Salkhi Petroleum, Inc. v. Nationwide Mutual Insurance Company

Background

The parties jointly asked the court to enter their agreed protective order. The court entered it subject to additional conditions.

Conditions on Confidentiality

The parties must make a good-faith determination that information designated as confidential truly warrants protection under Federal Rule of Civil Procedure 26(c). Confidentiality designations must be narrowly tailored to material for which there is good cause. The court warned that a pattern of over-designation could lead to wholesale removal of confidentiality designations.

Conditions on Sealing Court Filings

Materials filed with the court may be treated as confidential only if the party seeking protection files an administrative motion to seal that complies with Civil Local Rule 79-5. Each substantive filing proposed for sealing requires a separate, contemporaneous administrative motion; the order does not allow blanket prospective authorization to seal.

A sealing request must be narrowly limited to portions for which good cause or a compelling reason exists. The party must lodge the entire substantive filing and clearly identify the portions proposed for sealing. The public filing must represent the entire filing, including unredacted portions, redacted portions, and any documents proposed to be sealed in full.

Higher Standard for Dispositive Motions

The court explained that documents used in dispositive motions—motions that could resolve claims or the case—require a showing of “compelling reasons,” which is a higher standard than good cause. The court stated that this standard applies regardless of the parties’ stipulation and warned that most summary-judgment motions and supporting materials should be publicly available. Motions in limine are subject to the same approach because they are part of trial. Noncompliant submissions risk being stricken in their entirety.

The order also provides that confidential materials used openly in hearings or at trial will not receive special treatment unless the court later orders otherwise. A party may move to remove a confidentiality designation, and the court will retain jurisdiction over disputes arising from the protective order for 90 days after final termination of the action.

Disposition

Judge William Alsup entered the stipulated protective order with the listed conditions. The opinion addresses confidentiality, sealing, and administration of the case; it does not decide the parties’ underlying claims.