Sumotext Corp. -v- Zoove, Inc., et al

Filing 214

ORDER GRANTING 208 MBLOX'S ADMINISTRATIVE MOTION TO FILE DOCUMENTS UNDER SEAL. Signed by Judge Beth Labson Freeman on 9/15/2017.(blflc1S, COURT STAFF) (Filed on 9/15/2017)

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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SAN JOSE DIVISION

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SUMOTEXT CORP.,
Plaintiff,

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Case No. 16-cv-01370-BLF

v.
ZOOVE, INC., et al.,
Defendants.

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ORDER GRANTING MBLOX’S
ADMINISTRATIVE MOTION TO FILE
DOCUMENTS UNDER SEAL
[Re: ECF 208]

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United States District Court
Northern District of California

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Defendant Mblox, Inc. moves to file under seal Exhibit 1 to Mblox’s Response in

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Opposition to Motion for Leave to File Fourth Amended Complaint. See Mblox Motion, ECF

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208. Exhibit 1 is a confidential stock purchase agreement between VHT StarStar, LLC and Mblox

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for the acquisition of Zoove, Inc. (“Stock Purchase Agreement”).

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“Historically, courts have recognized a ‘general right to inspect and copy public records

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and documents, including judicial records and documents.’” Kamakana v. City and Cnty. of

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Honolulu, 447 F.3d 1172, 1178 (9th Cir. 2006) (quoting Nixon v. Warner Commc’ns, Inc., 435

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U.S. 589, 597 & n.7 (1978)). Consequently, access to motions and their attachments that are

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“more than tangentially related to the merits of a case” may be sealed only upon a showing of

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“compelling reasons” for sealing. Ctr. for Auto Safety v. Chrysler Grp., LLC, 809 F.3d 1092,

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1101-02 (9th Cir. 2016). Filings that are only tangentially related to the merits may be sealed

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upon a lesser showing of “good cause.” Id. at 1097.

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Sealing motions filed in this district must be “narrowly tailored to seek sealing only of

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sealable material.” Civil L.R. 79-5(b). A party moving to seal a document in whole or in part

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must file a declaration establishing that the identified material is “sealable.” Civ. L.R. 79-

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5(d)(1)(A). “Reference to a stipulation or protective order that allows a party to designate certain

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documents as confidential is not sufficient to establish that a document, or portions thereof, are

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sealable.” Id.

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These standards are met here. The Stock Purchase Agreement is more than tangentially

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related to the merits because it is relevant to the Court’s determination whether Sumotext

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Corporation may amend its pleading. Therefore, the “compelling reasons” standard applies.

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Mblox has submitted the declaration of its corporate representative, Bruce Bales, who states that

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the Stock Purchase Agreement contains confidential details regarding the transaction, including

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the purchase price, financial information, tax information, information regarding carrier contracts,

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and information regarding third parties. Bales Decl. ¶ 3. Mr. Bales states that the information is

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confidential and proprietary to Mblox, VHT StarStar, and Zoove, and that the information could

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provide an advantage to competitors. Id. The request is narrowly tailored in that the confidential
information appears throughout the Stock Purchase Agreement and thus it would not be

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United States District Court
Northern District of California

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practicable to redact the information in lieu of sealing the entire document.

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Accordingly, Defendant Mblox’s motion to seal is GRANTED.

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IT IS SO ORDERED.

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Dated: September 15, 2017
______________________________________
BETH LABSON FREEMAN
United States District Judge

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