Opinion

Zap Aviation, LLC v. NXT Jet, Inc.

Court
District Court, M.D. Florida
Filed
Jan 13, 2025
Cited by
0 cases
Authority
More cited than 33.6%

The opinion

UNITED STATES DISTRICT COURT

MIDDLE DISTRICT OF FLORIDA

ORLANDO DIVISION

ZAP AVIATION, LLC,

Plaintiff,

v. Case No: 6:23-cv-1149-RBD-LHP

NXT JET, INC.,

Defendant

ORDER

This cause came on for consideration without oral argument on the following

motions filed herein:

MOTION: DEFENDANT’S UNOPPOSED MOTION TO SEAL

(Doc. No. 118)

FILED: December 31, 2024

THEREON it is ORDERED that the motion is DENIED.

MOTION: DEFENDANT’S UNOPPOSED MOTION TO SEAL

(Doc. No. 120)

FILED: December 31, 2024

THEREON it is ORDERED that the motion is DENIED.

MOTION: DEFENDANT NXT JET, INC.’S UNOPPOSED

MOTION TO SEAL (Doc. No. 124)

FILED: January 7, 2025

THEREON it is ORDERED that the motion is DENIED.

I. BACKGROUND.

This case concerns the early termination of an Aircraft Charter and Lease

Agreement (“Lease Agreement”) entered by Plaintiff Zap Aviation, LLC (“Zap”)

and Defendant NXT Jet, Inc. (“NXT”), in August 2022. Doc. No. 57; see also Doc.

Nos. 1, 5, 12. Zap’s only remaining claim is for breach of contract against NXT,

Doc. No. 78, and NXT has answered and filed similar counterclaims, Doc. No. 79.

Discovery is now closed, and the deadline for dispositive motions lapsed on

December 31, 2024. Doc. No. 85.

As relevant to resolution of the above-styled motions, during discovery, NXT

moved for a protective order. Doc. No. 100. On the response deadline of

November 18, 2024, Zap filed a motion to file its response and related exhibits under

seal, but the Court denied that motion without prejudice for failure to comply with

the Local Rules the next day. Doc. Nos. 103–04. Zap did not renew the motion to

seal, and instead filed its response and all related exhibits on the public docket on

November 19, 2024. Doc. No. 105. The Court issued a ruling on the motion for

protective order three days later. Doc. No. 106. Thereafter, Zap twice filed

motions to remove four exhibits filed with its response from the public docket (Doc.

Nos. 105-1, 105-2, 105-11, 105-14), claiming that NXT marked the exhibits as

confidential during discovery. Doc. Nos. 107, 110. Both motions were denied for

failure to comply with the Local Rules. Doc. Nos. 108, 113. Zap did not again

renew the request, did not file an appeal to the presiding District Judge, and did not

seek reconsideration. NXT likewise did not seek any relief with regard to those

Orders at that time.1

On December 30, 2024, Zap filed an expedited motion seeking to file its

motion for summary judgment and eighteen (18) exhibits thereto under seal,

arguing that NXT had marked such materials confidential pursuant to the parties’

confidentiality agreement. Doc. No. 116. The Court denied the motion the same

1 In a current motion to seal under review, NXT contends that “pursuant to Local

Rule 1.11(c), NXT was to have the ability to file a memorandum in support of Zap’s initial

Motions to Seal.” Doc. No. 124, at 16. While true that Local Rule 1.11(c) states as much,

NXT fails to explain how this provision would apply to motions such as those filed by Zap,

which were wholly deficient under Local Rule 1.11(b) on their face and failed to comply

with the Local Rules. See Doc. Nos. 103, 107, 110, 116. Accordingly, the Court does not

find this argument persuasive on the facts of this case. Moreover, NXT argues that the

documents were not “placed under temporary seal with a stay of the denial orders to

provide the requisite time to permit a motion to reconsider,” Doc. No. 124, at 16, but the

Court notes that it was Zap that filed the materials on the public docket, rather than

renewing the motion to seal as permitted. See Doc. Nos. 104–105; Doc. Nos. 117, 122.

Accordingly, NXT’s reliance on Local Rule 1.11(d) is unpersuasive.

day for failure to establish the propriety of sealing the materials, as Zap’s motion

was premised entirely on the parties’ confidentiality agreement, which does not

alone authorize sealing. Doc. No. 117; see Local Rule 1.11(a). Zap did not renew

the motion, appeal that Order, or seek reconsideration, and instead, filed its motion

for summary judgment and all related exhibits on the public docket the following

day. Doc. No. 122.

For its part, NXT filed a Daubert motion with a redacted exhibit and a

redacted summary judgment motion and several exhibits on the public docket on

December 31, 2024. Doc. Nos. 119, 121. With those motions, NXT also filed an

unopposed motion to file under seal the exhibit in support of the Daubert motion,

as well an unopposed motion to file under seal the unredacted summary judgment

motion and sixteen (16) of its related exhibits, claiming that the documents contain

NXT’s confidential business information. Doc. Nos. 119, 121. Upon review,

because the documents NXT was requesting to seal appeared to overlap with those

that Zap had already filed on the public docket, the Court ordered NXT to file a

notice specifying which materials it sought to file under seal were already filed on

the docket. Doc. No. 123.

Before filing its notice, NXT filed another unopposed motion to seal, this time

seeking to file under seal materials Zap had previously filed on the public docket,

namely, the four exhibits Zap filed in response to NXT’s motion for protective order

during discovery (Doc. No. 105), as well as portions of Zap’s motion for summary

judgment and twenty (20) exhibits Zap had filed in support (Doc. No. 122). Doc.

No. 124. Thereafter, NXT filed its notice identifying which it exhibits it now seeks

to seal have already been filed on the public docket, but stating that with the

addition of its latest motion to seal (Doc. No. 124), if granted, all materials it claims

are confidential would be filed under seal. Doc. No. 125.

On review, and for the reasons discussed below, the motions to seal (Doc.

Nos. 118, 120, 124) will be denied.

II. LEGAL STANDARDS.

A party seeking to file a document under seal must address the applicable

requirements set forth in Local Rule 1.11. The moving party must also satisfy the

Eleventh Circuit’s standard concerning the public’s common law interest and right

of access to inspect and copy judicial records. See, e.g., Chicago Trib. Co. v.

Bridgestone/Firestone, Inc., 263 F.3d 1304, 1311–12 (11th Cir. 2001); United States v.

Rosenthal, 763 F.2d 1291 (11th Cir. 1985). “The right of access creates a rebuttable

presumption in favor of openness of court records,” Gubarev v. Buzzfeed, Inc., 365 F.

Supp. 3d 1250, 1256 (S.D. Fla. 2019), which “may be overcome by a showing of good

cause, which requires balancing the asserted right of access against the other party’s

interest in keeping the information confidential. Whether good cause exists is

decided by the nature and character of the information in question.” Romero v.

Drummond Co., Inc., 480 F.3d 1234, 1246 (11th Cir. 2007) (internal quotations and

alterations omitted).2

“Courts draw a distinction between documents filed with discovery motions

and documents filed in connection with other types of motions.” NXP B.V. v.

Blackberry Ltd., No. 6:12-cv-498-Orl-YK-TBS, 2014 WL 12622459, at *2 (M.D. Fla. Mar.

17, 2014). “‘[T]here is a presumptive right of public access to pretrial motions of a

nondiscovery nature, whether preliminary or dispositive, and the material filed in

connection therewith.’” Romero, 480 F.3d at 1246 (quoting Leucadia, Inc. v. Applied

Extrusion Techs., Inc., 998 F.2d 157, 164 (3d Cir. 1993)). Therefore, “material filed

with discovery motions is not subject to the common-law right of access, whereas

discovery material filed in connection with pretrial motions that require judicial

resolution of the merits is subject to the common-law right.” Chicago Trib. Co., 263

F.3d at 1312. “Stated another way, although there is no common law right to obtain

2 Courts conducting a “good cause” balancing test consider, among other factors:

(1) whether allowing access would impair court functions or harm legitimate privacy

interests, (2) the degree of and likelihood of injury if made public, (3) the reliability of the

information, (4) whether there will be an opportunity to respond to the information, (5)

whether the information concerns public officials or public concerns, (6) the availability of

a less onerous alternative to sealing the documents, (7) whether the records are sought for

such illegitimate purposes as to promote public scandal or gain unfair commercial

advantage, (8) whether access is likely to promote public understanding of historically

significant events, and (9) whether the press has already been permitted substantial access

to the contents of the records. Gubarev, 365 F. Supp. 3d at 1256 (citing Romero, 480 F.3d at

1246; Newman v. Graddick, 696 F.2d 796, 803 (11th Cir. 1983)).

discovery material, a party that submits documents in connection with a motion for

summary judgment puts the information into the public domain and triggers

greater public right of access.” Regions Bank v. Kaplan, No. 8:16-cv-2867-T-23AAS,

2017 WL 11025768, at *2 (M.D. Fla. Dec. 11, 2017) (citing Alvey v. Gualtieri, No. 8:15-

cv-1861-T-33MAP, 2016 WL 4129273, at *2 (M.D. Fla. Aug. 3, 2016)).

III. ANALYSIS.

As discussed above, NXT, without opposition from Zap,3 seeks to file under

seal several documents: (1) a deposition transcript in support of its Daubert motion,

see Doc. No. 119-2; (2) an unredacted copy of its summary judgment motion and

sixteen (16) related exhibits, see Doc. No. 121; (3) four (4) exhibits filed by Zap during

discovery, see Doc. Nos. 105-1, 105-2, 105-11, 105-14; and (4) Zap’s motion for

summary judgment and twenty (20) related exhibits filed by Zap on the public

docket, see Doc. No. 122, Doc. Nos. 122-3 through 122-7, 122-9, 122-10, 122-16

through 122-23, 122-25, 122-30, 122-31, 122-34, 122-38. Doc. Nos. 118, 120, 124.

Each of NXT’s requests are based on the same thing—the parties have entered

into a confidentiality agreement in this case, NXT has marked these materials

3 The Court notes that while the motions are all unopposed by Zap, Zap has made

previous filings in this case arguing that “NXT has aggressively marked numerous such

documents and transcript portions as confidential,” and that Zap “does not believe all of

the documents marked as confidential necessarily merit such a designation.” See Doc. No.

116, at 1.

confidential under the agreement, and the materials contain NXT’s confidential

business information. Doc. Nos. 118, 120, 124. Each motion lists the motions

and/or exhibits NXT seeks to file under seal, followed by substantially the same

conclusory explanation in each motion:

[T]he parties’ Confidentiality Agreement requires filing documents

designated as “confidential” under seal. . . . [T]he [document(s)]

requested to be sealed contain highly sensitive business and financial

information that must be sealed entirely in order to protect NXT’s

proprietary business information, negotiations, sale prices, and other

sensitive contractual and financial information from public

consumption. NXT is not aware of means other than those sought

herein that would satisfactorily preserve or protect the interests

asserted by the Parties. To disclose the information sought to be

sealed would cause harm to NXT in revealing the manner in which it

conducts its business and the financial intricacies of same. By way of

example, the information sought to be sealed includes sales prices,

deposit figures, confidential letter of intent language, itemization of

billing information, and specific revenue numbers. This information

goes far beyond simply being protected under a Confidentiality

Agreement— it rises to the level of necessitating Court protection from

public consumption in order to shield NXT’s proprietary business

information from competitors, customers, and the like. NXT will,

however, redact its motion to keep from public disclosure the contents

of the document while keeping the remainder of its motion available

for public view.

Doc. No. 118, at 5–6; Doc. No. 120, at 9–10; see also Doc. No. 124, at 7, 11–12

(mentioning also “banking account numbers, ABA routing numbers, Swift codes,

detailed business banking information, proprietary business information, private

negotiations, sale prices, revenue information, and other highly sensitive

contractual and financial information”).

NXT does not expand on how this analysis applies to each of the filings at

play, which includes hundreds of pages of documents, and instead, appears to

argue that all of the materials it seeks to file under seal fall under this broad category

of information which is subject to protection. Doc. Nos. 118, 120, 124. The

undersigned does not agree.

Upon review of the materials NXT wishes to file under seal, 4 the

undersigned is not clear how each of the materials would qualify for confidential

treatment under governing law. Most of the filings concern the contractual

arrangement between NXT and Zap and go to the heart of this litigation, to include

things like the purchase price of the aircraft, deposit amounts and whether the

deposit was refundable, revenues, losses, letters of intent, wire deposits, draft

contracts, agreements reached, modifications to agreements, flight costs, expenses,

invoices to Zap, staffing of the aircraft and salaries, and Zap’s outstanding balances.

See Doc. Nos. 118, 120, 124, and related attachments.5

4 Pursuant to Local Rule 1.11(b)(8), the materials have been filed under seal pending

an order resolving the motions. See Doc. Nos. 118, 120, 124.

5 To the extent that NXT references bank account numbers and “detailed banking

information,” NXT does not explain why such account numbers or related information

could not be redacted.

The Court also notes that NXT’s motions contain discrepancies, for example, NXT

seeks to seal different portions of the Wargo deposition transcript. Compare Doc. No. 124,

at 7 (citing only Tr. 25:1–8), with id. at 10 (discussing Tr. 25:7–21). Moreover, at least one

deposition transcript page is not included with the proposed sealed filings. Compare Doc.

Besides stating that these materials are “confidential” or “proprietary,” and

providing blanket assertions, NXT makes no effort to explain how each of the

specific materials are entitled to confidential treatment under governing law or how

each of the materials contain the proprietary information that NXT claims. Nor is

it the Court’s job to make that argument for NXT, or to sift through hundreds of

pages to find the confidential information NXT wishes to protect. And, as the

Court has previously cautioned the parties, “[s]ealing is not authorized by a

confidentiality agreement, a protective order, a designation of confidentiality, or a

stipulation” alone. Local Rule 1.11(a); see also NXP B.V., 2014 WL 12622459, at *2

(“The parties’ agreement to seal court documents ‘is immaterial’ to the public’s right

of access.” (quoting Brown v. Advanatage Eng’g, 960 F.2d 1013, 1016 (11th Cir. 1992))).

Thus, upon consideration of NXT’s conclusory arguments regarding the

confidential nature of the materials at issue, the Court does not find that NXT has

satisfied its burden of demonstrating that each of the materials at issue should be

sealed. See Kaplan, 2017 WL 11025768, at *2 (“Defendants’ blanket assertion that

the subject exhibits contain confidential business or financial information is

insufficient to show good cause for sealing the filings.” (citing Aldora Aluminum &

No. 120, at 6 (referencing Zappone Tr. 132:21–25, Exhibit D), with Doc. No. 120-4, at 35–36

(omitting page 132).

Glass Prod., Inc. v. Poma Glass & Specialty Windows, Inc., No. 3:14-cv-1402-J-34JBT,

2016 WL 7666128, at *2 (M.D. Fla. June 13, 2016)); see also Rodriguez v. Magic Burgers,

LLC, No. 6:19-cv-1656-CEM-LRH, 2021 WL 3017528, at *2 (M.D. Fla. Mar. 24, 2021)

(denying motion to seal in relation to summary judgment, stating: “The Defendant’s

conclusory statement that the documents at issue contain proprietary information,

trade secrets, and are subject to protection under the parties’ confidentiality

agreement falls short of rebutting the presumption in favor of openness.”); Allstate

Ins. Co. v. Auto Glass Am., LLC, No. 6:18-cv-2184-Orl-41LRH, 2020 WL 6870755, at *3

(M.D. Fla. Oct. 22, 2020) (denying motion to seal summary judgment and Daubert

materials for failure to demonstrate that the materials were subject to confidential

treatment under governing law); Sarasota Cty. Pub. Hosp. Dist. v. MultiPlan, Inc., No.

8:18-cv-252-T-27AAS, 2019 WL 1244963, at *2 (M.D. Fla. Mar. 18, 2019) (denying

motion to seal dispositive motions in limine and exhibits filed in support of

summary judgment for failure to establish good cause for sealing).6

6 Outside of general legal principals regarding the propriety of sealing information

and the public right of access, NXT cites three cases to support its argument that sealing

its confidential business information is appropriate, but each is unpersuasive to the

situation here. Doc. No. 118, at 3–4; Doc. No. 120, at 5; Doc. No. 124, at 6. Neither Graphic

Packaging Int’l, Inc. v. C.W. Zumbiel Co., No. 3:10-cv-891-J-JBT, 2010 WL 6790538 (M.D. Fla.

Oct. 28, 2010), nor Patent Asset Licensing, LLC v. Bright House Networks, LLC, No. 3:15-cv-

742-J-32MCR, 2016 WL 2991057 (M.D. Fla. May 24, 2016), concerned requests to file

documents under seal at the summary judgment stage. And the Court finds Arthrex, Inc.

v. Parcus Med., LLC, No. 2:11-cv-694-FtM-29CM, 2014 WL 1569149 (M.D. Fla. Apr. 17, 2014),

which concerned motions in limine, unpersuasive because the case was decided under a

This is particularly true given that NXT wishes to file these materials in

conjunction with Daubert and summary judgment motions – motions which by their

nature address the key issues and defenses of the case and determine whether and

to what extent expert testimony can be presented at trial. 7 By attaching the

exhibits at issue to these motions, NXT is representing that the information

contained in the exhibits goes to the heart of this litigation, will likely be necessary

to and discussed in rulings by the Court (rulings which will be filed publicly), and

will be necessary for NXT’s case at trial should the case proceed that far (a trial

which will also be public). Given the large swaths of information that NXT seeks

to seal in conjunction with these dispositive issues, and absent further cogent

explanation from NXT as to why each of the filings at issue are entitled to protection

prior version of the Local Rules and presented different circumstances because it was a

patent infringement case. NXT cites one additional case, Microlumen, Inc. v. Allegrath, No.

8:07-cv-350-T-17TBM, 2007 WL 1247068 (M.D. Fla. Apr. 30, 2007), but that case not only

did not address sealing at the summary judgment stage, but the court also denied the

request to seal for failure to provide sufficient detail.

7 Although NXT’s motions include a request to file under seal materials filed by

Zap on the public docket during discovery, those materials are duplicative of those NXT

wishes to seal in conjunction with summary judgment. Compare Doc. No. 105-1 (Kevin

Wargo deposition transcript), Doc. No. 105-2 (Christopher Tasca 30(b)(6) deposition

transcript); Doc. No. 105-11 (Williams Jeffreys deposition transcript), and Doc. No. 105-14

(Christopher Tasca deposition transcript), with Doc. No. 122-3 (Christopher Tasca 30(b)(6)

deposition transcript), Doc. No. 122-4 (Kevin Wargo deposition transcript), Doc. No. 122-

9 (William Jeffreys deposition transcript), and Doc. No. 122-38 (Christopher Tasca

deposition transcript). See Doc. No. 124, at 7–10; see also Doc. No. 120, at 6–9.

Accordingly, the same analysis applies.

under governing law, NXT has not overcome the presumption of public right of

access. See Rodriguez, 2021 WL 3017528, at *2; Auto Glass Am., LLC, 2020 WL

6870755, at *3; Sarasota Cty. Pub. Hosp. Dist., 2019 WL 1244963, at *2; Kaplan, 2017

WL 11025768, at *2.

Accordingly, upon due consideration, NXT’s motions (Doc. Nos. 118, 120,

124) will be denied.

IV. CONCLUSION.

For the reasons stated herein, NXT’s unopposed motions to seal (Doc. Nos.

118, 120, 124) are DENIED. This Order is stayed until January 27, 2025 to permit

an appeal to the presiding District Judge, if deemed appropriate. See Local Rule

1.11(d). On or before January 27, 2025, NXT shall either file its appeal, or file its

Daubert motion and related unredacted exhibits (Doc. No. 119) as well as its

unredacted motion for summary judgment and related unredacted exhibits (Doc.

No. 121) on the public docket.

This Order does not alter any existing case management deadlines, and in

particular deadlines related to summary judgment or Daubert motions briefing,

including responses and replies are not extended by this Order. See Local Rule

3.01(c); Doc. No. 48, at 12.

DONE and ORDERED in Orlando, Florida on January 13, 2025.

ayn □□□□

LESLIE AN PRICE

UNITED STATES MAGISTRATE JUDGE

Copies furnished to:

Counsel of Record

Unrepresented Parties

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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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