PUMA SE v. Brooks Sports Inc

District Court, W.D. Washington·Decided October 11, 2024·No. 2:23-cv-00116·Unknown

Opinion

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5 6 7 UNITED STATES DISTRICT COURT 8 WESTERN DISTRICT OF WASHINGTON AT SEATTLE 9 10 PUMA SE et al., CASE NO. 2:23-cv-00116-LK 11 Plaintiffs, ORDER GRANTING MOTION TO 12 v. COMPEL 14 Defendant. 15

16 This matter comes before the Court on the motion of Plaintiffs PUMA SE and PUMA N.A. 17 (“PUMA”) to compel production of certain documents redacted and withheld by Defendant 18 Brooks Sports, Inc. Dkt. No. 169; see also Dkt. No. 171 (sealed version). For the following reasons, 19 the Court grants PUMA’s motion. 21 The Court adopts the factual background articulated in its May 14, 2024 Order, Dkt. No. 22 154 at 2–5, and its August 8, 2024 Order, Dkt. No. 188 at 1–3, with the additional relevant facts 23 below. 24 1 A. Brooks’ Retention of and Relationship with Third-Party Agencies Huge, Jellyfish, BibRave, and Curiosity 2 Brooks retains third-party agencies “to provide advertising and marketing services[.]” Dkt. 3 No. 196 at 1. During the relevant time period, these agencies included Huge, Jellyfish, BibRave, 4 and Curiosity. Id. Brooks worked with these four agencies to develop and implement campaigns, 5 including the “Run on Nitro” campaign advertising Brooks’ nitro-infused shoes that was conceived 6 in 2020 and launched in 2022. Id. at 2. 7 Brooks retained advertising agencies Huge and Jellyfish “to explore, develop, prepare, and 8 produce creative marketing content,” including aspects of the “Run on Nitro” campaign. Id. Huge 9 and Jellyfish “were responsible for developing the creative content, marketing tactics, and asset 10 development” for that campaign. Id. Jellyfish focused on the portion of the campaign directed 11 towards the Caldera trail-running shoe, while Huge handled the other shoes that were part of the 12 campaign. Id. Brooks also worked with Curiosity (a social media agency) and BibRave (a 13 marketing agency) on the “Run on Nitro” campaign. Id. at 3. Brooks required all four of these 14 agencies to keep the substance of their work for Brooks confidential pursuant to non-disclosure 15 agreements. Id. 16 When Brooks’ in-house legal department provides guidance regarding marketing materials 17 and campaigns, that advice is communicated—typically by Brooks’ internal marketing team—to 18 any third-party agencies whose campaigns are affected by that guidance. Id. During the “Run on 19 Nitro” campaign, Brooks’ in-house legal department provided guidance about Brooks’ use of the 20 word “nitro,” which was subsequently communicated by Brooks’ marketing team to the third-party 21 agencies. Id. at 4; see also Dkt. No. 198 at 2. When the third-party agencies proposed certain 22 changes or asked questions that required legal consultation or sign-off, Brooks’ marketing team 23 would relay those proposals and questions to Brooks’ in-house legal department. Id. 24 1 B. Brooks’ Claims of Privilege and the Parties’ Communications 2 On May 3, 2024, Brooks produced a privilege log to PUMA that “identifie[d] a number of 3 communications and documents shared between Brooks non-attorney employees and third parties 4 not employed by Brooks during the relevant periods.” Dkt. No. 170 at 2. These third parties

5 included employees of Huge, Jellyfish, BibRave, and Curiosity. Id. 6 PUMA wrote to Brooks a week later on May 9, 2024, claiming that Brooks’ assertion of 7 attorney-client privilege in connection with third-party communications was improper and 8 requesting that Brooks produce unredacted versions of the improperly redacted and withheld 9 documents. Id.; see id. at 65–66. Brooks did not respond to this letter, and PUMA followed up on 10 May 16, 2024. Id. at 3; see id. at 44–45. PUMA was still awaiting Brooks’ response when it 11 deposed Brooks employee Carlee Bickley on May 21, 2024. Id. at 3. During her deposition, she 12 confirmed that Huge, Inc., Jellyfish, BibRave, and Curiosity are outside advertising agencies that 13 Brooks hired for advertising campaigns. Id. Brooks produced a revised privilege log on May 22, 14 2024. Id.; see id. at 63–79. This log listed at least 60 communications exchanged with third party

15 marketing agencies as either withheld or redacted based on attorney-client privilege. Id. at 63–79. 16 On May 29, 2024, PUMA informed Brooks during a meet and confer that it would be filing 17 the instant motion along with a motion for relief from the Court’s March 11, 2024 deadline to file 18 motions related to liability discovery. Id. at 3; see also id. at 123. Brooks responded that it would 19 oppose PUMA’s motions. Id. at 3; see also id. at 123. Brooks produced another revised privilege 20 log on June 11, 2024 that still asserted privilege in connection with at least 50 third party 21 communications. Id. at 3; see also Dkt. No. 170 at 81–102. 22 On July 5, 2024, PUMA filed both motions, as well as a related motion to seal. See Dkt. 23 Nos. 166–67, 169, 171. After the Court granted PUMA’s motion for relief from the discovery

24 motions deadline, Dkt. No. 188, Brooks filed its response to PUMA’s motion to compel, as well 1 as a motion to seal exhibits attached to its response, Dkt. Nos. 194–95, 199–200.1 The Court 2 subsequently ordered Brooks “to submit for in camera review unredacted versions of all 3 communications at issue,” Dkt. No. 206, which Brooks did on September 16, 2024.

5 A. Legal Standard 6 Where, as here, a plaintiff’s complaint raises both federal question claims and pendent state 7 law claims, and the evidence at issue relates to both kinds of claims, the federal law of privilege 8 applies. Wilcox v. Arpaio, 753 F.3d 872, 876 (9th Cir. 2014); Agster v. Maricopa Cnty., 422 F.3d 9 836, 839 (9th Cir. 2005); see also Fed. R. Evid. 501, Advisory Committee Notes (1974) (“In 10 nondiversity jurisdiction civil cases, federal privilege law will generally apply.”). 11 Under Federal Rule of Civil Procedure 26, parties may generally “obtain discovery 12 regarding any nonprivileged matter that is relevant to any party’s claim or defense and proportional 13 to the needs of the case[.]” Fed. R. Civ. P. 26(b)(1); Surfvivor Media, Inc. v. Survivor Prods., 406 14 F.3d 625, 635 (9th Cir. 2005). “When a party withholds information otherwise discoverable by

15 claiming that the information is privileged . . . , the party must: (i) expressly make the claim; and 16 (ii) describe the nature of the documents, communications, or tangible things not produced or 17 disclosed,” and must “do so in a manner that, without revealing information itself privileged or 18 protected, will enable other parties to assess the claim.” Fed. R. Civ. P. 16(b)(5)(A); Intermec, Inc. 19 v. Int’l Bus. Machs. Corp., No. C11-0165-JCC, 2011 WL 13229254, at *2 (W.D. Wash. July 7, 20 2011). 21 “A party asserting the attorney-client privilege has the burden of establishing the existence 22 of an attorney-client relationship and the privileged nature of the communication.” United States 23

24 1 The Court will address the parties’ motions to seal in a subsequent order. Dkt. Nos. 166, 194. 1 v. Graf, 610 F.3d 1148, 1156 (9th Cir. 2010) (cleaned up). Courts “strictly construe[]” the privilege 2 “[b]ecause it impedes full and free discovery of the truth[.]” Id. (quoting United States v. Ruehle, 3 583 F.3d 600, 607 (9th Cir. 2009)). The attorney-client privilege governs where: 4 (1) . . .

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