J&R Passmore, LLC v. Rice Drilling D, LLC
2:18-cv-01587
S.D. OhioMar 1, 2022Background
- Plaintiffs moved for leave to file under seal eleven spreadsheet exhibits submitted with their reply in support of class certification, which contain well-level revenue and expense data.
- Parties initially had not all conferred; after conferment they declassified several exhibits but retained the eleven contested spreadsheets as confidential.
- The Court conducted an in camera review and found the spreadsheets contain sensitive financial data unlikely known outside the businesses and protected by contract.
- The Court applied the Sixth Circuit sealing framework (Shane Group) requiring a compelling interest, a balancing of public interest, and narrow tailoring.
- The Court found the spreadsheets qualify as trade secrets, no countervailing public interest justified disclosure, and that full sealing was necessary because line-by-line redaction was not feasible.
- The parties agreed to declassify certain other exhibits with redactions of personal employee contact information; the Court approved those redactions and ordered filing consistent with the opinion within seven days.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the spreadsheets may be sealed as trade secrets | Spreadsheets contain sensitive financial/revenue and expense data that constitute trade secrets and should be sealed | Parties agreed the information is confidential; no public-disclosure objection recorded | Court: Seal granted — financial data qualifies as trade secret satisfying compelling-interest prong |
| Whether public interest outweighs sealing | Little to no public benefit from disclosure; case not implicating public health/safety | Public access presumption exists, but parties emphasized confidentiality | Court: No countervailing public interest; sealing justified |
| Whether sealing request is narrowly tailored (redaction vs full seal) | Redaction infeasible because each line contains confidential data; full sealing necessary | Parties agreed some documents could be redacted; for these spreadsheets redaction impracticable | Court: Full sealing of the eleven spreadsheets is narrowly tailored; approved limited redactions for other documents |
| Whether redaction of employee contact info is appropriate | Redacting personal employee contact information protects privacy of nonparties | Parties agreed to redact such personal information | Court: Approved redactions as narrowly tailored and protective of third-party privacy |
Key Cases Cited
- Shane Grp., Inc. v. Blue Cross Blue Shield of Michigan, 825 F.3d 299 (6th Cir. 2016) (establishes strong presumption of public access to court records and sealing framework)
- Brown & Williamson Tobacco Corp. v. F.T.C., 710 F.2d 1165 (6th Cir. 1983) (recognizes presumption of openness and limited exceptions)
- Baxter Int'l, Inc. v. Abbott Labs., 297 F.3d 544 (7th Cir. 2002) (distinguishes discovery materials from court record and marks when public access attaches)
- Handel's Enters., Inc. v. Schulenberg, [citation="765 F. App'x 117"] (6th Cir. 2019) (defines trade secret elements applied to financial information)
- Kondash v. Kia Motors Am., Inc., [citation="767 F. App'x 635"] (6th Cir. 2019) (explains that trade secret finding generally satisfies compelling-interest prong and discusses balancing/narrow-tailoring)
