WATM LLC d/b/a STEVENS & ASSOCIATES/STEVENS MANAGEMENT SERVICES v. PAYMENT ALLIANCE INTERNATIONAL, INC.

CourtDistrict Court, W.D. Washington
DecidedDecember 2, 2025
Docket2:24-cv-00405
StatusUnknown

This text of WATM LLC d/b/a STEVENS & ASSOCIATES/STEVENS MANAGEMENT SERVICES v. PAYMENT ALLIANCE INTERNATIONAL, INC. (WATM LLC d/b/a STEVENS & ASSOCIATES/STEVENS MANAGEMENT SERVICES v. PAYMENT ALLIANCE INTERNATIONAL, INC.) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
WATM LLC d/b/a STEVENS & ASSOCIATES/STEVENS MANAGEMENT SERVICES v. PAYMENT ALLIANCE INTERNATIONAL, INC., (W.D. Wash. 2025).

Opinion

1 2 3

4 5 UNITED STATES DISTRICT COURT 6 WESTERN DISTRICT OF WASHINGTON AT SEATTLE 7 WATM LLC d/b/a STEVENS & CASE NO. 2:24-cv-00405-JHC 8 ASSOCIATES/STEVENS MANAGEMENT SERVICES, ORDER 9

Plaintiff, 10 v. 11 PAYMENT ALLIANCE 12 INTERNATIONAL, INC.,

13 Defendant. 14

15 I 16 INTRODUCTION 17 This matter comes before the Court on the parties’ sealing motions at Dkt. ## 93, 99 & 18 107. The Court has considered the materials filed in support of and in opposition to the motions, 19 the rest of the file (including the exhibits and deposition transcript designations sought to be 20 sealed), and the governing law. Being fully advised, for the reasons below, the Court GRANTS 21 IN PART and DENIES IN PART the motions. 22 // 23 24 1 II BACKGROUND 2 Payment Alliance International (PAI) provides ATM management tools and services 3 across the United States. Dkt. # 33-2 at 2 ¶ 2. WATM provides ATM and payment-related 4 services to about 300 merchants. Dkt. # 1-2 at 2 ¶ 2. PAI provides processing services to 5 WATM for their debit, credit, and ATM terminals. Dkt. # 33-2 at 2 ¶ 3. The Parties’ dispute 6 concerns Defendant’s seizure of funds that it alleges Plaintiff generated by operating so-called 7 “scrip” or cashless ATMs. Dkt. # 100 at 15–16. Defendant says that it does not permit the use 8 of scrip terminals in its ATM network, which Plaintiff used. Id. 9 The Parties now move for summary judgment. See Dkt. ## 94 (Plaintiff’s motion for 10 partial summary judgment dismissing Defendant’s counterclaims), 100 (Defendant’s motion for 11 summary judgment dismissing Plaintiff’s claims). As part of their summary judgment motions, 12 the Parties move to seal various exhibits.1 13 III 14 DISCUSSION 15 A. Legal Standards 16 Parties seeking to seal documents in connection with dispositive motions must 17 “articulate[] compelling reasons supported by specific factual findings” to overcome the “strong 18 presumption in favor of access” to court records. See Kamakana v. City and County of 19 Honolulu, 447 F.3d 1172, 1178 (9th Cir. 2006) (citation modified). Compelling reasons exist 20 21

22 1 Local Civil Rule 5(g) and the parties’ Stipulated Protective Order, Dkt. # 18, obligate Plaintiff WATM to move to seal documents on Defendant PAI’s behalf, though it opposes sealing any of the documents. Plaintiff filed the first motion Dkt. # 93, seeking sealing of 19 exhibits as part of its motion 23 for summary judgment. Dkt. # 94. Defendant then provided reasons for why these exhibits should be sealed. Dkt. # 107. Defendant filed a separate sealing motion, Dkt. # 99, for four other exhibits attached 24 to its own summary judgment motion. Dkt. # 100. 1 when “such ‘court files might have become a vehicle for improper purposes,’ such as the use of 2 records to gratify private spite, promote public scandal, circulate libelous statements, or release 3 trade secrets.” Id. at 1179 (citing Nixon v. Warner Commc’ns, 435 U.S. 589, 598 (1978)). Thus,

4 the Court “must ‘conscientiously balance[ ] the competing interests’ of the public and the party 5 who seeks to keep certain judicial records secret.” Id. (citing Foltz v. State Farm Mut. Auto. Ins. 6 Co., 331 F.3d 1122, 1135 (9th Cir. 2003)). The “mere fact that the production of records may 7 lead to a litigant’s embarrassment, incrimination, or exposure to further litigation will not, 8 without more, compel the court to seal its records.” Id. (citing Foltz, 331 F.3d at 1135). 9 “[S]ources of business information that might harm a litigant’s competitive standing” can 10 support sealing requests. Ctr. for Auto Safety v. Chrysler Grp., LLC, 809 F.3d 1092, 1097 (9th 11 Cir. 2016) (citing Nixon, 435 U.S. at 598–99). In this context, courts in this Circuit have granted 12 sealing motions to protect documents containing sensitive, non-public business information, even

13 if not outright trade secrets. See, e.g., In re Qualcomm Litig., 2017 WL 5176922, at *2 (S.D. 14 Cal. Nov. 8, 2017) (finding compelling reasons to seal contractual terms and information related 15 to “business strategies” and “business model[s]” because it “could harm” future business 16 relationships and competitive standing) (citing In re Elec. Arts, Inc., 298 Fed. Appx. 568, 569 17 (9th Cir. 2008); Finjan, Inc. v. Proofpoint, Inc., 2016 WL 7911651, at *1 (N.D. Cal. Apr. 6, 18 2016) (“technical operation of [defendant’s] products” sealable under “compelling reasons” 19 standard); Exeltis USA Inc. v. First Databank, Inc., 2020 WL 2838812, at *1 (N.D. Cal. June 1, 20 2020) (noting that courts have found “confidential business information” in the form of 21 “business strategies” sealable under the compelling reasons standard); Brown v. Brown, 2013 22 WL 12400041, at *1 (N.D. Cal. Dec. 30, 2013) (finding compelling reasons to seal information

23 about “profits, losses, income, investments, and expenses” when disclosure could harm party’s 24 competitive standing). 1 If a court decides that a party has shown compelling reasons to seal, it must determine 2 whether those reasons outweigh the public’s presumed right of access to the information. See 3 Kamakana, 447 F.3d at 1178–79; see also Fed. R. Civ. P. 26(c) advisory committee’s note to

4 1970 amendment (In the context of protective orders, “courts have not given trade secrets 5 automatic and complete immunity against disclosure, but have in each case weighed their claim 6 to privacy against the need for disclosure.”). Courts in this Circuit have rejected sealing motions 7 even where parties have showed compelling reasons when that information was “relevant and 8 critical to the [c]ourt’s consideration” of the dispositive motions. See, e.g., TML Recovery, LLC 9 v. Cigna Corp., 714 F. Supp. 3d 1214, 1221–22 (C.D. Cal. 2024) (denying sealing motion 10 because the defendant’s interest in protecting its sensitive pricing information “do[es] not 11 outweigh the public right of access”). 12 B. Exhibits To Be Sealed The Court considers here each exhibit for which Defendant seeks a sealing order. 13 • Exhibit 103 14 15 o Description: “PAI_000226, a spreadsheet providing financial information concerning funds seized by PAI for scrip terminals.” Dkt. # 99 at 2. 16 Defendant’s motion is DENIED with respect to Exhibit 103. The exhibit appears to 17 contain dollar amounts and lists of corresponding ATMs, which Defendant says refer to 18 companies and funds that Defendant seized because the companies were allegedly using 19 improper scrip terminals. See id. at 4. Defendant offers no sound reason why this information 20 should be sealed except that it had designated it confidential earlier, which is insufficient. 21 Further, even if disclosure risks the displeasure of Defendant’s business partners, the “mere fact 22 that the production of records may lead to a litigant’s embarrassment, incrimination, or exposure 23 24 1 to further litigation will not, without more, compel the court to seal its records.” Kamakana, 447 2 F.3d at 1178. 3 • Exhibit B

4 o Description: “one excerpt (51:3-13) of the deposition of Brian Haynes of PAI held 5 on August 25, 2025.” Dkt. # 99 at 2. 6 Defendant’s motion is GRANTED with respect to the designated portions of Exhibit B. 7 The designations contain information related to the pricing and profit that PAI makes on any 8 given transaction. This qualifies for protection, since Defendant has shown that competitors 9 could use this information to undercut Defendant.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
WATM LLC d/b/a STEVENS & ASSOCIATES/STEVENS MANAGEMENT SERVICES v. PAYMENT ALLIANCE INTERNATIONAL, INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/watm-llc-dba-stevens-associatesstevens-management-services-v-payment-wawd-2025.