Opinion
Case No. 18-cv-07394-JSC Case No. 18-cv-07393-JSC
01-19-2021
INTERNATIONAL SWIMMING LEAGUE, LTD, Plaintiff, v. FÉDÉRATION INTERNATIONALE DE NATATION, Defendant. THOMAS A. SHIELDS, et al., Plaintiff, v. FÉDÉRATION INTERNATIONALE DE NATATION, Defendant.
ORDER RE: ADMINISTRATIVE MOTION TO FILE UNDER SEAL
Re: Dkt. No. 224
Before the Court is Plaintiffs' administrative motion to file under seal excerpts of the parties' further case management statement (the "Statement"). (Dkt. No. 224.) Plaintiffs seek to file under seal information regarding Ms. Hosszú's earnings from sponsorship arrangements, certain swimmers' earnings from their role as ISL "ambassadors," and details regarding certain swimmers' profit-sharing arrangements with, or ownership interests in, certain ISL clubs. (Id. at 2.) For the reasons set forth below, the Court GRANTS in part and DENIES in part Plaintiffs' motion to seal.
I. Legal Standard
There is a presumption of public access to judicial records and documents. Nixon v. Warner Commc'ns, Inc., 435 U.S. 589, 597 (1978). Courts generally apply a "compelling reasons" standard when considering motions to seal documents, recognizing that "a strong presumption in favor of access is the starting point." Kamakana v. City & Cty. of Honolulu, 447 F.3d 1172, 1178 (9th Cir. 2006) (internal quotations and citations omitted). However, in the case of non-dispositive motions and filings that are "only tangentially related[] to the underlying cause of action" Ctr. for Auto Safety v. Chrysler Grp., LLC, 809 F.3d 1092, 1097 (9th Cir. 2016) (citation omitted), the public has less need for access these documents. Therefore, parties moving to seal them need only meet the lower "good cause" standard of Federal Rule of Civil Procedure 26(c). See Kamakana, 447 F.3d at 1179-80; Ctr. for Auto Safety, 809 F.3d at 1101. The "good cause" standard requires a "particularized" showing that "specific prejudice or harm will result if the information is disclosed." Cont'l Auto. Sys., Inc. v. Avanci, LLC, No. 19-CV-02520-LHK, 2019 WL 6612012, at *1 (N.D. Cal. Dec. 5, 2019) (citing Phillips ex rel. Estates of Byrd v. Gen. Motors Corp., 307 F.3d 1206, 1210-11 (9th Cir. 2002)). Under Civil Local Rule 79-5(b), sealing is appropriate only where the requesting party "establishes that the document, or portions thereof is . . . entitled to protection under the law," or "sealable." N.D. Cal. Civ. L.R. 79-5(b).
Plaintiffs seek to seal excerpts from the parties' Statement. The Statement is discovery-related; moreover, it is not substantively related to the case's merits, see Ctr. for Auto Safety, 809 F.3d at 1100-01, nor does it "affect [the] litigants' substantive rights," id. (internal quotation marks and citation omitted). Therefore, the "good cause exception"—rather than the "presumptive compelling reasons standard"—applies to Plaintiffs' administrative motion to file under seal. Id. at 1097 (internal quotation marks and citations omitted). Consequently, the Plaintiffs' "private interests . . . are the 'only weights on the scale'" in sealing the requested material. Cont'l Auto. Systems, 2019 WL 6612012, at *2 (quoting Ctr. for Auto Safety, 809 F.3d at 1097).
II. Discussion
The motion is narrowly tailored; its supporting declaration identifies specific excerpts of the Statement containing information that Plaintiffs seek to seal. (Dkt. No. 224-1 at 2.) See N.D. Cal. Civ. L.R. 79-5(b). Good cause exists to seal excerpts that cite or reference contractual provisions regarding Plaintiffs' profit-sharing arrangements with ISL clubs, as well as information regarding certain swimmers' earnings as ISL league "ambassadors," because Plaintiffs have shown that ISL may be harmed in future negotiations if information regarding these profit-sharing arrangements—and the identities of swimmers with whom ISL has agreed to share profits—as well as "ambassadorships" is disclosed. See Digital Reg of Texas, LLC v. Adobe Sys., Inc., No. C 12-1971 CW, 2014 WL 6986068, at *1 (N.D. Cal. Dec. 10, 2014) (finding "good cause" to grant sealing motion where document contained information regarding "revenues, payments, technical aspects of licensing agreements and unique material terms" because the information's disclosure would adversely affect the plaintiff's future negotiations); see also Smith v. Keurig Green Mountain, Inc., No. 18-CV-06690-HSG, 2020 WL 5630051, at *11 (N.D. Cal. Sept. 21, 2020) (finding good cause to seal portions of documents that contained "confidential business and proprietary information" related to a party's operations).
However, Plaintiffs have not shown that good cause exists to seal the Statement's response to FINA's argument regarding Messrs. Miller's and Pebley's testimony and their lack of "financial incentives"—this excerpt contains no reference to any information regarding any Plaintiff's financial or personal information, nor does it reflect or reference any terms of a profit-sharing arrangement whose disclosure would "specific[ally] prejudice or harm" Plaintiffs. (Dkt. No. 224-4 at 4.) Cont'l Auto. Systems, 2019 WL 6612012, at *1. Plaintiffs explain that disclosure of Ms. Hosszú's earnings from sponsorship arrangements would harm her in future negotiations with potential sponsors, and as such the Court finds good cause exists to seal excerpts of the Statement that reference these arrangements. (Dkt. No. 224-4 at 17-18.) See Digital Reg of Texas, 2014 WL 6986068, at *1. So too would disclosure of information regarding certain Plaintiffs' ownership interests in an ISL team harm ISL in future negotiations, and for this reason Plaintiffs have shown good cause exists to seal excerpts of the Statement that reference or discuss these ownership interests. (Dkt. No. 224-4 at 18-19.) See Digital Reg of Texas, 2014 WL 6986068, at *1.
CONCLUSION
For the reasons set forth above, the Court GRANTS in part and DENIES in part Plaintiffs' administrative motion to file under seal. Plaintiffs shall file an unredacted version of the Statement within 7 days of this Order.
IT IS SO ORDERED. Dated: January 19, 2021
/s/_________
JACQUELINE SCOTT CORLEY
United States Magistrate Judge