Navigators Specialty Insurance Company v. Depomed, Inc.

Background

The parties filed administrative motions asking the court to keep certain documents and portions of filings confidential. The materials were submitted in connection with Depomed’s motion for partial judgment on the pleadings and the parties’ motions for summary judgment.

Legal standard

Because the materials related to dispositive motions—motions that could resolve claims or the case—the court applied the “compelling reasons” standard. Under that standard, the party seeking secrecy must identify specific reasons that outweigh the public’s strong interest in accessing court records. The request must also be narrowly limited to information that qualifies for protection.

Court’s analysis

The court considered materials containing confidential communications to insurers and subpoenas connected to ongoing or threatened opioid litigation involving Depomed’s sales and marketing of opioid products. The court found that disclosure could prejudice Depomed’s defense in that litigation, including by making it more difficult for Depomed to defend both the underlying litigation and related insurance-coverage issues.

The parties also sought to seal exhibits and related portions of briefs and declarations containing confidential business information. That information included investigations and evaluations of insurance-related risks, negotiations concerning an insurance policy, and sales and pricing information about Depomed’s products. The court found that competitors could use the information to the parties’ disadvantage and concluded that the requested sealing was sufficiently narrow.

Disposition

The court granted the parties’ administrative motions to file under seal. Under the applicable local rule, the documents covered by the granted motions will remain under seal.