Judge: David S. Cunningham, Case: 21STCV25099, Date: 2023-05-01 Tentative Ruling

Case Number: 21STCV25099    Hearing Date: May 1, 2023    Dept: 11

21STCV25099 (Reynoso)

Tentative Ruling Re: Motion to Seal

Date:                           5/1/23

Time:                          11:00 am

Moving Party:           6421 Selma Restaurant LLC (“Selma”)

Opposing Party:        None

Department:              11

Judge:                         David S. Cunningham III

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TENTATIVE RULING

The motion to seal is granted as to confidential financial terms and private contact and/or identification information, if any, in the settlement agreements. 

The motion to seal is denied as to the remaining information in the settlement agreements.

Selma must submit redacted versions for the public file.

BACKGROUND

This is a “wage and hour” putative class action. 

Meloddy Reynoso and Anselmo Gonzales (collectively “Planitiffs”) recently settled their individual claims with Selma.

Here, Selma moves to seal the settlement agreements.

LAW

The court may order that a record be filed under seal only if it expressly finds facts that establish:

(1)   There exists an overriding interest that overcomes the right of public access to the record;

(2)   The overriding interest supports sealing the record;

(3)   A substantial probability exists that the overriding interest will be prejudiced if the record is not sealed;

(4)   The proposed sealing is narrowly tailored; and

(5)   No less restrictive means exist to achieve the overriding interest.

(Cal. Rules of Court, rule 2.550(d), emphasis added.) “These findings embody constitutional requirements for a request to seal court records, protecting the First Amendment right of public access to civil trials.  (Edmon & Karnow, Cal. Practice Guide: Civ. Proc. Before Trial (The Rutter Group 2022) ¶ 9:418, emphasis in original.) 

The parties’ agreement to seal documents is not enough to support a motion to seal.  (Id. at ¶ 9:417.1 [“Parties sometimes operate under an informal arrangement pursuant to which documents are ‘deemed filed under seal’ unless an objection is made.  Such an arrangement ‘is entirely inconsistent with the mandatory requirements of rules 2.550 and 2.551 and the constitutional values informing those requirements.’”].)

“Only the specific words of documents that constitute the sensitive material should be sealed; generally, it is not permissible to seal the entire document.”  (Id. at ¶ 9:418.5.)

Case law recognizes that confidential settlement agreements “may include information that may warrant sealing[.]”  (Id. at ¶¶ 9:418.5, 9:418.8; see also, e.g., Universal City Studio, Inc. v. Superior Court (2003) 110 Cal.App.4^th 1273.)

But “[a] settlement agreement that contains a confidentiality clause does not qualify for sealing after all references to financial and other confidential data have been redacted.”  (Edmon & Karnow, supra, at ¶ 9:418.20.)

DISCUSSION

Based on these rules, the Court grantS the motion to seal in part because:

* The settlement agreements contain limited confidentiality clauses.  (See Selma’s Notice of Lodging Documents Conditionally Under Seal, Ex. 1, § 10, Ex. 2, § 10.)

* An overriding interest exists in the confidential financial terms and Plaintiffs’ private contact and/or identification information, if any, in the settlement agreements.

* The overriding interest supports sealing the confidential financial terms and Plaintiffs’ private contact and/or identification information.

* There is a substantial probability that the overriding interest will be prejudiced if the motion is denied.

* The sealing is narrowly tailored and the least restrictive means to protect the overriding interest.

The remaining information in these documents – i.e., all information except the confidential financial terms and Plaintiffs’ private contact and/or identification information – is nonconfidential and should not be sealed.  This portion of the motion to seal is denied.

Selma must submit redacted versions for the public file that comply with these rulings.