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%

sealing competitively sensitive information “dating back even a decade or more”

How later courts described this case

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

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 HOUSTON

FAX: (212) 735-2000 □□□□

www.skadden.com WASHINGTON, D.C.

seas □□□□□

BORIS. BERSHTEYN@SKADDEN.COM Application GRANTED. Defendants’ sealing application is FRANKFURT

granted for substantially the reasons stated in Defendants’ □□□□□□

April 7, 2022 letter. The materials at Dkt. Nos. 1097 to 1098, 1100 to 1101, □□□

, 1112 to 1120, 1123 to 1128, and 1162 shall remain under seal □□□□ □□□□

with access limited to the parties listed in "Appendix B" of SHANGHAI

this Order. The Clerk of Court is respectfully directed to close □□

the motion at Dkt. No. 1161. TORONTO

VIA ECF Dated: June 3, 2022

New York, New York

Hon. Lorna G. Schofield

United States District Court Judge LORNA G. S CHOFIEL

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 in Limine

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 February 17, 2022 Order permitting the parties to

provisionally file Daubert and in limine materials under seal (ECF No. 1083),

Defendants Sabre Holdings Corporation, Sabre GLBL Inc., and Sabre Travel

International Ltd. (collectively, “Sabre’’) respectfully move to maintain certain

Daubert and in limine materials under seal. Plaintiff US Airways, Inc. (““USAir’)

does not oppose this motion.

Sabre seeks to maintain under seal only targeted portions of the Daubert and

in limine 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 categories of

information that the Court permitted to be sealed in connection with earlier summary

judgment and Daubert motion practice that occurred in 2014-2015. (See ECF No.

April 7, 2022

Page 2

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”).

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

April 7, 2022

Page 3

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 briefing at issue,

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 as Appendix A documents

submitted in connection with the Daubert and in limine motions—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 Appendix A that it proposes to file in

redacted or fully sealed form. As Rule I.D.3 further instructs, Appendix B 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.

We thank the Court for its consideration of these requests.

Respectfully submitted,

/s/ Boris Bershteyn

Case 1:11-cv-02725-LGS Document 1210 Filed 06/03/22 Page 4 of 7

Hon. Lorna G. Schofield

April 7, 2022

Page 12

Appendix B: 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

Case 1:11-cv-02725-LGS Document 1210 Filed 06/03/22 Page 5 of 7

Hon. Lorna G. Schofield

April 7, 2022

Page 13

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

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

Case 1:11-cv-02725-LGS Document 1210 Filed 06/03/22 Page 6 of 7

Hon. Lorna G. Schofield

April 7, 2022

Page 14

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

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

Case 1:11-cv-02725-LGS Document 1210 Filed 06/03/22 Page 7 of 7

Hon. Lorna G. Schofield

April 7, 2022

Page 15

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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