Ayres v. Teleios LS Holdings DE, LLC

Background

The plaintiff, John Ayres, acting as voluntary liquidator of Himelsein Mandel Offshore Limited, proposed filing a First Amended Complaint. The proposed complaint referred to and included exhibits containing documents produced by Oaktree Capital Management, L.P. Oaktree had designated those documents confidential under an agreed protective order. The plaintiff’s counsel asked Oaktree to remove the confidentiality designations, but Oaktree declined.

The plaintiff therefore sought permission to file certain exhibits under seal and to file the First Amended Complaint with redactions. The plaintiff said it took no position on whether the documents legally deserved confidential treatment. It also notified Oaktree that, as the party that designated the documents confidential, Oaktree would need to explain why sealing or redaction was warranted.

Order

The court permitted the materials identified in the plaintiff’s letter to be filed under seal on a provisional basis. By August 4, 2023, Oaktree was required to state whether it sought to keep the documents sealed or redacted and, if so, to provide the grounds for that request.

Public-access principles

Judge Vernon S. Broderick reminded the parties that court filings are subject to a strong presumption of public access under the First Amendment and federal common law. The court also noted that courts in the Southern District of New York have routinely held that the mere existence of a confidentiality agreement does not by itself justify sealing or redacting material, especially in a complaint.

This order addressed filing restrictions and confidentiality. It did not decide the parties’ underlying claims.