Motions For Redaction, Unsealing, Granted In Part, Denied In Part

On July 11 2024, Justice Andrea Masley resolved various motions concerning the sealing or redaction of documents alleged to contain confidential business information. The case is Jaffrey v. Scaminaci, Index No. 653352/2022.

In bringing a motion for sanctions, defendant Carlos Andres Scaminaci had filed certain documents under seal in order to protect possible confidentiality interests of plaintiff Omar Jaffrey. Scaminaci then moved to unseal. While Jaffrey filed no opposition, non-parties Melody Capital Partners, L.P. and Melody Capital Partners GP, LLC (together, “Melody”) sought redactions to some of the documents that Scaminaci sought to unseal.

By separate motion, plaintiff Jaffrey sought to unseal his amended complaint, his memorandum in opposition to Scaminaci’s motion for sanctions, and papers filed on his cross-motion for costs and fees. While Scaminaci filed no opposition, Melody and fellow non-party Goldman Sachs & Co. (“Goldman”) each sought redaction of certain materials.

The Court noted the “broad presumption” under New York law that the public is entitled to access to judicial proceedings and court records. But the presumption “is not absolute” and may not apply where “where the disclosure of documents ‘could threaten a business's competitive advantage,’” Slip op., p. 3 (citation omitted), and “[r]ecords concerning financial information may be sealed where there has not been a showing of relevant public interest in the disclosure of that information.” Id., pp. 3-4.

Masley granted Scaminaci’s motion to unseal, but directed redaction as to documents that she concluded “contain confidential business information and strategies that could threaten Melody's competitive advantage if disclosed.” Id., p. 4. Similarly, in granting Jaffrey’s motion to unseal, she directed redaction as to such Melody documents, and of certain Goldman documents that she had found to contain “proprietary business information, such as pricing and fee structures” or personal contact information. Id., pp. 4-5.

Contact the Commercial Division Blog Committee at commercialdivisionblog@schlamstone.com if you or a client have questions concerning the sealing or confidentiality of court records.