Wright v. State Farm Fire & Casualty Company

District Court, W.D. Washington·Decided January 23, 2025·No. 2:23-cv-00179·Unknown

Opinion

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3 4 5 UNITED STATES DISTRICT COURT AT SEATTLE 7 MICHAEL WRIGHT; ALEXIS CASE NO. 2:23-cv-179 ORDER 9 Plaintiffs, 10 v. COMPANY, 12 Defendant. 13

14 1. INTRODUCTION 15 This matter comes before the Court on the following motions: (1) Plaintiffs 16 Michael and Alexis Wrights’ (“The Wrights”) motion to seal at Dkt. No. 62; (2) 17 Defendant State Farm Fire and Casualty Company’s (“State Farm”) motion to seal 18 at Dkt. No. 76; (3) the Wrights’ motion to seal at Dkt. No. 83; (4) State Farm’s 19 motion for leave to file a supplemental declaration at Dkt. No. 111; (5) the Wrights’ 20 motion to seal at Dkt. No. 115; (6) State Farm’s motion to seal at Dkt. No. 118; and 21 (7) the Wrights’ motion to seal at Dkt. No. 127. Having closely reviewed the record, 22 23 1 the parties’ briefing, and the applicable law, and being otherwise fully informed, the 2 Court, for the reasons explained below, ORDERS as follows.

3 2. DISCUSSION 2.1 Legal standard. 4 “There is a strong presumption of public access to the court’s files.” LCR 5(g). 5 To overcome this presumption, a party seeking to file a document under seal must 6 file a motion that includes: 7 (A) A certification that the party has met and conferred with all other 8 parties in an attempt to reach agreement on the need to file the document under seal, to minimize the amount of material filed 9 under seal, and to explore redaction and other alternatives to filing under seal; this certification must list the date, manner, and 10 participants of the conference; [and]

11 (B) A specific statement of the applicable legal standard and the reasons for keeping a document under seal, including an explanation of: (i) 12 the legitimate private or public interests that warrant the relief sought; (ii) the injury that will result if the relief sought is not 13 granted; and (iii) why a less restrictive alternative to the relief sought is not sufficient. 14

Id. In general, documents accompanying non-dispositive motions may be sealed if 15 the party filing the document shows “good cause.” Kamakana v. City & Cnty. of 16 Honolulu, 447 F.3d 1172, 1180 (9th Cir. 2006); see also Fed. R. Civ. P. 26(c). “A 17 party asserting good cause bears the burden, for each particular document it seeks 18 to protect, of showing that specific prejudice or harm will result if no protective 19 order is granted.” Foltz v. State Farm Mut. Auto. Ins. Co., 331 F.3d 1122, 1130 (9th 20 Cir. 2003). In contrast, “[t]hose who seek to maintain the secrecy of documents 21 attached to dispositive motions must meet the high threshold of showing that 22 23 1 ‘compelling reasons’ support secrecy.” Kamakana, 447 F.3d at 1180 (emphasis 2 added).

3 2.2 The Court finds good cause to grant the Wrights’ motions to seal at Dkt. Nos. 62 and 83. 4 In support of their motion to compel at Dkt. No. 60, the Wrights filed two 5 motions to seal: one with their initial motion to compel, Dkt. No. 62, and one with 6 their reply brief, Dkt. No. 83. 7 The motion to seal at Dkt. No. 62 pertains to three documents produced by 8 State Farm in discovery, each of which State Farm designated as confidential under 9 the parties’ stipulated protective order, Dkt. No. 55. The first of these documents is 10 State Farm’s so-called “re-inspection” of its insurance adjuster Timothy Treat’s 11 handling of the Wrights’ claim file—in essence, an internal managerial review of 12 Treat’s work. Dkt. No. 63. The second is a series of internal documents relating to 13 State Farm’s Enterprise Incentive Plan (EIP) and Management Incentive Plan (MI) 14 for the years 2021 through 2024. Dkt. No. 63-1. According to the documents, the 15 EIP and MIP are internal company policies that “provide[ ] a way to reward eligible 16 employees for their contributions and continuing commitment to the overall success 17 of the State Farm Companies goals[.]” Id. at 4, 8. These documents include 18 “scorecards” setting forth internal metrics that State Farm uses to evaluate 19 company performance and determine performance-based compensation levels. And 20 finally, the third document covered by the motion to seal at Dkt. No. 62 is a first- 21 quarter 2022 performance review of Timothy Treat. Dkt. No. 63-2. 22 23 1 The motion to seal at Dkt. No. 83 pertains to two documents, both of which 2 State Farm designated as confidential under the parties’ stipulated protective

3 order. The first is a transcript of the Fed. R. Civ. P. 30(b)(6) deposition of State 4 Farm designee John Feely. Dkt. No. 84. Feely’s testimony pertains to “[f]inancial 5 incentives, bonuses, including short term incentive programs (however called) that 6 State Farm claim adjusters, claim managers or other employees may be eligible for, 7 and the criteria, process, or metrics used (however called) to determine whether a 8 claim adjuster/claim managers/employee is eligible to receive the incentive,

9 bonuses, including short term incentive programs (however called).” Dkt. No. 82 ¶ 3. 10 The second document is a duplicate of the same EIP and MIP documents that were 11 filed under seal at Dkt. No. 63-1 and addressed in the Wrights’ motion to seal at 12 Dkt. No. 62. Dkt. No. 84-1. 13 In both motions to seal, the Wrights admitted they had not met and conferred 14 with State Farm about the confidentiality of the documents. Dkt. Nos. 62 at 2; 83 at 15 2-3. Therefore, on December 4, 2024, the Court issued an Order finding that the

16 motions violated the rule that “the filing party and the designating party must meet 17 and confer to determine whether the designating party will withdraw the 18 confidential designation or will agree to redact the document so that sealing is 19 unnecessary.” Dkt. No. 93 at 9 (quoting LCR 5(g)(1)(A)). The Court thus ordered the 20 parties to show cause why the documents at issue should remain under seal. 21 On December 18, 2024, State Farm responded to the Court’s Order. Dkt. No.

22 104. State Farm’s response certifies that, after the Court’s Order, State Farm 23 “telephonically conferred with counsel for the Wrights… in an effort to reach 1 agreement on the need to file these documents under seal.” Id. at 2. The Court finds 2 that the parties have now satisfied the meet-and-confer requirement for these

3 motions. 4 As to the re-inspection report, State Farm argues that it should be sealed 5 because it “discloses information about State Farm’s confidential and proprietary 6 processes for adjusting homeowners claims as well as confidential and proprietary 7 information about the reinspection process itself[,]” all of which “State Farm has 8 invested substantial resources in developing” and whose public disclosure would

9 give State Farm’s “[c]ompetitors… substantial cost savings and… an unfair 10 advantage.” Id. at 13 (citing Wetzel v. CertainTeed Corp., No. C16-1160JLR, 2019 11 WL 1236859, at *9 (W.D. Wash. Mar. 18, 2019) (finding “compelling reason to seal… 12 pages contain[ing] proprietary and confidential information about how [defendant] 13 settles claims, such that publication could allow [defendant’s] competitors to benefit 14 at [defendant’s] expense”)). Based on this argument, the Court finds State Farm has 15 met its burden of showing good cause to seal the re-inspection report at Dkt. No. 63.

16 As to the MIP and EIP documents, State Farm argues that these should be 17 sealed because they “show specific State Farm performance measures, goals and 18 results[,]” which “State Farm has allocated considerable resources” to develop. Id. at 19 10.

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