Farsura v. QC Terme US Corp
- Loretta Preska
- 1:21-cv-09030
- U.S. District Court · Southern District of New York
- 3
In Farsura v. QC Terme US Corp., Judge Lehrburger granted QC Terme US’s request to seal exhibits containing sensitive business information.
QC Terme US, the plaintiffs, and members of the public seeking access to the specified court filings were affected. The order restricts public access to the listed exhibits and translations; it does not decide the underlying dispute.
What happened
In Farsura v. QC Terme US Corp., QC Terme US asked the court to seal several exhibits and certified translations filed in support of its request for full briefing on the plaintiffs’ proposed amended complaint. The exhibits concerned QC Terme’s finances, business plans, projections, contracts, loan terms, and bank-account information.
QC Terme said disclosure could cause competitive harm and noted that the parties had designated the documents confidential. It also said the plaintiffs did not object to the sealing request. The court considered the public’s right to access court filings and the protection of confidential business information.
Judge Robert W. Lehrburger granted the request. The order sealed Exhibits 3, 8, 13, 14, 20, 21, 25, and 26 to the filing, along with the specified certified English translations.
The detailed version
- Farsura v. QC Terme US Corp · No. 1:21-cv-09030
- Loretta Preska
- Dec. 14, 2022
Background
QC Terme US asked the court to seal Exhibits 3, 8, 13, 14, 20, 21, 25, and 26 attached to its reply letter, along with certified English translations filed separately. The request concerned filings supporting QC Terme US’s request for full briefing on the plaintiffs’ motion for leave to amend their complaint.
QC Terme US stated that the exhibits contained nonpublic financial and commercial information concerning QC Terme US and previously dismissed defendants. The materials included financial statements, operating-budget assumptions, pricing information, business plans and projections, investment documents, contracts, loan terms, credit-agreement details, and bank-account information. QC Terme US also stated that the parties had designated the documents confidential and that the plaintiffs had not objected to the sealing request.
Court’s analysis
The letter discussed the common-law and First Amendment rights of public access to court documents. Under the cited standards, a document may receive a presumption of public access if it is relevant to the court’s work and useful in the judicial process. That presumption may be overcome when protecting higher interests, such as confidential business information, requires sealing that is appropriately limited.
The request argued that the documents contained the type of commercially sensitive information courts in the Southern District of New York regularly seal. It separately identified the financial information in Exhibits 13, 20, 21, 25, and 26, and the contractual and banking information in Exhibits 3, 8, and 14. The letter also stated that Exhibit 3 included bank-account information requiring redaction under Federal Rule of Civil Procedure 5.2(a).
Ruling
Judge Robert W. Lehrburger granted QC Terme US’s request. The order sealed the listed exhibits to the reply letter and the certified translations at ECF Nos. 242-3, 242-9, and 242-10. The opinion does not state that the court ruled on the merits of the underlying dispute.
Read the full 3-page opinion on CourtListener, the free public archive maintained by the Free Law Project.