Tomlinson v. Intuit Inc.
Filing
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ORDER TO SHOW CAUSE REGARDING ADMINISTRATIVE MOTION TO SEAL PORTIONS OF NOTICE OF REMOVAL. Re: Dkt. Nos. 1 , 3 . Tomlinson's response must be filed with the Court by 2/20/2018. Signed by Judge Nathanael Cousins on 2/13/2018. (lmh, COURT STAFF) (Filed on 2/13/2018)
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UNITED STATES DISTRICT COURT
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NORTHERN DISTRICT OF CALIFORNIA
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JOHN TOMLINSON,
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United States District Court
Northern District of California
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Plaintiff,
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v.
INTUIT INC.,
Defendant.
Case No. 18-cv-00325 NC
ORDER TO SHOW CAUSE
REGARDING ADMINISTRATIVE
MOTION TO SEAL PORTIONS OF
NOTICE OF REMOVAL
Re: Dkt. Nos. 1, 3
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Defendant Intuit Inc. seeks to seal portions of its notice of removal because the
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amount in controversy is derived from an amount provided in plaintiff Tomlinson’s
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demand letter. Dkt. No. 3 at 2. Intuit also seeks to seal the demand letter itself. Plaintiff
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Tomlinson has taken no position on this administrative motion as far as the Court knows.
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Federal courts have long recognized a common law right of access to inspect
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various judicial documents. See Nixon v. Warner Commc’ns, Inc., 435 U.S. 589, 597
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(1978). “This common law right creates a strong presumption in favor of access to judicial
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documents which can be overcome only by showing sufficiently important countervailing
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interests.” Phillips ex rel. Estates of Byrd v. Gen. Motors Corp., 307 F.3d 1206, 1212 (9th
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Cir. 2002). Civil Local Rule 79-5(b) provides: “A sealing order may issue only upon a
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request that establishes that the document, or portions thereof, is privileged or protectable
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as a trade secret or otherwise entitled to protection under the law.” A party seeking to seal
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a document must “articulate[ ] compelling reasons supported by specific factual findings,
Case No. 18-cv-00325 NC
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that outweigh the general history of access and the public policies favoring disclosure. . . .”
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Kamakana v. City & County of Honolulu, 447 F.3d 1172, 1178-79 (9th Cir. 2006) (internal
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citations and quotation marks omitted).
First, the Court agrees with Intuit that a settlement letter may be used to establish
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the amount in controversy. Cohn v. Petsmart, Inc., 281 F.3d 837, 840 (9th Cir. 2002) (“A
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settlement letter is relevant evidence of the amount in controversy if it appears to reflect a
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reasonable estimate of the plaintiff’s claim. . . . This [letter] is sufficient to establish the
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amount in controversy.”). However, the Court disagrees with Intuit that the “good cause”
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standard for documents attached to non-dispositive motions is appropriate here. Because
the notice of removal refers to the amount in controversy, which is required in order for
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United States District Court
Northern District of California
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this case to be before the Court on the grounds of diversity jurisdiction, the Court considers
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that this information should only be sealed for “compelling reasons.” Kamakana, 447 F.3d
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at 1178-79. Indeed, the amount in controversy is incorporated by reference into the
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complaint because Tomlinson requests actual damages, treble damages, and attorneys’
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fees. Dkt. No. 1 at 16. Thus, it seems to the Court that the amount in controversy is a
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significant issue, which will in part determine whether this case should be in federal court.
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Moreover, Intuit does not distinguish between the settlement letter, which may be sealable,
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and the numbers provided in the notice of removal, which likely are not. See Fed. R. Evid.
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408.
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Tomlinson must file a response to this order to show cause explaining whether and
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why the Court should seal (1) the numbers provided in the notice of removal and (2) the
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settlement letter. Tomlinson’s response must be filed with the Court by February 20,
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2018. If Tomlinson does not respond, the Court will deny the motion to seal.
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IT IS SO ORDERED.
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Dated: February 13, 2018
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Case No. 18-cv-00325 NC
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NATHANAEL M. COUSINS
United States Magistrate Judge
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