Whitewater West Industries, LTD. v. Pacific Surf Designs, Inc. et al
Filing
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ORDER Granting in Part and Denying in Part Motions to File Under Seal (ECF Nos. 189 198 201 203 206 213 218 221 224 226 234 237 240 243 245 249 253 ). Signed by Judge Roger T. Benitez on 4/11/19. (dlg)
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FILED
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APR 1 2 2019
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CLEPK u s o:s ... ·1:N: T COU RT
SOIJTH c RN ··l: S TRiCl ;J~ C AL ; Fo ~NIA
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BY
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UNITED STATES DISTRICT COURT
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SOUTHERN DISTRICT OF CALIFORNIA
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WHITEWATER WEST INDUSTRIES,
LTD., a Canadian corporation,
Plaintiff,
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v.
PACIFIC SURF DESIGNS, INC., a
Delaware corporation, and FLOW
SERVICES, INC., a California
corporation,
Case No.: 3 :17-cv-01118-BEN-BLM
ORDER GRANTING IN PART AND
DENYING IN PART MOTIONS TO
FILE UNDER SEAL
[ECF Nos. 189, 198, 201, 203, 206, 213,
218,221,224,226,234,237,240,243,
245, 249, 253.)
Defendants.
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Before the Court is Plaintiff Whitewater West Industries, Ltd. (" Whitewater" ) and
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Defendants Pacific Surf Designs, Inc. ("PSD") and Flow Services, Inc. ("Flow Services")
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numerous Motions to Seal. Specifically, there are seventeen Motions seeking to seal well
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over 1,000 pages of the public record. The Court addresses all the Motions to Seal in this
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Order.
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I.
The Right of Access to Judicial Records
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In Nixon v. Warner Communications, Inc., 435 U.S. 589 (1978), the Supreme Court
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recognized "a general right to inspect and copy public records and documents, including
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judicial records and documents." Id. at 597. The main reason for this general right is to
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accommodate " the citizen's desire to keep a watchful eye on the workings of . . .
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government. " Id. at 598. However. the Supreme Court also stated that "the right to inspect
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and copy judicial records is not absolute." id. at 589. "Every court has supervisory power
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over its own records and files, and access has been denied where court files might have
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become a vehicle for improper purposes," such as "to gratify private spite or promote
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public scandal," or to serve as a source of"business information that might harm a litigant's
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competitive standing." Id. (internal citations omitted).
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Except for certain documents "traditionally kept secret," federal courts begin a
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sealing analysis with "a strong presumption in favor of access to court records." Foltz v.
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State Farm Mut. Auto. Ins. Co., 331F.3d1122, 1135 (9th Cir. 2003). A party seeking to
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seal a judicial record then bears the burden of overcoming this strong presumption by
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meeting the "compelling reasons'' standard. Id.: Kamakana v. City & Cnty. of Honolulu,
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447 F.3d 1172, 1179 (9th Cir. 2006) (applying compelling reasons standard to dispositive
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motions); DISH Network, L.l.C. v. Sonicview USA, Inc. , No. 09-cv-1553-L, 2009 WL
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2579052. at
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dispositive for sealing analysis because the motion directly addresses the merits and seeks
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injuncti ve relief before tri al). That is, the party must "articulate (] compelling reasons
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supported by specific factual findings," Foltz, 33 1 F.3d at 11 35, that outweigh the general
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history of access and the public policies favoring disclosure, such as the "public interest in
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understanding the judicial process," Hagestad v. Tragesser, 49 F.3d 1430, 1434 (9th Cir.
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1995 ).
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(S.D. Cal. Aug. 20, 2009) (treating motion for preliminary injunction as
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"The mere fact that the production of rec ords may lead to a litigant's embarrassment,
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incrimination, or exposure to further litigation will not, without more, compel the court to
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seal its records." Kamakana, 447 F.3d at 1179. A party must satisfy the compelling
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reasons standard even if the motion, or its attachments, were previously filed under seal or
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protective order. Foltz, 33 1 F.3d at 11 36 (''[T]he presumption of access is not rebutted
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where ... documents subject to a protective order are filed under seal as attachments to a
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dispositive motion."). And " [s ]imply mentioning a general category of priv ilege, w ithout
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further elaboration or any specific linkage with the documents, does not satisfy the burden."
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Kamakana, 447 F.3d at 1184. A party's failure to meet the burden of articulating specific
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facts showing a "compelling reason" means that the '"default posture of public access
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prevails." Id. at 1182.
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In turn, the cou11 must "conscientiously balance [] the competing interests" of the
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public and the party who seeks to keep certain judicial records secret. Foltz. 33 I F .3d at
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1135. After considering these interests, if the court decides to seal certain judicial records,
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it must " base its decision on a compelling reason and articulate the factual bas is for its
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ruling, without relying on hypothesis or conjecture." Hages tad, 49 F .3d at 1434 (citing
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Valley Broadcasting Co. v. U.S. Dist. Ct., 798 F .2d 1289, 1295 (9th Cir.1986)).
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In ruling on motions to seal in Related Case No. 15-cv-1879, this Court has
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recognized that "compelling reasons sufficient to outweigh the public's interest in
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disclosure and justify sealing court records exist when such court files might .. . become a
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vehicle for improper purposes, such as the u se of records to . .. release trade secrets."
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Kamakana , 447 F.3d at 1179. A "trade secret may consist of any formula, pattern, device
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or compilation of information which is used in one's business, and which g ives him an
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opportunity to obtain an advantage over competitors who do not know or use it."
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Restatement of Torts § 757 cmt. b.
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Similarly, other "sources of business information that might harm a litigant's
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competitive standing" may also constitute a compelling reason to seal, see Nixon, 435 U .S.
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at 598, as a company ' s confidential profit, cost, and pricing information if publicly
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disclosed could put the company at a competitive disadvantage, see Apple, Inc. v. Samsung
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Elec. Co., 727 F.3d 1214, 1225 (Fed. Cir. 20 13) ("[I]t seems clear that if Apple's and
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Samsung's suppliers have access to their profit, cost, and margin data, it could give the
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suppliers an advantage in contract negotiations, which they could use to extract price
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increases for components.").
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Ill
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Ill
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II.
Discussion
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The Court has previously expressed to the parties how seriously it takes the public
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right of access to judicial records. A party seeking to seal documents must satisfy the
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compelling reasons standard.
In its August 3, 20 l 7 Order (Doc. No. 40), the Court
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immediately be publicly filed on CM /ECF. The fact that the Court has sealed a document
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once does not mean that the Court will seal the document again, particularly at trial.
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Moreover, the fact that both sides agree to seal or that the documents are designated
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confidential under a protective order is insufficient cause for sealing.
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A.
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Plaintiff Whitewater has fi led eight Motions to Seal. The Motions are unopposed,
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and Plaintiff asserts that all documents sought to be sealed in each Motion have been
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designated as "CONF IDENTIAL-FOR COUNSEL ONLY" pursuant to the Protective
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Order entered by the Court on Decembe r 18, 2015, in the related FSL Action. 1 The Cou1t
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will review each motion in turn .
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Plaintiffs' Motions to Seal
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Motion to File Under Seal, 1112118 - (Doc. No. 198.)
Exhibit I and Portions of its Daubert Motion to Strike or Exclude
the Report and Testimony of James T. Carmichael (Doc. No. 199.)
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Plaintiff seeks to file under seal portions of its Daubert Motion to Strike or Exclude
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the Report and Testimony of James T. Carmichael and Exhibit 1 to the Declaration for
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Roger L. Scott in support of the Motion .2 The Court finds that Plaintiff has not narrowly
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tailored its request to seal to only those portions of Exhibit l that contain business, financial
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and technical information that would place the designating party at a competitive
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On December 18, 2015, the Court entered the Protective Order stipulated by the parties
in Flowrider Surf, Ltd. , et al v. Pac~fic Surf Designs, Inc .. No. 3: 15-cv-01879-BEN-BLM
(the "FSL Action"). (FSL Action, Doc. Nos. 23, 24.)
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Plaintiff simultaneously filed a redacted version of the Daubert Motion with t he motion
to seal. (Doc. No. 197.)
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disadvantage. In this case, Plaintiff seeks to entirely seal the expert report of James T.
2 Carmichael, Ph.D. This Court has previously denied requests to entirely seal expert reports
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finding the practice to be excessive and against public policy. The Cou1t finds Plaintifr s
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Motion does not provide sufficient justification to seal Exhibit 1 in its entirety.
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Therefore, the Court DENIES Plaintiff's Motion to Seal.
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2.
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Motion to File Under Seal, 1112/ 18-(Doc. No. 201.)
Exhibits 1, 15, 16, 19 an£121 in Support ofits Motion for Summary
Judgment (Doc. No. 202.)
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Plaintiff seeks to file under seal portions of its Motion for Summary Judgment and
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Exhibits 1, 15, 16, 19 and 21 to the Declaration of Roger L. Scott. The Court finds that the
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Motion and Exhibits l and 15 include sensitive information regarding PSD's finances,
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customers and/or products which Plaintiff has narrowly tailored its request to seal to only
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those portions of the Motion and Exhibits 1 and 15 that, if disclosed, would place Plaintiff
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at a competitive disadvantage.
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The Court is not persuaded the information contained in Exhibits 16, 19, and 21
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warrants sealing. As to Exhibits 16 and 19, the Plaintiff seeks to entirely seal the expert
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reports of Edward Pribonic. As discussed supra, such requests are deemed excessive and
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denied as Exhibits 16 and 19 are here. Moreover, Exhibit 21 seeks to seal excerpts of
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James T. Carmichael's October 11, 2018 deposition transcript. The Court does not find
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the information contained in Exhibit 21 relates to PSD's Customers, Products or Finances
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in order to justify it being sealed. Thus, the Court denies Plaintiffs request to seal Exhibit
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21 as well.
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Therefore, the Court GRANTS Plaintiffs Motion to Seal in part and ORDERS the
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Motion and Exhibits l and 15 filed under seal. The Court DENIES Plaintiffs Motion to
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Seal Exhibits 16, I 9 and 21.
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Ill
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Ill
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3.
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Motion to File Under Seal, 11 /2 6118-(Doc. No. 213.)
Exhibits 1, 2, 6 and 7 and Portions of its Opposition to Defendant's
DAUBERT mu/ IN LIM/NE Motion to Exclude Expert Testimony
and Evidence (Doc. No. 214.)
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Plaintiff seeks to fil e under seal portions of its Opposition to Defendant's Daubert
and In Limine Motion to Exclude Expert Testimony, Evidence and Exhibits 1, 2, 6 and 7
to the Declaration of Roger L. Scott. The Court finds Plaintiff narrowly tailored the request
to seal to only those portions of the Opposition and Exhibits l and 2 that, if disclosed,
would place the designating party at a competitive di sadvantage.
Tn this case, the
Opposition includes direct quotations from the confidential deposition transcripts of Dr.
Glen Stevick ("Stevick") and Dr. Robert L. Vigil ("Vigil").
Plaintiffs have not persuaded the Court Exhibit 7 warrants sealing. Plaintiff seeks
to entirely seal Vigil's expert report. Unnecessarily sealing expert reports in their entirety
is excessive and is hereby denied.
Therefore, the Court GRANTS Plaintiffs Motion to Seal in part and ORDERS
portions of the Opposition and Exhibits 1, 2 and 6 filed under seal. The Court DENIES
Plaintiffs Motion to Seal Exhibit 7.
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Motion to File Under Seal, 12/3/ 18 - (Doc. No. 234.)
Exhibits 23, 24 and 25 in Support of its Reply in Support of Motion
for Summary Judgment (Doc. No. 235.)
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Plaintiff seeks to file under seal certain portions of its Reply in Support of Motion
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for Summary Judgment and Exhibits 23, 24 and 25. The Co u11 finds that Plaintiff has
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natTowly tailored its request to only those portions of the Reply containing direct quotations
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from the confidential deposition transcripts of Richard Alleshouse ("Alleshouse") and
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Yong Yeh (" Yeh") which the Court concurs would place the Plaintiff at a competitive
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disadvantage if disclosed.
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Therefore, the Court GRANTS Plaintiffs Motion to Seal and ORDERS portions of
the Reply and Exhibits 23, 24, and 25 filed under seal.
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5.
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Motion to File Under Seal, 12/3/ 18 - (Doc. No. 237.)
Exltibit 1 in Support of its Reply i11 Support of IN LIMINE Motion
No. 2 to Exclude Argument, Testimony, and Evi
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