Washington, DC—Dentons, the global law firm, filed an amicus brief yesterday with the Supreme Court of the United States on behalf of DRI-The Voice of Defense Bar supporting Chrysler's petition for review in FCA US LLC, f/k/a Chrysler Group LLC v. The Center for Auto Safety. At issue is the proper standard for preventing the unsealing of court-filed discovery documents containing a company’s trade secrets or other confidential business information that was filed under seal in accordance with a protective order.

Federal Rule of Civil Procedure 26(c) (and similar state court rules) allow trial courts to issue protective orders for “good cause.” As indicated in Rule 26(c)(1)(G), this includes protective orders that prohibit litigants from publicly disclosing discovery documents that contain a company’s trade secrets or other confidential business information. Protective orders commonly require a party that wants to file such confidential documents in court in connection with a motion or pleading to do so under seal.   

The amicus brief explains that the ability to rely on protective orders which prohibit public disclosure of a company’s confidential business information throughout the course of a judicial proceeding is an essential component of a well-balanced civil justice system. The argument is that a “good cause” balance-of-interests standard  should apply when a defendant  seeks to avert the unsealing of already-sealed, court-filed discovery documents. A “compelling reasons” standard, which is skewed sharply toward public disclosure, would undermine protective orders’ purposes and utility. Those purposes include the free exchange of information needed by litigants to adjudicate or settle a suit, and also protection of a defendant’s confidential business information from disclosure to competitors. 

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