Sazerac Company, Inc. v. Republic National Distributing Company, LLC

CourtDistrict Court, W.D. Kentucky
DecidedAugust 21, 2024
Docket3:23-cv-00025
StatusUnknown

This text of Sazerac Company, Inc. v. Republic National Distributing Company, LLC (Sazerac Company, Inc. v. Republic National Distributing Company, LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sazerac Company, Inc. v. Republic National Distributing Company, LLC, (W.D. Ky. 2024).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF KENTUCKY PADUCAHDIVISION Case No. 3:23-cv-00025-GNS-LLK

SAZERAC COMPANY, INC., PLAINTIFF/COUNTER-DEFENDANT

v.

REPUBLIC NATIONAL DEFENDANT/COUNTER-CLAIMANT DISTRIBUTING COMPANY, LLC,

MEMORANDUM OPINION AND ORDER

This matter has been referred to Magistrate Judge Lanny King to hear and determine all pretrial matters, including non-dispositive motions. Text order of May 14, 2024, [DN 85]. Before the Court are a litany of motions to seal exhibits to contemporaneously filed briefing on discovery disputes. See [DN 98, 100, 106, 107, 111, 114, 117, 120, 124, 125]. These motions provide good cause to seal the exhibits, and the sealing is narrowly tailored to serve that cause. Accordingly, the Court GRANTS Sazerac Company, Inc.’s (“Sazerac”) Motion for Leave to Seal Exhibits to Motion to Compel, [DN 98], Republic National Distributing Company, LLC’s (“RNDC”) Motion for Leave to Seal Second Motion to Compel, [DN 100], Sazerac’s Motion for Leave to Seal Exhibits to RNDC’s Second Motion to Compel, [DN 106], RNDC’s Motion for Leave to Seal Exhibits to Sazerac’s Motion to Compel, [DN 107], Sazerac’s Motion for Leave to Seal Exhibits to its Response, [DN 111], RNDC’s Motion for Leave to Seal Exhibits to its Response, [DN 114], Sazerac’s Motion for Leave to Seal Exhibits to its Reply, [DN 117], RNDC’s Motion for Leave to Seal Exhibits to its Reply, [DN 120], and Sazerac’s Motion for Leave to Seal Documents in RNDC’s Response, [DN 124]. The Court GRANTS IN PART AND DENIES IN PART RNDC’s Motion for Leave to Seal Documents in Sazerac’s Response, [DN 125]. Because these motions also indicate some documents have been submitted which were otherwise marked as confidential by non-parties, the Court shall order Plaintiff and Defendant to serve those non-parties with this Order and grant twenty-one (21) days for those parties to file an appropriate motion to seal their documents.

Legal standard

Trial courts have the authority to seal their records under certain circumstances. In re Knoxville News-Sentinel Co., 723 F.2d 470, 474 (6th Cir. 1983). While “courts have long recognized . . . a ‘strong presumption in favor of openness’ as to court records, Shane Grp., Inc. v. Blue Cross Blue Shield of Mich., 825 F.3d 299, 305 (6th Cir. 2016) (quoting Brown & Williamson Tobacco Corp. v. F.T.C., 710 F.2d 1165, 1179 (6th Cir. 1983)), “the presumptive right of the public to inspect and copy judicial documents and files” may be overcome where the “interests of privacy outweigh the public’s right to know.” In re Knoxville News-Sentinel, 723 F.2d at 474. Thus, documents that reveal sensitive information may properly be subject to sealing. See Shane Grp., 825 F.3d at 307–08.

To maintain files under seal, a party “must provide compelling reasons to seal the documents and demonstrate that the sealing is narrowly tailored to those reasons.” Beauchamp v. Fed. Home Loan Mortg. Corp., 658 F. App’x 202, 207 (6th Cir. 2016) (citing Shane Grp., 825 F.3d 299, 305 (6th Cir. 2016)). The moving party may satisfy its burden on a motion to seal filings by “showing that ‘disclosure will work a clearly defined and serious injury.’” Shane Grp., 825 F.3d at 307 (quoting In re Cendant Corp., 260 F.3d 183, 194 (3d Cir. 2001). The moving party must “analyze in detail, document by document, the propriety of secrecy, providing reasons and legal citations.” Shane Grp., 825 F.3d at 305-06 (quoting Baxter Int'l, Inc. v. Abbott Labs., 297 F.3d 544, 548 (7th Cir. 2002)). Identification that documents are “legitimate trade secret[s]” is “typically enough to overcome the presumption of access” and justify a permanent sealing of the document in the record. See Nixon v. Warner Commc’ns, Inc., 435 U.S. 589, 598 (1978); see also AK Steel Corp. v. Colton, No. 01-74279, 2001 WL 1636957, at *4 (E.D. Mich. Dec. 3, 2001) (“The Court finds that the pricing strategy for Ford . . . [is a] protectable trade secret under the Uniform Trade Secrets Act.”). This Court has also previously recognized that revealing

contractual terms with third parties would undermine a company’s bargaining power if its competitors learned of these terms. Kentucky v. Marathon Petroleum Co. LP, No. 3:15-cv-354- DJH-CHL, 2019 WL 4452956, at *3 (W.D. Ky. Sept. 17, 2019) (quoting Nixon v. Warner Commc’ns, Inc., 435 U.S. 589, 598 (1978)). Joint Local Rule of Civil Practice 5.7(c) requires parties to seek the Court’s leave to file motions under seal absent a standing order of this Court. LR 5.7(c). “Reference to a stipulation that allows a party to designate certain documents as confidential is not sufficient grounds to establish that a document, or portions thereof, warrants filing under seal.” Id.

Sazerac’s Motion for Leave to Provisionally Seal Exhibits to Motion to Compel [DN 98] Sazerac moves to provisionally seal Exhibits 1–2, 7–9, 13–14, and 16–17 to its Motion to Compel, [DN 97]. [DN 98] at *1. These documents had been marked as “Confidential” or “Attorneys’ Eyes Only” pursuant to a confidentiality agreement between the parties. [DN 98] at *2. However, Sazerac “takes no position on whether the Court should permanently seal the exhibits,” only filing the motion under its obligations pursuant to the parties’ confidentiality agreement. [DN 98] at *3. Accordingly, the Court shall GRANT Sazerac’s Motion for provisional sealing pursuant to Local Rule 5.7. RNDC’s Motion for Leave to Seal Exhibits to its Second Motion to Compel [DN 100] Likewise, RNDC moves to provisionally seal Exhibits 8, 10–16, 22–25, and 28 to its Second Motion to Compel, [DN 99]. [DN 100] at *1. These documents had been produced to RNDC and marked as “Confidential” or “Highly Confidential – Attorney’s Eyes Only” pursuant to a private confidentiality agreement. [DN 100] at *3. The producing party for Exhibits 8 and

11–16 is Plaintiff Sazerac. [DN 100] at *3–4. The producing party for Exhibit 24 is Kentucky Eagle, Inc. [DN 100] at *4. The producing party for Exhibits 22, 23, and 25 is Reyes Holdings, LLC. [DN 100] at *4. The producing party for Exhibit 28 is Deloitte Consulting LLP. While unspecified in RNDC’s motion, Exhibit 10 is a deposition of Sazerac’s corporate representative. [DN 99-10]. RNDC submits this motion pursuant to their private confidentiality agreement, and does not argue for the permanent sealing of these documents. [DN 100]. Accordingly, the Court shall GRANT RNDC’s Motion for provisional sealing, [DN 100], pursuant to Local Rule 5.7. Because several of these documents have been marked as confidential by non-parties to the matter, the Court shall also order RNDC to serve upon those parties a copy of this Order and

grant them leave to file an intervening motion to seal those documents.

Sazerac’s Motion for Leave to Seal Exhibits to RNDC’s Second Motion to Compel [DN 106] Sazerac moves to seal Exhibits 11–16 and 28 to RNDC’s Second Motion to Compel. [DN 106] at *1.

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