Sayegh v. Automatic Data Processing Incorporated

CourtDistrict Court, D. Arizona
DecidedAugust 13, 2025
Docket2:24-cv-00277
StatusUnknown

This text of Sayegh v. Automatic Data Processing Incorporated (Sayegh v. Automatic Data Processing Incorporated) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sayegh v. Automatic Data Processing Incorporated, (D. Ariz. 2025).

Opinion

1 WO 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE DISTRICT OF ARIZONA

9 Peter Sayegh, No. CV-24-00277-PHX-SMB

10 Plaintiff, ORDER

11 v.

12 Automatic Data Processing Incorporated,

13 Defendant. 14 15 16 At issue are several overlapping filings, all relating to whether the Court should 17 maintain certain documents under seal. The Court finds these matters appropriate for 18 resolution without oral argument. See LRCiv 7.2(f). 19 I. Background 20 At the time of this case’s commencement, Plaintiff Peter Sayegh was represented 21 by counsel. On November 6, 2024, Plaintiff filed a notice of appearance. (Doc. 24.) Thus, 22 Plaintiff, who is a licensed attorney, became co-counsel on his own case. On February 19, 23 2025, Plaintiff’s outside counsel filed a motion to withdraw without client consent. 24 (Doc. 38.) Judge Liburdi held a hearing thereon, at which Plaintiff and his outside counsel 25 were present but at which Defendant was neither present nor represented. (See Doc. 43.) 26 Immediately following the hearing, Plaintiff lodged a document under seal that contained 27 numerous communications between Plaintiff and his outside counsel. (Doc. 42; see Doc. 80 28 at 3.) Plaintiff lodged this document for the purpose of demonstrating the impropriety of 1 his outside counsel’s nonconsensual withdrawal. Judge Liburdi granted the motion to 2 withdraw, ordered the hearing sealed, and promptly recused himself from this case, as he 3 had been exposed to substantial communications between Plaintiff and his former counsel 4 that risked prejudicing Judge Liburdi’s adjudication of the merits of Plaintiff’s underlying 5 claims. (See Doc. 45.) The case was then reassigned to the undersigned.1 6 Shortly thereafter, the parties found themselves in a discovery dispute. (Doc. 49.) 7 Plaintiff felt that he ought to receive additional time to conduct discovery due to his prior 8 counsel’s mid-stream withdrawal, which Plaintiff characterized as an extraordinary 9 circumstance meriting an extension. In support of that position, Plaintiff submitted several 10 redacted communications between himself and his former counsel. (See Doc. 49; Doc. 55.) 11 Unlike Plaintiff’s submissions in connection with the withdrawal motion, which were 12 lodged ex parte and under seal, these submissions were made openly to the Court and to 13 Defendant, which was necessary given Defendant’s opposition to any extension of the 14 discovery timelines. After a hearing, the undersigned granted Plaintiff’s request for an 15 extension. (See Doc. 59.) In preparing for the hearing, the undersigned thoroughly 16 reviewed this case’s record. Unfortunately, that involved reading the same sealed lodging 17 that likely motivated, at least in part, Judge Liburdi’s recusal. Accordingly, the undersigned 18 recused, and this case was transferred to Judge Brnovich with the suggestion that she could 19 avoid the risk of perpetuating the recusal cycle by not exposing herself to the same lodged 20 materials. 21

22 1 Plaintiff argues that “[t]here is no evidence to suggest Judge Liburdi ever reviewed the Sealed documents, particularly in light of the fact that he never ruled on the motion to 23 seal them,” and that, “[t]herefore, there is no reason to believe Judge Liburdi recused himself on that basis.” (Response at 3.) First, the reason that Judge Liburdi never ruled 24 upon the motion to seal is because the motion was inoperative. Plaintiff did not file a separate motion to seal, but instead included the motion to seal within the lodging itself. 25 This was improper. A lodged document is the object of a properly filed motion; it does not supplant the motion. See LRCiv 5.6(b). Thus, Plaintiff’s motion, which was only lodged 26 and was never filed, was ineffectual. Second, Judge Liburdi expressly stated in his order permitting withdrawal that he “conducted an in-camera review of documents” and that he 27 granted withdrawal “[b]ased on information learned during this hearing and the in-camera review.” (Doc. 45 at 1.) And in any event, the Court would assume that Judge Liburdi had 28 read the lodged materials, as it is fair to presume that federal judges apprise themselves of all documents placed on their dockets. 1 Less than one month later, Plaintiff filed a motion with Judge Brnovich seeking an 2 unsealing of the transcript of the hearing before Judge Liburdi so that he may use said 3 transcript to formulate a bar complaint and a malpractice lawsuit against his former 4 counsel. (See Doc. 63.) Defendant consents to that motion but opposes its one-sided nature. 5 (See Doc. 69.) Defendant believes that it, too, is entitled to view and utilize the sealed 6 hearing transcript. Defendant thus filed its own motion to unseal (Doc. 68, Motion), and 7 this motion includes within its ambit not only the hearing transcript but also the sealed 8 materials that Plaintiff lodged in the immediate aftermath of the hearing before 9 Judge Liburdi. Defendant contends that Plaintiff has both expressly and implicitly waived 10 the attorney-client privilege that otherwise would have attached to his communications 11 with his former counsel, and Defendant further contends that this waiver extends to the 12 hearing transcript and the lodged materials. Defendant asserts that Plaintiff effected this 13 waiver by attempting to utilize and actually utilizing his prior counsel’s alleged 14 incompetence and various communications related thereto as a basis for extending 15 discovery, altering the terms of discovery, and extending the deadline to amend his 16 pleading. (See Motion at 8.) 17 Plaintiff filed an inappropriately aggressive Response (Doc. 80, Response).2 Within 18 the first two pages thereof, he refers to Defendant’s motion as “frivolous,” “brazen,” “an 19 abuse of process,” and “in blatant defiance” of the undersigned’s prior rulings. This bluster, 20 as well as the meritless request for sanctions that accompanies it, will be disregarded. 21 Defendant filed a Reply (Doc. 84, Reply). Judge Brnovich referred these matters to the 22 undersigned, as they pertain to the sealed materials that led to the prior recusals of both 23 Judge Liburdi and the undersigned. (See Doc. 105.) 24 . . . 25 . . . 26 2 Plaintiff’s Response both opposes Defendant’s motion to seal and seeks a 27 protective order covering the same documents. Plaintiff does not explain why a protective order is appropriate. Therefore, the request for a protective order seems to merely be an 28 alternative means of advocating for preservation of the seal. The Court declines to enter a protective order on such a nonexistent showing of propriety. 1 II. Legal Standard 2 Defendant contends that the Court must grant its motion to unseal unless there is a 3 “compelling reason” that overcomes the strong presumption of judicial openness. (Motion 4 at 9.) Although the compelling-reasons standard governs motions to unseal dispositive 5 filings, the less demanding good-cause standard governs motions to unseal non-dispositive 6 filings. Ctr. for Auto Safety v. Chrysler Grp., LLC, 809 F.3d 1092, 1097 (9th Cir. 2016). In 7 Center for Auto Safety, the Ninth Circuit clarified the framework district courts must use 8 to determine whether a filing is dispositive or non-dispositive. The core thrust of the inquiry 9 is whether the filing at issue “is more than tangentially related to the underlying cause of 10 action.” Id. at 1099. The circuit court explained that motions for preliminary injunctions 11 and many motions in limine are dispositive for purposes of the confidentiality inquiry, 12 despite not being literally dispositive of the underlying cause of action, because such 13 motions are intimately entangled with the merits and/or ultimate resolution of the action. 14 Id. at 1099–1102.

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