The ability to file under seal documents containing confidential or proprietary information is often of significant concern to commercial litigants who wish to keep such information from competitors. To the surprise of some, succeeding on a sealing motion in the Commercial Division can be difficult due to the presumption of openness in New York courts.
The recent decision in Mosallem v. Bersenson1 illustrates the public versus private tensions with which New York courts must grapple when deciding sealing motions. Under the applicable rule, litigants must show “good cause” to justify sealing, and case law interpreting this standard has generally mandated a demonstration of “compelling circumstances.” While such a high standard may make sense in cases in which the public has a genuine interest, some have suggested its application to be too severe when applied to routine commercial disputes. The recent holding in Mosallem suggests that a more liberal interpretation of good cause may be more appropriate in commercial cases.
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