Rios v. Micmac Records, Inc.

Background

The plaintiffs are Awilda Rios, Mildred Rios, and Rios Sisters, an unincorporated partnership. The opinion identifies Phase One Network, Inc., Frank Babar, and Micmac Records, Inc. as the “Phase One Defendants” who entered the stipulation with the plaintiffs. The case also names other defendants, including Mickey Garcia, Al Jankowsky doing business as Onna Roll Records and Management, and Jane Doe defendants.

During discovery—the pretrial exchange of information—the parties expected to produce documents and information that might contain confidential or proprietary material. They jointly asked the court to approve their confidentiality stipulation and adopt it as a court order.

Terms of the Confidentiality Stipulation

The stipulation permits a party or nonparty to designate material as “CONFIDENTIAL” if it reasonably believes in good faith that the material contains nonpublic information, trade secrets, sensitive financial information, business strategy, or other valuable confidential information. It excludes information already public, later made public without the receiving party’s conduct, previously known to the receiving party, independently developed, or lawfully obtained from a third party.

The agreement limits disclosure of designated information to specified categories of people, including counsel and their staff, the parties and necessary employees or agents, retained experts and consultants who agree in writing to be bound, deposition participants under specified conditions, court personnel, service providers, and certain trial-support providers. The information may be used only to prepare for, conduct, and appeal this action, subject to the agreement’s terms.

If a party wants to file designated material with the court, the stipulation generally requires filing it under seal. It also permits provisional sealing or redaction, followed by an application addressing the specific material and the legal standards for sealing. A party or other interested party may challenge a confidentiality designation, first attempting to resolve the issue informally and then filing a motion if necessary.

After final adjudication, including appeals, or settlement, the agreement generally requires confidential material to be returned or destroyed within 45 days, subject to an exception allowing outside counsel to retain certain litigation files for internal use. The agreement also states that producing privileged or work-product-protected material does not waive those protections, to the extent allowed by Federal Rule of Evidence 502.

Ruling

Judge Alison J. Nathan found that good cause had been shown and granted the parties’ request to make the confidentiality stipulation an order of the court. The court directed the parties, and any nonparties who agree to be bound, to comply with the stipulation according to its terms.

The order addressed discovery confidentiality and did not decide the parties’ underlying claims or defenses.