Patrick Hunter v. AR STRAT et al

Filing 25

PROTECTIVE ORDER by Magistrate Judge Sheri Pym (SEE ORDER FOR DETAILS). (kca)

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CARLSON & MESSER LLP
David J. Kaminski (SBN 128509)
[e-mail]
Stephen A. Watkins (SBN 205175)
[e-mail]
5959 W. Century Blvd., Suite 1214
Los Angeles, CA 90045
Telephone: [phone]
Facsimile: [phone]
Attorneys for Defendant,
Arstrat LLC

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UNITED STATES DISTRICT COURT

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CENTRAL DISTRICT OF CALIFORNIA

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PATRICK HUNTER individually and
on behalf of all others similarly
situated,

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STIPULATED PROTECTIVE
ORDER

Plaintiff,

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Case No. 5:14-cv-02232-PSG-SP

v.
ARSTRAT; GETIXHEALTH;
CHASWARE GROUP
HOLDINGS,LLC; and DOES
1through 20, inclusive,

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Defendants.

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1.

A.

PURPOSES AND LIMITATIONS

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Discovery in this action is likely to involve production of confidential,
proprietary, or private information for which special protection from public
disclosure and from use for any purpose other than prosecuting this litigation may

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STIPULATED PROTECTIVE ORDER
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be warranted. Accordingly, the parties hereby stipulate to and petition the Court to
enter the following Stipulated Protective Order. The parties acknowledge that this

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Order does not confer blanket protections on all disclosures or responses to
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discovery and that the protection it affords from public disclosure and use extends
only to the limited information or items that are entitled to confidential treatment

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under the applicable legal principles. The parties further acknowledge, as set forth
in Section 12.3, below, that this Stipulated Protective Order does not entitle them

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to file confidential information under seal; Civil Local Rule 79-5 sets forth the
procedures that must be followed and the standards that will be applied when a
party seeks permission from the court to file material under seal.

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B.

GOOD CAUSE STATEMENT

Defendant Arstrat, LLC (“Arstrat”) is a debt collection agency and its

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collection policies and procedures help Arstrat compete in the collection industry.
Plaintiff is seeking disclosure of those confidential policies and procedures in this

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lawsuit. Arstrat seeks to maintain their confidentiality given their obvious
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relationship to Arstrat’s ability to generate revenue. Arstrat has taken significant
steps to protect its confidential and sensitive business information. Public

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disclosure of these policies and procedures would enable Arstrat’s competitors to
employ Defendant’s collection tactics and possibly eliminate any practical

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competitive advantage.
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Information relating to the accounts of Plaintiff, putative class members, and
other third parties in this litigation may be subject to prohibitions against

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disclosure, including HIPAA and the CMIA, absent a Court Order. The collection
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accounts also contain confidential and sensitive financial information of putative
class members and other third parties. Therefore, this action involves trade

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secrets, confidential policies and procedures, and other valuable research,
development, commercial, financial, technical and/or proprietary information for

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which special protection from public disclosure and from use for any purpose
other than prosecution of this action is warranted. Such confidential and
proprietary materials and information consist of, among other things, confidential

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business or financial information, information regarding confidential business
practices, and may also consist of other confidential research, development, or

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commercial information (including information implicating privacy rights of third
parties), information otherwise generally unavailable to the public, or which may

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be privileged or otherwise protected from disclosure under state or federal
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statutes, court rules, case decisions, or common law.
Accordingly, to expedite the flow of information, to facilitate the prompt

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resolution of disputes over confidentiality of discovery materials, to adequately
protect information the parties are entitled to keep confidential, to ensure that the

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parties are permitted reasonable necessary uses of such material in preparation for
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and in the conduct of trial, to address their handling at the end of the litigation,
and serve the ends of justice, a protective order for such information is justified in

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this matter. It is the intent of the parties that information will not be designated as
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confidential for tactical reasons and that nothing be so designated without a good
faith belief that it has been maintained in a confidential, non-public manner, and

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there is good cause why it should not be part of the public record of this case.
2.

DEFINITIONS

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2.1

Action: this pending federal law suit.

2.2

Challenging Party: a Party or Non-Party that challenges the

designation of information or items under this Order.

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2.3

“CONFIDENTIAL” Information or Items: information (regardless of

how it is generated, stored or maintained) or tangible things that qualify for

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protection under Federal Rule of Civil Procedure 26(c), and as specified above in
the Good Cause Statement.

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2.4

Counsel: Outside Counsel of Record and House Counsel (as well as

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their support staff).
2.5

Designating Party: a Party or Non-Party that designates information or

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items that it produces in disclosures or in responses to discovery as
“CONFIDENTIAL.”

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2.6

Disclosure or Discovery Material: all items or information, regardless

of the medium or manner in which it is generated, stored, or maintained

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(including, among other things, testimony, transcripts, and tangible things), that
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are produced or generated in disclosures or responses to discovery in this matter.
2.7

Expert: a person with specialized knowledge or experience in a matter

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pertinent to the litigation who has been retained by a Party or its counsel to serve
as an expert witness or as a consultant in this Action.

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2.8

House Counsel: attorneys who are employees of a party to this Action.

House Counsel does not include Outside Counsel of Record or any other outside
counsel.

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2.9

Non-Party: any natural person, partnership, corporation, association,

or other legal entity not named as a Party to this action.

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2.10 Outside Counsel of Record: attorneys who are not employees of a
party to this Action but are retained to represent or advise a party to this Action

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and have appeared in this Action on behalf of that party or are affiliated with a law
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firm which has appeared on behalf of that party, and includes support staff.
2.11 Party: any party to this Action, including all of its officers, directors,

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employees, consultants, retained experts, and Outside Counsel of Record (and
their support staffs).

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2.12 Producing Party: a Party or Non-Party that produces Disclosure or

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Discovery Material in this Action.

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2.13 Professional Vendors: persons or entities that provide litigation
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support services (e.g., photocopying, videotaping, translating, preparing exhibits
or demonstrations, and organizing, storing, or retrieving data in any form or

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medium) and their employees and subcontractors.

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2.14 Protected Material: any Disclosure or Discovery Material that is

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designated as “CONFIDENTIAL.”
2.15 Receiving Party: a Party that receives Disclosure or Discovery

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Material from a Producing Party.

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3.

SCOPE
The protections conferred by this Stipulation and Order cover not only

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Protected Material (as defined above), but also (1) any information copied or
extracted from Protected Material; (2) all copies, excerpts, summaries, or

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compilations of Protected Material; and (3) any testimony, conversations, or
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presentations by Parties or their Counsel that might reveal Protected Material.
Any use of Protected Material at trial shall be governed by the orders of the

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trial judge. This Order does not govern the use of Protected Material at trial.

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4.

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DURATION
Once a case proceeds to trial, all of the information to be introduced that was

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previously designated as confidential or maintained pursuant to this protective
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order becomes public and will be presumptively available to all members of the
public, including the press, unless compelling reasons supported by specific

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factual findings to proceed otherwise are made to the trial judge in advance of the
trial. See Kamakana v. City and County of Honolulu, 447 F.3d 1172, 1180-81

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(9th Cir. 2006) (distinguishing “good cause” showing for sealing documents
produced in discovery from “compelling reasons” standard when merits-related
documents are part of court record).

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Accordingly, the terms of this protective order do not extend beyond the

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commencement of the trial.

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5.

DESIGNATING PROTECTED MATERIAL
5.1

Exercise of Restraint and Care in Designating Material for Protection.

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Each Party or Non-Party that designates information or items for protection under
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this Order must take care to limit any such designation to specific material that
qualifies under the appropriate standards. The Designating Party must designate

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for protection only those parts of material, documents, items, or oral or written
communications that qualify so that other portions of the material, documents,

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items, or communications for which protection is not warranted are not swept
unjustifiably within the ambit of this Order.

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Mass, indiscriminate, or routinized designations are prohibited. Designations
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that are shown to be clearly unjustified or that have been made for an improper
purpose (e.g., to unnecessarily encumber the case development process or to

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impose unnecessary expenses and burdens on other parties) may expose the
Designating Party to sanctions.

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If it comes to a Designating Party’s attention that information or items that it
designated for protection do not qualify for protection, that Designating Party
must promptly notify all other Parties that it is withdrawing the inapplicable

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designation.
5.2

Manner and Timing of Designations. Except as otherwise provided in

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this Order (see, e.g., second paragraph of section 5.2(a) below), or as otherwise
stipulated or ordered, Disclosure or Discovery Material that qualifies for

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protection under this Order must be clearly so designated before the material is
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disclosed or produced.
Designation in conformity with this Order requires:

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(a)

for information in documentary form (e.g., paper or electronic

documents, but excluding transcripts of depositions or other pretrial or trial

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proceedings), that the Producing Party affix at a minimum, the legend
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“CONFIDENTIAL” (hereinafter “CONFIDENTIAL legend”), to each page that
contains protected material. If only a portion or portions of the material on a page

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qualifies for protection, the Producing Party also must clearly identify the
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protected portion(s) (e.g., by making appropriate markings in the margins).
A Party or Non-Party that makes original documents available for inspection

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need not designate them for protection until after the inspecting Party has
indicated which documents it would like copied and produced. During the

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inspection and before the designation, all of the material made available for
inspection shall be deemed “CONFIDENTIAL.” After the inspecting Party has
identified the documents it wants copied and produced, the Producing Party must

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determine which documents, or portions thereof, qualify for protection under this
Order. Then, before producing the specified documents, the Producing Party must

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affix the “CONFIDENTIAL legend” to each page that contains Protected
Material. If only a portion or portions of the material on a page qualifies for

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protection, the Producing Party also must clearly identify the protected portion(s)
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(e.g., by making appropriate markings in the margins).
(b)

for testimony given in depositions that the Designating Party identify

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the Disclosure or Discovery Material on the record, before the close of the
deposition all protected testimony.

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(c)

for information produced in some form other than documentary and

for any other tangible items, that the Producing Party affix in a prominent place on

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the exterior of the container or containers in which the information is stored the
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legend “CONFIDENTIAL.” If only a portion or portions of the information
warrants protection, the Producing Party, to the extent practicable, shall identify

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the protected portion(s).
5.3

Inadvertent Failures to Designate. If timely corrected, an inadvertent

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failure to designate qualified information or items does not, standing alone, waive
the Designating Party’s right to secure protection under this Order for such
material. Upon timely correction of a designation, the Receiving Party must make

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reasonable efforts to assure that the material is treated in accordance with the
provisions of this Order.

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6.

CHALLENGING CONFIDENTIALITY DESIGNATIONS

6.1

Timing of Challenges. Any Party or Non-Party may challenge a

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designation of confidentiality at any time that is consistent with the Court’s
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Scheduling Order.
6.2

Meet and Confer. The Challenging Party shall initiate the dispute

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resolution process under Local Rule 37.1, et seq.
6.3

Burden. The burden of persuasion in any such challenge proceeding

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shall be on the Designating Party. Frivolous challenges, and those made for an
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improper purpose (e.g., to harass or impose unnecessary expenses and burdens on
other parties) may expose the Challenging Party to sanctions. Unless the

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Designating Party has waived or withdrawn the confidentiality designation, all
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parties shall continue to afford the material in question the level of protection to
which it is entitled under the Producing Party’s designation until the Court rules

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on the challenge.
7.

ACCESS TO AND USE OF PROTECTED MATERIAL

7.1

Basic Principles. A Receiving Party may use Protected Material that is

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disclosed or produced by another Party or by a Non-Party in connection with this
Action only for prosecuting, defending, or attempting to settle this Action. Such

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Protected Material may be disclosed only to the categories of persons and under
the conditions described in this Order. When the Action has been terminated, a

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Receiving Party must comply with the provisions of section 13 below (FINAL
DISPOSITION).

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Protected Material must be stored and maintained by a Receiving Party at a
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location and in a secure manner that ensures that access is limited to the persons
authorized under this Order.

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7.2

Disclosure of “CONFIDENTIAL” Information or Items. Unless

otherwise ordered by the court or permitted in writing by the Designating Party, a

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Receiving Party may disclose any information or item designated
“CONFIDENTIAL” only to:

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(a)

the Receiving Party’s Outside Counsel of Record in this Action, as

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well as employees of said Outside Counsel of Record to whom it is reasonably
necessary to disclose the information for this Action;

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(b)

the officers, directors, and employees (including House Counsel) of

the Receiving Party to whom disclosure is reasonably necessary for this Action;

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(c)

Experts (as defined in this Order) of the Receiving Party to whom

disclosure is reasonably necessary for this Action and who have signed the
“Acknowledgment and Agreement to Be Bound” (Exhibit A);

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(d)

the court and its personnel;

(e)

court reporters and their staff;

(f)

professional jury or trial consultants, mock jurors, and Professional

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Vendors to whom disclosure is reasonably necessary for this Action and who have

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signed the “Acknowledgment and Agreement to Be Bound” (Exhibit A);
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(g)

the author or recipient of a document containing the information or a

custodian or other person who otherwise possessed or knew the information;

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(h)

during their depositions, witnesses ,and attorneys for witnesses, in the

Action to whom disclosure is reasonably necessary provided: (1) the deposing

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party requests that the witness sign the form attached as Exhibit 1 hereto; and (2)
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they will not be permitted to keep any confidential information unless they sign
the “Acknowledgment and Agreement to Be Bound” (Exhibit A), unless

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otherwise agreed by the Designating Party or ordered by the court. Pages of
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transcribed deposition testimony or exhibits to depositions that reveal Protected
Material may be separately bound by the court reporter and may not be disclosed

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to anyone except as permitted under this Stipulated Protective Order; and
(i)

any mediator or settlement officer, and their supporting personnel,

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mutually agreed upon by any of the parties engaged in settlement discussions.
8.

PROTECTED MATERIAL SUBPOENAED OR ORDERED

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PRODUCED IN OTHER LITIGATION
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If a Party is served with a subpoena or a court order issued in other litigation
that compels disclosure of any information or items designated in this Action as

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“CONFIDENTIAL,” that Party must:
(a)

promptly notify in writing the Designating Party. Such notification

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shall include a copy of the subpoena or court order;
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(b)

promptly notify in writing the party who caused the subpoena or order

to issue in the other litigation that some or all of the material covered by the

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subpoena or order is subject to this Protective Order. Such notification shall
include a copy of this Stipulated Protective Order; and

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(c)

cooperate with respect to all reasonable procedures sought to be

pursued by the Designating Party whose Protected Material may be affected.

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If the Designating Party timely seeks a protective order, the Party served
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with the subpoena or court order shall not produce any information designated in
this action as “CONFIDENTIAL” before a determination by the court from which

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the subpoena or order issued, unless the Party has obtained the Designating
Party’s permission. The Designating Party shall bear the burden and expense of

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seeking protection in that court of its confidential material and nothing in these
provisions should be construed as authorizing or encouraging a Receiving Party in
this Action to disobey a lawful directive from another court.

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9.

A NON-PARTY’S PROTECTED MATERIAL SOUGHT TO BE

PRODUCED IN THIS LITIGATION

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(a)

The terms of this Order are applicable to information produced by a

Non-Party in this Action and designated as “CONFIDENTIAL.” Such information

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produced by Non-Parties in connection with this litigation is protected by the
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remedies and relief provided by this Order. Nothing in these provisions should be
construed as prohibiting a Non-Party from seeking additional protections.

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(b)

In the event that a Party is required, by a valid discovery request, to

produce a Non-Party’s confidential information in its possession, and the Party is

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subject to an agreement with the Non-Party not to produce the Non-Party’s
confidential information, then the Party shall:

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(1)

promptly notify in writing the Requesting Party and the Non-Party

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that some or all of the information requested is subject to a confidentiality
agreement with a Non-Party;

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(2)

promptly provide the Non-Party with a copy of the Stipulated

Protective Order in this Action, the relevant discovery request(s), and a reasonably

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specific description of the information requested; and
(3)

make the information requested available for inspection by the

Non-Party, if requested.

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(c) If the Non-Party fails to seek a protective order from this court within 14
days of receiving the notice and accompanying information, the Receiving Party

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may produce the Non-Party’s confidential information responsive to the discovery
request. If the Non-Party timely seeks a protective order, the Receiving Party shall

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not produce any information in its possession or control that is subject to the
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confidentiality agreement with the Non-Party before a determination by the court.
Absent a court order to the contrary, the Non-Party shall bear the burden and

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expense of seeking protection in this court of its Protected Material.

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10.

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UNAUTHORIZED DISCLOSURE OF PROTECTED

MATERIAL

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If a Receiving Party learns that, by inadvertence or otherwise, it has
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disclosed Protected Material to any person or in any circumstance not authorized
under this Stipulated Protective Order, the Receiving Party must immediately (a)

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notify in writing the Designating Party of the unauthorized disclosures, (b) use its
best efforts to retrieve all unauthorized copies of the Protected Material, (c)

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inform the person or persons to whom unauthorized disclosures were made of all
the terms of this Order, and (d) request such person or persons to execute the
“Acknowledgment and Agreement to Be Bound” that is attached hereto as Exhibit

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A.
11.

INADVERTENT PRODUCTION OF PRIVILEGED OR

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OTHERWISE PROTECTED MATERIAL
When a Producing Party gives notice to Receiving Parties that certain

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inadvertently produced material is subject to a claim of privilege or other
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protection, the obligations of the Receiving Parties are those set forth in Federal
Rule of Civil Procedure 26(b)(5)(B). This provision is not intended to modify

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whatever procedure may be established in an e-discovery order that provides for
production without prior privilege review. Pursuant to Federal Rule of Evidence

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502(d) and (e), insofar as the parties reach an agreement on the effect of
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disclosure of a communication or information covered by the attorney-client
privilege or work product protection, the parties may incorporate their agreement

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in the stipulated protective order submitted to the court.
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12.

MISCELLANEOUS

12.1 Right to Further Relief. Nothing in this Order abridges the right of any

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person to seek its modification by the Court in the future.
12.2 Right to Assert Other Objections. By stipulating to the entry of this

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Protective Order no Party waives any right it otherwise would have to object to
disclosing or producing any information or item on any ground not addressed in
this Stipulated Protective Order. Similarly, no Party waives any right to object on

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any ground to use in evidence of any of the material covered by this Protective
Order.

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12.3 Filing Protected Material. A Party that seeks to file under seal any
Protected Material must comply with Civil Local Rule 79-5. Protected Material

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may only be filed under seal pursuant to a court order authorizing the sealing of
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the specific Protected Material at issue. If a Party's request to file Protected
Material under seal is denied by the court, then the Receiving Party may file the

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information in the public record unless otherwise instructed by the court.

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13.

FINAL DISPOSITION

After the final disposition of this Action, as defined in paragraph 4, within

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60 days of a written request by the Designating Party, each Receiving Party must
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return all Protected Material to the Producing Party or destroy such material. As
used in this subdivision, “all Protected Material” includes all copies, abstracts,

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compilations, summaries, and any other format reproducing or capturing any of
the Protected Material. Whether the Protected Material is returned or destroyed,

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the Receiving Party must submit a written certification to the Producing Party
(and, if not the same person or entity, to the Designating Party) by the 60 day
deadline that (1) identifies (by category, where appropriate) all the Protected

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Material that was returned or destroyed and (2)affirms that the Receiving Party
has not retained any copies, abstracts, compilations, summaries or any other

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format reproducing or capturing any of the Protected Material. Notwithstanding
this provision, Counsel are entitled to retain an archival copy of all pleadings,

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motion papers, trial, deposition, and hearing transcripts, legal memoranda,
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correspondence, deposition and trial exhibits, expert reports, attorney work
product, and consultant and expert work product, even if such materials contain

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Protected Material. Any such archival copies that contain or constitute Protected
Material remain subject to this Protective Order as set forth in Section 4

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(DURATION).
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14. Any violation of this Order may be punished by any and all appropriate
measures including, without limitation, contempt proceedings and/or monetary

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sanctions.
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IT IS SO STIPULATED, THROUGH COUNSEL OF RECORD.
DATED: March 30, 2015

LAW OFFICES OF TODD M.
FRIEDMAN, P.C.

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By:

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s/ Todd M. Friedman
Todd M. Friedman
Adrian Bacon
Attorneys for Plaintiff
PATRICK HUNTER

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DATED: March 30, 2015

CARLSON & MESSER LLP

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By:

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s/David J. Kaminski
David J. Kaminski
Stephen A. Watkins
Attorneys for Defendants
ARSTRAT, LLC, PATIENT
ACCOUNT SERVICING CENTER,
LLC d/b/a GETIXHEALTH and
CHASWARE GROUP
HOLDINGS,LLC

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FOR GOOD CAUSE SHOWN, IT IS SO ORDERED.

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DATED:

April 2, 2015
Hon. Sheri Pym
United States Magistrate Judge

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{00030395.doc Protective Order;1}

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STIPULATED PROTECTIVE ORDER
Case No. 5:14-cv-02232-PSG-SP

EXHIBIT A

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ACKNOWLEDGMENT AND AGREEMENT TO BE BOUND
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I,
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_____________________________

[print

or

type

full

name],

of

_________________________________ [print or type full address], declare under penalty of
perjury that I have read in its entirety and understand the Stipulated Protective Order that was

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issued by the United States District Court for the Central District of California on [date] in the

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case of Patrick Hunter v. Arstrat, et al., 14-cv-02232-PSG-SP. I agree to comply with and to

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be bound by all the terms of this Stipulated Protective Order and I understand and acknowledge

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that failure to so comply could expose me to sanctions and punishment in the nature of

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contempt. I solemnly promise that I will not disclose in any manner any information or item

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that is subject to this Stipulated Protective Order to any person or entity except in strict

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compliance with the provisions of this Order.
I further agree to submit to the jurisdiction of the United States District Court for the Central

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District of California for the purpose of enforcing the terms of this Stipulated Protective Order,
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even if such enforcement proceedings occur after termination of this action. I hereby appoint
__________________________

[print

or

type

full

name]

of

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_______________________________________ [print or type full address and telephone

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number] as my California agent for service of process in connection with this action or any

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proceedings related to enforcement of this Stipulated Protective Order.

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Date: ______________________________________

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City and State where sworn and signed: _________________________________

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Printed name: _______________________________

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Signature: __________________________________
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{00030395.doc Protective Order;1}

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STIPULATED PROTECTIVE ORDER
Case No. 5:14-cv-02232-PSG-SP