Opinion

Jones v. PGA Tour, Inc.

Court
District Court, N.D. California
Filed
May 18, 2023
Cited by
0 cases
Authority
More cited than 18.9%

The opinion

1

2

3 UNITED STATES DISTRICT COURT

4 NORTHERN DISTRICT OF CALIFORNIA

5 SAN JOSE DIVISION

6

7 MATT JONES, et al., Case No. 22-cv-04486-BLF

8 Plaintiffs,

ORDER RE MOTIONS TO SEAL

9 v. DOCUMENTS SUBMITTED WITH

BRIEFING ON MOTION TO

10 PGA TOUR, INC., BIFURCATE

11 Defendant. [Re: ECF Nos. 332, 374]

12 Before the Court are two administrative motions to consider whether another party’s

13 material should be sealed. Both concern materials submitted with briefing on Plaintiffs motion to

14 bifurcate.

15 The first motion was submitted by Plaintiffs. The motion asks the court to consider

16 whether portions of Plaintiffs’ Motion to Bifurcate and certain exhibits submitted with the Motion

17 to Bifurcate should be sealed on the ground that those materials were designated as confidential by

18 Defendant PGA Tour, Inc. (the “TOUR”) and non-party Clout Public Affairs, LLC. See Plfs.

19 Mot., ECF No. 332. The TOUR has submitted a statement in support of sealing. See TOUR

20 Statement, ECF No. 346. Clout has not submitted a statement in support of sealing.

21 The second motion was submitted by the TOUR. The motion asks the court to consider

22 whether portions of the TOUR’s Opposition to Plaintiffs’ Motion to Bifurcate and certain exhibits

23 submitted with the Opposition should be sealed on the ground that those materials were designated

24 as confidential by Plaintiff LIV Golf, Inc. See TOUR Mot., ECF No. 374. LIV has submitted a

25 statement in support of sealing. See LIV Statement, ECF No. 397.

26 For the reasons discussed below, Plaintiffs’ administrative motion (ECF No. 332) is

27 GRANTED and the TOUR’s administrative motion (ECF No. 374) is GRANTED IN PART and

I. LEGAL STANDARD

1

“Historically, courts have recognized a ‘general right to inspect and copy public records

2

and documents, including judicial records and documents.’” Kamakana v. City and Cnty. of

3

Honolulu, 447 F.3d 1172, 1178 (9th Cir. 2006) (quoting Nixon v. Warner Commc’ns, Inc., 435

4

U.S. 589, 597 & n.7 (1978)). Consequently, access to motions and their attachments that are

5

“more than tangentially related to the merits of a case” may be sealed only upon a showing of

6

“compelling reasons” for sealing. Ctr. for Auto Safety v. Chrysler Grp., LLC, 809 F.3d 1092,

7

1101-02 (9th Cir. 2016). Filings that are only tangentially related to the merits may be sealed

8

upon a lesser showing of “good cause.” Id. at 1097.

9

Under this Court’s Civil Local Rules, a party moving to seal a document in whole or in

10

part must file a statement identifying the legitimate private or public interests that warrant sealing,

11

the injury that will result if sealing is denied, and why a less restrictive alternative to sealing is not

12

sufficient. See Civ. L.R. 79-5(c)(1). A supporting declaration shall be submitted if necessary. See

13

Civ. L.R. 79-5(c)(2). Finally, the moving party must submit “a proposed order that is narrowly

14

tailored to seal only the sealable material[.]” Civ. L.R. 79-5(c)(3).

15

Where the moving party requests sealing of material that has been designated confidential

16

by another party, the designating party has the burden to establish that the material should be

17

sealed. See Civ. L.R. 79-5(f)

18

II. DISCUSSION

19

The good cause standard applies here because the sealing request relates to briefing on a

20

motion to bifurcate trial, which is only tangentially related to the merits of the case. Cf. Ctr. for

21

Auto Safety, 809 F.3d at 1097.

22

Courts in this Circuit have held that confidential business information in the form of

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“license agreements, financial terms, details of confidential licensing negotiations, and business

24

strategies” satisfies the “compelling reasons” standard. Exeltis USA Inc., 2020 WL 2838812, at

25

*1; see also In re Qualcomm Litig., No. 3:17-cv-0108-GPC-MDD, 2017 WL 5176922, at *2 (S.D.

26

Cal. Nov. 8, 2017) (observing that sealing is warranted to prevent competitors from “gaining

27

insight into the parties’ business model and strategy”); In re Hydroxycut Mktg. & Sales Pracs.

1 Litig., No. 09MD2087 BTM AJB, 2011 WL 864897 (S.D. Cal. Mar. 11, 2011) (finding

2 compelling reasons to seal “e-mails which reveal business and marketing strategy”). Such

3 information is therefore likewise sealable under the “less exacting” good cause standard.

4 The TOUR has demonstrated that good cause to seal the material it seeks to seal. The

5 TOUR requests to seal communications concerning business strategy, competitively sensitive

6 business information about TOUR operations and corporate decision making, characterizations of

7 communications between TOUR executives and retained consultants strategizing regarding

8 competitive issues, and analysis and work product provided by retained consultants on competitive

9 issues. TOUR Statement 6 (citing Shetty Decl. ¶¶ 3-11, ECF No. 346-1). The TOUR’s Deputy

10 General Counsel explains in her declaration the injury the TOUR will suffer if sealing is denied.

11 For example, Ms. Shetty explains that disclosure of certain materials would cause the TOUR

12 competitive harm by revealing internal strategy and decision-making processes. Shetty Decl. ¶ 4.

13 The Court finds that the TOUR’s statement and Ms. Shetty’s declaration set forth good cause to

14 seal the material the TOUR requests to seal.

15 LIV has also demonstrated good cause to seal the material it seeks to seal. LIV seeks to

16 seal documents describing plans and strategy for LIV’s formation, competitively sensitive

17 business communications, and documents concerning corporate governance and decision making.

18 See Davidson Decl. ¶¶ 2-12, ECF No. 1. LIV provides a declaration setting forth the injuries LIV

19 will suffer if sealing is denied. For example, LIV’s declarant, Gary Davidson, explains that

20 disclosure of certain materials would allow LIV’s competitors to counter LIV’s business strategy

21 and would hamper LIV’s ability to engage in future negotiations. See id. ¶ 5. The Court finds

22 that LIV’s statement and Mr. Davidson’s declaration set forth good cause to seal the material LIV

23 requests to seal.

24 The Court’s rulings as to specific documents are set forth below.

25 ECF No. Document Material to be Ruling

Sealed

26

332-1 Motion to Bifurcate 4:22-27 GRANTED. Material quotes an

internal communications strategy

27

document related to the TOUR’s

the golf ecosystem and revealing

1

this internal strategy material

would cause significant harm to

2

the TOUR’s business and

relationships with other golf

3

tours. See Shetty Decl. ¶ 3.

4 332-1 Motion to Bifurcate 5:11-13, 5:21 GRANTED. Material quotes

competitively sensitive

5 communications between TOUR

employees and a non-party

6 consultant retained by the TOUR

to provide strategic advice on

7 competitive issues and disclosure

of these communications would

8 cause harm to the TOUR’s

relationships with business

9 partners and reveal internal

strategy and decision-making

10 processes. See Shetty Decl. ¶ 4.

332-2 Exhibit G to Motion to Entire Document GRANTED. Material is an

11

Bifurcate internal communications strategy

document related to the TOUR’s

12

business with other partners in

the golf ecosystem and revealing

13

this internal strategy material

would cause significant harm to

14

the TOUR’s business and

relationships with other golf

15

tours. See Shetty Decl. ¶ 3.

16 332-3 Exhibit J to Motion to Entire Document GRANTED. Material is internal

Bifurcate TOUR communication between

17 senior TOUR employees and the

TOUR’s Commissioner

18 regarding sensitive internal

strategy related to other

19 professional golf governing

bodies. The disclosure of these

20 sensitive internal

communications would cause

21 competitive harm to the TOUR

and damage to the TOUR’s

22 relationships with other

professional golf governing

23 bodies. See Shetty Decl. ¶ 5.

332-4 Exhibit K to Motion to Entire Document GRANTED. Material reflects

24

Bifurcate communications between TOUR

employees regarding sensitive

25

competitive strategy and analysis

and the disclosure of these

26

communications would cause

competitive injury to the TOUR.

27

See Shetty Decl. ¶ 6

Bifurcate competitively sensitive

1

communications between TOUR

employees and a non-party

2

consultant retained by the TOUR

to provide strategic advice on

3

competitive issues and disclosure

of these communications would

4

cause harm to the TOUR’s

relationships with business

5

partners and reveal internal

strategy and decision-making

6

processes. See Shetty Decl. ¶ 4.

7 332-6 Exhibit O to Motion to Entire Document GRANTED. Material reflects

Bifurcate competitively sensitive

8 communications between TOUR

employees and a non-party

9 consultant retained by the TOUR

to provide strategic advice on

10 competitive issues, or summaries

thereof and disclosure of these

11 communications would cause

harm to the TOUR’s

12 relationships with business

partners and reveal internal

13 strategy and decision-making

processes. See Shetty Decl. ¶¶ 4,

14 7.

332-7 Exhibit P to Motion to Entire Document GRANTED. Material reflects

15

Bifurcate sensitive communications

between TOUR employees and a

16

non-party consultant retained by

the TOUR to provide strategic

17

advice on competitive issues and

invoices prepared by the non-

18

party consultant and disclosing

these materials would damage the

19

TOUR’s relationship with the

nonparty consultant and disclose

20

competitively sensitive pricing

information related to the non-

21

party consultant’s services. See

Shetty Decl. ¶ 8

22

332-8 Exhibit Q to Motion to Entire Document GRANTED. Material reflects

23 Bifurcate sensitive communications

between TOUR employees and a

24 non-party consultant retained by

the TOUR to provide strategic

25 advice on competitive issues and

disclosure of these

26 communications would cause

harm to the TOUR’s

27 relationships with business

partners and reveal internal

processes. See Shetty Decl. ¶ 9.

1

332-9 Exhibit R to Motion to Entire Document GRANTED. Material reflects

2 Bifurcate competitively sensitive

communications between TOUR

3 employees and a non-party

consultant retained by the TOUR

4 to provide strategic advice on

competitive issues and disclosure

5 of these communications would

cause harm to the TOUR’s

6 relationships with business

partners and reveal internal

7 strategy and decision-making

processes. See Shetty Decl. ¶ 4.

8

332-10 Exhibit S to Motion to Entire Document GRANTED. Material reflects

Bifurcate sensitive communications

9

between TOUR employees and a

non-party consultant retained by

10

the TOUR to provide strategic

advice on competitive issues and

11

disclosure of these

communications would cause

12

harm to the TOUR’s

relationships with business

13

partners and reveal internal

strategy and decision-making

14

processes. See Shetty Decl. ¶ 10.

15 332-11 Exhibit T to Motion to Entire Document GRANTED. Material reflects

Bifurcate internal TOUR communications

16 discussing and summarizing

confidential conversations

17 between senior TOUR executives

and a non-party consultant

18 retained by the TOUR to provide

strategic and competitive advice

19 and disclosure of these

communications would cause

20 harm to the TOUR’s

relationships with business

21 partners and reveal internal

strategy and decision-making

22 processes. See Shetty Decl. ¶ 11.

332-12 Exhibit U to Motion to Entire Document GRANTED. Material reflects

23

Bifurcate confidential and competitively

sensitive analysis prepared by a

24

non-party consultant retained by

the TOUR to provide strategic

25

and competitive advice and

disclosure of this analysis would

26

cause harm to the TOUR’s

relationships with business

27

partners and reveal internal

processes. See Shetty Decl. ¶ 12.

1

374-1 Opposition to Motion 2:12-16 GRANTED. Material reflects

2 to Bifurcate information from confidential

service agreements related to

3 LIV’s formation and marketing,

the disclosure of which would

4 prejudice LIV’s ability to

negotiate different terms for the

5 services described in the

agreements, including different

6 payments for such services.

See Davidson Decl. ¶ 2.

7

374-1 Opposition to Motion 2:18-20, 9:13-14 GRANTED. Material reflects

to Bifurcate description of privilege log that

8

articulates specific subjects about

which legal advice was offered

9

and LIV’s counsel’s confidential

communications with the

10

government, the disclosure of

which would harm LIV’s ability

11

to provide information to the

government. See Davidson Decl.

12

¶ 3.

13 374-1 Opposition to Motion 2:5-7, 3:26-27 GRANTED. Material reflects

to Bifurcate description of competitively

14 sensitive business

communications, the disclosure

15 of which would prejudice LIV’s

ability to engage in future

16 negotiations and provide

competitors insight into LIV’s

17 messaging and recruiting

strategy. See Davidson Decl. ¶ 4.

18

374-1 Opposition to Motion 6:11-13 GRANTED. Material reflects

to Bifurcate LIV’s confidential financial

19

information disclosure of which

would competitively harm LIV

20

by revealing to competitors and

potential partners LIV’s access to

21

capital. See Davidson Decl. ¶ 5.

22 374-1 Opposition to Motion 2:21, 4:19-21, 5:3-4 GRANTED. Material reflects

to Bifurcate confidential information about

23 LIV’s shareholder agreement,

including limitations on LIV’s

24 conduct and LIV’s relationship

with third parties, the disclosure

25 of which would would cause

competitive harm. See Davidson

26 Decl. ¶ 6.

27 374-1 Opposition to Motion 4:27-28, 10:4-5, GRANTED. Material discusses

to Bifurcate 10:12 terms of confidential player

strategy, the disclosure of which

1

could cause LIV competitive

harm by hampering further

2

negotiations. See Davidson Decl.

¶ 7.

3

374-1 Opposition to Motion 9:8-9 GRANTED. Material reflects

4 to Bifurcate internal decision making

regarding LIV’s event structure,

5 player payments, structure of

payments, and business strategy

6 regarding Official World Golf

Ranking points—the disclosure

7 of which would cause LIV

competitive harm by hampering

8 further negotiations. Davidson

Decl. ¶ 8.

9

374-1 Opposition to Motion 2:23-24 GRANTED. Material reflects

to Bifurcate terms of indemnification

10

agreement, the disclosure of

which would harm LIV’s ability

11

to litigate this case or negotiate

settlement. See Davidson Decl. ¶

12

12.

13 374-2 Exhibit 1 to Entire Document GRANTED. Material reflects

Opposition to Motion information from confidential

14 to Bifurcate service agreements related to

LIV’s formation and marketing,

15 the disclosure of which would

prejudice LIV’s ability to

16 negotiate different terms for the

services described in the

17 agreements, including different

payments for such services.

18 See Davidson Decl. ¶ 2.

374-2 Exhibit 2 to Entire Document GRANTED. Material reflects

19

Opposition to Motion information from confidential

to Bifurcate service agreements related to

20

LIV’s formation and marketing,

the disclosure of which would

21

prejudice LIV’s ability to

negotiate different terms for the

22

services described in the

agreements, including different

23

payments for such services. See

Davidson Decl. ¶ 2.

24

374-2 Exhibit 3 to Entire Document GRANTED. Material reflects

25 Opposition to Motion privilege log that articulates

to Bifurcate specific subjects about which

26 legal advice was offered. See

Davidson Decl. ¶ 3.

27

374-2 Exhibit 4 to No sealing DENIED. Plaintiff does not seek

to Bifurcate Opposition as it does not contain

1

any information designated as

confidential and has filed it on

2

the public docket at ECF No.

397-2. See LIV Statement 2.

3

374-3 Exhibit 5 to Entire Document GRANTED. Material reflects

4 Opposition to Motion competitively sensitive business

to Bifurcate communications, the disclosure

5 of which would prejudice LIV’s

ability to engage in future

6 negotiations and provide

competitors insight into LIV’s

7 messaging and recruiting

strategy. See Davidson Decl. ¶ 4.

8

374-3 Exhibit 6 to Entire Document GRANTED. Material reflects

Opposition to Motion competitively sensitive business

9

to Bifurcate communications, the disclosure

of which would prejudice LIV’s

10

ability to engage in future

negotiations and provide

11

competitors insight into LIV’s

messaging and recruiting

12

strategy. See Davidson Decl. ¶ 4.

13 374-3 Exhibit 7 to Entire Document GRANTED. Material reflects

Opposition to Motion competitively sensitive business

14 to Bifurcate communications, the disclosure

of which would prejudice LIV’s

15 ability to engage in future

negotiations and provide

16 competitors insight into LIV’s

messaging and recruiting

17 strategy. See Davidson Decl. ¶ 4.

374-3 Exhibit 8 to Entire Document GRANTED. Material reflects

18

Opposition to Motion LIV’s confidential financial

to Bifurcate information and business strategy

19

disclosure of which would harm

LIV by disclosing LIV’s strategy

20

to competitors and prejudice LIV

in future negotiations. See

21

Davidson Decl. ¶ 5.

22 374-4 Exhibit 9 to Entire Document GRANTED. Material contains

Opposition to Motion confidential information about

23 to Bifurcate LIV’s corporate governance,

investment structure, share price,

24 valuation, internal financial

reporting, internal decision

25 making, and budgeting process;

the identities of LIV’s strategic

26 partners and pre-approved

clients; LIV financials, including

27 specific amounts of capital, the

capital deployment schedule, and

relationships with third parties;

1

and limitations on LIV’s business

conduct, disclosure of which

2

could cause competitive harm.

See Davidson Decl. ¶ 6.

3

374-4 Exhibit 10 to Entire Document GRANTED. Material reflects

4 Opposition to Motion terms of confidential player

to Bifurcate agreements and recruiting

5 strategy, the disclosure of which

would cause LIV competitive

6 harm by hampering further

negotiations. See Davidson Decl.

7 ¶ 7.

374-4 Exhibit 11 to Entire Document GRANTED. Material reflects

8

Opposition to Motion terms of confidential player

to Bifurcate agreements and recruiting

9

strategy, the disclosure of which

would cause LIV competitive

10

harm by hampering further

negotiations. See Davidson Decl.

11

¶ 7.

12 374-4 Exhibit 12 to Entire Document GRANTED. Material reflects

Opposition to Motion internal decision making

13 to Bifurcate regarding LIV’s event structure,

player payments, structure of

14 payments, and business strategy

regarding Official World Golf

15 Ranking points—the disclosure

of which would cause LIV

16 competitive harm by hampering

further negotiations. See

17 Davidson Decl. ¶ 8.

374-5 Exhibit 13 to Entire Document GRANTED. Document is LIV

18

Opposition to Motion Golf Player Media Briefing

to Bifurcate preparation sheet and reflects

19

public relations strategy, the

disclosure of which would cause

20

LIV competitive harm. See

Davidson Decl. ¶ 9.

21

374-5 Exhibit 14 to Entire Document GRANTED. Material reflects

22 Opposition to Motion internal decision making

to Bifurcate regarding LIV’s event structure,

23 player payments, structure of

payments, and business strategy

24 regarding Official World Golf

Ranking points—the disclosure

25 of which would cause LIV

competitive harm by hampering

26 further negotiations. See

Davidson Decl. ¶ 8.

27

374-5 Exhibit 15 to Entire Document GRANTED. Material reflects

to Bifurcate regarding LIV’s event structure,

1

player payments, structure of

payments, and business strategy

2

regarding Official World Golf

Ranking points—the disclosure

3

of which would cause LIV

competitive harm by hampering

4

further negotiations. See

Davidson Decl. ¶ 8.

5

374-5 Exhibit 16 to Entire Document GRANTED. Material reflects

6 Opposition to Motion LIV’s counsel’s confidential

to Bifurcate communications with the

7 government, the disclosure of

which would harm LIV’s ability

8 to provide information to the

government. See Davidson

9 Dec1. ¶ 3.

374-6 Exhibit 17 to Entire Document GRANTED. Materials reflect

10

Opposition to Motion player contracts that include

to Bifurcate confidential information about

11

payments, offers, commitment

fees, players rights and

12

obligations, and length of

commitment—the disclosure of

13

which would constrain LIV in

future negotiations. See

14

Davidson Decl. ¶ 10.

15 374-6 Exhibit 18 to Entire Document GRANTED. Materials reflect

Opposition to Motion player contracts that include

16 to Bifurcate confidential information about

payments, offers, commitment

17 fees, players rights and

obligations, and length of

18 commitment—the disclosure of

which would constrain LIV in

19 future negotiations. See

Davidson Decl. ¶ 10.

20

374-8 Exhibit 19 to Entire Document GRANTED as to redacted

Opposition to Motion version filed at ECF No. 397-3.

21

to Bifurcate See ECF No. 86, at 2.

22 374-7 Exhibit 32 to Entire Document GRANTED. Material reflects

Opposition to Motion terms of indemnification

23 to Bifurcate agreement, the disclosure of

which would harm LIV’s ability

24 to litigate this case or negotiate

settlement. See Davidson Decl. ¶

25 12.

26

27 III. ORDER

1 1. LIV’s Administrative Motion to Consider Whether Another Party’s Material Should be

2 Sealed (ECF No. 332), as supported by the TOUR’s Statement (ECF No. 346), is

3 GRANTED as set forth herein.

4 2. The TOUR’s Administrative Motion to Consider Whether Another Party’s Material

5 Should be Sealed (ECF No. 374), as supported by LIV’s Statement (ECF No. 397), is

6 GRANTED IN PART and DENIED IN PART as set forth herein.

7 Dated: May 18, 2023

BETH LABSON FREEMAN

9 United States District Judge

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This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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