Le et al v. Zuffa, LLC

Filing 224

ORDER Granting #222 Motion to Seal re #218 Status Report. Signed by Magistrate Judge Peggy A. Leen on 2/25/16. (Copies have been distributed pursuant to the NEF - TR)

Case 2:15-cv-01045-RFB-PAL Document 222 Filed 02/19/16 Page 1 of 4

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WILLIAM A. ISAACSON (Admitted Pro Hac Vice)
([e-mail])
BOIES, SCHILLER & FLEXNER LLP
5301 Wisconsin Ave, NW, Washington, DC 20015
Telephone: [phone]; Fax: [phone]

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JOHN F. COVE, JR (Admitted Pro Hac Vice)
([e-mail])
BOIES, SCHILLER & FLEXNER LLP
1999 Harrison Street, Suite 900, Oakland, CA 94612
Telephone: [phone]; Fax: [phone]
RICHARD J. POCKER #3568
([e-mail])
BOIES, SCHILLER & FLEXNER LLP
300 South Fourth Street, Suite 800, Las Vegas, NV 89101
Telephone: [phone]; Fax: [phone]
DONALD J. CAMPBELL #1216
([e-mail])
J. COLBY WILLIAMS #5549
([e-mail])
CAMPBELL & WILLIAMS
700 South 7th Street, Las Vegas, Nevada 89101
Telephone: [phone]; Fax: [phone]
Attorneys for Defendant Zuffa, LLC, d/b/a
Ultimate Fighting Championship and UFC

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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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Cung Le, Nathan Quarry, Jon Fitch, Brandon
Vera, Luis Javier Vazquez, and Kyle
Kingsbury on behalf of themselves and all
others similarly situated,

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Plaintiffs,
v.

Case No.: 2:15-cv-01045-RFB-(PAL)

ZUFFA, LLC’S MOTION TO SEAL
EXHIBITS TO THE JOINT STATUS
REPORT

Zuffa, LLC, d/b/a Ultimate Fighting
Championship and UFC,
Defendant.

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Zuffa, LLC’s Motion To Seal

Case 2:15-cv-01045-RFB-PAL Document 222 Filed 02/19/16 Page 2 of 4

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Pursuant to the Stipulated Protective Order governing confidentiality of documents

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entered by the Court on February 10, 2016, Dkt. 217 (“Protective Order”), the parties’ agreement

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regarding the disclosure of documents during the search term testing process, and Rules 5.2 and

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26(c) of the Federal Rules of Civil Procedure, Defendant Zuffa, LLC (“Zuffa”) respectfully

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requests that the Court order the Clerk of the Court to file under seal of Exhibits G, H and I of the

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parties’ Joint Status Report. This motion is accompanied by the Declaration of John F. Cove, Jr.

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in Support of Zuffa, LLC’s Motion to Seal.

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The Protective Order in this case provides for the filing of documents under seal where
portions or the entirety of the document contain Confidential or Highly Confidential Information.

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Dkt. 217, ¶ 14.3. In the parties Joint Status Report, Plaintiffs include 3 documents as exhibits

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which contain confidential information regarding Zuffa’s internal finances, financial terms and

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incentives of contractual negotiations, and business strategies and analysis. Because these

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documents implicate Zuffa’s confidential information, Zuffa moves to file these exhibits and the

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portion of the Joint Status Report under seal.

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Specifically, Zuffa seeks to seal the following information or exhibits:

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Exhibit G (COX-0072901)

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Exhibit H (COX-0001451)

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Exhibit I (LFertitta)

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This document includes the specific financial terms and
incentives offered to a particular athlete during a negotiation.
This document includes the specific financial terms and
incentives offered to a particular athlete during a negotiation.
This document contains Zuffa’s confidential financial
information as well as internal business analyses and
assessments.

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While Zuffa recognizes the importance of access to public documents, for sealing requests

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that do not relate to dispositive motions, the presumption of public access to court filings may be

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overcome by a showing of good cause under Rule 26(c). See Pintos v. Pacific Creditors Ass'n,

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605 F.3d 665, 678 (9th Cir. 2010); Kamakana v. Honolulu, 447 F.3d 1172, 1179 (9th Cir. 2006).

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The Court has “broad latitude” under Rule 26(c) “to prevent disclosure of materials for many

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types of information, including, but not limited to, trade secrets or other confidential research,

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development, or commercial information.” Phillips v. General Motors Corp., 307 F.3d 1206,

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1211 (9th Cir. 2002) (citations omitted). In light of the public interest, Zuffa has narrowly
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Zuffa, LLC’s Motion To Seal

Case 2:15-cv-01045-RFB-PAL Document 222 Filed 02/19/16 Page 3 of 4

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tailored its request by only sealing the Exhibits with confidential information. Accordingly, the

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request to seal is narrowly tailored. A “particularized showing under the good cause standard of

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Rule 26(c) will suffice to warrant preserving the secrecy of sealed discovery material attached to

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non-dispositive motions.” Kamakana v. City and Cnty of Honolulu, 447 F.3d 1172, 1180 (9th

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Cir. 2006) (citations and internal quotation marks omitted).

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There is good cause to seal documents containing confidential business assessments and

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strategy, financial information and communications containing financial terms, incentives and

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negotiations over contract terms where such information could cause competitive harm if

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disclosed publicly. See Selling Source, LLC v. Red River Ventures, LLC, No. 2:09-cv-01491-

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JCM-GWF, 2011 WL 1630338 at *2 (D. Nev. Apt. 29, 2011) (finding good cause to seal

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information regarding finances, contractual agreements and information regarding particular

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arrangements with customers); Aevoe Corp. v. AE Tech. Co., No. 2:12-cv-00053-GMN-NJK,

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2013 WL 2302310, at *2 (D. Nev. May 24, 2013) (finding good cause to seal financial

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information and business strategies); Rainbow Bus. Solutions v. Merch. Servs., 2013 U.S. Dist.

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LEXIS 67190, at *9 (N.D. Cal. May 10, 2013) (finding compelling reasons to seal “particular

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information about the party’s contractual agreements . . . the public disclosure of which would

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impede its ability to negotiate with business partners and to stay competitive in the marketplace”).

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If Zuffa’s internal business strategies, its financial information, or its negotiations over the

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specific terms or incentives that it offers individual athletes are publicly disclosed, it could cause

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Zuffa competitive harm by giving competitors unfair insight into Zuffa’s finances, agreements,

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negotiation strategy and its internal business processes. Zuffa treats this information as

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confidential.

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In addition, the third party who produced Exhibits G and H has requested confidential
treatment of these documents pursuant to the Protective Order.
Zuffa respectfully requests that the designated portions of the documents identified as
Exhibits G, H, and I be permitted to be filed under seal.

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Zuffa, LLC’s Motion To Seal

Case 2:15-cv-01045-RFB-PAL Document 222 Filed 02/19/16 Page 4 of 4

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Dated: February 19, 2016

BOIES, SCHILLER & FLEXNER LLP

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By: /s/John F. Cove, Jr.
John F. Cove, Jr.
Attorneys for Defendant Zuffa, LLC, d/b/a
Ultimate Fighting Championship and UFC
John F. Cove, Jr. (Admitted Pro Hac Vice)
BOIES, SCHILLER & FLEXNER LLP
1999 Harrison Street, Suite 900
Oakland, CA 94612
Tel: [phone]
Fax: [phone]
Email: [e-mail]

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William A. Isaacson (Admitted Pro Hac Vice)
BOIES, SCHILLER & FLEXNER LLP
5301 Wisconsin Ave, NW
Washington, DC 20015
Tel: [phone]
Fax: [phone]
Email: [e-mail]
Donald J. Campbell #1216
J. Colby Williams #5549
CAMPBELL & WILLIAMS
700 South 7th Street
Las Vegas, Nevada 89101
Tel: [phone]
Fax: [phone]
Email: [e-mail]
[e-mail]
Richard J. Pocker #3568
BOIES, SCHILLER & FLEXNER LLP
300 South Fourth Street, Suite 800
Las Vegas, NV 89101
Tel: [phone]
Fax: [phone]
Email: [e-mail]
Attorneys for Defendant Zuffa, LLC, d/b/a Ultimate
Fighting Championship and UFC

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Zuffa, LLC’s Motion To Seal

Case 2:15-cv-01045-RFB-PAL Document 222-1 Filed 02/19/16 Page 1 of 3

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WILLIAM A. ISAACSON (Admitted Pro Hac Vice)
([e-mail])
BOIES, SCHILLER & FLEXNER LLP
5301 Wisconsin Ave, NW, Washington, DC 20015
Telephone: [phone]; Fax: [phone]

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JOHN F. COVE, JR (Admitted Pro Hac Vice)
([e-mail])
BOIES, SCHILLER & FLEXNER LLP
1999 Harrison Street, Suite 900, Oakland, CA 94612
Telephone: [phone]; Fax: [phone]
RICHARD J. POCKER #3568
([e-mail])
BOIES, SCHILLER & FLEXNER LLP
300 South Fourth Street, Suite 800, Las Vegas, NV 89101
Telephone: [phone]; Fax: [phone]
DONALD J. CAMPBELL #1216
([e-mail])
J. COLBY WILLIAMS #5549
([e-mail])
CAMPBELL & WILLIAMS
700 South 7th Street, Las Vegas, Nevada 89101
Telephone: [phone]; Fax: [phone]
Attorneys for Defendant Zuffa, LLC, d/b/a
Ultimate Fighting Championship and UFC

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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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Cung Le, Nathan Quarry, Jon Fitch, Brandon
Vera, Luis Javier Vazquez, and Kyle
Kingsbury on behalf of themselves and all
others similarly situated,

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Plaintiffs,
v.

Case No.: 2:15-cv-01045-RFB-(PAL)

DECLARATION OF JOHN F. COVE, JR.
IN SUPPORT OF ZUFFA, LLC’S
MOTION TO SEAL

Zuffa, LLC, d/b/a Ultimate Fighting
Championship and UFC,
Defendant.

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Declaration of John F. Cove, Jr. in Support of Zuffa’s Motion To Seal

Case 2:15-cv-01045-RFB-PAL Document 222-1 Filed 02/19/16 Page 2 of 3

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I, John F. Cove, Jr., declare as follows:

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I am an attorney admitted to practice before the courts in the states of California

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and New York and am admitted Pro Hac Vice to practice before this Court. I am a Partner in the

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law firm Boies, Schiller & Flexner LLP, counsel to Defendant Zuffa, LLC (“Zuffa”) in this case.

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2.

I make this declaration in support of Zuffa’s Motion to Seal Exhibits to the Joint

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Status Report. Based on my review of the files and records in this case, I have firsthand

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knowledge of the contents of this declaration and could testify thereto.

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3.

Zuffa seeks to file under seal three exhibits identified as Exhibits G, H and I to the

Joint Status Report. This declaration is submitted to provide the factual and legal support for the
filing of this material.
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Federal Rule of Civil Procedure 26(c) provides that the Court may “issue an order

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to protect a party of person from annoyance, embarrassment, oppression or undue burden or

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expense” by “requiring that a trade secret or other confidential research, development, or

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commercial information not be revealed or be revealed only in a specific way.”

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5.

Exhibit G contains specific financial terms and incentives offered during a

contract negotiation.
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Exhibit H contains specific financial terms and incentives discussed during a

contract negotiation.
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Exhibit I contains Zuffa’s confidential financial information and reflects Zuffa’s

internal business strategies and analyses.
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It is my understanding that Zuffa treats the financial terms and incentives offered

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during contract negotiations as confidential. Zuffa also considers its internal decision-making

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processes and business assessments confidential. Disclosure of this information could expose

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Zuffa’s confidential financial information and approach to internal decision-making strategies and

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negotiations and would provide competitors with an unfair insight into Zuffa’s business practices.

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9.

Exhibits G and H have also been designated as confidential under the Protective

Order by the third party that produced them.

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Declaration of John F. Cove, Jr. in Support of Zuffa’s Motion To Seal

Case 2:15-cv-01045-RFB-PAL Document 222-1 Filed 02/19/16 Page 3 of 3

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I declare under penalty of perjury under the laws of the United States of America that the

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foregoing facts are true and correct. Executed this 19th day of February, 2016, in Oakland,

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California.

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_/s/ John F. Cove, Jr.__________________
John F. Cove, Jr.

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Declaration of John F. Cove, Jr. in Support of Zuffa’s Motion To Seal

Case 2:15-cv-01045-RFB-PAL Document 222-2 Filed 02/19/16 Page 1 of 2

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WILLIAM A. ISAACSON (Admitted Pro Hac Vice)
([e-mail])
BOIES, SCHILLER & FLEXNER LLP
5301 Wisconsin Ave, NW, Washington, DC 20015
Telephone: [phone]; Fax: [phone]

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JOHN F. COVE, JR (Admitted Pro Hac Vice)
([e-mail])
BOIES, SCHILLER & FLEXNER LLP
1999 Harrison Street, Suite 900, Oakland, CA 94612
Telephone: [phone]; Fax: [phone]
RICHARD J. POCKER #3568
([e-mail])
BOIES, SCHILLER & FLEXNER LLP
300 South Fourth Street, Suite 800, Las Vegas, NV 89101
Telephone: [phone]; Fax: [phone]
DONALD J. CAMPBELL #1216
([e-mail])
J. COLBY WILLIAMS #5549
([e-mail])
CAMPBELL & WILLIAMS
700 South 7th Street, Las Vegas, Nevada 89101
Telephone: [phone]; Fax: [phone]
Attorneys for Defendant Zuffa, LLC, d/b/a
Ultimate Fighting Championship and UFC

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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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Cung Le, Nathan Quarry, Jon Fitch, Brandon
Vera, Luis Javier Vazquez, and Kyle
Kingsbury on behalf of themselves and all
others similarly situated,

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24
25
26
27

Plaintiffs,
v.

Case No.: 2:15-cv-01045-RFB-(PAL)

ORDER GRANTING ZUFFA,
LLC’S MOTION TO SEAL
EXHIBITS TO THE JOINT STATUS
REPORT

Zuffa, LLC, d/b/a Ultimate Fighting
Championship and UFC,
Defendant.

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[Proposed] Order Granting Zuffa, LLC’s Motion to Seal Exhibits to the JSR

Case 2:15-cv-01045-RFB-PAL Document 222-2 Filed 02/19/16 Page 2 of 2

[PROPOSED] ORDER

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Pending before this Court is the parties Joint Status Report filed on February 19, 2016.

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Federal Rule of Civil Procedure 26(c) provides broad discretion for a trial court to permit sealing

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of court documents for, inter alia, the protection of “a trade secret or other confidential research,

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development, or commercial information.” Fed. R. Civ. P. 26(c). Having considered Zuffa,

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LLC’s Motion to Seal, good cause having been shown:

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IT IS HEREBY ORDERED THAT Zuffa, LLC’s Motion to Seal is GRANTED. The
Clerk of the Court shall file under seal the documents specified in Zuffa’s Motion.
IT IS SO ORDERED.

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February 25, 2016
DATED: _____________________

By: _______________________________
Hon. Peggy A. Leen
UNITED STATES MAGISTRATE JUDGE

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[Proposed] Order Granting Zuffa, LLC’s Motion to Seal Exhibits to the JSR