Soudani v. Soudani

Background

The parties, through counsel, jointly requested a protective order under Federal Rule of Civil Procedure 26(c). They sought protection for nonpublic and competitively sensitive information that might be disclosed during discovery. The court found good cause for an appropriately limited order covering the pretrial phase of the case.

What the order does

The order defines “Discovery Material” as information produced or disclosed during discovery. A producing party may designate material as “Confidential” when it reasonably and in good faith believes the material contains previously undisclosed financial information, ownership or control information about a nonpublic company, business or marketing plans, or personal or intimate information. The court may later give confidential status to other categories.

Confidential material generally may be disclosed only to specified recipients, including the parties and their insurers, counsel and litigation-support personnel, outside service providers, mediators or arbitrators, certain people identified in a document, potential witnesses, experts, deposition transcription staff, and the court. Mediators, arbitrators, witnesses, and experts must first sign a nondisclosure agreement. The material may be used only to prosecute or defend this case and related appeals, not for business, competitive, commercial, or other litigation purposes.

The order establishes procedures for marking confidential discovery, including deposition testimony and exhibits. A party may object to a confidentiality designation or request additional disclosure limits, such as “attorneys’ eyes only,” and must state the grounds in writing. If the parties cannot resolve the dispute, counsel must bring it to the court under the judge’s individual practices.

Sealing and court filings

The order does not automatically require the court to seal material. A party filing under seal must also file a letter brief and supporting declaration explaining, on a particularized basis, why continued sealing is justified. For confidential court submissions, the parties must publicly file a redacted version, file the unredacted version under seal, and provide unredacted courtesy copies as required by the order. The court retains discretion over whether to keep material confidential when it is submitted in connection with a motion or proceeding and warns that material introduced at trial is unlikely to remain sealed.

Privileges, ending the case, and enforcement

If privileged or attorney-work-product material is accidentally disclosed, the disclosure does not waive the protection under the order. The receiving party generally must return or destroy the material within five business days, after which the producing party must provide a privilege log. The receiving party may ask the court to order production, and the producing party retains the burden of establishing that the material is privileged or protected.

Within 60 days after the final disposition of the action, including appeals, recipients must return or, with the producing party’s permission, destroy confidential material and certify that they kept no copies or other reproductions. Litigation counsel may retain certain archival case files, but those files remain subject to the order. The order survives the end of the litigation, and the court retains jurisdiction to enforce it and impose contempt sanctions for violations.

Disposition

Judge Philip M. Halpern entered the stipulated confidentiality and protective order. The opinion does not decide the parties’ underlying claims or defenses.