Sumotext Corp. -v- Zoove, Inc.

District Court, N.D. California·Decided December 16, 2019·No. 5:16-cv-01370·Unknown

Opinion

SUMOTEXT CORP., Case No. 16-cv-01370-BLF

Plaintiff, OMNIBUS ORDER RE PARTIES’ v. ADMINISTRATIVE MOTIONS TO FILE UNDER SEAL ZOOVE, INC., et al., [Re: ECF 337, 339, 340, 342, 346, 347, Defendants. 349, 355, 356]

Before the Court are a number of administrative motions to file under seal which fall into two buckets: (1) sealing motions relating to Defendants’ motion for summary judgment (ECF 337, 355, and 356); and (2) sealing motions relating to Plaintiff’s Daubert motions regarding defense experts Greg J. Regan and Debra Aron, Ph.D. (ECF 339, 340, 342, 346, 347, and 349). The sealing motions are GRANTED IN PART AND DENIED IN PART for the reasons discussed below. “Historically, courts have recognized a ‘general right to inspect and copy public records and documents, including judicial records and documents.’” Kamakana v. City and Cnty. of Honolulu, 447 F.3d 1172, 1178 (9th Cir. 2006) (quoting Nixon v. Warner Commc’ns, Inc., 435 U.S. 589, 597 & n.7 (1978)). Consequently, filings that are “more than tangentially related to the merits of a case” may be sealed only upon a showing of “compelling reasons” for sealing. Ctr. for Auto Safety v. Chrysler Grp., LLC, 809 F.3d 1092, 1101-02 (9th Cir. 2016). Filings that are only tangentially related to the merits may be sealed upon a lesser showing of “good cause.” Id. at 1097. Sealing motions filed in this district also must be “narrowly tailored to seek sealing only of must file a declaration establishing that the identified material is “sealable.” Civ. L.R. 79- 5(d)(1)(A). “Reference to a stipulation or protective order that allows a party to designate certain documents as confidential is not sufficient to establish that a document, or portions thereof, are sealable.” Id. Where the moving party requests sealing of documents because they have been designated confidential by another party or a non-party under a protective order, the burden of establishing adequate reasons for sealing is placed on the designating party or non-party. Civ. L.R. 79-5(e). The moving party must file a proof of service showing that the designating party or non-party has been given notice of the motion to seal. Id. “Within 4 days of the filing of the Administrative Motion to File Under Seal, the Designating Party must file a declaration . . . establishing that all of the designated material is sealable.” Civ. L.R. 79-5(e)(1). “If the Designating Party does not file a responsive declaration . . . and the Administrative Motion to File Under Seal is denied, the Submitting Party may file the document in the public record no earlier than 4 days, and no later than 10 days, after the motion is denied.” Civ. L.R. 79-5(e)(2). Because the parties’ sealing motions relate to Defendants’ motion for summary judgment, and expert opinions relevant to the motion for summary judgment, the Court finds that the compelling reasons standard applies. The Court’s rulings on the sealing motions are set forth below. A. Sealing Motions Related to Defendants’ Motion for Summary Judgment (ECF 337, 355, 356) Defendants have filed a motion to seal exhibits submitted in support of their motion for summary judgment. See ECF 337. That motion to seal is opposed by Plaintiff. See ECF 343. Plaintiff argues that Defendants’ sealing request is not narrowly tailored or supported by compelling reasons. Defendants move to seal 7 of 44 exhibits, and they do not move to seal any portion of their memorandum in support of their motion for summary judgment. The Court finds that Defendants have shown compelling reasons for sealing the 7 exhibits in question, as set forth Plaintiff has filed a motion to seal portions of its memorandum and exhibits submitted in opposition to summary judgment. See ECF 355. Plaintiff’s motion is based on confidentiality designations of Defendants and ex-Defendant Mblox. Plaintiff makes clear in its motion that it does not believe sealing is warranted, and that Defendants and Mblox have the burden of demonstrating adequate reasons for sealing. Counsel for Mblox received email service of Plaintiff’s sealing motion via the Court’s electronic filing system, but Mblox has not responded to Plaintiff’s sealing motion. Accordingly, Mblox has failed to demonstrate that sealing is warranted as to documents for which it is the designating party. Defendants filed their own sealing motion in response to Plaintiff’s sealing motion, requesting sealing of a narrower subset of documents than those identified in Plaintiff’s motion. See ECF 356. The Court finds that Defendants have demonstrated compelling reasons for sealing that narrower subset of documents. The sealing motions relating to the summary judgment briefing are GRANTED as to the redactions requested by Defendants, as set forth in the chart below, and otherwise are DENIED. ECF No. Document(s) to be Ruling Reasoning Sealed

337-4 Bloch Decl. Exh. Y GRANTED as to Agreement between a current entire document. StarStar Mobile customer and Zoove Corp. Shows specific prices for a current customer through 2020. Public disclosure of this information would harm VHT StarStar. Hayden Decl. ¶ 2, ECF 337-1. 337-6 Bloch Decl. Exh. Z GRANTED as to Document discloses VHT highlighted StarStar’s commercial contracts portions. with customers other than Sumotext, including sensitive personal information and proprietary business information. No sealing is sought as to Sumotext’s contracts with its customers. Hayden Decl. ¶ 3, ECF 337-1.

337-8 Bloch Decl. Exh. AA GRANTED as to Internal VHT StarStar email highlighted forwarding a pricing portions. communication with a current** confidential and would be harmed if competitors in the market for mobile engagement were able to see its pricing negotiations with this customer. Hayden Decl. ¶ 4, ECF 337-1.

337-10 Bloch Decl. Exh. FF GRANTED as to VHT StarStar’s commercial highlighted contracts with customers other portions. than Sumotext, and summaries of same, contain sensitive personal information and proprietary business information. Hayden Decl. ¶ 5, ECF 337-1.

337-12 Bloch Decl. Exh. GG GRANTED as to StarStar Mobile’s referral highlighted agreements with 17 referral portions. agents, are treated as confidential and disclosure could harm StarStar Mobile’s business. Hayden Decl. ¶ 6, ECF 337-1.

337-14 Bloch Decl. Exh. OO GRANTED as to Contains confidential information highlighted regarding a contract between portions. StarStar Mobile and a current customer. StarStar Mobile treats is customer contracts as confidential and would be harmed if competitors could see its contracts. Hayden Decl. ¶ 7, ECF 337-1.

337-16 Bloch Decl. Exh. PP GRANTED as to Contains historical information highlighted about major customers that portions. Defendants treat as confidential and competitively sensitive. Hayden Decl. ¶ 8, ECF 337-1.

355-4 Plaintiff’s opposition to GRANTED as to Memorandum quotes from Defendants’ motion for portions confidential materials as to which summary judgment highlighted by the Court grants sealing. Defendants in ECF 356-48.

355-6 Greathouse Decl. Exh. 7 GRANTED as to Discloses StarStar Mobile’s portions future business plans. Hayden highlighted by Decl. ¶ 2, ECF 356-1. Defendants in ECF 356-4.

355-7 Greathouse Decl. Exh. 10 GRANTED as to Discloses StarStar Mobile’s portions future business plans. Hayden highlighted by Decl. ¶ 3, ECF 356-1. 355-13 Greathouse Decl. Exh. 13 GRANTED as to Discloses specific discounts and portions proprietary pricing information. highlighted by Levitt Decl. ¶ 2, ECF 342-1. Defendants at ECF 356-8.

355-8 Greathouse Decl. Exh. 15 GRANTED as to Discloses identify of potential portions customer. Hayden Decl. ¶ 4, highlighted by ECF 356-1. Defendants at ECF 356-10.

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Sumotext Corp. -v- Zoove, Inc., (N.D. Cal. 2019).

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