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Picciotto v. Salem Suede, Inc.

Confidential settlement agreement permitted disclosure of bankruptcy hearing transcript, which included references to agreement's terms, where parties expressly anticipated disclosure to gain release of attorneys' liens or for other specified purposes.

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APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MASSACHUSETTS [Hon. Robert E. Keeton, U.S. District Judge]

After disallowing appellants’ motion to release the sealed transcript of a hearing during which references were made to a confidential settlement agreement, the bankruptcy court denied their motion for reconsideration as well. The district court affirmed on intermediate review. See In re Salem Suede, Inc. (Foreign Car Ctr., Inc. v. The Travelers Indem. Co.), 241 B.R. 780 (D. Mass. 1999).

Prior to oral argument, we were informed by counsel to The Travelers Indemnity Company (“Travelers” or “appellee”) that the sealed transcript recently had been released by the bankruptcy court, notwithstanding the sealing order, in response to a Freedom of Information Act (“FOIA”) request by appellants’ counsel. Accordingly, we directed that counsel address at oral argument whether the intervening release of the sealed transcript effectively mooted the instant appeal, see U.S. Bancorp Mortgage Co. v. Bonner Mall P’ship, 513 U.S. 18, 21-22 (1994), and, if so, whether the judgments entered below should be set aside. We now remand to the bankruptcy court for further proceedings consistent with this opinion.

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