Opinion

U.S. All Star Federation, Inc. v. Open Cheer & Dance Championship Series, LLC

Court
District Court, M.D. Florida
Filed
Feb 5, 2024
Cited by
0 cases
Authority
More cited than 20.0%

The opinion

UNITED STATES DISTRICT COURT

MIDDLE DISTRICT OF FLORIDA

ORLANDO DIVISION

U.S. ALL STAR FEDERATION, INC.,

Plaintiff,

v. Case No: 6:21-cv-2135-WWB-DCI

OPEN CHEER & DANCE

CHAMPIONSHIP SERIES, LLC et al.,

Defendants.

ORDER

This cause comes before the Court for consideration without oral argument on the

following motions:

MOTION: Defendants’ Partially Unopposed Motion for Leave to File

Under Seal (Doc. 157)

FILED: January 16, 2024

MOTION: Plaintiff’s Unopposed Renewed Motion for Leave to File

Under Seal (Doc. 161)

FILED: January 23, 2024

MOTION: Defendants’ Renewed and Unopposed Motion for Leave to

File Under Seal (Doc. 167)

FILED January 26, 2024

THEREON it is ORDERED that the motions are DENIED.

Discovery has closed in this case and Defendants have filed a Motion for Summary

Judgment. Doc. 135. That motion remains pending along with motions that relate to experts.

Docs. 114, 132-134. Pending before the Court are Defendants’ Partially Unopposed Motion for

Leave to File Under Seal (Doc. 157, Defendants’ Motion) and the parties’ renewed requests for

leave to file certain documents under seal. Docs. 161, 167 (collectively the Renewed Motions).

The Court will first address the Renewed Motions.

I. Discussion

A. The Parties’ Renewed Motions (Docs. 161, 167)

Plaintiff previously moved to seal exhibits attached to its Response in Opposition to

Defendants’ Motion for Summary Judgment.1 Doc. 148. By Order dated January 16, 2024, the

Court denied Plaintiff’s request because, in general, Plaintiff’s conclusory statements that the

information was proprietary and subject to the parties’ confidentiality agreement were

meaningless. Doc. 156 at 10. With respect to two of the exhibits, the Court specifically found that

Plaintiff provided “no information on what data belongs to FloCheer other than to say it is

contained in a report.” Id. Pending before the Court is Plaintiff’s Unopposed Renewed Motion to

seal those exhibits with “further detail on the data at issue as well as further explanation on the

competitively sensitive nature of this data to FlorCheer’s business.” Doc. 161.

In the same Order, the Court denied Defendants’ request to seal expert Danny Woods’

report (the Woods Report) because “the Court [was] not convinced without more that redaction or

partial sealing is unsatisfactory.” Doc. 156 at 5. Defendants now come back to the Court and

request that the Court seal only the unredacted version of the Woods Report to allow the redacted

version of the report to be filed publicly. Id. at 2.

Upon due consideration, the Renewed Motions are due to be denied. Even though the

parties contend that the Renewed Motions are filed pursuant to Federal Rule of Civil Procedure

1 Plaintiff identifies these exhibits as (1) the page Bates labeled USASF_0000006 on Exhibit 34

and (2) the page Bates labeled USASF_0001899 on Exhibit 37. Doc. 161 at 1.

5.2 and Local Rule 1.11, the parties essentially seek reconsideration of the Court’s January 16,

2024 Order. Reconsideration is an extraordinary remedy and is only granted upon a showing of:

(1) an intervening change in law; (2) the discovery of new evidence that was not available at the

time the Court rendered its decision; or (3) the need to correct clear error or manifest injustice.

Fla. Coll. Of Osteopathic Med., Inc. v. Dean Witter Reynolds, Inc., 12 F. Supp. 2d 1306, 1308

(M.D. Fla. 1998). “A motion for reconsideration cannot be used to relitigate old matters, raise

argument or present evidence that could have been raised prior to the entry of judgment.”

Wilchombe v. TeeVee Toons, Inc., 555 F.3d 949, 957 (11th Cir. 2009) (internal quotation marks

omitted). The Court will not reconsider a prior decision without a showing of “clear and obvious

error where the ‘interests of justice’ demand correction.” Bhogaita v. Altamonte Heights Condo.

Assn., Inc., No. 6:11-CV-1637-ORL-31, 2013 WL 425827, at *1 (M.D. Fla. Feb. 4, 2013) (quoting

American Home Assurance Co. v. Glenn Estess & Assoc., 763 F.2d 1237, 1239 (11th Cir. 1985)).

Motions for reconsideration may not be used “to raise arguments, which could and should have

been made earlier.” Id. (quoting Lussier v. Dugger, 904 F.2d 661, 667 (11th Cir. 1990)).

Here, the parties renew their requests but fail to cite, let alone meet, the legal standard for

reconsideration. The parties do not refer the Court to a change in the law, discovery of new

material, or convince the Court that there is a need to correct clear error or a manifest injustice.

See Docs. 157, 161. And even if the appropriate standard is applied, Plaintiff’s desire to provide

further detail on the data at issue does not satisfy its burden on reconsideration. Likewise, the

Court denied Defendants’ previous request to seal the Woods Report as it was insufficient under

Local Rule 1.11(c). Doc. 156 at 5. Defendants’ pivot to seal only the unredacted version seems

like an attempt to end-run the Court’s ruling that already addressed the report. In sum, the parties

seek to relitigate the deficiencies in their original requests which is not a basis for the extraordinary

relief.

Further, to the extent Defendants’ request is not “Renewed” as Defendants themselves

characterize it, the Court is still not inclined to grant relief. Defendants explain that the portions

of the Woods Report that it would redact and subject to proposed seal are as follows:

1. Charts listing the specific sales and administrative service revenues, cost of

goods sold, operating expenses, other expenses, and net income/loss for each

event produced by Open Cheer & Dance LLC and for Open Cheer and Dance

Championship Series for each year from 2021 to the present;

2. Specific monetary values referenced throughout the Report that reveal specific

financial line items from the Defendants’ financial statements and operations;

3. A chart comparing the Defendants’ revenues, as identified and calculated by

Plaintiff’s Expert, to the Defendants’ revenues that were identified and

calculated by Defendants’ bookkeeper, Ellen Graham; and

4. A chart reflecting the administrative payments made by Defendants in relation

to each event produced by Open Cheer and Dance LLC for each year from 2021

to the present.

Doc. 167 at 2-3.

Defendants argue that “[t]he Confidential Materials are highly sensitive documents that

contain detailed financial and proprietary information, the disclosure of which could cause

irreparable harm to the Defendants’ ability to compete in their relevant markets.” Id. at 5.

Defendants assert that “compelling reasons support the sealing of these materials because they

provide detailed financial and proprietary information about Defendants, including specific

financial information relating to the events and services provided by Defendants.” Id. at 3.

In the January 16, 2024 Order, the Court advised the parties that conclusory statements do

not assist the Court, and Defendants’ renewed argument is more of the same. Doc. 156 at 5-6.

Defendants have repeatedly represented to the Court that material is due to be sealed in this case

because it is “proprietary” and “confidential” and have included the same or similar “compelling

reasons” paragraph in their filings (See Doc. 116, 119, 138), but mere labels do not satisfy Local

Rule 1.11. See Aldora Aluminum & Glass Prods. v. Poma Glass & Specialty Windows, Inc., 2016

WL 7666128, at *2 (M.D. Fla. June 13, 2016) (“Defendant’s blanket assertion that the filings

contain confidential business and/or financial information does not show good cause for sealing

the filing.”); see also Rodriguez v. Burgers, 2021 WL 3017528, at *2 (M.D. Fla. Mar. 24, 2021)

(“The Defendant’s conclusory statement that the documents at issue contain proprietary

information, trade secrets, and are subject to protection under the parties’ confidentiality

agreement falls short of rebutting the presumption in favor of openness.”); see also, Day v. Barnett

Outdoors, LLC, 2017 WL 10275971, at *3 (M.D. Fla. Aug. 23, 2017) (“Because the commercially

sensitive nature of the information is the only basis Barnett provides for nondisclosure, and its

conclusory statements fall short of establishing that the information qualifies as proprietary

information, it fails to establish good cause for sealing the Modification Timeline.”).

At first blush, Defendants’ description of the items at issue seems to provide more

substance than past filings, but phrases and words like “specific monetary values,” “administrative

payments,” revenues, and costs do not establish good cause. The Court acknowledges that the

items are “financial” in nature, but that characteristic alone does not overcome the presumption of

openness.2 See Ward v. Ezcorp, Inc., 2016 WL 7666133, at *1 (M.D. Fla. Feb. 29, 2016)

2 As explained in the January 16, 2024 Order, the Court must remain cognizant of the fact that the

Eleventh Circuit recognizes a “presumptive common law right to inspect and copy judicial

records.” Doc. 156 (citing U.S. v. Rosenthal, 763 F.2d 1291, 1292-93 (11th Cir. 1985) (citing

Nixon v. Warner Commc’ns, Inc., 435 U.S. 589, 597 (1978)). This common law right “is

instrumental in securing the integrity of the [judicial] process.” See Chicago Tribune Co. v.

Bridgestone/Firestone, Inc., 263 F.3d 1304, 1311 (11th Cir. 2001) (per curiam); Wilson v. Am.

Motors Corp., 759 F.2d 1568, 1571 (11th Cir. 1985) (per curiam) (“The district court must keep

in mind the rights of a third party—the public, ‘if the public is to appreciate fully the often

(“Claiming a document is ‘sensitive’ or proprietary is not enough to establish that this information

is a trade secret. If the only thing necessary to secure a seal were a mere declaration that a

document is confidential, no judicial review would be needed and the open docket would be bare,

indeed.”).

Based on the foregoing, the parties have not persuaded the Court that the renewed requested

relief is warranted.

B. Defendants’ Motion (Doc. 157)

Defendants also move to seal certain exhibits attached to Plaintiff’s Response in

Opposition to Defendants’ Motion for Summary Judgment. Doc. 157. Specifically, Defendants

seek to seal the following:

1. Exhibits 113-116: These exhibits are the individual Defendants’ interrogatory

responses that disclose: (1) the amount of money each individual has made from

their involvement in the Open Cheer entities; (2) the amount of money each

business entity owned by the individual Defendants made as a result of their

involvement in Open Cheer; and (3) the revenue brought in by each of the

individual Defendants’ entities as a result of awarding bids to Open Cheer

events.

2. Exhibit 16: This exhibit is a substantial vendor royalty payment statement that

contains detailed confidential financial information regarding one of

Defendants’ business partnerships with a key vendor, including the number of

items ordered, cost per item, royalty percentage, total payment to the vendor,

and total royalties received by Defendants.

3. Exhibits 64, 87-88, 99, and 126: These exhibits are email communications

between and among Defendants’ owners regarding brainstorming sessions and

strategic visions about the future of cheerleading and visionary products and

services that could potentially be offered by Defendants in the future.

4. Exhibits 64, 87-88, and 99 are all emails from the summer of 2020 when the

individual Defendants were envisioning the creation of the Allstar World

Championship and brainstorming strategies, business plans, and creative

solutions for deficits they saw in the industry. Exhibit 126 is an email by

significant events at issue in public litigation and the workings of the legal system.’”) (citation

omitted).

individual Defendant David Hanbery to the rest of the individual Defendant

group in July 2021 that identifies “two major issues in the sport” of cheerleading

and then goes on to propose and discuss very specific solutions that the

Defendants could implement someday in the future to address those two main

issues. While some of the Defendants’ ideas and proposals discussed in these

emails have been implemented in the Allstar World Championships, many of

the other creative and unique ideas that are written in the emails have not yet

been executed and are still in the development and brainstorming stage, and

thus, these highly confidential and proprietary ideas continue to have very

substantial value to the Defendants specifically because of their secrecy.

Releasing these emails to the public would destroy any competitive advantage

the Defendants have because it would place all the Defendants’ creative and as-

yet-unimplemented concepts directly in the hands of the Defendants’ direct

competitors (including Plaintiff).

Doc. 157 at 1-3.

Defendants state that the Motion is partially unopposed as Plaintiff only objects to the

request to seal Exhibits 64 and 99. Doc. Id. at 4. Plaintiff has since filed a response and clarifies

that Defendants are mistaken because the opposition extends to Exhibits 64, 87, 88, and 99. Doc.

168 at 2. Even though Plaintiff’s opposition is only partial, Defendants’ Motion is due to be denied

in the entirety.

As an initial matter, Defendants’ Motion closely mirrors Defendants’ previous requests to

seal documents that the Court has rejected as inadequate. See 116, 119, 138. Again, reiterating to

the Court that “compelling reasons” exist and there is “no way” to redact documents without

disclosure of sensitive financial information is not enough. See Doc. 156.

Further, with respect to the items Plaintiff does not oppose—Exhibits 16, 113-116—there

is no indication from either Defendants or Plaintiff as to why the exhibits need to be filed. Local

Rule 1.11(c) requires a motion for leave to file under seal to include the reason filing the item is

necessary. Defendants do not adequately address this requirement and Plaintiff’s response stating

its lack of opposition adds nothing.

Also, Local Rule 1.11(c) states that the motion must include a legal memorandum

supporting the seal. While Defendants cite in general to law related to the sealing of information

regarding a party’s products, they refer the Court to no authority, nor do they include a helpful

analysis to support their proposition that an exhibit should be kept from public access because it

includes the amounts of money individuals have made or reflects royalty statements. As such,

Defendants’ Motion is inadequate.

Finally, the Court agrees with Plaintiff that Defendants should not prevail with respect to

the email communications found in Exhibits 64, 87-88, 99, and 126.3 Plaintiff argues that there is

nothing in the exhibits to be considered confidential three to four years after the establishment of

the event and “[e]ither Defendants adopted the proposed event structure, protocols, and rules

discussed in the emails, in which case the public is aware that the event is run in this manner and

subject to these rules, or Defendants did not adopt these proposals, in which case they are stale and

undeserving of sealing from the public record.” Doc. 168 at 2.

The Court agrees. The Eleventh Circuit’s good cause standard requires a balance of the

right to public access against the interest in keeping the information confidential. Romero v.

Drummond Co., Inc., 480 F.3d 1234, 1245-46 (11th Cir. 2007). The Eleventh Circuit explained

good cause as follows:

“[W]hether good cause exists . . . is . . . decided by the nature and character of the

information in question.” [Chicago Tribune Co., 263 F.3d] at 1315. In balancing

the public interest in accessing court documents against a party’s interest in keeping

the information confidential, courts consider, among other factors, whether

allowing access would impair court functions or harm legitimate privacy interests,

the degree of and likelihood of injury if made public, the reliability of the

information, whether there will be an opportunity to respond to the information,

3Plaintiff does not oppose the request to file Exhibit 126 under seal although it is an email like the

other exhibits. Doc. 168. Even so, the Court finds the request for relief is due to be denied for the

other reasons stated in this Order.

whether the information concerns public officials or public concerns, and the

availability of a less onerous alternative to sealing the documents.

Romero, 480 F.3d at 1246.

Here, Defendants’ communications from years ago regarding what “could potentially be

offered” and “could [be] implement[ed] someday in the future” does not demonstrate a likelihood

of injury if the emails are made public. See ECP East LLC v. Robert C. Nucci, MD, LLC, 116527

at *3 (M.D. Fla. Aug. 19, 2014) (finding that the parties’ “desire” to file under seal an agreement

is “at best, speculative.”) (citing Teledyne Instruments, Inc. v. Cairns, 2013 WL 5874584, at *2

(M.D. Fla. Oct. 31, 2013) (“Good cause is established by showing that disclosure will cause ‘a

clearly defined and serious injury.’”). And the Court reminds that parties that even if it did seal

the items requested, “No seal under this rule extends beyond ninety days after a case is closed and

all appeals exhausted.” Local Rule 1.11(f). As such, Defendants are not entitled to relief.

Il. Conclusion

Based on the foregoing, it is ORDERED that:

1. Defendants’ Partially Unopposed Motion for Leave to File Under Seal (Doc.

No. 157) is DENIED;

2. Plaintiff’s Unopposed Renewed Motion for Leave to File Under Seal (Doc. No.

161) is DENIED; and

3. Defendants’ Renewed and Unopposed Motion for Leave to File Under Seal

(Doc. No. 167) is DENIED.

ORDERED in Orlando, Florida on February 5, 2024.

— =

UNITED STATES MAGISTRATE JUDGE

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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