The Whitestone Group, Inc. v. Excalibur Associates, Inc.
2:22-cv-00551
S.D. OhioApr 1, 2022Background
- Plaintiff The Whitestone Group, Inc. filed a Motion to File Documents Under Seal for two exhibits to its complaint: Exhibit B (a non-disclosure agreement) and Exhibit D (a proposal submitted to NIST).
- Defendant Excalibur Associates, Inc. does not oppose the sealing motion.
- The court applied the Sixth Circuit sealing framework (Shane Group): movant bears a heavy burden to show a compelling interest, that it outweighs public access, and that the request is narrowly tailored.
- After in camera review, the court found Exhibit B (the NDA) did not disclose trade secrets and resembled a routine protective agreement, so sealing was denied for that exhibit.
- The court found Exhibit D (the NIST proposal) contained extensive proprietary information (pricing, hiring/training, marketing strategy) amounting to trade secrets; redaction was impracticable and no overriding public interest favored disclosure, so sealing was granted for that exhibit.
- The plaintiff was ordered to file the unsealed and sealed exhibits consistent with the opinion within seven days.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Exhibit B (NDA) should be sealed | NDA contains confidential/proprietary terms and should be kept secret | Excalibur does not oppose sealing | Denied — NDA contains no trade secrets; resembles a standard protective agreement; no compelling interest to seal |
| Whether Exhibit D (NIST proposal) should be sealed | Proposal contains sensitive pricing, procedures, training, and marketing strategy that would harm competitive position | Excalibur does not oppose sealing | Granted — proposal contains trade secrets; disclosure would cause competitive harm; redaction infeasible; no countervailing public interest |
Key Cases Cited
- Shane Grp., Inc. v. Blue Cross Blue Shield of Michigan, 825 F.3d 299 (6th Cir. 2016) (articulates heavy burden and three-part test for sealing court records)
- Brown & Williamson Tobacco Corp. v. F.T.C., 710 F.2d 1165 (6th Cir. 1983) (recognizes trade secrets as exception to public access)
- Baxter Int'l, Inc. v. Abbott Labs., 297 F.3d 544 (7th Cir. 2002) (distinguishes discovery confidentiality from public court records)
- Kondash v. Kia Motors Am., Inc., [citation="767 F. App'x 635"] (6th Cir. 2019) (discusses balancing public interest against sealing and compelling reasons requirement)
- Handel's Enters., Inc. v. Schulenberg, [citation="765 F. App'x 117"] (6th Cir. 2019) (defines trade secret elements and factors to consider)
