SGD Pharma Packaging v. Lahmeur

Background

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

What the Order Covers

A producing party may designate portions of discovery material as confidential when it reasonably and in good faith believes the material contains previously undisclosed:

- Financial information, including profitability reports or estimates, fees, royalty rates, minimum guarantee payments, sales reports, and margins; - Information about ownership or control of a nonpublic company; - Business plans, product-development information, or marketing plans; - Personal or intimate information about an individual; or - Another category that the court later gives confidential status.

The order provides procedures for marking confidential material, producing redacted copies for public use, and designating deposition testimony or exhibits as confidential. A producing party may also correct an earlier failure to designate material by giving written notice and providing replacement copies within two business days.

Disclosure and Use Limits

Confidential discovery material may be disclosed only to specified recipients, including the parties and certain insurers, counsel and their litigation personnel, mediators or arbitrators, people identified in a document as its author or recipient, potential witnesses, experts and other specialized advisers, deposition transcription staff, and the court. Some recipients must first receive the order and sign a nondisclosure agreement.

Recipients may use confidential discovery material only to prosecute or defend this action and related appeals, not for another purpose or litigation. They must take precautions against unauthorized or accidental disclosure. The order permits disclosure when required by a subpoena, other compulsory process, law, or a government agency, subject to notice requirements and the producing party's opportunity to oppose the disclosure.

Court Filings and Sealing

A party filing confidential discovery material or a paper revealing it must publicly file a redacted version and file the unredacted version under seal in accordance with the court's rules. A party seeking sealing must submit an application and supporting declaration providing a particularized justification. The order states that the court has not itself found that any designated material is confidential and retains discretion over whether to grant confidential treatment. It also warns that material introduced at trial is unlikely to remain sealed absent the required findings.

Duration and Enforcement

Within 60 days after final disposition of the action, including appeals, recipients generally must return or, with the producing party's permission, destroy confidential discovery material and certify that they have not retained copies or other reproductions. Attorneys specifically retained for the action may keep limited archival copies, which remain subject to the order. The order continues after the litigation ends, and the court retains jurisdiction to enforce its obligations and impose contempt sanctions.

Disposition

Judge Gregory H. Woods issued the stipulated confidentiality agreement and protective order. The order binds the listed parties and other persons who receive or have notice of it.