Court Opinion

ID: 9954326
Source: CourtListenerOpinion
Date Created: 2024-03-25 21:11:28.933157+00
Date Added: 2024-06-11T08:12:02.528318
License: Public Domain

AGP Holdings Two LLC v Certain Underwriters at
                   Lloyd's of London
               2024 NY Slip Op 30917(U)
                     March 19, 2024
           Supreme Court, New York County
        Docket Number: Index No. 654742/2020
                  Judge: Joel M. Cohen
Cases posted with a "30000" identifier, i.e., 2013 NY Slip
 Op 30001(U), are republished from various New York
 State and local government sources, including the New
  York State Unified Court System's eCourts Service.
 This opinion is uncorrected and not selected for official
                       publication.
 [FILED: NEW YORK COUNTY CLERK 03/19/2024 04:55 P~                                                                      INDEX NO. 654742/2020
  NYSCEF DOC. NO. 1391                                                                                            RECEIVED NYSCEF: 03/19/2024

            SUPREME COURT OF THE STATE OF NEW YORK
            COUNTY OF NEW YORK: COMMERCIAL DIVISION PART 03M
            ----------------------------------------------------------------------------------- X

                AGP HOLDINGS TWO LLC, AGP HOLDINGS THREE                                            INDEX NO.         654742/2020
                LLC, AGP HOLDINGS ONE LLC,

                                                          Plaintiffs,                               MOTION DATE        09/15/2023

                                                - V -                                               MOTION SEQ. NO.        018
                CERTAIN UNDERWRITERS AT LLOYD'S OF LONDON
                INCLUDING SYNDICATE NOS. 4000, 5000, 2121, 2987,                                     DECISION+ ORDER ON
                4020, 1861, 1221, 1183, 4711, 5151, 1686, AND 4472 AT                                      MOTION
                LLOYD'S AND THEIR UNDERWRITING MEMBERS,
                GREAT LAKES INSURANCE SE, SWISS RE
                INTERNATIONAL SE, AIG PROPERTY CASUALTY
                COMPANY, FEDERAL INSURANCE COMPANY,

                                                          Defendants.
            ----------------------------------------------------------------------------------- X

            HON. JOEL M. COHEN:

            The following e-filed documents, listed by NYSCEF document number (Motion 018) 447,448,449,450,
            451,452,453,454,455,456,457,458,459,460,461,462,464,525,526,527,552,553,554,555,
            556,557,558,559,560,561
            were read on this motion to                                                      SEAL OR REDACT

                      This case concerns alleged damages to a valuable art collection. Plaintiffs AGP Holdings

            Two LLC's, AGP Holdings Three LLC's and AGP Holdings One LLC's ("Plaintiffs") move to

            seal documents produced by non-party Gagosian Gallery ("Gagosian" and the "Gagosian

            Documents"). Defendants (the "Insurers") oppose. 1 For the reasons that follow, the motion is

            denied without prejudice to renewal and proposing targeted redactions in compliance with the

            Part 3 Sealing Practices and Procedures.

            1
             The Insurers submitted a consolidated memorandum oflaw in opposition to Mot. Seq. Nos. 18
            and 19 (NYSCEF 552) and incorporate the same arguments in opposing Mot. Seq. Nos. 19, 21
            and 22. Separate orders will issue in Mot. Seq. No. 19, 21 and 22.

                654742/2020 AGP HOLDINGS TWO LLC vs. CERTAIN UNDERWRITERS AT                                            Page 1 of4
                Motion No. 018

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 [FILED: NEW YORK COUNTY CLERK 03/19/2024 04:55 P~                                                 INDEX NO. 654742/2020
  NYSCEF DOC. NO. 1391                                                                     RECEIVED NYSCEF: 03/19/2024

                   Pursuant to § 216.1 ( a) of the Uniform Rules for Trial Courts, this Court may seal a filing

            "upon a written finding of good cause, which shall specify the grounds thereof. In determining

            whether good cause has been shown, the court shall consider the interests of the public as well as

            of the parties" (22 NYCRR § 216.1 [a]).

                   The Appellate Division has emphasized that "there is a broad presumption that the public

            is entitled to access to judicial proceedings and court records" (Mosallem v Berenson, 76 AD3d

            345, 348 [1st Dept 2010]). "Since the right [of public access to court proceedings] is of

            constitutional dimension, any order denying access must be narrowly tailored to serve

            compelling objectives, such as a need for secrecy that outweighs the public's right to access"

            (Danco Labs., Ltd. v Chemical Works of Gedeon Richter, Ltd., 274 AD2d 1, 6 [1st Dept 2000]

            [emphasis added]; see also, e.g. Gryphon Dom. VL LLC v APP Intern. Fin. Co., B. V, 28 AD3d

            322, 324 [1st Dept 2006]).

                   Sealing is generally limited to "trade secrets, confidential business information, or

            proprietary information" (Vergara v Mission Capital Advisors, LLC, 187 AD3d 495 [1st Dept

            2020]). "Furthermore, because confidentiality is the exception and not the rule, 'the party

            seeking to seal court records has the burden to demonstrate compelling circumstances to justify

            restricting public access"' (Maxim, Inc. v Feifer, 145 AD3d 516, 517 [1st Dept 2016] [citations

            omitted]). Narrowly tailored redactions are more likely to be permitted than sealing of an entire

            document (Danco Labs., 274 AD2d at 8).

                   The Gagosian Documents were produced with certain information, such as wiring

            information, redacted. Plaintiffs argue that financial information, including pricing information

            as well as insurance values of certain artworks, and artworks that are not at issue in this case is

            also confidential. Therefore, Plaintiffs submit that the Gagosian Documents are confidential and

             654742/2020 AGP HOLDINGS TWO LLC vs. CERTAIN UNDERWRITERS AT                           Page 2 of 4
             Motion No. 018

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 [FILED: NEW YORK COUNTY CLERK 03/19/2024 04:55 P~                                                   INDEX NO. 654742/2020
  NYSCEF DOC. NO. 1391                                                                       RECEIVED NYSCEF: 03/19/2024

            should be sealed in their entirety. Plaintiffs also propose redactions to filings referencing the

            Gagosian Documents.

                     Insurers argue that the financial information at issue is outdated, is highly relevant to the

            dispute, and that Plaintiffs have not demonstrated that competitive harm would result upon

            disclosure. Insurers also argue that this case is has generated significant media attention with

            articles appearing in The New York Times, Bloomberg, and The Art Newspaper (NYSCEF 554-

            561 ). Finally, Insurers argue that certain information sought to be sealed has been revealed in

            open court (NYSCEF 471).

                     That Gagosian treats the Documents as information as confidential is not by itself a

            sufficient basis for sealing under Mosallem and its progeny (Empros Tech. Fund XXIIL LLC v

            Meyer Glob. Mgt., LLC [N.Y. Sup Ct, New York County 2023]). Similarly, the fact that the

            documents reference purchase prices, insured values, location, potential sale information, expert

            compensation and other information is not sufficient to warrant sealing (Angiolillo v Christie's,

            Inc., 64 Misc 3d 500, 524 [Sup Ct, New York County 2019], affd, appeal dismissed.,_ 185 AD3d

            442 [1st Dept 2020] [citations omitted]).

                     The Court finds that the documents at issue do not contain trade secrets or other

            information that, if unsealed, would threaten a party or non-party's "competitive advantage" or

            even relate to their "present-day business" (Mosallem at *350-351 ). Plaintiffs have not

            established "specific harm ... that outweigh[ s] the importance of public access to the records"

            (id.).

                     However, the Court will provide an opportunity for the parties to demonstrate that

            specific portions of the documents warrant targeted redaction. Any subsequent motion seeking

            to address the above concerns should adhere to this Part's Sealing Practices and Procedures (see

             654742/2020 AGP HOLDINGS TWO LLC vs. CERTAIN UNDERWRITERS AT                            Page 3 of 4
             Motion No. 018

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 !FILED: NEW YORK COUNTY CLERK 03 /19 /2 024 04: 55 PM!                                           INDEX NO. 654742/2020
  NYSCEF DOC. NO. 1391                                                                      RECEIVED NYSCEF: 03/19/2024

            https://www.nycourts.gov/LegacyPDFS/courts/comdiv/NY/PDFs/part3-sea1ing-practices.pdf),

            including the requirement to submit an affidavit based on personal knowledge attesting to the

            factual bases for redaction and a spreadsheet setting forth a non-conclusory good faith basis for

            each proposed redaction.

                    Accordingly, it is

                    ORDERED that Plaintiffs' motion to seal is DENIED without prejudice; it is further

                    ORDERED that the documents filed as NYSCEF Document Numbers 449, 450, 452,

            454,456,458 and 460 shall remain provisionally sealed for 21 days from the date of the Court's

            entry of this Decision and Order on NYSCEF. If any party files a new motion to redact/seal

            confidential portions of the documents within that 21 day period, the documents shall remain

            provisionally sealed pending resolution of that motion. If no such motion is filed within 21 days

            from the entry of this Decision and Order, the parties shall alert the County Clerk that the motion

            to seal the above-referenced documents has been denied by the Court and that the documents

            should be unsealed on NYSCEF.

                    This constitutes the decision and order of the Court.

                    3/19/2024

                                                                       8
                      DATE                                                      JOEL M. COHEN, J.S.C.

                                     ~
             CHECK ONE:                  CASE DISPOSED                  NON-FINAL DISPOSITION

                                         GRANTED         0    DENIED    GRANTED IN PART          □ OTHER
             APPLICATION:                SETTLE ORDER                   SUBMIT ORDER

             CHECK IF APPROPRIATE:       INCLUDES TRANSFER/REASSIGN     FIDUCIARY APPOINTMENT    □ REFERENCE

             654742/2020 AGP HOLDINGS TWO LLC vs. CERTAIN UNDERWRITERS AT                         Page4 of 4
             Motion No. 018

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