Opinion

US Airways, Inc., for American Airlines, Inc. as Successor and Real Party in Interest v. Sabre Holdings Corporation

Court
District Court, S.D. New York
Filed
Jun 3, 2022
Cited by
0 cases
Authority
More cited than 27.5%

granting motion to seal “proprietary material concerning the defendants’ marketing strategies, product development, costs and budgeting”

How later courts described this case

  • granting motion to seal “proprietary material concerning the defendants’ marketing strategies, product development, costs and budgeting”
  • sealing competitively sensitive information “dating back even a decade or more”

Written by the judges who cited it.

The opinion

SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP

ONE MANHATTAN WEST

N EW YO R K NY 1OO0O | FIRM/AFFILIATE OFFICES

BOSTON

TEL: (212) 735-3000 □□□□□□□

FAX: (212) 735-2000 □□□□

www.skadden.com WASHINGTON, D.C.

ee Application GRANTED. Defendants’ sealing application is □□□□□□□ □

BORIS. BERSHTEYN@SKADDEN.COM granted for substantially the reasons stated in Defendants’ FRANKFURT

and Non-Party CWT's letters. The materials at Dkt. Nos. LONDON

January 24, 2022 1039 to 1041, 1043 to 1045, 1047 to 1052, 1056 to 1061, MUNICH

and 1068 shall remain under seal with access limited to the □□□ PAULO

parties listed in "Appendix C" of this Order. The Clerk of SHANGHAI

Court is respectfully directed to close the motion at Dkt. □□□□

Nos. 1067 and 1069. □□□□□

VIA ECF Dated: June 3, 2022

— New York, New York .

Hon. Lorna G. Schofield

United States District Court Judge LORNA G. SCHOFIEL

Thurgood Marshall U.S. Courthouse UNITED STATES DISTRICT JUDGE

40 Foley Square

New York, NY 10007

RE: US Airways, Inc. v. Sabre Holdings Corp., et al.,

No. 1:11-cv-02725, Sabre’s Unopposed Motion to

Maintain Certain Summary Judgment

and Daubert Materials Under Seal

Dear Judge Schofield:

Pursuant to Rule I.D.3 of Your Honor’s Individual Rules and Procedures for

Civil Cases, Your Honor’s September 14, 2021 Order permitting the parties to

provisionally file summary judgment and Daubert materials under seal (ECF No.

1033), and Your Honor’s subsequent orders extending the deadline for any motions

to maintain such materials under seal (ECF Nos. 1064, 1066), Defendants Sabre

Holdings Corporation, Sabre GLBL Inc., and Sabre Travel International Ltd.

(collectively, “Sabre”) respectfully move to maintain certain summary judgment and

Daubert materials under seal. Plaintiff US Airways, Inc. (“USAir’”’) does not oppose

this motion.

Sabre seeks to maintain under seal only targeted portions of the summary

judgment and Daubert records that contain competitively sensitive information

falling into one or more of the three categories described below. Notably, these

categories of competitively sensitive information are nearly identical to the

January 24, 2022

Page 2

categories of information that the Court permitted to be sealed in connection with the

prior summary judgment motion practice in this case. (See ECF No. 250.) The three

categories of information that Sabre seeks to maintain under seal concern:

(i)Sabre’s non-public pricing information, including airline booking fees or travel

agency incentives, and information from which that non-public pricing information

could be derived; (ii) Sabre’s contract terms and related strategic negotiating

positions or evaluations; and (iii) other competitively sensitive material, such as

information on Sabre’s costs, revenue, and technology spending.

Although a general presumption exists in favor of public access to judicial

documents, courts seal materials where, as here, proposed redactions are “narrowly

tailored” and “essential to preserve higher values.” Lugosch v. Pyramid Co. of

Onondaga, 435 F.3d 110, 120 (2d Cir. 2006) (citation omitted). As this Court has

recognized, such “higher values” include the need “to prevent the unauthorized

dissemination of confidential business information.” Allianz Glob. Invs. GmbH v.

Bank of Am. Corp., 2021 WL 2011914, at *1 (S.D.N.Y. May 20, 2021) (Schofield,

J.); see also Blackboard Inc. v. Int’l Bus. Machs. Corp., 2021 WL 4776287, at *2

(S.D.N.Y. Oct. 12, 2021) (Schofield, J.) (similar). Moreover, courts have sealed

“[c]onfidential business information dating back even a decade or more,” because

such information “may provide valuable insights into a company’s current business

practices that a competitor would seek to exploit.” Encyclopedia Brown Prods., Ltd.

v.Home Box Off., Inc., 26 F. Supp. 2d 606, 614 (S.D.N.Y. 1998). Finally, sealing

confidential business information is especially warranted when only “minimally

relevant to the parties’ claims,” and not critical to resolving a motion before the

court. Refco Grp. Ltd., LLC v. Cantor Fitzgerald, L.P., 2015 WL 4298572, at *5

(S.D.N.Y. July 15, 2015) (citing United States. v. Amodeo, 71 F.3d 1044, 1050 (2d

Cir. 1995)).

Sabre’s proposed redactions meet the required threshold to seal judicial

documents. First, maintaining under seal Sabre’s non-public pricing information is

necessary to prevent harm to Sabre’s ability to negotiate future contracts, including

to avoid giving counterparties (and competitors) any unfair advantage. Such harm

would accrue even if Sabre’s counterparties (and competitors) had access to Sabre’s

pricing information that is many years old, because Sabre’s contracts with airlines

and travel agencies typically span several years, such that older pricing information

remains relevant to current negotiations. See Encyclopedia Brown, 26 F. Supp. 2d at

614 (sealing competitively sensitive information “dating back even a decade or

more”). Accordingly, the Court should maintain Sabre’s non-public pricing

information under seal. See Blackboard Inc., 2021 WL 4776287, at *2 (granting

motion to seal “confidential pricing and financial information”).

January 24, 2022

Page 3

Second, the terms in Sabre’s contracts and its negotiating strategies are also

competitively sensitive, and should remain under seal. Exposing this information

would harm Sabre’s competitive positioning because its contract terms are heavily

negotiated and confidential, and Sabre would be placed at an unfair disadvantage if

counterparties (and competitors) understood what other travel industry participants

had negotiated with Sabre, or if they received access to Sabre’s confidential

strategies. Moreover, unlike the few contractual terms that are at issue in this

litigation and would remain unredacted in the public versions of the summary

judgment and Daubert briefs and the Rule 56.1 statements, specific contractual terms

in Sabre’s other contracts and its negotiating strategies are not relevant to the Court’s

resolution of the pending motions. Accordingly, and as courts have recognized in

similar instances, sealing Sabre’s contracts and negotiating strategies is warranted.

See, e.g., Hanks v. Voya Ret. Ins. & Annuity Co., 2020 WL 5813448, at *3 (S.D.N.Y.

Sept. 30, 2020) (permitting sealing of “details of negotiated settlements” because

disclosure “could result in significant commercial harm to Movants without

providing much value in the monitoring of the federal courts”); Refco Grp., 2015

WL 4298572, at *5 n.10 (permitting sealing of “information regarding the material

terms of [a contract]”).

Third, and for the same reasons, the Court should maintain under seal

Sabre’s other competitively sensitive information, such as certain details regarding

its costs and revenues. See Blackboard, 2021 WL 4776287, at *2 (permitting sealing

of “financial information”); GoSMiLE, Inc. v. Levine, D.M.D. P.C., 769 F. Supp. 2d

630, 649-50 (S.D.N.Y. 2011) (granting motion to seal “proprietary material

concerning the defendants’ marketing strategies, product development, costs and

budgeting”).

For ease of reference, Sabre has included below two appendices—Appendix

A (documents submitted in connection with the pending summary judgment motion)

and Appendix B (documents submitted in connection with the pending Daubert

motion)—listing the specific documents that Sabre seeks to file in redacted form or

entirely under seal, as well as the reason justifying its request to do so. Pursuant to

Rule I.D.3 of Your Honor’s Individual Rules and Procedures of Civil Cases, Sabre

has also filed under seal highlighted versions of the materials cited in Appendices A

and B that it proposes to file in redacted or fully sealed form. As Rule I.D.3 further

instructs, Appendix C contains a list of all parties and attorneys of record who should

have access to the documents that Sabre proposes to be filed fully or partially under

seal.

Finally, out of an abundance of caution and for the Court’s convenience,

Sabre notes certain documents and information that third parties designated as

confidential under one or more of the protective orders entered in this case.

January 24, 2022

Page 4

Specifically, in Appendices A and B and the contemporaneous filings in which Sabre

has highlighted in yellow its proposed redactions, Sabre has also identified material

contained within the documents it seeks to maintain under seal that third parties

produced or previously designated as confidential and concerning which the third

party has either: (1) notified Sabre and USAir that it will ask the Court to keep the

information under seal or (2) has not responded to Sabre and USAir regarding

whether it will ask the Court to keep the information under seal.1

We thank the Court for its consideration of these requests.

Respectfully submitted,

/s/ Boris Bershteyn

1 In the documents filed contemporaneously with this letter motion, Sabre has highlighted in:

(1)yellow the material it seeks to maintain under seal; (2) green the material third parties have

informed Sabre they will seek to maintain under seal; and (3) blue third-party confidential material

about which Sabre and USAir have not yet received a response from the third party. Sabre and USAir

have informed the relevant third parties that any motion seeking to maintain their confidential

material under seal should be filed by January 24, 2022, per the Court’s Dec. 14, 2021 Order (ECF

No. 1066).

Appendix C: Counsel with Access to Sealed Documents

Andrew J. Frackman

Anton Metlitsky

Mia Noel Gonzalez

O'Melveny & Myers LLP

7 Times Square

New York, NY 10036 212-326-2000

Fax: 212-326-2061

afrackman@omm.com

ametlitsky@omm.com

mgonzalez@omm.com

Ian Thomas Simmons

Katrina Marie Robson

Sergei B Zaslavsky

O'Melveny & Meyers LLP

1625 Eye Street NW

Washington, DC 20006 (202)-383-5106

Fax: 202-383-5414

isimmons@omm.com

krobson@omm.com

szaslavsky@omm.com

Bryce Callahan

R.Paul Yetter

Yetter Coleman, LLP

811 Main Street, Suite 4100

Houston, TX 77002

713-632-8067

Fax: 713-632-8002

bcallahan@yettercoleman.com

pyetter@yettercoleman.com

Counsel for Plaintiff US Airways, Inc.

Boris Bershteyn

Evan Kreiner

Skadden, Arps, Slate, Meagher & Flom LLP

January 24, 2022

Page 30

One Manhattan West

New York, NY 10001-8602

212-735-3834

boris.bershteyn@skadden.com

evan.kreiner@skadden.com

Julia K. York

Steven Craig Sunshine

Tara L Reinhart

Skadden Arps Slate Meagher & Flom LLP

1440 New York Avenue, NW Washington, DC 20005

202-371-7000

julia.york@skadden.com

steve.sunshine@skadden.com

tara.reinhart@skadden.com

Patrick Joseph Fitzgerald

Skadden, Arps, Slate, Meagher & Flom, LLP

155 North Wacker Drive Suite 2700

Chicago, IL 60606-1720

(312)-407-0508

Fax: (312)-827-9320

patrick.fitzgerald@skadden.com

Carl Lawrence Malm

Cleary Gottlieb Steen & Hamilton LLP (DC) 2000 Pennsylvania Avenue, NW

Washington, DC 20006

(202)-974-1959

Fax: (202)-974-1999

Email: lmalm@cgsh.com

Ralph Hereford Duggins

Cantey Hanger, LLP

600 W. 6th, Suite 300

Fort Worth, TX 76102

(817)-877-2824

Fax: (817)-877-2807

Email: rduggins@canteyhanger.com

Evan R. Chesler

Kevin J. Orsini

January 24, 2022

Page 31

Peter T Barbur

Rory Ann Leraris

Cravath, Swaine & Moore LLP

825 Eighth Avenue

New York, NY 10019

(212) 474-1000

Fax: (212) 474-3700

Email: echesler@cravath.com

Email: korsini@cravath.com

Email: pbarbur@cravath.com

Email: rleraris@cravath.com

Counsel for Defendants Sabre Holdings Corporation, Sabre GLBL Inc., and Sabre

Travel International Ltd.

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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