Opinion

Rebecca Bamberger Works, LLC v. Bamberger

Court
District Court, S.D. California
Filed
Jun 24, 2024
Cited by
0 cases
Authority
More cited than 31.3%

The opinion

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8 UNITED STATES DISTRICT COURT

9 SOUTHERN DISTRICT OF CALIFORNIA

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11 REBECCA BAMBERGER WORKS, Case No.: 24-CV-706 JLS (DDL)

12 LLC d/b/a BAM COMMUNICATIONS, a

Delaware limited liability company; ORDER GRANTING PLAINTIFFS’

13 LLORENTE & CUENCA USA, INC., a RENEWED MOTION FOR LEAVE

14 Delaware corporation; and LLORENTE & TO FILE DOCUMENTS UNDER

CUENCA MADRID S.L., a foreign SEAL

15 corporation,

16 Plaintiffs, (ECF No. 27)

17 v.

18 REBECCA BAMBERGER, an individual,

19 RBW HOLDCO, INC., a California

corporation; BAM BY BIG LLC, a

20 California limited liability company; and

21 DOES 1 through 20,

Defendants.

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24 Presently before the Court is Plaintiffs Rebecca Bamberger Works, LLC (“BAM”),

25 Llorente & Cuenca USA, Inc., and Llorente & Cuenca Madrid S.L.’s (collectively

26 “Plaintiffs”) Renewed Motion for Leave to File Documents Under Seal (“Mot.,” ECF No.

27 27). Plaintiffs accompanied this renewed Motion with redacted versions of the

28 Declarations of Luisa Garcia (ECF No. 27-2), Todd Renner (ECF No. 27-3), and Michael

1 Houston (ECF No. 27-4), each of which Plaintiffs previously filed under seal (collectively,

2 the “Declarations”).1 Defendants Rebecca Bamberger, RBW Holdco Inc., and BAM by

3 BIG LLC (“BIG”) (collectively, “Defendants”) did not oppose the Motion. Having

4 carefully considered Plaintiffs’ arguments and the law, the Court GRANTS Plaintiffs’

5 Motion.

6 BACKGROUND

7 On April 26, 2024, Plaintiffs filed an Ex Parte Application for Issuance of

8 Temporary Restraining Order, Seizure Order, Order to Show Cause for Preliminary

9 Injunction, Order for Expedited Discovery, and Preservation Order (“Appl.,” ECF No. 5).

10 At that time, Plaintiffs sought to file the entire Application, including the associated Garcia

11 and Renner Declarations, under seal. ECF No. 6 (the “First Seal Mot.”).

12 On April 30, 2024, the Court granted in part and denied in part the Application and

13 the First Seal Motion. See generally ECF No. 7 (the “Order”). As to the First Seal Motion,

14 though select portions of the Application and its exhibits likely merited sealing, large

15 portions of each contained information for which sealing was not justified. Id. at 12. The

16 Court thus informed Plaintiffs that it would allow them to file these documents under seal

17 temporarily, pending a renewed motion identifying compelling reasons to seal only

18 specific, highly sensitive portions.2 Id. at 12–13. The Court also ordered Plaintiffs to file

19 proposed redactions to documents that did not merit sealing in their entirety. Id. The

20 instant Motion followed.

21 / / /

22 / / /

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25 1 Plaintiffs have refiled unredacted versions of these declarations within a Proposed Lodged Document

(“PLD,” ECF Nos. 28 to 28-7). The Court will hereinafter refer to the both the unredacted and redacted

26 versions of each declaration as the “Garcia Declaration,” “Renner Declaration,” and “Houston

Declaration,” respectively.

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2 As Plaintiffs have publicly filed redacted versions of the Declarations—and the Court approves of those

1 LEGAL STANDARD

2 “[T]he courts of this country recognize a general right to inspect and copy public

3 records and documents, including judicial records and documents.” Nixon v. Warner

4 Commc’ns, Inc., 435 U.S. 589, 597 (1978) (footnote omitted). “Unless a particular court

5 record is one ‘traditionally kept secret,’ a ‘strong presumption in favor of access’ is the

6 starting point.” Kamakana v. City & Cnty. of Honolulu, 447 F.3d 1172, 1178 (9th Cir.

7 2006) (quoting Foltz v. State Farm Mut. Auto. Ins. Co., 331 F.3d 1122, 1135 (9th Cir.

8 2003)). “The presumption of access is ‘based on the need for federal courts, although

9 independent—indeed, particularly because they are independent—to have a measure of

10 accountability and for the public to have confidence in the administration of justice.’” Ctr.

11 for Auto Safety v. Chrysler Grp., LLC, 809 F.3d 1092, 1096 (9th Cir. 2016) (quoting United

12 States v. Amodeo, 71 F.3d 1044, 1048 (2d Cir. 1995)).

13 A party seeking to seal a judicial record bears the burden of overcoming this strong

14 presumption of access. Kamakana, 447 F.3d at 1178. The showing required to meet this

15 burden depends upon whether the documents to be sealed relate to a motion that is “more

16 than tangentially related to the merits of the case.” Ctr. for Auto Safety, 809 F.3d at 1102.

17 As relevant here, the “compelling reasons” standard typically applies to requests to seal

18 filed alongside motions for preliminary injunctions and temporary restraining orders. See

19 id. at 1099.

20 “In general, ‘compelling reasons’ sufficient to outweigh the public’s interest in

21 disclosure and justify sealing court records exist when such ‘court files might have become

22 a vehicle for improper purposes,’ such as the use of records to gratify private spite, promote

23 public scandal, circulate libelous statements, or release trade secrets.” Kamakana,

24 447 F.3d at 1179 (quoting Nixon, 435 U.S. at 598). For instance, “the common-law right

25 of inspection has bowed before the power of a court to ensure that its records are not

26 used . . . . as sources of business information that might harm a litigant’s competitive

27 standing.” Nixon, 435 U.S. at 598. However, “[t]he mere fact that the production of

28 records may lead to a litigant’s embarrassment, incrimination, or exposure to further

1 litigation will not, without more, compel the court to seal its records.” Kamakana, 447

2 F.3d at 1179.

3 To satisfy the “compelling reasons” standard, the party seeking protection must

4 “present ‘articulable facts’ identifying the interests favoring continued secrecy and . . .

5 show that these specific interests . . . outweigh[] the ‘public interest in understanding the

6 judicial process.’” Id. at 1181 (citation omitted) (first quoting Foltz, 331 F.3d at 1136; and

7 then quoting Hagestad v. Tragesser, 49 F.3d 1430, 1434 (9th Cir. 1995)). “The movant

8 must make this required particularized showing for each document it seeks to seal.” Avnet,

9 Inc. v. Avana Techs. Inc., No. 2:13-CV-00929-GMN, 2014 WL 4181831, at *1 (D. Nev.

10 Aug. 20, 2014) (citing San Jose Mercury News, Inc. v. U.S. Dist. Ct., 187 F.3d 1096, 1103

11 (9th Cir. 1999)). If the movant wishes to seal an entire document, they must show that

12 their compelling interest cannot be protected by redacting only the sensitive portions of

13 said document. See In re Roman Cath, 661 F.3d 417, 425 (9th Cir. 2011). If, by contrast,

14 compelling reasons do not support sealing an entire document, the movant must offer

15 compelling reasons to seal each portion they believe should be sealed. See In re Roman

16 Cath., 661 F.3d at 425.

17 The decision to seal documents is “one best left to the sound discretion of the trial

18 court” upon consideration of “the relevant facts and circumstances of the particular case.”

19 Nixon, 435 U.S. at 599. “[T]he court must ‘conscientiously balance[] the competing

20 interests’ of the public and the party who seeks to keep certain judicial records secret.”

21 Kamakana, 447 F.3d at 1179 (quoting Foltz, 331 F.3d at 1135).

22 DISCUSSION

23 Plaintiffs contend the three at-issue Declarations contain confidential information

24 and trade secrets that warrant sealing. Mot. at 5. To that end, Plaintiffs seek to seal/redact

25 select portions of each Declaration. Id. Per Plaintiffs, the proposed redactions would

26 prevent disclosure of their “business relationships, plans, client lists and contact

27 information, strategies, and trade secrets.” Id. at 10–11. If the Court were to deny their

28 proposed redactions, Plaintiffs argue, their competitors could “exploit that information to

1 obtain a competitive advantage.” Id.

2 Plaintiffs seek to seal three categories of information. See id. at 5, 8–9. These

3 categories include Plaintiffs’ (1) confidential business strategies and related expenses; (2)

4 URLs linking to internal documents; and (3) third-party outreach and client information.

5 The Court will address each category in turn.

6 I. Plaintiffs’ Business Strategies and Expenses

7 Plaintiffs argue Exhibits 7, 9, 10, and 19—and Paragraph 12—of the Garcia

8 Declaration should be sealed/redacted because they reveal Plaintiffs’ confidential business

9 strategies. Mot. at 8. Paragraph 12 provides the “amount LLYC Madrid spent in marketing

10 and advertising the LLYC brand in 2023,” Garcia Decl. ¶ 12; Exhibit 7 contains BAM’s

11 employee handbook, id. Ex. 7; Exhibits 9 and 10 offer board meeting minutes, id. Exs. 9–

12 10; and Exhibit 19 includes a business proposal to a client, id. Ex. 19. Plaintiffs justify

13 their proposed redactions to these portions of the Garcia Declaration as follows: access to

14 this information would allow Plaintiffs’ competitors to profit “from the time and money

15 that BAM expended developing these strategies.” Mot. at 8.

16 The Court concludes compelling reasons exist to redact the above Paragraph and

17 Exhibits because disclosure of the information contained therein could harm Plaintiffs’

18 competitive standing. See, e.g., San Diego Detox, LLC v. Detox Ctr. of San Diego LLC,

19 No. 3:22-CV-01145-RBM-DDL, 2024 WL 2059737, at *2 (S.D. Cal. May 8, 2024)

20 (granting motion to seal litigant’s marketing expenses because competitors might be able

21 to profit from their knowledge of the litigant’s budget); W. Air Charter, Inc. v. Schembari,

22 No. EDCV17420JGBKSX, 2018 WL 10157139, at *21 (C.D. Cal. Nov. 21, 2018) (sealing

23 employee handbook because its development “required the investment of significant

24 resources” and it contained “confidential information related to employee benefits and

25 compensation”); In re BofI Holding, Inc. S’holder Litig., No. 315CV02722GPCKSC, 2017

26 WL 784118, at *20–21 (S.D. Cal. Mar. 1, 2017) (granting motion to seal meeting minutes

27 because meeting participants discussed “proprietary business information”); Network

28 Appliance, Inc. v. Sun Microsystems Inc., No. C-07-06053 EDL, 2010 WL 841274, at *4–

1 5 (N.D. Cal. Mar. 10, 2010) (granting motion to seal business information, marketing

2 information, and “future business plans” because a competitor could benefit from said

3 information).

4 II. BIG’s Google Drive URLs

5 Paragraph 103 of the Garcia Declaration contains “the URL of BIG’s Google drive,”

6 which purportedly contains all of BAM’s business-related information, including its trade

7 secrets. Garcia Decl. ¶ 103. The same is true of Paragraphs 19 and 20(a)–(c) and Exhibits

8 3 and 4 of the Renner Declaration. Renner Decl. ¶¶ 19, 20(a)–(c); id. Exs. 3–4. Plaintiffs

9 contend these references should be redacted because disclosure of the link to BIG’s Google

10 Drive would give BAM’s competitors access to “BAM’s confidential information and trade

11 secrets.” Id. at 11. As, with access to BIG’s drive, BAM’s competitors would be able to

12 unfairly compete with BAM by targeting its clients and mimicking its business strategies,

13 compelling reasons justify redacting these URLs. See, e.g., 3D Sys., Inc. v. Wynne, No.

14 21-CV-1141-AGS-DDL, 2024 WL 1122377, at *3 (S.D. Cal. Mar. 14, 2024) (granting

15 motion to seal/redact URLs and file pathways connected to folders storing confidential

16 information).

17 III. Plaintiffs’ Third-Party Outreach and Client Information

18 Plaintiffs claim Exhibits 8, 11, 14, 15, 17, 18, 20, and 21 of the Garcia Declaration

19 contain sensitive and confidential information relating to BAM’s clients. Mot. at 8–9.

20 Specifically, Exhibits 8, 11, 20, and 21 contain invoices stating client names, addresses,

21 and billing information, Garcia Decl. Exs. 8, 11, 20, 21; Exhibits 14, 15, 18, 20, and 21

22 include emails revealing client names and email addresses, id. Exs. 14, 15, 18, 20, 21; and

23 Exhibit 17 comprises a list of client names, associated contact information, and notes for

24 each client, id. Ex. 17. Plaintiffs also seek to redact similar information in Exhibits 3, 4,

25 and 5 of the Houston Declaration and Exhibits 3 and 4 of the Renner Declaration, Houston

26 Decl. Exs. 3–5; Renner Decl. Exs. 3–4, contending compelling reasons justify the proposed

27 redactions to the above exhibits because, absent redaction, Plaintiffs’ competitors could

28 “mimic its business relationships.” Mot. at 8–9. The Court agrees. See, e.g., Apex.AI, Inc.

1 Langmead, No. 5:23-CV-02230-BLF, 2023 WL 4157629, at *2 (N.D. Cal. June 23,

2 2023)

3 CONCLUSION

4 In light of the foregoing, the Court GRANTS Plaintiffs’ Motion to Seal (ECF No.

5 ||27) and DIRECTS the Clerk of the Court to file ECF No. 28 under seal.

6 IT IS SO ORDERED.

7 Dated: June 24, 2024 jae L. Lo memeaite-

g on. Janis L. Sammartino

9 United States District Judge

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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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