Global Commodities, Inc. v. Capital Distributors LLC

U.S. District Court, District of Minnesota

Global Commodities, Inc. v. Capital Distributors LLC

Trial Court Opinion

                 UNITED STATES DISTRICT COURT                            
                     DISTRICT OF MINNESOTA                               


Global Commodities, Inc.,                Case No. 24-cv-216 (JMB/DJF)    

               Plaintiff,                                                
v.                                                                       

ORDER

Capital Distributors LLC and                                             
Capital Imports, LLC,                                                    

               Defendants.                                               


    This matter is before the Court on the parties’ Joint Motion Regarding Continued Sealing 
(“Sealing Motion”) (ECF No. 93) filed in connection with Plaintiff’s Motion for Leave to Amend 
Complaint and Extend the Deadline for Filing the Amended Complaint (ECF No. 59).  Plaintiff 
filed its supporting memorandum on the underlying motion under seal (“Memorandum”) (ECF 
No. 61) and filed one supporting exhibit under seal (“Exhibit”) (ECF No. 64).  The sealed Exhibit 
is heavily redacted.  Plaintiff did not publicly file the redacted version of the Exhibit or file an 
unredacted version under seal.  Plaintiff did publicly file a redacted version of its Memorandum 
(ECF No. 62).                                                             
    The parties agree that Plaintiff’s Memorandum should be unsealed.  They ask the Court to 
keep the redacted portions of the Exhibit under seal because those portions contain trade secrets.  
(ECF No. 93 at 2.)  They agree the redacted Exhibit may be unsealed, however, and further agree 
the unredacted portions are not confidential.  (Id.)                      
I.   Legal Standard                                                       
    Parties may seal documents in a civil case “only as provided by statute or rule, or with 
leave of court.”  L.R. 5.6(a)(1).  “There is a common-law right of access to judicial records.”  IDT 
Corp. v. eBay, 
709 F.3d 1220
, 1222–23 (8th Cir. 2013) (citing Nixon v. Warner Commc'ns, 
Inc., 
435 U.S. 589, 597
 (1978)).  But the right of access is not absolute.  Id. at 1123.  The Court 
“‘must consider the degree to which [the relief requested] would interfere with the interests served 
by the common-law right of access and balance that interference against the salutary interests 
served by maintaining confidentiality of the information.’”  Cajune v. Indep. Sch. Dist. 194, 
105 F.4th 1070
, 1077 (8th Cir. 2024) (quoting IDT Corp., 
709 F.3d at 1223
).  “[T]he weight to be given 
to the presumption of [public] access must be governed by the role of the material at issue in the 
exercise of Article III judicial power and resultant value of such information to those monitoring 
the federal courts.”  
Id.
 at 1224 (quoting United States v. Amodeo, 
71 F.3d 1044, 1049
 (2d 
Cir. 1995)).                                                              
    When the documents at issue play a material role in the exercise of Article III power or are 
of value to those monitoring the federal courts, “the presumption of public access to judicial 
records may be overcome if the party seeking to keep the records under seal provides compelling 
reasons for doing so.”  Flynt v. Lombardi, 
885 F.3d 508, 511
 (8th Cir. 2018).  On the other hand, 
when the documents at issue do not play a material role in the exercise of Article III power or are 

of little value to those monitoring the courts, the presumption of public access instead “amounts 
to … a prediction of public access absent a countervailing reason.”  IDT Corp., 
709 F.3d at 1224
 
(quoting United States v. Amodeo, 
71 F.3d 1044, 1049
 (2d Cir. 1995)).     
II.  Analysis                                                             
    The documents at issue did not play a material role in the exercise of Article III power or 
any dipositive motion in this case.  The parties’ interests in confidentiality are thus afforded greater 
deference and a countervailing reason is all that is necessary to overcome the prediction of public 
access.  IDT Corp., 
709 F.3d at 1224
.                                     
    Based on the Court’s review of the Memorandum, and in light of the parties’ agreement 
that it should be unsealed, the Court finds unsealing it is appropriate.  Flynt, 
885 F.3d at 511
.  But 
because Plaintiff failed to file an unredacted version of the Exhibit under seal, the Court cannot 
evaluate whether the redacted portions contain trade secrets.  The Court thus cannot determine 
whether continued sealing of that document is appropriate.  The Court further notes that Plaintiff 

failed to publicly file a redacted version of the Exhibit as required by Local Rule 5.6(d)(2).  The 
Court directs Plaintiff to file a version of the Exhibit without redactions under temporary seal, in 
accordance with Local Rule 5.6(d)(1), by April 24, 2025, so it may properly determine whether 
the redacted portions of the Exhibit should remain under seal.  The parties must simultaneously 
file another joint sealing motion if they wish the unredacted Exhibit to remain under seal.  Based 
on the parties’ agreement, the Court further orders that the redacted version of the Exhibit (ECF 
No. 64) may be unsealed.                                                  

ORDER

    Based on the foregoing, and on all the files, records, and proceedings herein, IT IS 
HEREBY ORDERED that the parties’ Joint Motion Regarding Continued Sealing (ECF No. 93) 

is GRANTED IN PART AND DENIED IN PART as follows:                         
    1.  The Clerk of Court is directed to unseal the documents filed at ECF Nos. 61 and 64.  
    2.  Plaintiff shall file under temporary seal an unredacted version of the document filed at 
      ECF No. 64 by April 24, 2025.  The parties shall simultaneously file another joint 
      motion for continued sealing of the unredacted version of ECF No. 64, failing which 

      the Court will order the unredacted version to be unsealed.        
Dated:  April 16, 2025        s/ Dulce J. Foster                          
                             DULCE J. FOSTER                             
                             United States Magistrate Judge              

Trial Court Opinion

                 UNITED STATES DISTRICT COURT                            
                     DISTRICT OF MINNESOTA                               


Global Commodities, Inc.,                Case No. 24-cv-216 (JMB/DJF)    

               Plaintiff,                                                
v.                                                                       

ORDER

Capital Distributors LLC and                                             
Capital Imports, LLC,                                                    

               Defendants.                                               


    This matter is before the Court on the parties’ Joint Motion Regarding Continued Sealing 
(“Sealing Motion”) (ECF No. 93) filed in connection with Plaintiff’s Motion for Leave to Amend 
Complaint and Extend the Deadline for Filing the Amended Complaint (ECF No. 59).  Plaintiff 
filed its supporting memorandum on the underlying motion under seal (“Memorandum”) (ECF 
No. 61) and filed one supporting exhibit under seal (“Exhibit”) (ECF No. 64).  The sealed Exhibit 
is heavily redacted.  Plaintiff did not publicly file the redacted version of the Exhibit or file an 
unredacted version under seal.  Plaintiff did publicly file a redacted version of its Memorandum 
(ECF No. 62).                                                             
    The parties agree that Plaintiff’s Memorandum should be unsealed.  They ask the Court to 
keep the redacted portions of the Exhibit under seal because those portions contain trade secrets.  
(ECF No. 93 at 2.)  They agree the redacted Exhibit may be unsealed, however, and further agree 
the unredacted portions are not confidential.  (Id.)                      
I.   Legal Standard                                                       
    Parties may seal documents in a civil case “only as provided by statute or rule, or with 
leave of court.”  L.R. 5.6(a)(1).  “There is a common-law right of access to judicial records.”  IDT 
Corp. v. eBay, 
709 F.3d 1220
, 1222–23 (8th Cir. 2013) (citing Nixon v. Warner Commc'ns, 
Inc., 
435 U.S. 589, 597
 (1978)).  But the right of access is not absolute.  Id. at 1123.  The Court 
“‘must consider the degree to which [the relief requested] would interfere with the interests served 
by the common-law right of access and balance that interference against the salutary interests 
served by maintaining confidentiality of the information.’”  Cajune v. Indep. Sch. Dist. 194, 
105 F.4th 1070
, 1077 (8th Cir. 2024) (quoting IDT Corp., 
709 F.3d at 1223
).  “[T]he weight to be given 
to the presumption of [public] access must be governed by the role of the material at issue in the 
exercise of Article III judicial power and resultant value of such information to those monitoring 
the federal courts.”  
Id.
 at 1224 (quoting United States v. Amodeo, 
71 F.3d 1044, 1049
 (2d 
Cir. 1995)).                                                              
    When the documents at issue play a material role in the exercise of Article III power or are 
of value to those monitoring the federal courts, “the presumption of public access to judicial 
records may be overcome if the party seeking to keep the records under seal provides compelling 
reasons for doing so.”  Flynt v. Lombardi, 
885 F.3d 508, 511
 (8th Cir. 2018).  On the other hand, 
when the documents at issue do not play a material role in the exercise of Article III power or are 

of little value to those monitoring the courts, the presumption of public access instead “amounts 
to … a prediction of public access absent a countervailing reason.”  IDT Corp., 
709 F.3d at 1224
 
(quoting United States v. Amodeo, 
71 F.3d 1044, 1049
 (2d Cir. 1995)).     
II.  Analysis                                                             
    The documents at issue did not play a material role in the exercise of Article III power or 
any dipositive motion in this case.  The parties’ interests in confidentiality are thus afforded greater 
deference and a countervailing reason is all that is necessary to overcome the prediction of public 
access.  IDT Corp., 
709 F.3d at 1224
.                                     
    Based on the Court’s review of the Memorandum, and in light of the parties’ agreement 
that it should be unsealed, the Court finds unsealing it is appropriate.  Flynt, 
885 F.3d at 511
.  But 
because Plaintiff failed to file an unredacted version of the Exhibit under seal, the Court cannot 
evaluate whether the redacted portions contain trade secrets.  The Court thus cannot determine 
whether continued sealing of that document is appropriate.  The Court further notes that Plaintiff 

failed to publicly file a redacted version of the Exhibit as required by Local Rule 5.6(d)(2).  The 
Court directs Plaintiff to file a version of the Exhibit without redactions under temporary seal, in 
accordance with Local Rule 5.6(d)(1), by April 24, 2025, so it may properly determine whether 
the redacted portions of the Exhibit should remain under seal.  The parties must simultaneously 
file another joint sealing motion if they wish the unredacted Exhibit to remain under seal.  Based 
on the parties’ agreement, the Court further orders that the redacted version of the Exhibit (ECF 
No. 64) may be unsealed.                                                  

ORDER

    Based on the foregoing, and on all the files, records, and proceedings herein, IT IS 
HEREBY ORDERED that the parties’ Joint Motion Regarding Continued Sealing (ECF No. 93) 

is GRANTED IN PART AND DENIED IN PART as follows:                         
    1.  The Clerk of Court is directed to unseal the documents filed at ECF Nos. 61 and 64.  
    2.  Plaintiff shall file under temporary seal an unredacted version of the document filed at 
      ECF No. 64 by April 24, 2025.  The parties shall simultaneously file another joint 
      motion for continued sealing of the unredacted version of ECF No. 64, failing which 

      the Court will order the unredacted version to be unsealed.        
Dated:  April 16, 2025        s/ Dulce J. Foster                          
                             DULCE J. FOSTER                             
                             United States Magistrate Judge              

Reference

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