Minter v. Wells Fargo Bank, N.A.

258 F.R.D. 118, 2009 U.S. Dist. LEXIS 55106, 2009 WL 1653472
District Court, D. Maryland·Decided May 27, 2009·No. Civil No. WMN-07-3442·Published·Cited by 61 cases

Opinion

MEMORANDUM OPINION

SUSAN K. GAUVEY, United States Magistrate Judge.

Before the Court is defendant Long & Foster Real Estate, Inc.’s Motion for Protective Order to Preclude, Postpone, and/or Limit the Deposition of P. Wesley Foster, Jr. (Paper No. 92), and defendant Long & Foster Real Estate, Inc.’s Motion to File Documents Under Seal Pursuant to Local Rule 105.11 (Paper No. 90) — specifically the motion, memorandum, and exhibits supporting the motion for protective order. The matters are fully briefed. No hearing is necessary. Local Rule 105.6. For the following reasons, the Court shall DENY in part and GRANT in part Long & Foster Real Estate, Inc.’s motion for protective order and DENY Long & Foster Real Estate, Inc.’s motion to seal.

I. DISCUSSION

This is a class action in which plaintiffs allege that Wells Fargo, in conjunction with Long & Foster Real Estate, Inc. (“L & F”), created Prosperity Mortgage — a sham Affiliated Business Arrangement (“ABA”) — to facilitate the collection of unlawful referral fees and kickbacks. (Paper No. 18 at 2.) According to plaintiffs, Prosperity is not a mortgage company, but rather a “conduit” through which L & F receives kickbacks for referring mortgages to Wells Fargo. (Id.) Unsuspecting borrowers essentially pay the referral fee disguised as legitimate charges, for which they receive no additional goods or services — a practice plaintiffs assert violates state and federal laws. (Id.) At the helm of L & F is P. Wesley Foster Jr. (Id. at 15.) Although his level of involvement in L & F and Prosperity operations is disputed, there is evidence that he has played a significant role in steering L & F agents to use Prosperity and that he has a significant economic interest in both companies. (Id.)

A. Motion to Seal

L & F moves that the following documents, filed in support of its motion for protective order, be filed under seal: 1) L & F’s Motion for Protective Order to Preclude, Postpone, and/or Limit the Deposition of P. Wesley Foster, Jr.; 2) the Memorandum of Law in Support of the Motion for Protective Order; 3) the Declaration of P. Wesley Foster, Jr., dated February 2009 (“Foster Declaration”); 4) the Declaration of Jay N. Varón dated February 20, 2009 (“Varón Declaration”); and 5) three additional exhibits accompanying the motion and memorandum of law which are comprised of correspondence between counsel (specifically exhibits 2, 4, and 5). (Paper No. 90 at 1.) For the reasons discussed below, the Court hereby DENIES the motion.1

Local Rule 105.11 requires that a party seeking to seal documents offer reasons supported by specific factual representations justifying the sealing.2 The common law presumes the right of the public to inspect and copy all judicial records. Va. Dep’t of State Police v. The Washington Post, 386 F.3d 567, 575 (4th Cir.2004); see also Rich[121]*121mond Newspapers, Inc. v. Virginia, 448 U.S. 555, 580, n. 17, 100 S.Ct. 2814, 65 L.Ed.2d 973 (1980)(noting that “historically both civil and criminal trials have been presumptively open”). “This presumption of access, however, can be rebutted if countervailing interests heavily outweigh the public interests in access.” Rushford v. New Yorker Magazine, Inc., 846 F.2d 249, 253 (4th Cir.1988). Ultimately, the decision whether to allow public access to judicial records is a matter of the district court’s “supervisory” and discretionary power. Id. (citing Nixon v. Warner Communications, Inc., 435 U.S. 589, 598-99, 98 S.Ct. 1306, 55 L.Ed.2d 570 (1978)). But the right of access may only be abrogated in “unusual circumstances.” Id. (citing Stone v. University of Md. Med. Sys. Corp., 855 F.2d 178, 180 (4th Cir.1988)).

When the First Amendment provides a right of access, the district court may seal documents only “on the basis of a compelling government interest,” a higher standard than described in the preceding paragraph. Id. (internal citations omitted). The First Amendment right of access has been held expressly to apply in criminal cases, and to materials made part of a dispositive motion in civil cases. Id. at 576; see also Rushford v. New Yorker Magazine, Inc., 846 F.2d 249, 253 (4th Cir.1988)(opining that the more rigorous standard applies to documents made part of dispositive civil motions).

There is no reason to assume that the First Amendment protection does not apply even more broadly, to non-dispositive motions and materials, such as those at issue here. In fact, existing precedent suggests this broader reach. In Richmond Newspapers, Inc. v. Virginia, the Supreme Court held that the right of the public to attend trials is implicit within certain First Amendment guarantees. 448 U.S. 555, 578-80, 100 S.Ct. 2814, 65 L.Ed.2d 973 (1980). “[A] presumption of openness inheres in the very nature of a ... trial under our system of justice.” Id. at 573, 100 S.Ct. 2814. Courts have interpreted Richmond Newspapers broadly, and “make little distinction between the right of access to court proceedings and the right of access to court records.” Anne-Therese Beehamps, Sealed OuGof-Court Settlements: When Does the Public Have a Right to Know?, 66 Notre Dame L.Rev. 117, 135 (1990) and cases cited therein. “These courts understand Richmond Newspapers to recognize the public’s general right to receive information within a court’s control.” Id. at 136. Indeed, “in some civil cases the public interest in access, and the salutary effect of publicity, may be as strong as, or stronger than, in most criminal cases.” Gannett Co. v. DePasquale, 443 U.S. 368, 386 n. 15, 99 S.Ct. 2898, 61 L.Ed.2d 608 (1979).

In Virginia Dep’t of State Police v. The Washington Post, the Fourth Circuit stated that it has “never held that the public has a First Amendment right of access to a pretrial hearing on a non-dispositive civil motion.” The Court nonetheless continued that “proceedings in civil cases are traditionally open.” Washington Post, 386 F.3d at 580 (citing In re Washington Post Co., 807 F.2d 383, 390 (4th Cir.1986)); see also In re Grand Jury Subpoena, 836 F.2d 1468, 1475, n. 11 (4th Cir.1988)(“Sealing the discovery process in civil proceedings ... sacrifices the traditional interest of the public in obtaining access to civil proceedings ...”). Ultimately, however, the Fourth Circuit declined to reach the question on the record before it. Id. at 580.

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Minter v. Wells Fargo Bank, N.A., 258 F.R.D. 118, 2009 U.S. Dist. LEXIS 55106, 2009 WL 1653472 (D. Md. 2009).

258 F.R.D. 118 (Minter v. Wells Fargo Bank, N.A.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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