X Limited Liability Company v. Prime Hydration LLC

Background

The court considered the parties’ Stipulation for Protective Order. The order concerns discovery—the exchange of information and documents during the lawsuit—not the parties’ underlying claims.

Protective designations

The order permits counsel to designate information as “Confidential Information” when, in good faith, the designation is needed to protect proprietary, trade-secret, or otherwise sensitive nonpublic information. It also permits a higher-level designation, “Highly Confidential—Outside Counsel’s Eyes Only,” for specified sensitive business, financial, customer, technical, pricing, and product-development information that could provide a competitive advantage if disclosed to another party.

The protections do not cover information that is public other than through violating the order, was obtained from a third party entitled to disclose it, or was lawfully possessed before the order was entered. Protected information may be used only for this lawsuit and not for business or other purposes.

Access and challenges

The order limits access to confidential information to specified people, including outside counsel and litigation-support providers. Confidential information may also be shared with up to four representatives of the receiving party under the stated conditions. Highly confidential information generally may not be shared with a party’s representatives, officers, directors, shareholders, or employees unless the designating party agrees in writing or the court orders otherwise.

Experts and consultants must receive notice procedures, provide specified background information, sign an affidavit agreeing to follow the order, and be subject to a five-business-day objection period. The order also establishes procedures for challenging confidentiality designations and requires the parties to confer before bringing an unresolved dispute to the court.

Other provisions

The order addresses later designations, personally identifying information, privileged or work-product materials produced by mistake, materials filed under temporary seal, requests for additional relief or changes, subpoenas from other proceedings, and the return or destruction of protected information after the litigation ends. It does not require a party to treat its own information as confidential or prevent a party from disclosing its own information.

Ruling

Judge Dulce J. Foster approved the parties’ stipulation in part and ordered that the listed provisions govern discovery in the case. The opinion does not state which specific portions of the parties’ proposal were modified, although it notes that material modifications were highlighted.