Healthy Lifestyle Brand v. Environmental Working Group

Background

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

Order’s Requirements

The order applies to the parties, their officers, agents, employees, attorneys, people acting with them, and others with actual notice of the order. It prohibits disclosure of discovery material designated as “Confidential,” except as the order permits.

A producing party may designate previously undisclosed financial information, ownership or control information about a nonpublic company, business and marketing information, personal or intimate information, information covered by a specified confidentiality agreement, and other categories later given confidential status by the court. The order establishes procedures for marking documents and for designating deposition testimony and exhibits. A party may also make a later confidentiality designation for material previously produced without restrictions, subject to written notice and replacement copies within two business days.

Confidential material may be disclosed to specified recipients, including the parties, certain counsel and their assistants, outside vendors, insurers and their counsel, mediators or arbitrators, document authors and addressees, potential witnesses, experts and specialized consultants, deposition transcription providers, the court, and others approved by written agreement or court order. Certain recipients must first receive the order and sign a nondisclosure agreement. Counsel must retain those agreements and provide them to opposing counsel at the required time.

Limits and Enforcement

The order does not waive objections to discovery, privileges, or protections, and it does not decide whether evidence will be admissible at trial. The court expressly stated that it made no finding that any designated material is confidential and retained discretion over whether to provide confidential treatment. It also warned that material introduced at trial is unlikely to remain sealed merely because it was previously designated confidential.

A party objecting to a confidentiality designation may give written notice before trial stating the grounds for the objection. Unresolved disputes are to be brought to the court. Confidential material may be used only to prosecute or defend this action and related appeals, not for other purposes or litigation. The order also addresses disclosure required by subpoenas or other compulsory process, requires precautions against unauthorized disclosure, and continues after the litigation ends.

Within 60 days after final termination of the litigation by settlement or exhaustion of appeals, confidential material and reproductions must be returned or destroyed at the producing party’s option, subject to specified retention of certain counsel work product and case materials. The court retained jurisdiction to enforce the order and impose sanctions for contempt.

Disposition

Judge Edgardo Ramos ordered the parties and covered persons to follow the stipulated confidentiality agreement and protective order. The opinion is a discovery-related procedural order; it does not resolve the underlying claims or defenses.