Defendants’ Fears That Rival May Use Information To Tortiously Interfere With Business Opportunities Does Not Warrant Attorneys’ Eyes Only Designation

On March 5, 2024, Justice Andrew Borrok granted a motion to compel discovery and declassify certain information marked by the Defendants as “Attorneys’ Eyes Only.” The court in Richmond Global Compass Fund Management GP, LLC, et al. v. Decio Nascimento, et al., Index No. 654190/2021, concluded that Defendants could not limit the provision of certain information solely to the Plaintiff’s attorney even if Defendants feared that the Plaintiff would use that information to tortiously interfere with Defendants’ current and prospective business relations. The Court explained, in part:

[Plaintiff] must be permitted to participate meaningfully in discovery as his input into analyzing the discovery information will be important in understanding whether any of the alleged harms actually occurred. To the extent that the Defendants express concern that [Plaintiff] may tortiously interfere with an existing or prospective business opportunity, should he do so, they may seek legal redress and may interpose a counterclaim if appropriate or may if appropriate start a separate plenary action.

The attorneys at Schlam Stone & Dolan frequently litigate discovery disputes involving sensitive business information. Contact the Commercial Division Blog Committee at commercialdivisionblog@schlamstone.com if you or a client have questions concerning such issues.