Investment Property Realty Group, LLC v. Block Real Estate Group LLC

Background

All parties asked the court to enter a stipulated confidentiality agreement and protective order under Federal Rule of Civil Procedure 26(c). They sought protection for nonpublic and competitively sensitive information that might be disclosed during discovery. The court found good cause for an appropriately tailored order governing the pretrial phase of the case.

Protective-Order Requirements

The order requires the parties, their officers, agents, employees, attorneys, and other persons with actual notice of the order to protect discovery materials designated as confidential. A producing party may designate information that it reasonably and in good faith believes includes previously undisclosed financial information; information about ownership or control of a nonpublic company; business, product-development, or marketing plans; information about current or contemplated real estate transactions; personal or intimate information; and other categories later given confidential status by the court.

Confidential materials may be disclosed only to specified recipients, including the parties and their insurers, attorneys and litigation-support staff, outside vendors, mediators or arbitrators who sign a nondisclosure agreement, certain people identified on a document, potential witnesses who sign a nondisclosure agreement, experts or specialized advisers who sign a nondisclosure agreement, deposition stenographers, and the court. Counsel must provide the order to covered witnesses and experts before disclosure and retain their signed nondisclosure agreements.

The order establishes procedures for designating documents and deposition testimony, correcting an earlier failure to designate material, objecting to a confidentiality designation, and requesting additional restrictions such as attorneys’-eyes-only treatment. It also permits production in response to a lawful subpoena or other compulsory process, subject to notice to the producing party when legally permitted.

Court Filings and Sealing

A party filing confidential discovery material or a filing that reveals such material must publicly file a redacted version and submit an unredacted version under seal. A party seeking sealing must file an application and supporting declaration providing a particularized justification. The order warns that the court may unseal documents if the required specific findings showing that closure is essential and narrowly tailored cannot be made.

Duration and Enforcement

Within 60 days after the final disposition of the action, including appeals, recipients generally must return or destroy confidential discovery material and certify that they have done so. Litigation attorneys may retain archival copies of specified case materials, but those copies remain subject to the order. The order survives the end of the litigation, and the court retains jurisdiction as needed to enforce it or impose contempt sanctions.

Ruling

Judge Gregory H. Woods issued the stipulated confidentiality and protective order. The order does not determine that any designated material is actually confidential, does not waive discovery objections or privilege, and does not decide whether evidence will be admissible at trial.