Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_08-cv-00590/USCOURTS-casd-3_08-cv-00590-0/pdf.json

Nature of Suit Code: 890
Nature of Suit: Other Statutory Actions
Cause of Action: 28:1332 Diversity-Injunctive &amp; Declaratory Relief

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1 Case No. 08cv0590

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UNITED STATES DISTRICT COURT 

SOUTHERN DISTRICT OF CALIFORNIA 

MEDIMPACT HEALTHCARE SYSTEMS, 

INC., a California corporation, 

 Plaintiff, 

v. 

SXC HEALTH SOLUTIONS, INC., an 

Illinois corporation; RICHARD SCOT 

GIAMBRUNO, an individual; THOMAS N. 

TABBACK, an individual; and 

INDEPENDENCE HEALTH STRATEGIES, 

a Florida limited liability company, 

 Defendants. 

Case No. 08cv0590-BTM(CAB) 

PROTECTIVE ORDER RE 

CONFIDENTIAL INFORMATION 

The Court has considered the parties’ Joint Motion for Protective Order re Confidential 

Information (Docket No. 26). Good cause appearing, the Joint Motion is GRANTED, as follows: 

1. The parties may designate any material (including writings, recordings and 

photographs as defined in Fed. R. Civ. P. 34) alleged by them to constitute or contain a trade 

secret or confidential information by stamping on or otherwise permanently affixing to such 

material prior to its production the designation “CONFIDENTIAL.” “CONFIDENTIAL” 

information, as used herein, means: financial information; information regarding existing and 

potential customers, including contact information, contract details, and renewal dates, customer 

preferences and needs for Pharmacy Benefits Management (“PBM”) services, purchase histories 

Case 3:08-cv-00590-BTM-CAB Document 28 Filed 07/24/08 Page 1 of 13
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and patterns, and pricing histories and patterns; internal rebate and benefit strategies; internal 

claims administration processes; internal network programs, information and strategies; renewal 

strategies; network administrative fees and rebates; and product and service offerings in research 

and development. 

2. The Parties may also designate any material “CONFIDENTIAL - ATTORNEYS’ 

EYES ONLY” by stamping or otherwise permanently affixing to such material prior to its 

production the designation “CONFIDENTIAL - ATTORNEYS’ EYES ONLY.” 

“CONFIDENTIAL – ATTORNEYS’ EYES ONLY” information is “CONFIDENTIAL” 

information that the Producing Party believes reasonably and in good faith would cause the 

Producing Party to suffer irreparable competitive harm, if publicly known or known by the 

Receiving Party or its agents or employees who would have access to the information under this 

Protective Order, with the exceptions listed in paragraph 11 herein. 

3. In addition to designating documents and other information confidential, the parties 

may also designate oral disclosures (in addition to deposition testimony) “CONFIDENTIAL” or 

“CONFIDENTIAL - ATTORNEYS’ EYES ONLY” through confirmation in writing within ten 

(10) days of the oral disclosure. The Parties agree to act reasonably with regard to designating 

material as “CONFIDENTIAL” and “CONFIDENTIAL – ATTORNEYS’ EYES ONLY” and to 

use good faith efforts to resolve disputes regarding such designations. Counsel for the parties 

further agree that pursuant to their roles as officers of the Court they will designate only such 

material as “CONFIDENTIAL” or “CONFIDENTIAL - ATTORNEYS’ EYES ONLY” as is 

reasonably required in their good judgment. 

4. Access to all originals, copies or compilations of material or information 

designated “CONFIDENTIAL” under this Protective Order and the contents thereof shall be 

limited to the persons designated under paragraph 9 herein. 

5. Access to all originals, copies or compilations of material or information 

designated “CONFIDENTIAL – ATTORNEYS’ EYES ONLY” under this Protective Order and 

the contents thereof shall be limited to the persons designated under paragraph 11 herein. 

/ / / 

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6. Should any person or entity not a party to this action who obtains access to all or 

any material or information designated “CONFIDENTIAL” or “CONFIDENTIAL – 

ATTORNEYS’ EYES ONLY” under this Protective Order, make extracts or summaries of or 

from such “CONFIDENTIAL” or “CONFIDENTIAL – ATTORNEYS’ EYES ONLY” material, 

or any portion thereof, the designation “CONFIDENTIAL” or “CONFIDENTIAL – 

ATTORNEYS’ EYES ONLY” as appropriate, shall also be stamped on or affixed to such extracts 

or summaries, and the references of this Protective Order to “CONFIDENTIAL” or 

“CONFIDENTIAL – ATTORNEYS’ EYES ONLY” material shall be deemed to include and to 

apply to such extracts and summaries, and to all information derived from “CONFIDENTIAL” or 

“CONFIDENTIAL – ATTORNEYS’ EYES ONLY” material. Should the parties or counsel for 

the parties to this action make extracts or summaries of or from material designated 

“CONFIDENTIAL” or “CONFIDENTIAL – ATTORNEYS’ EYES ONLY,” any such extracts or 

summaries shall be treated as “CONFIDENTIAL” or “CONFIDENTIAL – ATTORNEYS’ EYES 

ONLY” and shall be subject to the provisions of this Protective Order. 

7. “CONFIDENTIAL” and “CONFIDENTIAL – ATTORNEYS’ EYES ONLY” 

material shall be subject to this Protective Order until and unless the Court shall order otherwise or 

the parties agree otherwise by written stipulation. The parties and all persons bound by this 

Protective Order agree that they will not make any use of any “CONFIDENTIAL” or 

“CONFIDENTIAL – ATTORNEYS’ EYES ONLY” material or the contents of any 

“CONFIDENTIAL” or “CONFIDENTIAL – ATTORNEYS’ EYES ONLY” material except for 

the purposes of prosecuting or defending this litigation and for settlement or alternative dispute 

resolution purposes. 

8. “CONFIDENTIAL” or “CONFIDENTIAL – ATTORNEYS’ EYES ONLY” 

material shall not be used for any purpose or disclosed by any person granted access thereto, 

except insofar as and to the extent that such use or disclosure complies fully with all provisions of 

this Protective Order. 

/ / / 

/ / / 

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9. Except as is otherwise provided herein, access to and/or disclosure of all or any part 

of “CONFIDENTIAL” designated material or the contents of “CONFIDENTIAL” designated 

material shall be permitted only to the following persons and subject to the following conditions: 

(a) To the named parties to this action, and if any such party is a business 

entity, to no more than two designated representatives from the entity. 

(b) To the Court and its personnel. 

(c) To court reporters, stenographers or videographers, or other persons 

preparing transcripts or videos of testimony under the supervision of a court reporter, 

stenographer or videographer. 

(d) To a deponent at any deposition taken in this action who drafted the 

material at issue, was an original recipient of the material, who is currently employed by 

the party who designated the material "CONFIDENTIAL," or who counsel agrees may be 

shown the material at the deposition. 

(e) To counsel employed by the parties, to such counsel’s regular employees 

assigned to and necessary to assist counsel in preparing for trial, and to third party 

reproduction vendors retained by counsel employed by the parties. All employees of 

counsel, in-house counsel and the party representatives to whom such access is permitted 

and/or disclosure is made, shall be subject to all provisions and conditions contained 

herein. Prior to granting access to “CONFIDENTIAL” material, employees of the parties’ 

counsel and the party representatives shall be advised of the provisions of this Protective 

Order and must agree to be bound by the Protective Order. 

(f) To persons retained by the parties or by the parties’ counsel as expert 

witnesses or expert consultants (“expert(s)”) to assist the parties’ counsel in the preparation 

for that portion of the trial of this action relating to the “CONFIDENTIAL” material to be 

disclosed. Experts shall not be employed by or affiliated with a competitor of any party. 

“Competitor” is defined as a person or entity engaged in Pharmacy Benefits Management 

services. 

/ / / 

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(g) Any person to whom disclosure of “CONFIDENTIAL” material is allowed 

under subparagraph (f) shall, prior to receiving such material, be given a copy of this 

Protective Order and shall agree, in writing, to be bound by its terms by execution of the 

form attached hereto as Exhibit “A.” Each party’s counsel shall retain the original of each 

such executed form. 

(h) Each party’s counsel shall be responsible for ensuring that any undisclosed 

litigation consultant hired by counsel agrees, in writing, to be bound by the terms of this 

Protective Order by execution of the form attached hereto as Exhibit “A,” and that such 

consultant, if afforded “CONFIDENTIAL” information, is not a competitor of any other 

party to this action. The retention of litigation consultants shall not be required to be 

disclosed to opposing counsel; however, counsel shall also retain copies of Exhibit “A” 

executed by all litigation consultants. 

(i) All persons granted access to any “CONFIDENTIAL” material or the 

contents of any “CONFIDENTIAL” material covered by this Protective Order hereby 

agree to be subject to the restrictions imposed by this Protective Order and to submit to the 

personal jurisdiction of the above-entitled Court for the limited purpose of securing 

compliance with the terms of this Protective Order. 

10. Except as permitted by paragraph 9 above, the parties, their counsel, experts and 

other persons designated under paragraph 9 who receive “CONFIDENTIAL” material or any 

information derived therefrom shall not permit access to or make disclosure of 

“CONFIDENTIAL” material to anyone unless the parties agree in writing or unless the provisions 

of this Protective Order are met (the “Disclosure Limitation”). The Disclosure Limitation shall 

become permanent unless counsel for one of the parties serves upon opposing counsel for the 

other parties, a written Request to Disclose Confidential Material (“Request to Disclose”) 

specifying in advance by bates stamp number which particular “CONFIDENTIAL” material the 

counsel giving such notice desires permission to allow access to or make disclosure of, to whom 

the access or disclosure is intended, and the reasons why such disclosure is necessary, pursuant to 

the other provisions of this Protective Order. Counsel for the parties shall make a good faith 

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attempt to informally resolve the issues raised in the Request to Disclose. The above-described 

Disclosure Limitation shall continue in effect until a ruling has been entered on a Request to 

Disclose “CONFIDENTIAL” material. If a Request to Disclose is granted, counsel for parties 

may make disclosure of or give access to “CONFIDENTIAL” material as provided in the ruling of 

the Court, but otherwise may not make copies of or distribute “CONFIDENTIAL” material unless 

provided for by this Protective Order or otherwise agreed to by written stipulation of the parties. 

11. Except as is otherwise provided herein, access to and/or disclosure of all or any part 

of “CONFIDENTIAL – ATTORNEYS’ EYES ONLY” designated material or the contents of 

“CONFIDENTIAL – ATTORNEYS’ EYES ONLY” designated material shall be permitted only 

to the following persons and subject to the following conditions: 

(a) To the named parties and, if any party is a business entity, to no more than 

two (2) designated corporate representatives of each business entity party. Designated 

corporate representatives must be in-house attorneys associated with the entity and agree in 

writing to abide by the terms of this Protective Order. 

(b) To the Court and its personnel. 

(c) To court reporters, stenographers or videographers, or other persons 

preparing transcripts or videos of testimony under the supervision of a court reporter, 

stenographer or videographer. 

(d) To a deponent at any deposition taken in this action who drafted the 

material at issue, was an original recipient of the material, who is currently employed by 

the party who designated the material "CONFIDENTIAL" or "CONFIDENTIAL - 

ATTORNEYS' EYES ONLY", or who counsel agrees may be shown the material at the 

deposition. 

(e) To counsel employed by the parties, to such counsel’s regular employees 

assigned to and necessary to assist counsel in preparing for trial, and to third party 

reproduction vendors retained by counsel employed by the parties.. All employees of 

counsel, in-house counsel and the party representatives to whom such access is permitted 

and/or disclosure is made, shall be subject to all provisions and conditions contained 

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herein. Prior to granting access to “CONFIDENTIAL – ATTORNEYS’ EYES ONLY” 

material, employees of the parties’ counsel and the party representatives shall be advised 

of the provisions of this Protective Order and must agree to be bound by the Protective 

Order. 

(f) To persons retained by the parties or by the parties’ counsel as expert 

witnesses or expert consultants (“expert(s)”) to assist the parties’ counsel in the preparation 

for that portion of the trial of this action relating to the “CONFIDENTIAL - 

ATTORNEYS’ EYES ONLY” material to be disclosed. Experts shall not be employed by 

or affiliated with a competitor of any party. “Competitor” is defined as a person or entity 

engaged in Pharmacy Benefits Management services. 

(g) Any person to whom disclosure of “CONFIDENTIAL - ATTORNEYS’ 

EYES ONLY” material is allowed under subparagraph (f) shall, prior to receiving such 

material, be given a copy of this Protective Order and shall agree, in writing, to be bound 

by its terms by execution of the form attached hereto as Exhibit “A.” Each party’s counsel 

shall retain the original of each such executed form. 

(h) Each party’s counsel shall be responsible for ensuring that any undisclosed 

litigation consultant hired by counsel agrees, in writing, to be bound by the terms of this 

Protective Order by execution of the form attached hereto as Exhibit “A,” and that such 

consultant, if afforded “CONFIDENTIAL - ATTORNEYS’ EYES ONLY” information, is 

not a competitor of any other party to this action. The retention of litigation consultants 

shall not be required to be disclosed to opposing counsel. 

(i) All persons granted access to any “CONFIDENTIAL - ATTORNEYS’ 

EYES ONLY” material or the contents of any “CONFIDENTIAL - ATTORNEYS’ EYES 

ONLY” material covered by this Protective Order hereby agree to be subject to the 

restrictions imposed by this Protective Order and to submit to the personal jurisdiction of 

the above-entitled Court for the limited purpose of securing compliance with the terms of 

this Protective Order. 

/ / / 

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12. Absent advance written consent from the Designating Party, materials designated 

“CONFIDENTIAL - ATTORNEYS’ EYES ONLY” or any information derived therefrom may 

only be disclosed or made available to the persons listed in paragraph 11 herein. The respective 

parties may each designate experts and retain consultants in connection with the subject matter of 

this action, for sole use in this litigation who may receive “CONFIDENTIAL” and 

“CONFIDENTIAL - ATTORNEYS’ EYES ONLY” material, provided: (1) prior to receiving any 

CONFIDENTIAL information, such experts shall execute the form annexed hereto as Exhibit A; 

(2) such experts agree not to use any “CONFIDENTIAL” or “CONFIDENTIAL - ATTORNEYS’ 

EYES ONLY” information for a commercial or competitive purpose; and (3) such experts shall 

not discuss or otherwise disclose any “CONFIDENTIAL” or “CONFIDENTIAL - ATTORNEYS’ 

EYES ONLY” material or the contents thereof with anyone but the persons set forth in paragraphs 

9 and 11 herein, as applicable. 

13. All deposition testimony of the parties and non-party witnesses, and exhibits to 

such depositions, shall be designated “CONFIDENTIAL” while the deposition is taken and shall 

remain designated as “CONFIDENTIAL” for 10 days after the deposition transcript is delivered. 

Within the 10-day period, any party may designate any portion of the deposition transcript and/or 

exhibits to the deposition as “CONFIDENTIAL” or “CONFIDENTIAL - ATTORNEYS’ EYES 

ONLY.” During the deposition any party may also designate certain portions of the testimony 

“CONFIDENTIAL” or “CONFIDENTIAL - ATTORNEYS’ EYES ONLY.” Any portion of the 

deposition transcript and/or any exhibits not designated as “CONFIDENTIAL” or 

“CONFIDENTIAL - ATTORNEYS’ EYES ONLY” within the 10-day period shall not be subject 

to the provisions of this Protective Order. Every party that has a copy of the deposition transcript 

and/or exhibits shall mark the portion of the deposition transcript and/or exhibits designated as 

“CONFIDENTIAL” or “CONFIDENTIAL - ATTORNEYS’ EYES ONLY” with a label stating 

the same, as appropriate, and such portion of the deposition transcript and/or exhibits shall be 

treated as “CONFIDENTIAL” or “CONFIDENTIAL - ATTORNEYS’ EYES ONLY,” as 

appropriate, pursuant to the Protective Order. This Protective Order does not preclude presenting 

the original of the transcript in its entirety to the deponent for review, correction and signing, nor 

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does it preclude delivery by the reporter of copies of deposition transcripts containing and/or 

annexing “CONFIDENTIAL” or “CONFIDENTIAL - ATTORNEYS’ EYES ONLY” material, in 

its entirety and marked with the designation “CONFIDENTIAL” or “CONFIDENTIAL - 

ATTORNEYS’ EYES ONLY,” to counsel for the parties to this Protective Order, which 

transcripts shall then be maintained by such counsel in accordance with the provisions of this 

Protective Order. This Protective Order does preclude use of “CONFIDENTIAL” or 

“CONFIDENTIAL – ATTORNEYS’ EYES ONLY” material to prepare any witnesses not 

allowed access in paragraphs 9 and 11, unless they are the author or an original recipient of the 

material. 

14. Any party may make a good faith request that no one be present for a portion of a 

deposition in which trial counsel reasonably anticipates that “CONFIDENTIAL” or 

“CONFIDENTIAL - ATTORNEYS’ EYES ONLY” material will be disclosed or discussed 

except the deponent, counsel, officers of the Court, including the reporter, and other persons 

otherwise permitted access to such material under paragraphs 9 and 11 of this Protective Order, 

who have agreed in writing, or under oath in deposition, to be bound by this Protective Order. 

Counsel shall make appropriate arrangements to ensure that only such persons are present during 

such portion of a deposition. Failure to make such a good faith request shall not be deemed a 

waiver by any party to designate any portion of the deposition transcript or exhibits as 

“CONFIDENTIAL” or “CONFIDENTIAL - ATTORNEYS’ EYES ONLY.” 

15. If either party desires to use “CONFIDENTIAL” or “CONFIDENTIAL - 

ATTORNEYS’ EYES ONLY” material in any motion, pleading or other document filed with the 

Court, the material shall be filed under seal in accordance with the Court’s rules. Subject to public 

policy, and further Court order, nothing shall be filed under seal, and the Court shall not be 

required to take any action, without separate prior order by the Judge before whom the hearing or 

proceeding will take place, after application by the affected party with appropriate notice to 

opposing counsel. 

/ / / 

/ / / 

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16. If any party desires at a hearing to offer into evidence “CONFIDENTIAL” or 

“CONFIDENTIAL - ATTORNEYS’ EYES ONLY” material, or to use “CONFIDENTIAL” or 

“CONFIDENTIAL - ATTORNEYS’ EYES ONLY” material in such a way as to reveal its nature 

or contents, such offers or use shall be made only after adequate notice to opposing counsel and 

upon the taking of all steps reasonably available to preserve the confidentiality of such 

“CONFIDENTIAL” or “CONFIDENTIAL - ATTORNEYS’ EYES ONLY” material, which may 

include the offering of such “CONFIDENTIAL” or “CONFIDENTIAL - ATTORNEYS’ EYES 

ONLY” material outside the presence of persons other than Court personnel and counsel. At a 

later date, the Court shall enter appropriate orders governing how such materials shall be handled 

at trial. 

17. This Protective Order shall remain in full force and effect during the time in which 

an appeal from the entry of judgment may be taken and, if an appeal is taken, during the pendency 

of the appeal and until the judgment in the action becomes final. 

18. No later than sixty (60) days after the final termination of this action, whether by 

final judgment, or settlement: 

(a) Each party shall request that the clerk of the Court return all 

“CONFIDENTIAL” or “CONFIDENTIAL - ATTORNEYS’ EYES ONLY” material filed 

under seal by that party pursuant to this Protective Order. 

(b) Counsel for all parties, and each person or entity, who obtained 

“CONFIDENTIAL” or “CONFIDENTIAL - ATTORNEYS’ EYES ONLY” material 

subject to this Protective Order, shall assemble and return to the party so designating the 

material and that party’s counsel “CONFIDENTIAL” or “CONFIDENTIAL - 

ATTORNEYS’ EYES ONLY” material in their possession or subject to their control. 

Persons in possession of “CONFIDENTIAL” or “CONFIDENTIAL - ATTORNEYS’ 

EYES ONLY” material may destroy such material in lieu of returning it, on condition that 

the party or its attorney provide the opposing parties or their attorney with certification of 

destruction and a statement identifying the general categories of documents destroyed. 

“CONFIDENTIAL” or “CONFIDENTIAL - ATTORNEYS’ EYES ONLY” material 

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constituting the work product of trial counsel shall be immediately destroyed or, in the 

alternative, maintained by such counsel in its possession subject to this Protective Order 

until further order of the Court. 

19. The designation of documents or information as “CONFIDENTIAL” or 

“CONFIDENTIAL - ATTORNEYS’ EYES ONLY” under this Protective Order shall not restrict 

use of duplicates or copies of the specific information, documents or knowledge acquired 

independently from this litigation, to the extent that the information was publicly available, 

acquired legally and not misappropriated from a party to the litigation. However, in the event of a 

dispute regarding such independent acquisition, the acquiring party shall bear the burden of proof 

to show that the party’s acquisition of the material was independent. 

20. Notwithstanding any other provision contained herein, this Protective Order is 

without prejudice to the rights of any party to move the Court for an Order for protection of 

confidential material or information sought by or produced through discovery, which protection is 

different from or in addition to that provided for herein, and such right is hereby expressly 

reserved. Similarly, the parties expressly reserve the right at any time to request the Court to 

authorize disclosure of materials or to seek modification of this Protective Order in the interests of 

justice. 

21. The inadvertent or unintentional production or disclosure of “CONFIDENTIAL” or 

“CONFIDENTIAL - ATTORNEYS’ EYES ONLY” material, regardless of whether or not the 

information was so designated at the time of disclosure, shall not be deemed a waiver in whole or 

in part of a party’s claim of confidentiality, either as to the specific information disclosed or as to 

any other information relating thereto on the same or related subject matter. The Producing Party 

shall have 60 days from the date of disclosure to designate material produced as 

“CONFIDENTIAL” or “CONFIDENTIAL - ATTORNEYS’ EYES ONLY.” With regard to 

documents or other material produced prior to the entry of this Protective Order, the parties shall 

have 60 days from the entry of this Order to designate such material “CONFIDENTIAL” or 

“CONFIDENTIAL - ATTORNEYS’ EYES ONLY.” 

/ / / 

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22. This Protective Order is made without prejudice to any parties right to challenge 

the propriety of any parties’ designation, and in no way is an admission that any documents are, or 

have been, properly designated as “CONFIDENTIAL” or “CONFIDENTIAL - ATTORNEYS’ 

EYES ONLY.” 

23. In the event that any party challenges the designation of material as 

“CONFIDENTIAL” or “CONFIDENTIAL - ATTORNEYS’ EYES ONLY,” and after a good 

faith effort to meet and confer to resolve the dispute, the party disputing the designation may 

request appropriate relief from the Court. In any such application or motion, the designating party 

shall retain the burden of demonstrating that its designation was appropriate, and the Court may 

award attorneys' fees to the prevailing party should the Court find that materials were designated 

without substantial justification. 

24. Subject to public policy, and further court order, nothing shall be filed under seal, 

and the court shall not be required to take any action, without separate prior order by the Judge 

before whom the hearing or proceedings will take place, after application by the affected party 

with appropriate notice to opposing counsel. 

IT IS SO ORDERED. 

Dated: July 24, 2008 

 CATHY ANN BENCIVENGO 

 United States Magistrate Judge 

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EXHIBIT A 

I, __________________________________, declare and state as follows: 

1. I have read and been provided with a copy of the Joint Motion and Protective Order 

re Confidential Information (“Protective Order”) and I understand the requirements of the 

Protective Order, the parties who are allowed access to certain documents, and I agree to be bound 

by its terms. 

2. I understand that the documents which are disclosed or provided to me pursuant to 

the Protective Order are confidential, and I further understand and agree that I may not use such 

documents for any purpose other than the preparation for trial of the above-captioned litigation, 

and that I may not divulge any copies or the identity or substance of any of the documents 

disclosed to me except in the preparation for trial and trial of this case. 

3. I further understand and agree that I must return all documents disclosed pursuant 

to this Protective Order and all copies thereof to counsel for the providing party upon the 

termination of this litigation. 

4. I further acknowledge and agree that by signing this declaration, I submit myself 

personally to the jurisdiction of the above-captioned Court for the purposes of enforcement of the 

Protective Order, in connection with the allegations of improper disclosure or use, if any, of the 

disclosed materials. 

Dated: Signature 

101106541.1 

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