Opinion

Lee, Inc. v. Lion Capital LLP

Court
District Court, S.D. California
Filed
Jan 6, 2023
Cited by
0 cases
Authority
More cited than 19.2%

The opinion

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8 UNITED STATES DISTRICT COURT

9 SOUTHERN DISTRICT OF CALIFORNIA

10 Case No.: 22cv1694 DMS(MDD)

ALEX LEE, INC.; BIG Y FOODS, INC.;

11 BROOKSHIRE BROTHERS, INC.;

ORDER DENYING MOTION TO

BROOKSHIRE GROCERY COMPANY;

12 FILE DOCUMENT UNDER SEAL

CERTCO, INC.; DOLLAR TREE

13 DISTRIBUTION, INC.; GREENBRIER

INTERNATIONAL, INC.; FAMILY

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DOLLAR STORES, INC.; FAMILY

15 DOLLAR SERVICES, LLC; THE

GOLUB CORPORATION; KMART

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CORPORATION; K-VA-T FOOD

17 STORES, INC.; MERCHANTS

DISTRIBUTORS, LLC; SCHNUCK

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MARKETS, INC.,

19 Plaintiffs,

20 v.

21 LION CAPITAL LLP; LION CAPITAL

(AMERICAS), INC.; and BIG CATCH

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CAYMAN LP a/k/a LION/BIG CATCH

23 CAYMAN LP

24 Defendants.

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26 On October 31, 2022, Plaintiffs filed the present case in this Court. On December

27 7, 2022, Plaintiffs filed the present motion to file their 100-page Complaint under seal.

28 Plaintiffs argue their Complaint should be filed under seal because it “quotes, incorporates,

1 and references” documents designated as “confidential” or “highly confidential” under the

2 Protective Order issued in the related multidistrict litigation (“MDL”) case, In re:

3 Packaged Seafood Products Antitrust Litig., Case No. 15md2670 DMS (MDD), ECF Nos.

4 173, 194.

5 “Courts have long recognized ‘a general right to inspect and copy public records and

6 documents, including judicial records and documents.’” Rieckborn v. Velti PLC, No. 13-

7 cv-03889-WHO, 2014 WL 4964313, at *1 (N.D. Cal. Oct. 3, 2014) (quoting Nixon v.

8 Warner Communications, Inc., 435 U.S. 589, 597 (1978)). However, “[t]his right is not

9 absolute. To balance the competing interests of the public’s right of access against

10 litigants’ need for confidentiality, a party seeking to file under seal materials related to

11 dispositive motions must provide ‘compelling reasons’ to do so.” Id. (quoting Kamakana

12 v. City & County of Honolulu, 447 F.3d 1172, 1178 (9th Cir. 2006)). Under this standard,

13 “a party seeking to seal materials must ‘articulate compelling reasons supported by specific

14 factual findings,’ providing the court with ‘articulable facts’ identifying the particular

15 interests favoring secrecy and showing how those interests outweigh the ‘strong

16 presumption’ favoring disclosure.” Id. (quoting Kamakana, 447 F.3d at 1178-81). “In

17 general, compelling reasons sufficient to justify sealing exist when the materials ‘might

18 have become a vehicle for improper purposes, such as ... to gratify private spite, promote

19 public scandal, ... or release trade secrets.’” Id. (quoting Kamakana, 447 F.3d at 1179).

20 “‘The mere fact that the production of records may lead to a litigant’s embarrassment,

21 incrimination, or exposure to further litigation will not, without more, compel the court to

22 seal its records.’” Id. (quoting Kamakana, 447 F.3d at 1179). “Although neither the

23 Supreme Court nor the Ninth Circuit has squarely addressed the issue, courts in [the

24 Northern District of California] making sealing determinations treat a complaint as a

25 dispositive motion.” Id. at *2.

26 Here, as stated above, Plaintiffs rely on the Protective Order issued in the MDL case

27 as the basis for sealing the Complaint. However, although:

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1 [a] protective order sealing the documents during discovery may reflect the

7 court's previous determination that good cause exists to keep the documents

sealed, ... a blanket protective order that allows the parties to designate

3 confidential documents does not provide sufficient judicial scrutiny to

A determine whether each particular document should remain sealed.

5 || Guzik Technical Enterprises, Inc. v. Western Digital Corp., No. 5:11-cv-03786-PSG, 2013

6 || WL 6576266, at *1 (N.D. Cal. Dec. 13, 2013). Thus, the mere existence of the Protective

7 || Order does not provide compelling reasons for sealing Plaintiffs’ Complaint. The Court

8 || also notes that the Protective Order was issued more than six years ago, and since that time,

9 ||there has a been a public trial against one of the Defendants in that case, Christopher

10 || Lischewski, and large-scale media coverage of the facts underlying Plaintiffs’ claims.

11 In light of these factors, Plaintiffs’ have not shown compelling reasons for sealing

12 ||their Complaint. Accordingly, Plaintiffs’ motion to file their Complaint under seal is

13 || denied.

14 IT IS SO ORDERED.

15 Dated: January 6, 2023 » gf, p

16 4 Yn:

Hon. Dana M. Sabraw, Chief Judge

M7 United States District Court

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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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