Classic Concepts, Inc. v. Bungalow Five, LLC

United States District Court for the Central District of California

Classic Concepts, Inc. v. Bungalow Five, LLC

Trial Court Opinion

Case 2:22-cv-03822-DMG-PD Document 26 Filed 12/01/22 Page 1 of 20 Page ID #:147

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7 8 9 UNITED STATES DISTRICT COURT 10 CENTRAL DISTRICT OF CALIFORNIA 11 12 CLASSIC CONCEPTS, INC. dba CLASSIC HOME, a New Mexico Case No.: 2:22-cv-03822-DMG-PD 13 corporation,

STIPULATED PROTECTIVE 14 Plaintiff, ORDER1

15 v.

16 17 BUNGALOW FIVE, LLC, a Delaware limited liability company 18 Defendant. 19

20 21 1. A. PURPOSES AND LIMITATIONS 22 Discovery in this action is likely to involve production of confidential, 23 proprietary, or private information for which special protection from public 24 disclosure and from use for any purpose other than prosecuting this litigation may be 25 warranted. Accordingly, the parties hereby stipulate to and petition the Court to enter 26

27 1 This Stipulated Protective Order is substantially based on the model protective 28 order provided under Magistrate Judge Patricia Donahue’s Procedures. Case 2:22-cv-03822-DMG-PD Document 26 Filed 12/01/22 Page 2 of 20 Page ID #:148

1 the following Stipulated Protective Order. The parties acknowledge that this Order 2 does not confer blanket protections on all disclosures or responses to discovery and 3 that the protection it affords from public disclosure and use extends only to the 4 limited information or items that are entitled to confidential treatment under the 5 applicable legal principles. 6 B. GOOD CAUSE STATEMENT 7 This action is likely to involve trade secrets, customer and pricing lists and 8 other valuable research, development, commercial, financial, technical and/or 9 proprietary information for which special protection from public disclosure and from 10 use for any purpose other than prosecution of this action is warranted. Such 11 confidential and proprietary materials and information consist of, among other 12 things, confidential business or financial information, information regarding 13 confidential business practices, or other confidential research, development, or 14 commercial information (including information implicating privacy rights of third 15 parties), information otherwise generally unavailable to the public, or which may be 16 privileged or otherwise protected from disclosure under state or federal statutes, 17 court rules, case decisions, or common law. Accordingly, to expedite the flow of 18 information, to facilitate the prompt resolution of disputes over confidentiality of 19 discovery materials, to adequately protect information the parties are entitled to keep 20 confidential, to ensure that the parties are permitted reasonable necessary uses of 21 such material in preparation for and in the conduct of trial, to address their handling 22 at the end of the litigation, and serve the ends of justice, a protective order for such 23 information is justified in this matter. It is the intent of the parties that information 24 will not be designated as confidential for tactical reasons and that nothing be so 25 designated without a good faith belief that it has been maintained in a confidential, 26 non-public manner, and there is good cause why it should not be part of the public 27 record of this case. 28 2 Case 2:22-cv-03822-DMG-PD Document 26 Filed 12/01/22 Page 3 of 20 Page ID #:149

1 C. ACKNOWLEDGMENT OF PROCEDURE FOR FILING UNDER SEAL 2 The parties further acknowledge, as set forth in Section 12.3, below, that this 3 Stipulated Protective Order does not entitle them to file confidential information 4 under seal; Local Civil Rule 79-5 sets forth the procedures that must be followed and 5 the standards that will be applied when a party seeks permission from the court to 6 file material under seal. 7 There is a strong presumption that the public has a right of access to judicial 8 proceedings and records in civil cases. In connection with non-dispositive motions, 9 good cause must be shown to support a filing under seal. See Kamakana v. City and 10 County of Honolulu,

447 F.3d 1172, 1176

(9th Cir. 2006), Phillips v. Gen. Motors 11 Corp.,

307 F.3d 1206

, 1210-11 (9th Cir. 2002), Makar-Welbon v. Sony Electrics, 12 Inc.,

187 F.R.D. 576, 577

(E.D. Wis. 1999) (even stipulated protective orders require 13 good cause showing), and a specific showing of good cause or compelling reasons 14 with proper evidentiary support and legal justification, must be made with respect to 15 Protected Material that a party seeks to file under seal. The parties’ mere designation 16 of Disclosure or Discovery Material as CONFIDENTIAL or HIGHLY 17 CONFIDENTIAL – OUTSIDE ATTORNEYS’ EYES ONLY does not—without 18 the submission of competent evidence by declaration, establishing that the material 19 sought to be filed under seal qualifies as confidential, privileged, or otherwise 20 protectable—constitute good cause. 21 Further, if a party requests sealing related to a dispositive motion or trial, then 22 compelling reasons, not only good cause, for the sealing must be shown, and the 23 relief sought shall be narrowly tailored to serve the specific interest to be protected. 24 See Pintos v. Pacific Creditors Ass’n,

605 F.3d 665, 677-79

(9th Cir. 2010). For each 25 item or type of information, document, or thing sought to be filed or introduced under 26 seal in connection with a dispositive motion or trial, the party seeking protection 27 must articulate compelling reasons, supported by specific facts and legal 28 justification, for the requested sealing order. Again, competent evidence supporting 3 Case 2:22-cv-03822-DMG-PD Document 26 Filed 12/01/22 Page 4 of 20 Page ID #:150

1 the application to file documents under seal must be provided by declaration. 2 Any document that is not confidential, privileged, or otherwise protectable in 3 its entirety will not be filed under seal if the confidential portions can be redacted. If 4 documents can be redacted, then a redacted version for public viewing, omitting only 5 the confidential, privileged, or otherwise protectable portions of the document, shall 6 be filed. Any application that seeks to file documents under seal in their entirety 7 should include an explanation of why redaction is not feasible. 8 9 2. DEFINITIONS 10 2.1 Action: This pending federal lawsuit. 11 2.2 Challenging Party: a Party or Non-Party that challenges 12 the designation of information or items under this Order. 13 2.3 “CONFIDENTIAL” Information or Items: information (regardless of 14 how it is generated, stored or maintained) or tangible things that qualify for 15 protection under Federal Rule of Civil Procedure 26(c), and as specified above in the 16 Good Cause Statement. 17 2.4 Counsel: Outside Counsel of Record and House Counsel (as well as 18 their support staff). 19 2.5 Designating Party: a Party or Non-Party that designates information or 20 items that it produces in disclosures or in responses to discovery as 21 “CONFIDENTIAL” or “HIGHLY CONFIDENTIAL – OUTSIDE ATTORNEYS’ 22 EYES ONLY.” 23 2.6 Disclosure or Discovery Material: all items or information, regardless 24 of the medium or manner in which it is generated, stored, or maintained (including, 25 among other things, testimony, transcripts, and tangible things), that are produced or 26 generated in disclosures or responses to discovery in this matter. 27 2.7 Expert: a person with specialized knowledge or experience in a matter 28 pertinent to the litigation who has been retained by a Party or its counsel to serve as 4 Case 2:22-cv-03822-DMG-PD Document 26 Filed 12/01/22 Page 5 of 20 Page ID #:151

1 an expert witness or as a consultant in this Action. 2 2.8 "HIGHLY CONFIDENTIAL – OUTSIDE ATTORNEYS’ EYES 3 ONLY” Information or Items: extremely sensitive “CONFIDENTIAL Information 4 or Items,” disclosure of which to another Party or Non-Party would create a 5 substantial risk of serious harm that could not be avoided by less restrictive means. 6 2.9 House Counsel: attorneys who are employees of a party to this Action. 7 House Counsel does not include Outside Counsel of Record or any other outside 8 counsel. 9 2.10 Non-Party: any natural person, partnership, corporation, association, or 10 other legal entity not named as a Party to this action. 11 2.11 Outside Counsel of Record: attorneys who are not employees of a party 12 to this Action but are retained to represent or advise a party to this Action and have 13 appeared in this Action on behalf of that party or are affiliated with a law firm which 14 has appeared on behalf of that party, and includes support staff. 15 2.12 Party: any party to this Action, including all of its officers, directors, 16 employees, consultants, retained experts, and Outside Counsel of Record (and their 17 support staffs). 18 2.13 Producing Party: a Party or Non-Party that produces Disclosure or 19 Discovery Material in this Action. 20 2.14 Professional Vendors: persons or entities that provide litigation support 21 services (e.g., photocopying, videotaping, translating, preparing exhibits or 22 demonstrations, and organizing, storing, or retrieving data in any form or medium) 23 and their employees and subcontractors. 24 2.15 Protected Material: any Disclosure or Discovery Material that is 25 designated as “CONFIDENTIAL” or “HIGHLY CONFIDENTIAL – OUTSIDE 26 ATTORNEYS’ EYES ONLY.” 27 2.16 Receiving Party: a Party that receives Disclosure or Discovery Material 28 from a Producing Party. 5 Case 2:22-cv-03822-DMG-PD Document 26 Filed 12/01/22 Page 6 of 20 Page ID #:152

1 2 3. SCOPE 3 The protections conferred by this Stipulation and Order cover not only 4 Protected Material (as defined above), but also (1) any information copied or 5 extracted from Protected Material; (2) all copies, excerpts, summaries, or 6 compilations of Protected Material; and (3) any testimony, conversations, or 7 presentations by Parties or their Counsel that might reveal Protected Material. 8 Any use of Protected Material at trial shall be governed by the orders of the 9 trial judge. This Order does not govern the use of Protected Material at trial. 10 11 4. DURATION 12 FINAL DISPOSITION of the action is defined as the conclusion of any 13 appellate proceedings, or, if no appeal is taken, when the time for filing of an appeal 14 has run. Except as set forth below, the terms of this protective order apply through 15 FINAL DISPOSITION of the action. The parties may stipulate that they will be 16 contractually bound by the terms of this agreement beyond FINAL DISPOSITION, 17 but will have to file a separate action for enforcement of the agreement once all 18 proceedings in this case are complete. 19 Once a case proceeds to trial, information that was designated as 20 CONFIDENTIAL or HIGHLY CONFIDENTIAL – OUTSIDE ATTORNEYS’ 21 EYES ONLY or maintained pursuant to this protective order used or introduced as 22 an exhibit at trial becomes public and will be presumptively available to all members 23 of the public, including the press, unless compelling reasons supported by specific 24 factual findings to proceed otherwise are made to the trial judge in advance of the 25 trial. See Kamakana,

447 F.3d at 1180-81

(distinguishing “good cause” showing for 26 sealing documents produced in discovery from “compelling reasons” standard when 27 merits-related documents are part of court record). Accordingly, for such materials, 28 6 Case 2:22-cv-03822-DMG-PD Document 26 Filed 12/01/22 Page 7 of 20 Page ID #:153

1 the terms of this protective order do not extend beyond the commencement of the 2 trial. 3 4 5. DESIGNATING PROTECTED MATERIAL 5 5.1 Exercise of Restraint and Care in Designating Material for Protection. 6 Each Party or Non-Party that designates information or items for protection under 7 this Order must take care to limit any such designation to specific material that 8 qualifies under the appropriate standards. The Designating Party must designate for 9 protection only those parts of material, documents, items, or oral or written 10 communications that qualify so that other portions of the material, documents, items, 11 or communications for which protection is not warranted are not swept unjustifiably 12 within the ambit of this Order. 13 Mass, indiscriminate, or routinized designations are prohibited. Designations 14 that are shown to be clearly unjustified or that have been made for an improper 15 purpose (e.g., to unnecessarily encumber the case development process or to impose 16 unnecessary expenses and burdens on other parties) may expose the Designating 17 Party to sanctions. 18 If it comes to a Designating Party’s attention that information or items that it 19 designated for protection do not qualify for protection, that Designating Party must 20 promptly notify all other Parties that it is withdrawing the inapplicable designation. 21 5.2 Manner and Timing of Designations. Except as otherwise provided in 22 this Order (see, e.g., second paragraph of section 5.2(a) below), or as otherwise 23 stipulated or ordered, Disclosure or Discovery Material that qualifies for protection 24 under this Order must be clearly so designated before the material is disclosed or 25 produced. 26 Designation in conformity with this Order requires: 27 (a) for information in documentary form (e.g., paper or electronic 28 documents, but excluding transcripts of depositions or other pretrial or trial 7 Case 2:22-cv-03822-DMG-PD Document 26 Filed 12/01/22 Page 8 of 20 Page ID #:154

1 proceedings), that the Producing Party affix at a minimum, the legend 2 “CONFIDENTIAL” or “HIGHLY CONFIDENTIAL – OUTSIDE ATTORNEYS’ 3 EYES ONLY,” to each page that contains protected material. If only a portion or 4 portions of the material on a page qualifies for protection, the Producing Party also 5 must clearly identify the protected portion(s) (e.g., by making appropriate markings 6 in the margins). 7 A Party or Non-Party that makes original documents available for inspection 8 need not designate them for protection until after the inspecting Party has indicated 9 which documents it would like copied and produced. During the inspection and 10 before the designation, all of the material made available for inspection shall be 11 deemed “HIGHLY CONFIDENTIAL – OUTSIDE ATTORNEYS’ EYES ONLY.” 12 After the inspecting Party has identified the documents it wants copied and produced, 13 the Producing Party must determine which documents, or portions thereof, qualify 14 for protection under this Order. Then, before producing the specified documents, the 15 Producing Party must affix the “CONFIDENTIAL” or “HIGHLY CONFIDENTIAL 16 – OUTSIDE ATTORNEYS’ EYES ONLY” legend to each page that contains 17 Protected Material. If only a portion or portions of the material on a page qualifies 18 for protection, the Producing Party also must clearly identify the protected portion(s) 19 (e.g., by making appropriate markings in the margins). 20 (b) for testimony given in depositions or in other proceedings that the 21 Designating Party identify the Disclosure or Discovery Material on the record, before 22 the close of the deposition, hearing, or other proceeding, all protected testimony and 23 specify the level of protection being asserted. When it is impractical to identify 24 separately each portion of testimony that is entitled to protection and it appears that 25 substantial portions of the testimony may qualify for protection, the Designating Party 26 may invoke on the record (before the deposition, hearing, or other proceeding is 27 concluded) a right to have up to 21 days to identify the specific portions of the 28 testimony as to which protection is sought and to specify the level of protection being 8 Case 2:22-cv-03822-DMG-PD Document 26 Filed 12/01/22 Page 9 of 20 Page ID #:155

1 asserted. Only those portions of the testimony that are appropriately designated for 2 protection within the 21 days shall be covered by the provisions of this Stipulated 3 Protective Order. Alternatively, a Designating Party may specify, at the deposition or 4 up to 21 days afterwards if that period is properly invoked, that the entire transcript 5 shall be treated as “CONFIDENTIAL” or “HIGHLY CONFIDENTIAL – OUTSIDE 6 ATTORNEYS’ EYES ONLY.” 7 (c) for information produced in some form other than documentary and for 8 any other tangible items, that the Producing Party affix in a prominent place on the 9 exterior of the container or containers in which the information is stored the legend 10 “CONFIDENTIAL” or “HIGHLY CONFIDENTIAL – OUTSIDE ATTORNEYS’ 11 EYES ONLY/” If only a portion or portions of the information warrants protection, 12 the Producing Party, to the extent practicable, shall identify the protected portion(s) 13 and specify the level of protection being asserted. 14 5.3 Inadvertent Failures to Designate. If timely corrected, an inadvertent 15 failure to designate qualified information or items does not, standing alone, waive 16 the Designating Party’s right to secure protection under this Order for such material. 17 Upon timely correction of a designation, the Receiving Party must make reasonable 18 efforts to assure that the material is treated in accordance with the provisions of this 19 Order. 20 21 6. CHALLENGING CONFIDENTIALITY DESIGNATIONS 22 6.1 Timing of Challenges. Any Party or Non-Party may challenge a 23 designation of confidentiality at any time that is consistent with the Court’s 24 Scheduling Order. 25 6.2 Meet and Confer. The Challenging Party shall initiate the dispute 26 resolution process under Local Rule 37.1 et seq. 27 6.3 The burden of persuasion in any such challenge proceeding shall be on 28 the Designating Party. Frivolous challenges, and those made for an improper purpose 9 Case 2:22-cv-03822-DMG-PD Document 26 Filed 12/01/22 Page 10 of 20 Page ID #:156

1 (e.g., to harass or impose unnecessary expenses and burdens on other parties) may 2 expose the Challenging Party to sanctions. Unless the Designating Party has waived 3 or withdrawn the confidentiality designation, all parties shall continue to afford the 4 material in question the level of protection to which it is entitled under the Producing 5 Party’s designation until the Court rules on the challenge. 6 7 7. ACCESS TO AND USE OF PROTECTED MATERIAL 8 7.1 Basic Principles. A Receiving Party may use Protected Material that is 9 disclosed or produced by another Party or by a Non-Party in connection with this 10 Action only for prosecuting, defending, or attempting to settle this Action. Such 11 Protected Material may be disclosed only to the categories of persons and under the 12 conditions described in this Order. When the Action has been terminated, a 13 Receiving Party must comply with the provisions of section 13 below (FINAL 14 DISPOSITION). 15 Protected Material must be stored and maintained by a Receiving Party at a 16 location and in a secure manner that ensures that access is limited to the persons 17 authorized under this Order. 18 7.2 Disclosure of “CONFIDENTIAL” Information or Items. Unless 19 otherwise ordered by the court or permitted in writing by the Designating Party, a 20 Receiving Party may disclose any information or item designated 21 “CONFIDENTIAL” only to: 22 (a) the Receiving Party’s Outside Counsel of Record in this Action, as well 23 as employees of said Outside Counsel of Record to whom it is reasonably necessary 24 to disclose the information for this Action; 25 (b) the officers, directors, and employees (including House Counsel) of the 26 Receiving Party to whom disclosure is reasonably necessary for this Action; 27 (c) Experts (as defined in this Order) of the Receiving Party to whom 28 disclosure is reasonably necessary for this Action and who have signed the 10 Case 2:22-cv-03822-DMG-PD Document 26 Filed 12/01/22 Page 11 of 20 Page ID #:157

1 “Acknowledgment and Agreement to Be Bound” (Exhibit A); 2 (d) the court and its personnel; 3 (e) court reporters and their staff; 4 (f) professional jury or trial consultants, mock jurors, and Professional 5 Vendors to whom disclosure is reasonably necessary for this Action and who have 6 signed the “Acknowledgment and Agreement to Be Bound” (Exhibit A); 7 (g) the author or recipient of a document containing the information or a 8 custodian or other person who otherwise possessed or knew the information; 9 (h) during their depositions, witnesses and attorneys for witnesses, in the 10 Action to whom disclosure is reasonably necessary, provided the witness signs the 11 “Acknowledgment and Agreement to Be Bound” (Exhibit A), unless otherwise 12 agreed by the Designating Party or ordered by the court. Pages of transcribed 13 deposition testimony or exhibits to depositions that reveal Protected Material may 14 be separately bound by the court reporter and may not be disclosed to anyone except 15 as permitted under this Stipulated Protective Order; and 16 (i) any mediator or settlement officer, and their supporting personnel, 17 mutually agreed upon by any of the parties engaged in settlement discussions. 18 7.3 Disclosure of “HIGHLY CONFIDENTIAL – OUTSIDE 19 ATTORNEYS’ EYES ONLY” Information or Items. Unless otherwise ordered by 20 the court or permitted in writing by the Designating Party, a Receiving Party may 21 disclose any information or item designated “HIGHLY CONFIDENTIAL – 22 OUTSIDE ATTORNEYS’ EYES ONLY” only to: 23 (a) the Receiving Party’s Outside Counsel of Record in this Action, as well as 24 employees of said Outside Counsel of Record to whom it is reasonably necessary to 25 disclose the information for this Action; 26 (b) Experts (as defined in this Order) of the Receiving Party (1) to whom 27 disclosure is reasonably necessary for this Action, (2) who have signed the 28 11 Case 2:22-cv-03822-DMG-PD Document 26 Filed 12/01/22 Page 12 of 20 Page ID #:158

1 “Acknowledgment and Agreement to Be Bound” (Exhibit A), and (3) as to whom the 2 procedures set forth in Section 7.4, below, have been followed; 3 (c) the court and its personnel; 4 (d) court reporters and their staff; 5 (e) professional jury or trial consultants, mock jurors, and Professional Vendors 6 to whom disclosure is reasonably necessary for this Action and who have signed the 7 “Acknowledgment and Agreement to Be Bound” (Exhibit A); 8 (f) the author or recipient of a document containing the information or a 9 custodian or other person who otherwise possessed or knew the information; and 10 (g) any mediator or settlement officer, and their supporting personnel, mutually 11 agreed upon by any of the parties engaged in settlement discussions. 12 7.4 Procedures for Approving or Objecting to Disclosure of “HIGHLY 13 CONFIDENTIAL – OUTSIDE ATTORNEYS’ EYES ONLY” Information or 14 Items. 15 (a) Unless otherwise ordered by the court or agreed to in writing by the 16 Designating Party, a Receiving Party that seeks to disclose to an Expert any sensitive 17 business information concerning the Designating Party’s customers or financials that 18 has been designated “HIGHLY CONFIDENTIAL – 19 OUTSIDE ATTORNEYS’ EYES ONLY” pursuant to Section 7.3(b) first must make 20 a written request to the Designating Party that (1) identifies the general categories of 21 “HIGHLY CONFIDENTIAL – OUTSIDE ATTORNEYS’ EYES ONLY” 22 information that the Receiving Party seeks permission to disclose to the Expert, (2) 23 sets forth the full name of the Expert and the city and state of his or her primary 24 residence, (3) attaches a copy of the Expert’s current resume, (4) identifies the 25 Expert’s current employer(s), (5) identifies each person or entity from whom the 26 Expert has received compensation or funding for work in his or her areas of expertise 27 or to whom the Expert has provided professional services, including in connection 28 with a litigation, at any time during the preceding five years, and (6) identifies (by 12 Case 2:22-cv-03822-DMG-PD Document 26 Filed 12/01/22 Page 13 of 20 Page ID #:159

1 name and number of the case, filing date, and location of court) any litigation in 2 connection with which the Expert has offered expert testimony, including through a 3 declaration, report, or testimony at a deposition or trial, during the preceding five 4 years. 5 (b) A Receiving Party that makes a request and provides the information 6 specified in the preceding respective paragraph may disclose the subjected Protected 7 Material to the identified Expert unless, within 14 days of delivering the request, the 8 Receiving Party receives a written objection from the Designating Party. Any such 9 objection must set forth in detail the grounds on which it is based. 10 (c) A Receiving Party that receives a timely written objection must meet 11 and confer with the Designating Party (through direct voice to voice dialogue) to try 12 to resolve the matter by agreement within seven days of the written objection. If no 13 agreement is reached, the Receiving Party seeking to make the disclosure to the 14 Expert may file a motion seeking permission from the court to do so. Any such 15 motion must describe the circumstances with specificity, set forth in detail the 16 reasons why the disclosure to the Expert is reasonably necessary, assess the risk of 17 harm that the disclosure would entail, and suggest any additional means that could 18 be used to reduce that risk. In addition, any such motion must be accompanied by a 19 competent declaration describing the parties’ efforts to resolve the matter by 20 agreement (i.e., the extent and content of the meet and confer discussions) and setting 21 forth the reasons advanced by the Designating Party for its refusal to approve the 22 disclosure. In any such proceeding, the Designating Party opposing disclosure to the 23 Expert shall bear the burden of proving that the risk of harm that the disclosure would 24 entail (under the safeguards proposed) outweighs the Receiving Party’s need to 25 disclose the Protected Material to its Expert. 26 27 28 13 Case 2:22-cv-03822-DMG-PD Document 26 Filed 12/01/22 Page 14 of 20 Page ID #:160

1 8. PROTECTED MATERIAL SUBPOENAED OR ORDERED PRODUCED 2 IN OTHER LITIGATION 3 If a Party is served with a subpoena or a court order issued in other litigation 4 that compels disclosure of any information or items designated in this Action as 5 “CONFIDENTIAL” or “HIGHLY CONFIDENTIAL ATTORNEYS’ EYES 6 ONLY,” that Party must: 7 (a) promptly notify in writing the Designating Party. Such notification shall 8 include a copy of the subpoena or court order; 9 (b) promptly notify in writing the party who caused the subpoena or order 10 to issue in the other litigation that some or all of the material covered by the subpoena 11 or order is subject to this Protective Order. Such notification shall include a copy of 12 this Stipulated Protective Order; and 13 (c) cooperate with respect to all reasonable procedures sought to be pursued 14 by the Designating Party whose Protected Material may be affected. 15 If the Designating Party timely seeks a protective order, the Party served 16 with the subpoena or court order shall not produce any information designated in this 17 action as “CONFIDENTIAL” or “HIGHLY CONFIDENTIAL ATTORNEYS’ 18 EYES ONLY” before a determination by the court from which the subpoena or order 19 issued, unless the Party has obtained the Designating Party’s permission. The 20 Designating Party shall bear the burden and expense of seeking protection in that 21 court of its confidential material and nothing in these provisions should be construed 22 as authorizing or encouraging a Receiving Party in this Action to disobey a lawful 23 directive from another court. 24

25 9. A NON-PARTY’S PROTECTED MATERIAL SOUGHT 26 TO BE PRODUCED IN THIS LITIGATION 27 (a) The terms of this Order are applicable to information produced by a 28 14 Case 2:22-cv-03822-DMG-PD Document 26 Filed 12/01/22 Page 15 of 20 Page ID #:161

1 Non-Party in this Action and designated as “CONFIDENTIAL” or “HIGHLY 2 CONFIDENTIAL – OUTSIDE ATTORNEYS’ EYES ONLY.” Such information 3 produced by Non-Parties in connection with this litigation is protected by the 4 remedies and relief provided by this Order. Nothing in these provisions should be 5 construed as prohibiting a Non-Party from seeking additional protections. 6 (b) In the event that a Party is required, by a valid discovery request, to 7 produce a Non-Party’s confidential information in its possession, and the Party is 8 subject to an agreement with the Non-Party not to produce the Non-Party’s 9 confidential information, then the Party shall: 10 (1) promptly notify in writing the Requesting Party and the Non-Party 11 that some or all of the information requested is subject to a confidentiality agreement 12 with a Non-Party; 13 (2) promptly provide the Non-Party with a copy of the Stipulated 14 Protective Order in this Action, the relevant discovery request(s), and a reasonably 15 specific description of the information requested; and 16 (3) make the information requested available for inspection by the 17 Non-Party, if requested. 18 (c) If the Non-Party fails to seek a protective order from this court within 19 14 days of receiving the notice and accompanying information, the Receiving Party 20 may produce the Non-Party’s confidential information responsive to the discovery 21 request. If the Non-Party timely seeks a protective order, the Receiving Party shall 22 not produce any information in its possession or control that is subject to the 23 confidentiality agreement with the Non-Party before a determination by the court. 24 Absent a court order to the contrary, the Non-Party shall bear the burden and expense 25 of seeking protection in this court of its Protected Material. 26 27 10. UNAUTHORIZED DISCLOSURE OF PROTECTED MATERIAL 28 15 Case 2:22-cv-03822-DMG-PD Document 26 Filed 12/01/22 Page 16 of 20 Page ID #:162

1 If a Receiving Party learns that, by inadvertence or otherwise, it has disclosed 2 Protected Material to any person or in any circumstance not authorized under this 3 Stipulated Protective Order, the Receiving Party must immediately (a) notify in 4 writing the Designating Party of the unauthorized disclosures, (b) use its best efforts 5 to retrieve all unauthorized copies of the Protected Material, (c) inform the person or 6 persons to whom unauthorized disclosures were made of all the terms of this Order, 7 and (d) request such person or persons to execute the “Acknowledgment and 8 Agreement to Be Bound” that is attached hereto as Exhibit A. 9 10 11. INADVERTENT PRODUCTION OF PRIVILEGED OR OTHERWISE 11 PROTECTED MATERIAL 12 When a Producing Party gives notice to Receiving Parties that certain 13 inadvertently produced material is subject to a claim of privilege or other protection, 14 the obligations of the Receiving Parties are those set forth in Federal Rule of Civil 15 Procedure 26(b)(5)(B). Pursuant to the parties’ agreed ESI protocol, the inadvertent 16 production of a privileged or work product protected ESI is not a waiver in the 17 pending case or in any other federal or state proceeding. See Dkt. 23 (Joint Report 18 26(f) Report, Section j(3)). 19

20 12. MISCELLANEOUS 21 12.1 Right to Further Relief. Nothing in this Order abridges the right of any 22 person to seek its modification by the Court in the future. 23 12.2 Right to Assert Other Objections. By stipulating to the entry of this 24 Protective Order no Party waives any right it otherwise would have to object to 25 disclosing or producing any information or item on any ground not addressed in this 26 Stipulated Protective Order. Similarly, no Party waives any right to object on any 27 ground to use in evidence of any of the material covered by this Protective Order. 28 16 Case 2:22-cv-03822-DMG-PD Document 26 Filed 12/01/22 Page 17 of 20 Page ID #:163

1 12.3 Filing Protected Material. A Party that seeks to file under seal any 2 Protected Material must comply with Civil Local Rule 79-5. Protected Material may 3 only be filed under seal pursuant to a court order authorizing the sealing of the 4 specific Protected Material at issue. If a Party's request to file Protected Material 5 under seal is denied by the court, then the Receiving Party may file the information 6 in the public record unless otherwise instructed by the court. 7 8 13. FINAL DISPOSITION 9 After the final disposition of this Action, as defined in paragraph 4, within 60 10 days of a written request by the Designating Party, each Receiving Party must return 11 all Protected Material to the Producing Party or destroy such material. As used in 12 this subdivision, “all Protected Material” includes all copies, abstracts, compilations, 13 summaries, and any other format reproducing or capturing any of the Protected 14 Material. Whether the Protected Material is returned or destroyed, the Receiving 15 Party must submit a written certification to the Producing Party (and, if not the same 16 person or entity, to the Designating Party) by the 60 day deadline that (1) identifies 17 (by category, where appropriate) all the Protected Material that was returned or 18 destroyed and (2) affirms that the Receiving Party has not retained any copies, 19 abstracts, compilations, summaries or any other format reproducing or capturing any 20 of the Protected Material. Notwithstanding this provision, Counsel are entitled to 21 retain an archival copy of all pleadings, motion papers, trial, deposition, and hearing 22 transcripts, legal memoranda, correspondence, deposition and trial exhibits, expert 23 reports, attorney work product, and consultant and expert work product, even if such 24 materials contain Protected Material. Any such archival copies that contain or 25 constitute Protected Material remain subject to this Protective Order as set forth in 26 Section 4 (DURATION). 27 28 17 Case ¥:22-cv-03822-DMG-PD Document 26 Filed 12/01/22 Page 18o0f20 Page ID #:164

1 || 14. Any violation of this Order may be punished by any and all appropriate 2 || measures including, without limitation, contempt proceedings and/or monetary 3 || sanctions. 5 || ITIS SO STIPULATED, THROUGH COUNSEL OF RECORD. 7 || DATED: November 30, 2022 9 || s/Scott Yoo 10 Attorneys for Plaintiff 1] □ DATED: November 30, 2022 13 14 s/Scott P. Shaw Attorneys for Defendant 15 16 '” | FOR GOOD CAUSE SHOWN, IT IS SO ORDERED. 18 19 DATED: December 1, 2022 20 21 Pataca Oona hoe 22 || Patricia Donahue 74 United States Magistrate Judge 24 25 26 27 28 18

Case 2:22-cv-03822-DMG-PD Document 26 Filed 12/01/22 Page 19 of 20 Page ID #:165

1 ATTESTATION 2 I hereby attest that all signatures listed above, on whose behalf this 3 Stipulation is submitted, have concurred in the filing’s contents and authorized the 4 filing. 5 6

7 DATED: December 1, 2022 By: s/ Scott Shaw Scott P. Shaw (Bar No. 223592) 8 [email protected] 9 MERCHANT & GOULD P.C. 8383 Wilshire Blvd., Suite 935 10 Beverly Hills, California 90211 Telephone: (949) 330-0202 11 Facsimile: (612) 332-9081

12 Attorneys for Defendant 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 19 Case 2:22-cv-03822-DMG-PD Document 26 Filed 12/01/22 Page 20 of 20 Page ID #:166

1 EXHIBIT A ACKNOWLEDGMENT AND AGREEMENT TO BE BOUND 2

3 I, ________________________ [print or type full name], of 4 _________________ [print or type full address], declare under penalty of perjury 5 that I have read in its entirety and understand the Stipulated Protective Order that 6 was issued by the United States District Court for the Central District of California 7 on [date] in the case of CLASSIC CONCEPTS, INC. dba CLASSIC HOME v. 8 BUNGALOW FIVE, LLC, Case No.: 22-cv-03822-DMG-PD. I agree to comply 9 with and to be bound by all the terms of this Stipulated Protective Order and I 10 understand and acknowledge that failure to so comply could expose me to sanctions 11 and punishment in the nature of contempt. I solemnly promise that I will not 12 disclose in any manner any information or item that is subject to this Stipulated 13 Protective Order to any person or entity except in strict compliance with the 14 provisions of this Order. 15 I further agree to submit to the jurisdiction of the United States District Court for 16 the Central District of California for the purpose of enforcing the terms of this 17 Stipulated Protective Order, even if such enforcement proceedings occur after 18 termination of this action. I hereby appoint ________________________ [print or 19 type full name] of _________ [print or type full address and telephone number] as 20 my California agent for service of process in connection with this action or any 21 proceedings related to enforcement of this Stipulated Protective Order. 22

23 Date: __________________________ 24 City and State where sworn and signed: _____________________________ 25

26 Printed name: ____________________________________ 27

28 Signature: ________________________________ 20

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