Opinion

The Home Depot, Inc. v. Steadfast Insurance Co.

Court
District Court, S.D. Ohio
Filed
Oct 11, 2022
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

The Home Depot, Inc., et al., : Case No. 1:21-cv-242

:

Plaintiffs, : Judge Susan J. Dlott

:

v. :

:

Steadfast Insurance Company, et al., : Order Granting Motions for Leave to File

: Documents Under Seal

Defendants. :

This matter is before the Court on Plaintiff The Home Depot, Inc.’s (“Home Depot”)

Motion Seeking Leave to File Document under Seal (Doc. 50) and Defendant Steadfast

Insurance Co.’s (“Steadfast”) Motion for Leave to File Documents Under Seal. (Doc. 49.)

Steadfast seeks to file under seal an email and attached strategy planning document prepared for

Home Depot by its insurance broker and an Event Qualification Summary prepared by VISA

relating to Home Depot’s data breach. Home Depot seeks to file a version of an expert witness

report which redacts two sentences referencing the VISA report.1 For the reasons that follow,

the Motions are GRANTED.

I. Background

This insurance dispute stems from the denial of insurance coverage by Steadfast and

Great American Insurance Co. to Home Depot. Home Depot suffered a large data breach in

2014. (Doc. 1 PageID 2.) As a result of the data breach, credit card companies sued Home

Depot seeking to recover, among other things, damages for the cost of replacing physical credit

cards. (Id.) Defendant insurance companies declined to defend Home Depot in this litigation

1The parties provided unredacted copies of all documents to be filed under seal or redacted to the Court for in-

camera review. The Court has examined each of these documents.

and claimed that the insurance policies in effect at the time did not cover this sort of loss. (Id.).

The parties now seek to file certain records under seal as part of a motion for summary

judgement and a Daubert motion.

II. Legal Standard

A party moving to seal court records must overcome a significant burden: “[o]nly the

most compelling reasons can justify the non-disclosure of judicial records.” Shane Group, Inc. v.

Blue Cross Blue Shield, 825 F.3d 299, 305 (6th Cir. 2016) (citing In re Knoxville News-Sentinel

Co., 723 F.2d 470, 476 (6th Cir. 1983)). The Sixth Circuit differentiates between protective

orders entered pursuant to the discovery provisions of Fed. R. Civ. P. 26 and orders to seal court

records—the latter requiring heightened scrutiny. Id. Unlike pretrial discovery, the public has a

strong interest in access to information actually placed in the public record. Id. And the greater

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

overcome presumption of access. Id. Where a party can show a compelling reason for sealing

all or a portion of a document, the seal must be narrowly tailored to serve that reason. Id. The

movant must “analyze in detail, document by document, the propriety of secrecy providing

reasons and legal citations.” Id. at 305–06 (citing Baxter Int’l, Inc. v. Abbott Labs., 297 F.3d

544, 548 (7th Cir. 2002)).

In ruling on a motion to seal, a court must set forth its specific findings and conclusions

“which justify nondisclosure to the public.” Id. at 306 (quoting Brown & Williamson Tobacco

Corp. v. F.T.C., 710 F.2d 1165, 1176 (6th Cir. 1983)). A district court’s failure to set forth

reasons explaining 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 is

grounds to vacate an order to seal. Id.

III. Analysis

The parties have met their burden to demonstrate a compelling reason to justify sealing

the documents at issue here. The Court will consider each document in turn.

The first document Steadfast seeks to seal was prepared by Home Depot’s insurance

broker, Marsh & McLennan Companies (“Marsh”), for a renewal placement meeting. This

document contains several types of sensitive and confidential information. It includes detailed

pricing information regarding Home Depot’s insurance coverage, projected future costs of

insurance, and detailed information about Home Depot’s insurance renewal strategies. While

this information is several years old, its public disclosure would put Home Depot at a

competitive disadvantage in future insurance negotiations. Furthermore, the email and attached

report contain the contact information of several Marsh employees as well as confidential

medical information of a number of Home Depot employees. The public interest in such

information is minor. The confidential information contained in this document is tangential to

the legal and factual issues involved in this case. As a result, the court finds that the interests in

protecting this confidential information are compelling, and the public interest in the information

is minimal.

The second document Steadfast seeks to seal is a confidential report prepared by VISA

regarding Home Depot’s data breach. This information includes a number of details from a

forensic report investigating the data breach, including detailed information about potential

security vulnerabilities in Home Depot’s systems. It also includes information about the level of

damage to compromised cardholders. If this information were made public, it could damage the

cybersecurity efforts of Home Depot and VISA. As a result, there is a compelling reason to seal

this document. Public disclosure might put the public at greater risk of future data breaches and

might discourage VISA from sharing such reports with companies in the future. These interests

are sufficiently compelling as to outweigh the public interest in this document and overcome the

presumption of access.

Turning to Home Depot’s motion, Home Depot seeks to redact two sentences from an

expert witness report containing information from the VISA report. The Court has explained

above why the VISA report should be sealed. Since the considerations apply similarly to

information taken from the report, the Court finds that this redaction is appropriate.

The parties likewise wish to redact narrow portions from their briefs that quote or cite the

sealed documents. Since the same considerations apply to the information taken from the sealed

documents as apply to the documents themselves, narrow redactions to the parties’ filings are

appropriate.

IV. Conclusion

The parties in this case move to file under seal only two documents containing sensitive

and confidential information, a small subset of the total number of documents. The parties

already have cooperated in removing confidential designations from a number of documents

covered by the Protective Order. The parties request to redact only a few sentences from other

documents referencing the sealed documents. Accordingly, the Court finds that the movants

have met their burden of demonstrating a compelling reason to justify nondisclosure of these

documents to the public. The parties’ Motions (Doc. 49 and 50) are therefore GRANTED.

Parties are directed to file unredacted copies of any redacted documents under seal.

IT IS SO ORDERED.

S/Susan J. Dlott_______________

Susan J. Dlott

United States District 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.

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.