Riseandshine Corporation v. Pepsico, Inc.

Background

RiseandShine Corporation, doing business as Rise Brewing, filed a letter application asking to seal its response opposing PepsiCo’s objections to a magistrate judge’s order, along with Exhibits A, B, and C. RiseandShine stated that the response referred to information PepsiCo had designated as confidential, including information limited to attorneys’ eyes and outside attorneys’ eyes under the case’s protective order. RiseandShine said it did not necessarily agree with PepsiCo’s designations but sought sealing as a precaution.

The requested materials included internal, nonpublic information about PepsiCo’s operations, pricing, and marketing strategy, as well as internal emails and PowerPoint presentations concerning pricing and marketing. RiseandShine argued that disclosure could give competitors access to information that could harm PepsiCo’s ability to compete. A public redacted copy was to be filed, and the sealed materials were served on PepsiCo’s counsel.

Legal standard

The court explained that the public generally has a common-law right to access court records, but that right is not absolute. Courts may restrict access when appropriate by balancing the public interest in access against privacy interests. The court also recognized that protecting sensitive business information from competitive harm can justify sealing court materials.

Ruling

The court granted RiseandShine’s sealing application for substantially the reasons stated in RiseandShine’s letter. The letter was ordered sealed, with access limited to the people listed in the appendix. The Clerk was directed to close the related motion. The order did not resolve the parties’ underlying dispute or rule on the merits of PepsiCo’s objections.