Racies v. Quincy Bioscience, LLC ( 2019 )

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 PHILLIP RACIES, Case No. 15-cv-00292-HSG 8 Plaintiff, ORDER ON ADMINISTRATIVE MOTIONS TO SEAL 9 v. Re: Dkt. Nos. 197, 203, 208 10 QUINCY BIOSCIENCE, LLC, 11 Defendant. 12 13 The parties filed administrative motions to file documents under seal in connection with 14 their motions in limine. Dkt. Nos. 197, 203, 208. The Court GRANTS IN PART and DENIES 15 IN PART the motions to file under seal, as described below. 16 I. LEGAL STANDARD 17 Courts generally apply a “compelling reasons” standard when considering motions to seal 18 documents. Pintos v. Pac. Creditors Ass’n, 605 F.3d 665, 678 (9th Cir. 2010) (quoting Kamakana 19 v. City & Cty. of Honolulu, 447 F.3d 1172, 1178 (9th Cir. 2006)). “This standard derives from the 20 common law right ‘to inspect and copy public records and documents, including judicial records 21 and documents.’” Id. (quoting Kamakana, 447 F.3d at 1178). “[A] strong presumption in favor of 22 access is the starting point.” Kamakana, 447 F.3d at 1178 (quotations omitted). To overcome this 23 strong presumption, the party seeking to seal a judicial record attached to a dispositive motion 24 must “articulate compelling reasons supported by specific factual findings that outweigh the 25 general history of access and the public policies favoring disclosure, such as the public interest in 26 understanding the judicial process” and “significant public events.” Id. at 1178–79 (quotations 27 omitted). “In general, ‘compelling reasons’ sufficient to outweigh the public’s interest in 1 vehicle for improper purposes,’ such as the use of records to gratify private spite, promote public 2 scandal, circulate libelous statements, or release trade secrets.” Id. at 1179 (quoting Nixon v. 3 Warner Commc’ns, Inc., 435 U.S. 589, 598 (1978)). “The mere fact that the production of records 4 may lead to a litigant’s embarrassment, incrimination, or exposure to further litigation will not, 5 without more, compel the court to seal its records.” Id. 6 Records attached to nondispositive motions must meet the lower “good cause” standard of 7 Rule 26(c) of the Federal Rules of Civil Procedure, as such records “are often unrelated, or only 8 tangentially related, to the underlying cause of action.” Id. at 1179–80 (quotations omitted). This 9 requires a “particularized showing” that “specific prejudice or harm will result” if the information 10 is disclosed. Phillips ex rel. Estates of Byrd v. Gen. Motors Corp., 307 F.3d 1206, 1210–11 (9th 11 Cir. 2002); see also Fed. R. Civ. P. 26(c). “Broad allegations of harm, unsubstantiated by specific 12 examples of articulated reasoning” will not suffice. Beckman Indus., Inc. v. Int’l Ins. Co., 966 13 F.2d 470, 476 (9th Cir. 1992) (quotation omitted). 14 II. DISCUSSION 15 Because the parties move to file documents related to their motions in limine, the Court 16 will apply the lower good cause standard. 17 A. Plaintiff’s Motion to File Under Seal Portions of Plaintiff’s Motions Nos. 1 and 2 and Exhibits 1 and 2 (Dkt. No. 197) 18 19 Plaintiff seeks to file under seal Exhibits 1 and 2 to the Declaration of Patricia N. Syverson 20 in Support of Plaintiff’s Motions in Limine Nos. 1 and 2, and portions of his first and second 21 motions in limine which reference the proposed sealing material. Dkt. No. 197. Exhibits 1 and 2 22 contain Prevagen California sales information and have been designated by Defendant as 23 “Confidential.” Dkt. No. 197-1 ¶¶ 4–5. Defendant submitted its supporting Rule 79-5 declaration, 24 establishing that the sales information contains sensitive and confidential information “not known 25 to the public or competitors of Defendant regarding its approximate amounts of sales to third-party 26 retailers.” Dkt. No. 207 ¶ 8. According to Defendant, revealing this information would injure its 27 interests and standing in the marketplace. Id. 1 the information is published, this may harm Defendant’s competitive standing. See, e.g., FTC v. 2 Qualcomm Inc., No. 17-CV-220-LHK, 2019 WL 95922, at *3 (N.D. Cal. Jan. 3, 2019) (granting 3 motion to seal as information may “divulge[] terms of confidential contracts, contract negotiations, 4 or trade secrets”); Finisar Corp. v. Nistica, Inc., No. 13-cv-03345-BLF (JSC), 2015 WL 3988132, 5 at *5 (N.D. Cal. June 30, 2015). With respect to the first and second motions in limine and 6 Exhibit 1, these documents appear to have been narrowly tailored to seal only sealable material 7 (the sales information), as required by Civil Local Rule 79-5. However, the Court does not find 8 that Exhibit 2 has been narrowly tailored to only seal the sales information. Exhibit 2 contains one 9 chart with sales information, but the remaining pages reflect communications between the parties 10 which do not expressly disclose the sealable information. See Dkt. No. 197-8. 11 The Court therefore GRANTS IN PART AND DENIES IN PART Plaintiff’s motion to 12 seal Exhibits 1 and 2 and portions of Plaintiff’s first and second motions in limine. 13 B. Defendant’s Motion to File Under Seal Exhibit 1 (Dkt. No. 203) 14 Defendant moves to file under seal Exhibit 1 to the Declaration of Joshua G. Simon in 15 Support of Defendant’s Motion in Limine No. 3. Dkt. No. 203. The only proffered justification 16 for sealing is that the information was designated as “Highly Confidential” by Plaintiff. Dkt. No. 17 203-1 ¶ 3. But a designation of confidentiality is not sufficient to establish that a document is 18 sealable. See Civ. L. R. 79-5(d)(1)(A). “Confidential” is merely the parties’ initial designation of 19 confidentiality to establish coverage under the stipulated protective order. See Verinata Health, 20 Inc. v. Ariosa Diagnostics, Inc., No. 12-cv-05501-SI, 2015 WL 5117083, at *5 (N.D. Cal. Aug. 21 31, 2015) (“But good cause ‘cannot be established simply by showing that the document is subject 22 to a protective order or by stating in general terms that the material is considered to be 23 confidential’”) (quoting Bain v. AstraZeneca LP, No. 09-cv-4147, 2011 WL 482767, at *1 (N.D. 24 Cal. Feb. 7, 2011)). Thus, Defendant’s motion does not comply with Civil Local Rule 79- 25 5(d)(1)(A). In addition, as the designating party for the materials, Plaintiff did not comply with 26 Civil Local Rule 79-5(e)(1), because he did not file a declaration within four days of Defendant’s 27 motion. See Civ. L.R. 79-5(e)(1). C. Plaintiff’s Motion to File Under Seal Portions of Plaintiff’s Opposition to 1 Defendant’s Motion in Limine No. 1 and Exhibits 1, 2 and 4 (Dkt. No. 208) 2 Plaintiff also asks the Court to file under seal portions of his opposition to Defendant’s 3 Motion in Limine No. 1 and Exhibits 1, 2, and 4 attached to the Declaration of Patricia N. 4 || Syverson in Support of Plaintiff's Opposition to Defendant’s Motion in Limine No. 1. Dkt. No. 5 || 208. The only basis Plaintiff proffers for sealing is that Defendant designated the materials as 6 || confidential. Dkt. No. 208-1 4] 3-6. Defendant did not submit its supporting Rule 79-5 7 declaration. See Civ. L.R. 79-5(e)(1). 8 As already discussed, a designation of confidentiality is not sufficient to establish that a 9 document is sealable. See Civ. L. R. 79-5(d)(1)(A). Accordingly, the Court DENIES Plaintiffs 10 || motion to seal. 11 Wl. CONCLUSION 12 The Court GRANTS IN PART AND DENIES IN PART Plaintiffs administrative 5 13 || motion to file under seal portions of Plaintiff's Motions in Limine Nos. 1 and 2 and Exhibits 1 and 14 2, Dkt. No. 197; DENIES Defendant’s administrative motion to file under seal Exhibit 1 to the 3 15 Declaration of Joshua G. Simon in Support of Defendant’s Motion in Limine No. 3, Dkt. No. 203; a 16 || and DENIES Plaintiff's administrative motion to file under seal portions of Plaintiff's Opposition 3 17 to Defendant’s Motion in Limine No. 1 and Exhibits 1, 2, and 4, Dkt. No. 208. 18 The Court DIRECTS the parties to file public versions of all documents for which the 19 || proposed sealing has been denied within seven days of this order. The parties may also file new 20 || motions to seal within seven days of this order according to the requirements discussed above. 21 Pursuant to Civil Local Rule 79-5(f)(1), documents filed under seal as to which the administrative 22 || motions are granted will remain under seal. 23 24 IT IS SO ORDERED. 25 || Dated: 12/16/2019 26 Appr 3 Sb). 7 HAYWOOD S. GILLIAM, JR. United States District Judge 28