09/06/2026
Protective Orders in Lawsuits: Protecting Trade Secrets—or Hiding Evidence?
When an individual files a lawsuit against a large corporation—particularly in a product liability case—one of the first discovery disputes may involve something most clients have never heard of: a Protective Order.
The corporation may say, in effect:
We will produce our internal documents, but only after you agree that certain information will remain confidential.
Sometimes that request is entirely reasonable.
Other times, the plaintiff's lawyer needs to look very carefully at what the corporation is actually asking the court to keep secret.
Why Corporations May Legitimately Need Protection
Modern corporations possess enormous amounts of genuinely confidential information.
A lawsuit might require the production of proprietary engineering information, manufacturing processes, formulas, computer source code, confidential pricing information, customer information, research and development materials, or actual trade secrets.
A competitor should not be able to obtain valuable proprietary information simply because someone filed a lawsuit.
California law recognizes this legitimate concern. Code of Civil Procedure section 2031.060 permits a court, upon a showing of good cause, to protect trade secrets and other confidential research, development, or commercial information during discovery.
That makes sense.
A plaintiff usually does not need to publish a company's legitimate trade secrets on the Internet in order to prove a personal injury case.
But Where Is the Line?
The problem arises when the definition of "confidential" becomes so broad that virtually everything the corporation produces receives a confidentiality stamp.
Consider a hypothetical product liability case.
Suppose an internal corporate document contains engineering analysis suggesting that a particular product could fail under foreseeable conditions and cause serious injuries.
Or suppose internal testing revealed a safety problem years before the plaintiff was injured.
Or perhaps employees recommended a safer alternative design, but the company decided against implementing it because of cost.
Is that information truly a "trade secret"?
Or is it evidence concerning the safety of a product being sold to the public?
Those are very different things.
A Protective Order should protect legitimate confidential information. It should not automatically become a mechanism for placing potentially important public-safety information into a permanent litigation vault.
The Plaintiff Lawyer's Dilemma
From the plaintiff's perspective, there is another practical consideration.
We want the documents.
If the defendant says that signing a reasonable Protective Order will allow thousands of pages of engineering documents, testing records, emails, incident reports, and other evidence to be produced immediately, there may be good reason to enter into an appropriate agreement.
Spending six months fighting over confidentiality while important discovery remains stalled may not help the injured client.
But speed cannot be the only consideration.
The plaintiff's lawyer also has to ask:
What exactly are we agreeing to?
There is an enormous difference between agreeing that legitimate proprietary engineering information will remain confidential and agreeing that every internal document the corporation produces can automatically be stamped "CONFIDENTIAL."
The Danger of Over-Designation
A well-drafted Protective Order should not give either side unlimited power to determine what the public may never see.
The corporation should have a legitimate, good-faith basis for designating information confidential.
That distinction matters especially when documents concern subjects such as:
known product failures;
prior similar incidents;
internal safety testing;
accident investigations;
defect analysis;
engineering concerns;
rejected safety recommendations;
communications concerning recalls or corrective measures; or
management's knowledge of a potential danger.
The fact that a document is embarrassing or damaging to a corporation's position in litigation does not, by itself, make the document a trade secret.
Indeed, federal courts in California commonly use protective-order provisions specifically recognizing that confidentiality protections are not blanket protections and discouraging mass, indiscriminate, or tactical confidentiality designations.
A Protective Order Should Be a Shield, Not a Sword
There is a legitimate balance to be struck.
A corporation should be able to protect genuine trade secrets and commercially sensitive information.
An injured plaintiff should be able to obtain the evidence necessary to prosecute the case without unnecessary delay.
And neither side should be permitted to misuse the discovery process.
For the plaintiff's lawyer, that often means agreeing to reasonable confidentiality protections while pushing back against provisions that are unnecessarily broad, impose unreasonable burdens, prevent legitimate challenges to confidentiality designations, or attempt to transform ordinary evidence concerning product safety into a corporate secret.
The United States Supreme Court has recognized the legitimate role of protective orders in civil discovery, particularly where good cause exists. But the important concept is good cause. A Protective Order should be tailored to the information that actually warrants protection—not simply imposed as a blanket of secrecy over an entire lawsuit.
Why This Matters Beyond One Lawsuit
Product liability litigation can uncover information that would otherwise remain inside corporate files.
Sometimes that information simply concerns proprietary technology and deserves protection.
But sometimes those documents may tell a very different story: what a manufacturer knew about a danger, when it knew it, what testing revealed, what safer alternatives were considered, and what the company decided to do—or not do—about the problem.
Those documents can be critically important to the injured person bringing the lawsuit.
They may also concern a product still being used by thousands or millions of other people.
That is why the language of a Protective Order matters.
Legitimate trade secrets deserve legitimate protection. Evidence of a potential safety problem should not automatically become a "trade secret" simply because keeping it confidential is advantageous to the corporation.
The goal should be reasonable protection—not unnecessary secrecy.
Law Office of Adam Sorrells
Representing Injured People. Standing for Justice.
530-893-9900
The Law Office of Adam Sorrells represents personal injury victims throughout Butte County. The firm's Chico attorney has 25+ years of experience and membership in The American Board of Trial Advocates. Call now for a free consultation!
