Opinion

Vesi Incorporated v. Vera Bradley Designs Inc.

Court
District Court, S.D. Ohio
Filed
Nov 3, 2021
Cited by
0 cases
Authority
More cited than 28.3%

The opinion

IN THE UNITED STATES DISTRICT COURT

FOR THE SOUTHERN DISTRICT OF OHIO

WESTERN DIVISION - CINCINNATI

VESI INCORPORATED, i Case No. 1:19-cv-696

Plaintiff, Judge Matthew W. McFarland

¥

VERA BRADLEY DESIGNS, INC.,

Defendant.

ORDER GRANTING JOINT MOTION FOR LEAVE TO FILE DOCUMENTS

UNDER SEAL (Doc. 56)

This matter is before the Court on the parties’ Joint Motion to File Documents

Under Seal (Doc. 56) and Plaintiff's Unopposed Motion for Extension of Time to File

Response/Reply (Doc. 57). Plaintiff Vesi Incorporated brought this action against

Defendant Vera Bradley Designs Inc. alleging a breach of fiduciary duty, unfair

competition, defamation, and tortious interference with prospective business

relationship. Defendant answered and counterclaimed breach of contract against Plaintiff

Vesi Incorporated and Counterclaim Defendants Gregory Visconti and Dale Davidson

(“Counterclaim Defendants”).

The parties seek to file multiple exhibits used during three depositions under seal.

The exhibits contain Defendant's trade secrets, such as business models, plans and

proposals, financial analysis of proposed business relationships, and contractual

agreements between Defendant and multiple entities not party to this litigation. The

parties contend that Defendant has a compelling interest in keeping the documents sealed

due to the amount of trade secrets contained in each exhibit and that their request is

narrowly tailored because it is limited to a small subset of exhibits used during only three

depositions.

The Sixth Circuit recognizes the strong presumption in favor of openness as to

court records. Shane Grp., Inc. v. Blue Cross Blue Shield of MI, 825 F.3d 299, 305 (6th Cir.

2016). Two broad categorical exceptions to that presumption apply when restricting

access is necessary to (1) promote the order and dignity of the courtroom or (2) protect

competing interests, including the privacy interests of participants or third parties. Brown

& Williamson Tobacco Corp. v. F.T.C., 710 F.2d 1165, 1179 (6th Cir. 1983).

The proponent of sealing any part of the court record has the heavy burden of

overcoming the presumption of public access. It must explain why each document

should be kept secret, supporting its case with reasons and legal citations. Shane Grp.,

825 F.3d at 305. “Only the most compelling reasons can justify non-disclosure of judicial

records.” In re Knoxville News-Sentinel Co., 723 F.2d 470, 476 (6th Cir. 1983). The greater

the public’s interest in the litigation’s subject matter, the greater showing necessary to

overcome the presumption of openness. Shane Grp., 825 F.3d at 305. And when a party

does show a compelling reason why certain documents should be sealed, the seal must

be narrowly tailored to promote that purpose. Id. “And, typically, in civil litigation, only

trade secrets, information covered by a recognized privilege, and information required

by statute to be maintained in confidence is typically enough to overcome this

presumption.” Reese ex rel. Fifth Third Bancorp v. Carmichael, 1:20-cv-886, 2020 WL 6810921

at *1 (S.D. Ohio Nov. 16, 2020).

In turn, this Court must also lay out its findings and conclusions that justify sealing

court records from public disclosure. Specifically, the court ordering records to be sealed

must say “why the interests in support of nondisclosure are compelling, why the interests

supporting access are less so, and why the seal itself is no broader than necessary.” Shane

Grp., 825 F.3d at 306.

The parties contend, and the Court agrees, that each exhibit contains many

different trade secrets of Defendant. Each exhibit contains information that derives

independent economic value by not being generally known to others and is subject to

efforts by Defendant to maintain its secrecy. See Kondash v. Kia Motors Ant., Inc., 767 F.

App’x 635, 638 (6th Cir. 2019). Thus, the parties show the compelling reason for why the

documents should be sealed. Reese, 2020 WL 6810921 at *1.

Also, the Court finds that the parties’ interest in keeping a corporation’s trade

secrets confidential outweighs the public’s lesser interest in full access to the judicial

records. Because the exhibits contain trade secrets regarding Defendant's business

practices and relationships with other entities not party to this litigation, the general

public would never have access to this information. Thus, the public interest in full access

to the exhibits is slight. See, In re Davol, Inc,/C.R. Bard, Inc., Polypropylene Hernia Mesh Prod.

Liab. Lit., 499 F. Supp. 3d 505 (S.D. Ohio 2020). Therefore, parties’ interest in keeping the

trade secrets confidential outweighs the public’s lesser interest in public access to the

trade secrets.

Lastly, the parties’ request is narrowly tailored. The exhibits only come from three

of the many depositions taken in this case. The parties are also not seeking to seal each

exhibit from the three depositions. The parties only request the Court to seal only sixteen

(16) exhibits over the course of three depositions. Thus, this request is narrowly tailored.

For the foregoing reasons, the parties’ Joint Motion to File Documents Under Seal

(Doc. 56) is GRANTED. The Clerk is DIRECTED to accept for filing under seal the

following materials:

1) Exhibits MM, NN, QQ, TT, ZZ and DDD to Stephanie Lawrence Individual

Deposition (Doc. 75);

2) Exhibits 11, 19, 20, and 24-28 to Stephanie Lawrence Rule 30(b)(6) Corporate

Deposition (Doc. 73); and

3) Exhibit 19 and 42 to Alyson Bohren Rule 30(b)(6) Corporate Deposition (Doc. 71).

IT IS SO ORDERED.

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF OHIO

Heth wes

€

By:

JUDGE MATTHEW W. McFARLAND

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.

A word about cookies

We need a few to keep you signed in and the library working. The rest help us see which pages people use and where they get stuck. They stay off unless you say yes.