoting Phillips ex rel. Estates of Byrd v. Gen. Motors Corp., 307 F.3d 1206, 1210-11 (9th Cir. 2002)). Exhibit F is a letter from a non-party to the TOUR. The TOUR argues that “[d]isclosure of this communication would harm the TOUR and reveal the substance of the TOUR’s confidential communications with the non-party.” TOUR Statement 2:15-18. But the TOUR offers no explanation of how it would be harmed. Such “‘[b]road allegations of harm, unsubstantiated by specific examples of articulated reasoning’ will not suffice” to justify sealing under the “good cause” standard. Steshenko, 2015 WL 602396, at *2 (quoting Beckman Indus., Inc. v. Int’

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