LG Energy Solution, Ltd. v. Marengo Battery Storage LLC

Background

LG Energy Solution, Ltd. asked to seal or redact documents filed in its case against Marengo Battery Storage LLC and USGEM, Inc. The requested materials included the respondents’ originally filed complaint and exhibits, which were attached to the declaration of Ryan Rakower, as well as limited portions of LG Energy Solution’s memorandum supporting its petition. LG Energy Solution said the materials contained confidential agreement terms, engineering and operations information, specifications, testing data, diagrams, pricing terms, and information about the parties’ business relationship.

The petition concerns LG Energy Solution’s request to compel the respondents to arbitrate claims they had brought against it in an Illinois civil action. The sealing request was based on confidentiality provisions in the parties’ agreements and the asserted risk that disclosure would harm LG Energy Solution’s competitive position.

Court’s Analysis

The court applied the three-step framework from Lugosch v. Pyramid Co. of Onondaga for sealing court records. First, it found that the materials qualified as judicial documents because they were pleadings or evidence supporting pleadings. Second, it found that the public interest in the details of the sensitive business information was limited. Third, it concluded that LG Energy Solution’s interest in maintaining the confidentiality of that information outweighed the public’s right of access.

The court also accepted that the requested redactions were limited to confidential and competitively sensitive information rather than covering the entire dispute.

Disposition

The court granted the petitioner’s sealing request. It ordered the identified documents attached to Ryan Rakower’s declaration to be filed under seal in unredacted form, while publicly filed versions would contain the proposed redactions. Judge John P. Cronan also directed the Clerk of Court to close Docket Number 6.