SAN JOSE, Calif. (Legal Newsline) - LIV Golf will try to convince a federal judge that previously sealed court documents should stay that way, as the New York Times fights for access.
California federal judge Beth Labson Freeman on Aug. 24 granted the Times' motion to intervene and ordered LIV Golf to show why certain court documents from its now-settled dispute with the PGA Tour should remain out of the public's reach.
The case presents important issues in which the public has a legitimate interest, lawyers for the newspaper wrote in a June 16 motion to intervene in the case. Golfers who took deals at LIV like Phil Mickelson and Bryson DeChambeau sued the PGA Tour in California federal court, alleging the PGA Tour used its power to squash competition from LIV.
In turn, the PGA Tour said LIV's lack of success came from the fact it was funded by Saudi Arabia, given criticism of corruption and human rights abuses in the country.
In the end, the two put their differences aside to merge but that doesn't mean what was disclosed to the court under seal should stay secret forever, the New York Times says.
The Times wants documents sealed in four court orders between Feb. 9 and April 10. Freeman rejected its request for a sealed motion to dismiss by the Public Investment Fund of the Kingdom of Saudi Arabia.
"To prevail on its First Amendment argument, NYT must show, under the experience and logic test, that access to motions to dismiss mooted by dismissal of the entire action (1) is a historical right of the press and general public and (2) plays a significant positive role in the functioning of the particular governmental process in question," Freeman wrote. "NYT has not made these arguments."
Within 14 days of the order, LIV must file a statement "articulating compelling reasons for and a substantial interest in maintaining under seal" documents filed by the PGA Tour and discovery materials.
"(A)t issue are claims that a foreign state, using the immense power and wealth of a sovereign investment fund, may have tortiously interfered with a United States enterprise - and, apparently, arguments by those counterclaim defendants that they are not subject to the full jurisdiction of U.S. Courts," the Times wrote.
"As the court previously has held, who controls LIV goes to the heart of the merits of the counterclaim thus rendering the public interest in access to the information especially great."
Relevant records to whether the Public Investment Fund of Saudi Arabia and its governor, Yasir Al-Rumayyan, misled the California court, like LIV's shareholder agreement, remain sealed, the Times wrote.
"Only adding to these interests are President Trump and members of his former administration's close business ties to LIV Golf and PIF and the political and diplomatic impact of Saudi Arabia's involvement," the motion says.
"These are precisely the kinds of public concerns - allegations of harm to the public, affecting an international sport, implicating a sovereign state and the court's jurisdiction - that weigh heavily in favor of disclosure."