Opinion

Semko v. EdFinancial Services, LLC

Court
District Court, E.D. Tennessee
Filed
Jan 27, 2025
Cited by
0 cases
Authority
More cited than 33.8%

The opinion

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF TENNESSEE

KNOXVILLE DIVISION

GEORGE A. SEMKO, )

)

Plaintiff, ) 3:24-CV-492

)

vs. )

)

)

EDFINANCIAL SERVICES, LLC, et al.

)

)

Defendants. )

ORDER

The parties in this cause have filed a Joint Motion to Replace the Complaint [Doc. 20] and

attached a proposed redacted version of the Complaint [Doc. 20-1].1 Defendants previously filed a

Motion to Seal [Doc. 16] and Memorandum in Support [Doc. 17], in which they argue that the

identified portions of the Complaint should be sealed because they include sensitive business

information, including information concerning specific contract terms and negotiations with

customers, product development, sales and marketing strategy, and information concerning the

identities of customers. In their Joint Motion, the parties clarify that Plaintiff’s agreement to replace

the current version of the Complaint [Doc. 1] with the redacted version [Doc. 20-1] is not a

concession that the redacted information is confidential. The Court also takes into account that the

parties have contemporaneously filed a Joint Stipulation to Compel Arbitration and Stay

Proceedings [Doc. 21].

1 The redacted Complaint is the same version that is attached as Exhibit A to Defendant’s previously

filed Motion to Seal Previously Filed Document [Docs. 16, 16-1].

“The public has a strong interest in obtaining the information contained in the court record.”

Brown & Williamson Tobacco Corp. v. F.T.C., 710 F.2d 1165, 1180 (6th Cir. 1983); see also Shane

Grp., Inc. v. Blue Cross Blue Shield of Michigan, 825 F.3d 299, 305 (6th Cir. 2016). This is because

the public has an interest in learning what information courts rely upon in reaching their decisions.

Shane Grp., 825 F.3d at 305 (citing Brown & Williamson, 710 F.2d at 1181). Moreover, it is the

party seeking sealing who bears the burden of overcoming the strong presumption in favor or

openness of court records. Id. Specifically, the Sixth Circuit has advised that “[t]he proponent of

sealing therefore must ‘analyze in detail, document by document, the propriety of secrecy,

providing reasons and legal citations.’” Id. (quoting Baxter Int’l, Inc. v. Abbott Labs., 297 F.3d 544,

548 (7th Cir. 2002)).

The Sixth Circuit has also recognized that trade secrets will generally satisfy a party's burden

of showing a compelling reason for sealing documents. See Kondash v. Kia Motors America, Inc.,

767 F. App'x 635, 638 (6th Cir. 2019). Nonetheless, “even if a district court finds that a trade secret

exists, it must still determine whether public interest outweighs the moving party's interests in

protecting their trade secret.” See id. See also Andrews v. Tri Star Sprots and Entertainment Group,

Inc., NO. 3:21-cv-00526, 2023 WL 3590673 at *1 (E.D. Tenn. 2023) (finding redaction appropriate

where documents contained trade secrets such as particular employees’ billing rates, the name of

Defendant’s client, and information pertaining to business strategies during the Covid-19

pandemic).

The Court finds that there are good grounds for permitting the filing of a redacted version

of the Complaint while maintaining the original Complaint under seal. As such, the Joint Motion to

Replace the Complaint [Doc. 20] is GRANTED to the extent that the redacted Complaint [Doc.

20-1] will be available in the public record. The Clerk of Court is DIRECTED to keep the original

current Complaint [Doc. 1] under seal and file the redacted version to which the parties have agreed

[Doc. 20-1] into the public record. Should either party wish for these documents to be unsealed in

the future, a request to unseal should be made by filing an appropriate motion with the Court.

SO ORDERED:

/s/Cynthia Richardson Wyrick

United States Magistrate 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.

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