Open Cheer & Dance Championship Series LLC v. Varsity Spirit, LLC

District Court, N.D. Texas·Decided July 21, 2025·No. 2:23-cv-00155·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS AMARILLO DIVISION OPEN CHEER & DANCE CHAMPIONSHIP SERIES, LLC, et ail., Plaintiffs, v. 2:23-CV-155-Z VARSITY SPIRIT, LLC, et al., Defendants. MEMORANDUM OPINION AND ORDER Before the Court is Defendants’ Motion to Strike Disclosures Under Rule 26(a)(1) and 26(a)(2)(C) and For Expedited Briefing and Consideration (“Motion”) (ECF No. 143), filed June 6, 2025. Plaintiffs responded on June 16, 2025. ECF No. 145. And Defendants replied on June 23, 2025. ECF No. 148. Plaintiffs also filed for leave to file their response under seal. ECF No. 146. The Court required additional briefing on that motion. ECF No. 149. The Motion is now ripe. Having reviewed the Motion, briefing, and relevant law, the Motion is GRANTED in part. Plaintiffs are ORDERED to supplement, within seven days of this Order’s date, their initial disclosures and expert disclosures to comply with Federal Rules of Civil Procedure 26(a)(1)(A)G) and 26(a)(2)(C)(i)(i1) as explained in this opinion. BACKGROUND Plaintiffs sued Defendants, alleging anticompetitive activity against Plaintiffs intended to prevent Plaintiffs from “gaining a foothold in the market” because Defendants “feared it would take away their control of the market.” ECF No. 1 at 6. Plaintiffs’ claims center on violations of the Sherman Antitrust Act, the Clayton Act, and the Texas Free Enterprise and Antitrust Act of 1983, among others. Jd. at 39-44. Plaintiffs argue Defendants’ “cheer cartel”

colluded to enact group boycotts and other collusive activity to prevent Plaintiffs from competing against them for All Star cheer competitions. Jd. at 6, 6-9. Plaintiffs produced their initial Rule 26(a)(1) disclosures in fall 2024. Defendants objected to deficiencies in Plaintiffs’ initial disclosures in October 2024. ECF No. 143-1 at 2. Defendants noted that Plaintiffs’ initial disclosures only “generally identified ‘current and former agents, employees, and custodians of record” for all parties and other unnamed individuals, “TBD.” ECF No. 143 (quoting ECF No. 125-7 at 2-4). Plaintiffs responded that they intended to supplement their initial disclosures to “identify additional persons [they] may use to support Plaintiffs’ claims.” ECF No. 143-3 at 2. Plaintiffs supplemented their initial disclosures on March 6, 2025. ECF No. 125-8. These disclosures still identified categories of individuals for over 100 entities. Jd. Defendants again objected. ECF No. 125-15. And Plaintiffs refused to fix the identified problems. ECF No. 143-4 at 2 (‘We disagree with your characterization of Plaintiffs’ initial disclosures. Defendants seem to be trying to manufacture issues that do not exist.”). Plaintiffs supplemented their initial disclosures for a second time on April 18, 2025. ECF No. 143-5. This supplement did not resolve the identified issues. See id. Thus, these second-supplement initial disclosures are the subject of this Motion. The same day Plaintiffs supplemented their initial disclosures for a second time, they produced their expert disclosures. ECF No. 143-6. Defendants objected to these, too, because they contended that the owners of Plaintiff organizations should not be designated experts, and the disclosures did not meet Rule 26(a)(2)(C)’s requirements. ECF No. 148-7 at 2-3. Plaintiffs supplemented their expert disclosures on May 7, 2025. ECF No. 143-8. These supplemented expert disclosures are the subject of this Motion.

LEGAL STANDARD I. Federal Rule of Civil Procedure 26(a)(1)(A)(i) Federal Rule of Civil Procedure 26(a)(1)(A)(i) requires parties to disclose initially the “name and, if known, the address and telephone number of each individual likely to have discoverable information—along with the subjects of that information—that the disclosing party may use to support its claims or defenses.” FED. R. CIV. P. 26(a)(1)(A)(i) (emphasis added). A party may rely on “the information then reasonably available to it” when making these initial disclosures but cannot excuse deficient disclosures “because it has not fully investigated the case or because it challenges the sufficiency of another party’s disclosures or because another party has not made its disclosures.” FED. R. CIv. P. 26(a)(1)(E). “But not everyone is going to have all that information at the outset of litigation.” Reyna v. Epiroc Drilling Sols., LLC, No. 3:23-CV-1005, 2025 WL 317568, at *6 (N.D. Tex. Jan. 28, 2025). So parties have a continuing duty to supplement their initial disclosures “if [they] learn[] that in some material respect the disclosure . . . is incomplete” and more details comes to light. FED. R. CIV. P. 26(e)(1). II. Federal Rule of Civil Procedure 26(a)(2)(C) Federal Rule of Civil Procedure 26(a)(2)(C) requires a party to disclose “the subject matter on which the [expert] witness is expected to present evidence under Federal Rules of Evidence 702, 703, or 705” and to disclose “a summary of the facts and opinions to which the [expert] witness is expected to testify” for all expert witnesses who are “not required to provide a written report.” This disclosure requirement provides the opposing party with notice of approximately what a nonretained expert witness will testify about. See Galvez v. KLLM Transp. Servus., LLC, 575 F. Supp. 3d 748, 756 (N.D. Tex. 2021). These disclosures must provide a summary of the nonretained expert’s opinions and not only the topics of testimony. See EKverett Fin., Inc. v. Primary Residential Mortg., Inc., No. 3:14-CV-1028, 2017 WL 90366, at *2 (N.D. Tex. Jan. 10, 2017). Additionally, these disclosures must provide the specific factual basis for the

enumerated opinions. Jd. The Rule’s use of “summary” means that an “abstract, abridgement, or compendium of the opinion and facts supporting the opinion” suffices. Anders v. Hercules Offshore Servs., LLC, 311 F.R.D. 161, 164 (E.D. La. 2015). Thus, “undue detail[s]” are not required—but discrete, summarized opinions are. See FED. R. CIV. P. 26(a)(2)(C) committee’s note to 2010 amendment; see also Everett, 2017 WL 90366, at *2 (finding no “controlling precedent that governs the level of detail required in disclosures under this Rule”). And the specific facts that form the base of those opinions are required, too. See Galvez, 575 F. Supp. 3d at 756 (“The disclosure must, at the very least, state opinions, not merely topics of testimony, and contain a summary of the facts upon which the opinions are based.” (emphasis added) (internal quotation omitted)). III. Federal Rule of Civil Procedure 37(c)(1) Federal Rule of Civil Procedure 37(c)(1) provides that if “a party fails to provide information or identify a witness as required by Rule 26(a) or (e), the party is not allowed to use that information or witness to supply evidence on a motion, at a hearing, or at a trial, unless the failure was substantially justified or is harmless.” The disclosing party has the burden to prove that the failure to disclose was substantially justified or harmless. See Sightlines, Inc. v. La. Leadership Inst., No. 3:13-CV-527, 2015 WL 77671, at *1 (M.D. La. Jan. 6, 2015); Rembrandt Vision Techs., L.P. v.

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Open Cheer & Dance Championship Series LLC v. Varsity Spirit, LLC, (N.D. Tex. 2025).

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