People.ai, Inc. v. SetSail Technologies, Inc.

Background

The parties submitted a stipulated protective order. A protective order sets rules for handling information exchanged in a lawsuit that a party claims deserves confidentiality. The court approved the proposed order, subject to the conditions stated in the opinion.

Conditions on Confidentiality

The parties must make a good-faith determination that material designated “confidential” actually warrants protection under Federal Rule of Civil Procedure 26(c). 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 confidential designations.

If confidential material is filed with the court, the filing party must submit a request to file it under seal that complies with Civil Local Rule 79-5. Sealing requests must cover only the portions for which good cause exists, with the remaining portions filed publicly. The court stated that blanket prospective authorization to seal materials is not allowed. The parties must specifically identify any proposed sealing or redaction involving potential hazards to the public’s health, safety, or well-being; the court will grant such a request only for the most compelling reason.

Public Access and Court Materials

Chambers copies must include both redacted and unredacted material and clearly identify confidential portions. The opinion states that confidential chambers copies will generally be handled like other chambers copies and typically recycled rather than shredded.

The court emphasized the Ninth Circuit’s rule that documents used with dispositive motions—motions that may resolve claims or the case—may be sealed only upon a showing of “compelling reasons,” a higher standard than good cause. This applies regardless of the parties’ stipulation. The same standard applies to motions in limine, which concern evidence used at trial. The opinion identifies limited examples that may qualify, including Social Security numbers, names of juveniles, home addresses and telephone numbers, and compelling trade secrets.

Confidential material used openly in a hearing or at trial will not receive special treatment unless the court later orders otherwise. Either party may move to remove a confidentiality designation, and the party that designated the material bears the burden of showing that protection is justified.

Disposition

The court granted the stipulated protective order subject to the listed conditions. It retained jurisdiction over disputes arising from the order for 90 days after final termination of the action. Judge William Alsup signed the order on May 25, 2021.