Shields v. Federation Internationale De Natation

District Court, N.D. California·Decided March 2, 2021·No. 3:18-cv-07393·Unknown

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 INTERNATIONAL SWIMMING Case No. 18-cv-07394-JSC LEAGUE, LTD, Case No. 18-cv-07393-JSC 8 Plaintiff,

9 v. ORDER RE: ADMINISTRATIVE 10 MOTIONS TO SEAL FÉDÉRATION INTERNATIONALE DE Re: Dkt. Nos. 238, 243, 247, 252 11 NATATION, Defendant. 12 THOMAS A. SHIELDS, et al., 13 Plaintiff, 14 v. 15 FÉDÉRATION INTERNATIONALE DE 16 NATATION, 17 Defendant.

19 Before the Court are the parties’ administrative motions to file under seal. (Dkt. Nos. 238, 20 243, 247, 252.)1 FINA seeks to file under seal excerpts of its letter brief regarding the depositions 21 of third-party swimmers, as well as exhibits attached to its letter filed in response to Plaintiff’s 22 letter brief regarding the deposition of these third-party swimmers. (Dkt. Nos. 238, 247.) 23 Plaintiffs seek to file under seal excerpts of their letter brief regarding these swimmers’ 24 depositions, as well as excerpts of the parties’ joint case management statement (the “Statement”). 25 (Dkt. No. 243 & 252.) After careful consideration of the parties’ submissions, the Court rules as 26

27 1 Record citations are to material in the Electronic Case File in International Swimming League, 1 set forth below. 2 I. Legal Standard 3 There is a presumption of public access to judicial records and documents. Nixon v. 4 Warner Commc’ns, Inc., 435 U.S. 589, 597 (1978). Courts generally apply a “compelling 5 reasons” standard when considering motions to seal documents, recognizing that “a strong 6 presumption in favor of access is the starting point.” Kamakana v. City & Cty. of Honolulu, 447 7 F.3d1172, 1178 (9th Cir. 2006) (internal quotations and citations omitted). However, in the case 8 of non-dispositive motions and filings that are “only tangentially related[] to the underlying cause 9 of action[,]” Ctr. for Auto Safety v. Chrysler Grp., LLC, 809 F.3d 1092, 1097 (9th Cir. 2016) 10 (citation omitted), the public has less need for access these documents. Therefore, parties moving 11 to seal them need only meet the lower “good cause” standard of Federal Rule of Civil Procedure 12 26(c). See Kamakana, 447 F.3d at 1179-80; Ctr. for Auto Safety, 809 F.3d at 1101. The “good 13 cause” standard requires a “particularized” showing that “specific prejudice or harm will result if 14 the information is disclosed.” Cont’l Auto. Sys., Inc. v. Avanci, LLC, No. 19-CV-02520-LHK, 15 2019 WL 6612012, at *1 (N.D. Cal. Dec. 5, 2019) (citing Phillips ex rel. Estates of Byrd v. Gen. 16 Motors Corp., 307 F.3d 1206, 1210–11 (9th Cir.2002)). Under Civil Local Rule 79-5(b), sealing 17 is appropriate only where the requesting party “establishes that the document, or portions thereof 18 is . . . entitled to protection under the law,” or “sealable.” N.D. Cal. Civ. L.R. 79-5(b). 19 II. Administrative Motions to File Under Seal 20 a. FINA’s Letter Brief 21 FINA seeks to file under seal excerpts from its letter brief regarding the depositions of 22 third-party swimmers because Plaintiffs have “designated certain financial information relating to 23 Plaintiffs’ contractual relationships as ‘Confidential’ pursuant to the Amended Stipulated 24 Protective Order[.]” (Dkt. No. 238 at 2.) The letter brief is discovery-related and does not “affect 25 [the] litigants’ substantive rights[,]” nor is it substantively related to the case’s merits. Ctr. For 26 Auto Safety, 809 F.3d at 1100-01 (internal quotation marks and citation omitted). Therefore, the 27 “good cause exception”—rather than the “presumptive compelling reasons standard”—applies to 1 The Court previously determined that good cause existed to seal excerpts and references to 2 contractual provisions regarding Plaintiffs’ profit-sharing arrangements with ISL clubs, ownership 3 interests in ISL teams, earnings from sponsorship arrangements, and information regarding 4 Plaintiffs’ earnings as ISL league “ambassadors.” (Dkt. No. 231 at 2-3.) See also Digital Reg of 5 Texas, LLC v. Adobe Sys., Inc., No. C 12-1971 CW, 2014 WL 6986068, at *1 (N.D. Cal. Dec. 10, 6 2014); Smith v. Keurig Green Mountain, Inc., No. 18-CV-06690-HSG, 2020 WL 5630051, at *11 7 (N.D. Cal. Sept. 21, 2020). So too does good cause exist to seal the excerpts of FINA’s letter brief 8 that reference these provisions or arrangements. 9 b. Plaintiffs’ Letter Brief 10 Plaintiffs seek to file under seal information regarding Mr. Pebley’s personal finances, the 11 details of certain swimmers’ ownership interests in ISL clubs, as well as “references to deposition 12 testimony by Ali Khan and Dale Neuberger and a document produced by FINA.” (Dkt. No. 243 13 at 2.) As with FINA’s letter brief, Plaintiffs’ letter brief is discovery-related and does not affect 14 the litigants’ substantive rights or the case’s merits; therefore, the “good cause” standard applies to 15 Plaintiffs’ letter brief. See Ctr. For Auto Safety, 809 F.3d at 1100-01. 16 Plaintiffs have withdrawn their request to seal information in the letter brief regarding Mr. 17 Marculescu that cites and relates to the depositions of Ms. Hosszú and Mr. Khan. (Dkt. No. 255 at 18 2 ¶ 5.) Nonetheless, good cause does not exist to seal references in the letter brief to deposition 19 testimony regarding Mr. Marculescu’s “threat[s] [to] some swimmers’ coaches and parents about 20 their ISL participation,” as well as Mr. Neuberger’s “meeting with class members after this case 21 was filed [held] without informing putative class counsel.” (Dkt. No. 243-4 at 3.) This excerpt 22 does not reference any financial or personal information, nor does it reflect or reference any terms 23 of a profit-sharing arrangement whose disclosure would “specific[ally] prejudice or harm” any 24 party or swimmer. Cont’l Auto. Systems, 2019 WL 6612012, at *1. Similarly, the letter brief’s 25 statement that Mr. Pebley “work[ed] forty hours a week” betrays no personal or financial 26 information whose disclosure would prejudice or harm Mr. Pebley, see Cont’l Auto. Systems, 2019 27 WL 6612012, at *1, and therefore good cause does not exist to seal it. (Dkt. No. 243-4 at 3.) Nor 1 swimmers who do not have an ownership interest in an ISL team”—warrant sealing under the 2 “good cause” standard because it does not reveal any “unique material terms” of any contractual 3 arrangement regarding specific swimmers’ ownership interests, nor does this summary contain 4 any confidential business or proprietary information. (Dkt. No. 243-4 at 4-5.) Digital Reg of 5 Texas, 2014 WL 6986068, at *1; see also Smith, 2020 WL 5630051, at *11. 6 Furthermore, good cause does not exist to seal the statement that Mr. Shields, “like Mr. 7 Miller and Mr. Pebley, does not have an ownership stake in an ISL team” because there is no 8 specific prejudice or harm that will result if this information—that these swimmers do not have an 9 ownership stake in an ISL team—is disclosed. In contrast, Plaintiffs have met their burden in 10 showing that swimmers with ISL contracts may be harmed in future business negotiations if the 11 details of these contracts “becomes public knowledge[,]” and as such the Court finds good cause 12 exists to seal excerpts of the letter brief that reference these contractual provisions or the 13 ownership interests swimmers have in ISL teams. (Dkt. No. 243-4 at 5.) See Digital Reg of 14 Texas, 2014 WL 6986068, at *1.

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