CR&R Inc. v. Rainbow Disposal Co., Inc.

Defendant RAINBOW DISPOSAL CO. INC. moves to seal all records relating to its 12/31/11 Settlement Agreement with Plaintiff CR&R INC. (CRC 2.550 (d).) The court GRANTS the motion in part and DENIES in part, as set forth below.

The court finds that Defendant does have an overriding interest in maintaining the confidentiality of certain sensitive terms set forth in the Settlement Agreement, which the parties agreed to keep confidential pursuant to a stipulated confidentiality agreement and protective order. (NBC Subsidiary Inc. v. Superior Court (20 Cal.4th 1178, 1222, fn. 46 [cited favorable in Advisory Committee Commentary to CRC 2.550, last paragraph], citing Publicker Industries Inc.v. Cohen (3rd Cir. 1984) 733 F.2d 1059, 1073 [“where there is a binding contractual obligation not to disclose certain information . . . unbridled disclosure of the nature of the controversy would deprive the litigant of his right to enforce a legal obligation.”].)

However, in Opposition, Plaintiff argues correctly that Defendant’s request is grossly overbroad because it would require the court to seal entire documents containing both confidential and non-confidential information. The request is not narrowly tailored and less restrictive means are available such as redaction of confidential information.

Plaintiff argues correctly that the mere fact that the parties have signed a confidentiality agreement does not, in and of itself, justify sealing entire documents. Rather, the court must conduct a detailed inquiry as to the nature of any confidential information contained in those documents. (Universal Studios Inc. v. Superior Court (2003) 110 Cal.App.4th 1273; Huffy Corp. v. Superior Court (2003) 112 Cal.App.4th 97.)

Accordingly, the court will hold an in camera hearing to identify precisely what sensitive information, if any, contained in the Settlement Agreement, must be redacted to protect its confidentiality. Once the court has identified that information, it will order the relevant documents stricken and will order Plaintiff to file redacted copies by a date certain.

CC&R INC.’s Objections to Evidence are OVERRULED.

Defendant shall serve notice of this ruling.

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