Kraus USA, Inc. v. Magarik

Background

Counterclaim Defendant Todd Alexander asked for permission to file under seal a confidential settlement agreement with Counterclaimant Vigo Industries, LLC. The agreement was submitted as an exhibit to Alexander’s letter seeking a pre-motion conference about an anticipated motion for judgment on Vigo’s counterclaims against Kraus USA, Inc. and Alexander.

According to Alexander’s filing, the settlement agreement resolved a parallel case that Vigo had filed against Alexander and a third party in the District of New Jersey. Alexander also stated that Vigo referred to the agreement several times in its counterclaims, which allegedly involved a conspiracy to breach the settlement agreement.

Request

Alexander asked to file the agreement on the docket with a “Selected Parties” viewing level, making it accessible only to the court and counsel of record. He argued that the public had no interest in the agreement’s contents, that the parties had agreed to keep it confidential, and that protecting confidentiality would support settlement efforts in this and other litigation.

Ruling

Judge Edgardo Ramos granted Alexander’s request to file the confidential settlement agreement under seal. The opinion did not resolve the anticipated motion for judgment, Vigo’s counterclaims, or the merits of the parties’ dispute.