Red Rock Sourcing LLC v. JGX, LLC

Background

Rigz, LLC asked the court to seal exhibits supporting its response to the plaintiffs’ motion for leave to file a second amended complaint, along with portions of briefing discussing those exhibits. The materials concerned the Rigz Settlement Agreement, communications about that agreement, and proposed amendments to it. The filing stated that the court had previously permitted Rigz to file the settlement agreement under seal.

Legal standard

The filing described the Second Circuit’s three-step test for sealing judicial documents. First, the court determines whether the materials are “judicial documents”—documents submitted to and accepted by a court in an adjudicatory proceeding. Second, it weighs the presumption that the public should be able to access those documents. Third, it balances that presumption against countervailing interests, including privacy and confidentiality.

Rigz acknowledged that the Response Documents qualified as judicial documents because multiple parties had submitted them and they supported Rigz’s request to deny amendment on futility grounds, among other grounds. It argued, however, that the presumption of public access was weaker than it would be for materials supporting summary judgment. It further argued that the presumption was especially weak because the materials concerned a confidential settlement agreement that was not submitted for judicial approval. Rigz also argued that disclosure could undermine confidential settlement communications and that there was no overriding public interest in disclosure.

Ruling

The order directed that the requested settlement-related documents and certain portions of the briefing discussing them be sealed. The filing also proposed a schedule for a motion, response briefs, and reply briefs concerning sealing if additional briefing was required. Judge Cronan signed the order on February 14, 2023.