Zunum Aero Inc v. The Boeing Company

CourtDistrict Court, W.D. Washington
DecidedJanuary 31, 2024
Docket2:21-cv-00896
StatusUnknown

This text of Zunum Aero Inc v. The Boeing Company (Zunum Aero Inc v. The Boeing Company) 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
Zunum Aero Inc v. The Boeing Company, (W.D. Wash. 2024).

Opinion

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3 4 5 6 7 UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON 8 AT SEATTLE

9 10 ZUNUM AERO, INC., CASE NO. C21-0896JLR 11 Plaintiff, ORDER v. 12 THE BOEING COMPANY, et al., 13 Defendants. 14

15 I. INTRODUCTION 16 Before the court are seven motions to seal, four filed by Plaintiff Zunum Aero, 17 Inc. (“Zunum”) (Pl. 12/29/23 MTS (Dkt. # 196); 1/5/24 MTS (Dkt. # 216); 1/9/24 MTS 18 (Dkt. # 237); 1/11/24 Am. MTS (Dkt. # 253)), and three filed by Defendants The Boeing 19 Company and Boeing HorizonX Ventures, LLC (together, “Boeing”) (Defs. 12/29/23 20 MTS (Dkt. # 194); 1/2/24 MTS (Dkt. # 209); 1/22/24 MTS (Dkt. # 263)). The court has 21 considered the parties’ submissions, the relevant portions of the record, and the governing 22 // 1 law. Being fully advised,1 the court GRANTS Zunum’s December 29, 2023 motion to 2 seal; GRANTS in part and DENIES in part Zunum’s January 5, 2024 motion to seal,

3 January 11, 2024 amended motion to seal, and January 9, 2024 motion to seal; 4 RESERVES RULING on Boeing’s December 29, 2023 motion to seal and January 2, 5 2024 motion to seal; and GRANTS in part and RESERVES RULING in part on Boeing’s 6 January 22, 2024 motion to seal. 7 II. LEGAL STANDARD 8 “There is a strong presumption of public access to the court’s files.” Local Rules

9 W.D. Wash. LCR 5(g); see also Foltz v. State Farm Mut. Auto. Ins. Co., 331 F.3d 1122, 10 1135 (9th Cir. 2003) (“In this circuit, we start with a strong presumption in favor of 11 access to court records.”). The public’s “right of access, however, is not absolute and can 12 be overridden given sufficiently compelling reasons for doing so.” Foltz, 331 F.3d at 13 1135; see also Nixon v. Warner Commc’ns, Inc., 435 U.S. 589, 598 (1978) (“[T]he right

14 to inspect and copy judicial records is not absolute.”). To overcome the presumption of 15 public access, a party must file a motion that includes “[a] specific statement of the 16 applicable legal standard and the reasons for keeping a document under seal, including an 17 explanation of” (i) “the legitimate private or public interests that warrant the relief 18 sought”; (ii) “the injury that will result if the relief sought is not granted”; and (iii) “why

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21 1 Neither party requested oral argument with respect to any of the sealing motions, and the court concludes that oral argument would not be helpful to its disposition of these motions. 22 See Local Rules W.D. Wash. LCR 7(b)(4). 1 a less restrictive alternative to the relief sought is not sufficient.” Local Rules W.D. 2 Wash. LCR 5(g)(3)(B)(i)-(iii).

3 Two standards govern sealing motions in the Ninth Circuit. Ordinarily, “a party 4 must show ‘compelling reasons’ to keep a court document under seal.” Ctr. for Auto 5 Safety v. Chrysler Grp., LLC, 809 F.3d 1092, 1095 (9th Cir. 2016) (quoting Kamakana v. 6 City & Cnty. of Honolulu, 447 F.3d 1172, 1178 (9th Cir. 2006)). The Ninth Circuit has 7 “carved out an exception,” however, “for sealed materials attached to a discovery motion 8 unrelated to the merits of a case.” Id. at 1097 (quoting Foltz, 331 F.3d at 1135). When

9 such nondispositive motions are “only tangentially related[] to the merits of a case,” “the 10 good cause standard from Rule 26(c)” applies. Id. at 1097, 1099; see also Seattle Times 11 Co. v. Rhinehart, 467 U.S. 20, 33 (1984) (“Much of the information that surfaces during 12 pretrial discovery may be unrelated, or only tangentially related, to the underlying cause 13 of action.”).

14 Here, the good cause standard applies to the materials subject to sealing in 15 Zunum’s December 29, 2023 motion, Zunum’s January 9, 2024 motion, Boeing’s 16 December 29, 2023 motion, and Boeing’s January 2, 2024 motion. Those motions seek 17 to seal materials attached to discovery motions unrelated to the merits of this case. The 18 more stringent compelling reasons standard applies to the remaining motions to seal,

19 however, because those motions seek to seal materials concerning Zunum’s Rule 37(e) 20 motion for sanctions due to alleged spoliation of evidence. (See Sanctions Mot. (Dkt. 21 ## 219 (sealed), 217 (redacted)).) Zunum’s Rule 37 motion is more than tangentially 22 related to the merits of this case because the relief requested would, if granted, lead to a 1 presumption “for purposes of any pretrial motions filed by Boeing . . . that the destroyed 2 evidence was unfavorable to Boeing,” and instructions to the jury “that it must (or, at a

3 minimum, may) infer that the destroyed evidence was unfavorable to Boeing.” (Id. at 4 12.) Zunum’s requested relief would also restrict the evidence Boeing could present at 5 trial. (See id. at 13); see also Tan v. Konnektive Rewards, LLC, No. 6 20-cv-1082-LL-DDL, 2023 WL 2336893, at *3 (S.D. Cal. Mar. 2, 2023) (applying the 7 compelling reasons standard to materials attached to a motion for sanctions due to 8 spoliation).

9 To satisfy the good cause standard, the party seeking to seal materials must show 10 that “‘good cause’ exists to protect th[e] information from being disclosed to the public 11 by balancing the needs for discovery against the needs for confidentiality.” Pintos v. 12 Pac. Creditors Ass’n, 605 F.3d 665, 678 (9th Cir. 2010) (quoting Phillips ex. rel. Ests. of 13 Byrd v. Gen. Motors Corp., 307 F.3d 1206, 1213 (9th Cir. 2002)). The compelling

14 reasons standard, however, requires the requesting party to support its argument with 15 “specific factual findings” that demonstrate the reasons for sealing “outweigh the general 16 history of access and the public policies favoring disclosure.” Kamakana, 447 F.3d at 17 1178-79 (quoting Foltz, 331 F.3d at 1135). “Compelling reasons sufficient to outweigh 18 the public’s interest in disclosure exist when court records might become a vehicle for

19 improper purposes, such as the use of records to gratify private spite, promote public 20 scandal, circulate libelous statements, or release trade secrets.” Demaree v. Pederson, 21 887 F.3d 870, 884 (9th Cir. 2018) (internal brackets and quotation marks omitted) 22 (quoting Kamakana, 447 F.3d at 1179). 1 III. ANALYSIS 2 The court considers the parties’ motions below.

3 A. Zunum’s 12/29/23 Motion to Seal (Dkt. # 196) 4 Zunum’s December 29, 2023 motion seeks to seal Exhibit B to Zunum’s 5 December 29, 2023 letter to the court. (Pl. 12/29/23 MTS at 1; see Ex. B to Letter (Dkt. 6 # 200 (sealed)).) Exhibit B contains four sets of Zunum’s interrogatory responses (see 7 generally Ex. B to Letter), and Zunum requests that the entire exhibit be maintained 8 under seal because Zunum’s interrogatory responses “in part reflect Zunum’s confidential

9 and proprietary business information and may reflect information Zunum learned from 10 documents that Boeing produced in this litigation and designated confidential” (Pl. 11 12/29/23 MTS at 4). Boeing does not oppose Zunum’s motion. (See generally Dkt.) 12 Upon review of Exhibit B, the court finds good cause to maintain this exhibit 13 under seal in order to protect Zunum’s sensitive business and trade secret information.

14 Accordingly, the court GRANTS Zunum’s December 29, 2023 motion to seal. 15 B. Zunum’s 1/5/24 Motion to Seal (Dkt.

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Related

Nixon v. Warner Communications, Inc.
435 U.S. 589 (Supreme Court, 1978)
Seattle Times Co. v. Rhinehart
467 U.S. 20 (Supreme Court, 1984)
Pintos v. PACIFIC CREDITORS ASS'N
605 F.3d 665 (Ninth Circuit, 2010)
Phillips v. General Motors Corporation
307 F.3d 1206 (Ninth Circuit, 2002)
Center for Auto Safety v. Chrysler Group, LLC
809 F.3d 1092 (Ninth Circuit, 2016)
Demaree v. Pederson
887 F.3d 870 (Ninth Circuit, 2018)

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Zunum Aero Inc v. The Boeing Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zunum-aero-inc-v-the-boeing-company-wawd-2024.