Insured Advocacy Group, LLC v. Spartan Services Corp.

Background

Insured Advocacy Group, LLC asked for permission to file a redacted version of the parties’ settlement agreement. The agreement had been referenced in the parties’ amended stipulation of dismissal and order of dismissal. The plaintiff said it needed to file the agreement because it provided for the court to retain jurisdiction to enforce the settlement terms, and the court had advised that it could not retain jurisdiction without the agreement being filed.

The requested redactions covered the settlement’s monetary terms. The plaintiff argued that disclosure could benefit competitors in the factoring industry and harm its negotiating position in other pending litigation. It also argued that the public had no material interest in the settlement’s detailed financial terms. The plaintiff stated that Spartan Services Corp. did not oppose the request.

Court’s analysis

The court stated that a settlement agreement filed with the court is a judicial document and is generally subject to public access. The court also recognized that countervailing factors can support limited redactions when the parties make a compelling showing of the need for confidentiality. The court noted that an understanding that a settlement would remain confidential, by itself, is not enough to justify sealing.

Ruling

The court permitted the requested limited redactions of the settlement agreement. It warned the parties that it would revisit the order if a motion to enforce the settlement were filed or if the settlement otherwise became relevant to a requested judicial action.