Court Opinion

ID: 9958755
Source: CourtListenerOpinion
Date Created: 2024-04-09 20:10:59.28864+00
Date Added: 2024-06-11T08:17:36.117259
License: Public Domain

International Bus. Machs. Corp. v Global
                   Foundries U.S. Inc.
               2024 NY Slip Op 31066(U)
                     March 29, 2024
           Supreme Court, New York County
        Docket Number: Index No. 653625/2021
                 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.
                                                                                                                        INDEX NO. 653625/2021
  NYSCEF DOC. NO. 1359                                                                                            RECEIVED NYSCEF: 03/29/2024

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

             INTERNATIONAL BUSINESS MACHINES                                                        INDEX NO.         653625/2021
             CORPORATION,
                                                                                                                       11/10/2023,
                                                          Plaintiff,                                MOTION DATE        11/10/2023

                                                - V -
                                                                                                    MOTION SEQ. NO.        048
             GLOBALFOUNDRIES U.S. INC.,
                                                                                                     DECISION+ ORDER ON
                                                          Defendant.
                                                                                                           MOTION

            ----------------------------------------------------------------------------------- X

            The following e-filed documents, listed by NYSCEF document number (Motion 048) 1137, 1138, 1139,
            1140, 1141, 1142, 1143, 1144, 1145, 1146, 1147, 1148, 1149, 1150, 1151, 1152, 1153, 1154, 1155,
            1156, 1157, 1158, 1159, 1160, 1161, 1162, 1163, 1164, 1165, 1166, 1167, 1168, 1169, 1170, 1171,
            1172, 1173, 1174, 1175, 1176, 1177, 1178, 1179, 1180, 1181, 1182, 1183, 1184, 1185, 1186, 1187,
            1188, 1189, 1190, 1191, 1192, 1193, 1194, 1195, 1196, 1199, 1200, 1201, 1202, 1203, 1204, 1205,
            1206, 1207, 1208, 1209, 1210, 1211, 1212, 1213, 1214, 1215, 1216, 1217, 1218, 1219, 1220, 1221,
            1222, 1223, 1224, 1225, 1226, 1227, 1228, 1229, 1230, 1231, 1232, 1233, 1234, 1235, 1236, 1237,
            1238, 1239, 1240, 1241, 1242, 1243, 1244, 1245, 1246, 1247, 1248, 1249, 1250, 1251, 1252, 1253,
            1254, 1255, 1256, 1257, 1258, 1259, 1260, 1261, 1262, 1263, 1264, 1265, 1266, 1267, 1268, 1269,
            1270, 1271, 1272, 1273, 1274, 1275, 1276, 1277, 1278, 1279, 1280, 1281, 1282, 1283, 1284, 1285,
            1286, 1287, 1288, 1289, 1290, 1291, 1292, 1293, 1294, 1295, 1296, 1297, 1298, 1299, 1300, 1301,
            1302, 1303, 1304, 1305, 1306, 1307, 1308, 1309, 1310, 1312, 1317, 1318, 1319, 1320, 1321, 1351
            were read on this motion to                                SEAL/REDACT

                      Defendant GlobalFoundries U.S. Inc. ("GF") seeks an order sealing and/or redacting

            exhibits from that were filed in connection with this proceeding as NYSCEF Document Numbers

            672,673,675,685,687,688,689,691,693,694,695,696,705,706,708,710,711,714,715,

            717,718,719,722,724,726,730,744,745,746,749,750,752,755,760,763,764,779,781,

            784,785,787,788,789,790,791,792,793,798,801,803,804,805,806,811,815,816,817,

            820,826,827,828,830,831,832,833,834,835,840,841,842,843,846,848,849,850,851,

            852,855,992,993,996,997, 1003, 1004, 1007, 1140, 1141, 1142, 1143, 1144, 1145, 1146,

            1147, 1148, 1149, 1150, 1151, 1152, 1153, 1154, 1155, 1156, 1157, 1158, 1159, 1160, 1161,

            1162, 1163, 1164, 1165, 1166, 1167, 1168, 1169, 1170, 1171, 1172, 1173, 1174, 1175, 1176,
             653625/2021 INTERNATIONAL BUSINESS vs. GLOBALFOUNDRIES U.S. INC.                                           Page 1 of 6
             Motion No. 047 048

[* 1]                                                                       1 of 6
                                                                                                 INDEX NO. 653625/2021
  NYSCEF DOC. NO. 1359                                                                    RECEIVED NYSCEF: 03/29/2024

            1177, 1178, 1179, 1180, 1181, 1182, 1183, 1184, 1185, 1186, 1187, 1188, 1189, 1190, 1191,

            1192, 1193, 1194, 1195, 1196, 1199, 1200, 1201, 1202, 1203, 1204, 1205, 1206, 1207, 1208,

            1209, 1210, 1211, 1212, 1213, 1214, 1215, 1216, 1217, 1218, 1219, 1220, 1221, 1222, 1223,

            1224, and 1225. For the following reasons, the motion is granted in part.

                   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]). "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]).

                   The Court has reviewed the proposed sealing and/or targeted redactions in the documents

            filed as NYSCEF Document Numbers 672, 673, 685, 687, 688, 689, 691, 693, 694, 695, 696,

            705,706,708,711,714,715,717,718,719,722,724,726,730,744,745,746,749,750,752,

            755,779,784,785,787,788,789,790,791,792,793,803,804,805,806,811,815,816,827,

             653625/2021 INTERNATIONAL BUSINESS vs. GLOBALFOUNDRIES U.S. INC.                        Page 2 of 6
             Motion No. 047 048

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                                                                                                 INDEX NO. 653625/2021
  NYSCEF DOC. NO. 1359                                                                   RECEIVED NYSCEF: 03/29/2024

            828,830,831,832,834,835,840,841,849,850,851,852,855,992,993, 1003, 1004, 1141,

            1142, 1143, 1144, 1145, 1146, 1147, 1148, 1149, 1150, 1151, 1152, 1154, 1155, 1156, 1157,

            1158, 1159, 1160, 1161, 1162, 1163, 1164, 1165, 1166, 1167, 1168, 1169, 1170, 1174, 1176,

            1177, 1178, 1179, 1180, 1181, 1182, 1183, 1184, 1187, 1188, 1189, 1190, 1191, 1192, 1193,

            1196, 1199, 1200, 1201, 1202, 1204, 1205, 1206, 1207, 1212, 1213, 1214, 1215, 1216, 1219,

            1220, 1222, 1223, 1224, and 1225, and finds that they comport with the applicable sealing

            standard as laid out in Mosallem, 76 AD3d at 348-350, and its progeny, in that they contain

            sensitive and confidential business and financial information. Further, these Exhibits are

            properly sealed and/or redacted to the extent they contain nonpublic information about

            confidential contracts or agreements with non-parties (Mancheski v Gabelli Grp. Capital

           Partners, 39 AD3d 499, 502 [2d Dept 2007] ["[D]isclosure could impinge on the privacy rights

            of third parties who clearly are not litigants herein[.]"]).

                    However, GF' s generalized assertions of good cause for the remaining Exhibits filed as

            document numbers 760,763,764,781,798,801,817,820,826,833,842,843,846,848,997,

            1007, 1171, 1172, 1173, 1175, 1185, 1186, 1194, 1195, 1203, 1208, 1209, 1210, 1211, 1218, and

            1221 do not establish a compelling justification for the complete sealing that is proposed. While

           portions of these documents may include confidential business and financial information, the

            proposed sealing is not adequately explained or justified. Thus, GF should propose and justify

            targeted redactions that satisfy the requirements of 22 NYCRR § 216 [a] and applicable case law.

                    Any subsequent motion seeking to address the above concerns should adhere to this

            Part's Sealing Practices and Procedures (see

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

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

             653625/2021 INTERNATIONAL BUSINESS vs. GLOBALFOUNDRIES U.S. INC.                    Page 3 of 6
             Motion No. 047 048

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                                                                                                 INDEX NO. 653625/2021
  NYSCEF DOC. NO. 1359                                                                   RECEIVED NYSCEF: 03/29/2024

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

            each proposed redaction.

                    Finally, the proposed targeted redactions of the documents filed as document numbers

            675, 710, 996, 1140, 1153, and 1217 do not meet the Mosallem standard and should be unsealed.

                    Accordingly, it is

                    ORDERED that the motions to seal/redact the Exhibits are granted insofar as they seek

            to seal the documents filed as NYSCEF Document Numbers 688, 689, 706, 714, 715, 717, 726,

            730,779,784,785,787,788,789,790,791,792,793,815,827,831,832,855, 1143, 1144,

            1151, 1155, 1156, 1157, 1162, 1163, 1174, 1176, 1177, 1178, 1179, 1180, 1181, 1182, 1183,

            1184, 1192, 1196, 1201, 1202, and 1216; it is further

                    ORDERED that the motions to seal/redact the Exhibits are granted insofar as they seek

            to redact confidential portions of the documents filed as NYSCEF Document Number 672, 673,

            685,687,691,693,694,695,696,705,708,711,718,719,722,724,744,745,746,749,750,

            752,755,803,804,805,806,811,816,828,830,834,835,840,841,849,850,851,852,992,

            993, 1003, 1004, 1141, 1142, 1145, 1146, 1147, 1148, 1149, 1150, 1152, 1154, 1158, 1159,

            1160, 1161, 1164, 1165, 1166, 1167, 1168, 1169, 1170, 1187, 1188, 1189, 1190, 1191, 1193,

            1199, 1200, 1204, 1205, 1206, 1207, 1212, 1213, 1214, 1215, 1219, 1220, 1222, 1223, 1224,and

            1225; it is further

                    ORDERED that the motions to seal/redact the Exhibits are denied as to the document

            filed as NYSCEF Document Number 760, 763, 764, 781, 798, 801, 817, 820, 826, 833, 842, 843,

            846, 848, 997, 1007, 1171, 1172, 1173, 1175, 1185, 1186, 1194, 1195, 1203, 1208, 1209, 1210,

            1211, 1218, and 1221, without prejudice to filing a new motion within 21 days to redact

             653625/2021 INTERNATIONAL BUSINESS vs. GLOBALFOUNDRIES U.S. INC.                    Page 4 of 6
             Motion No. 047 048

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                                                                                                  INDEX NO. 653625/2021
  NYSCEF DOC. NO. 1359                                                                    RECEIVED NYSCEF: 03/29/2024

            confidential portions of the remaining Exhibits consistent with this Decision and Order and

            applicable case law; it is further

                    ORDERED that the County Clerk shall maintain the documents filed as NYSCEF

            Document Numbers 672, 673, 685, 687, 688, 689, 691, 693, 694, 695, 696, 705, 706, 708, 711,

            714,715,717,718,719,722,724,726,730,744,745,746,749,750,752,755,779,784,785,

            787,788,789,790,791,792,793,803,804,805,806,811,815,816,827,828,830,831,832,

            834,835,840,841,849,850,851,852,855,992,993, 1003, 1004, 1141, 1142, 1143, 1144,

            1145, 1146, 1147, 1148, 1149, 1150, 1151, 1152, 1154, 1155, 1156, 1157, 1158, 1159, 1160,

            1161, 1162, 1163, 1164, 1165, 1166, 1167, 1168, 1169, 1170, 1174, 1176, 1177, 1178, 1179,

            1180, 1181, 1182, 1183, 1184, 1187, 1188, 1189, 1190, 1191, 1192, 1193, 1196, 1199, 1200,

            1201, 1202, 1204, 1205, 1206, 1207, 1212, 1213, 1214, 1215, 1216, 1219, 1220, 1222, 1223,

            1224, and 1225 under seal, so that the documents may be accessible by the parties, their counsel,

            and authorized court personnel; it is further

                    ORDERED that the document filed as NYSCEF Document Number 760, 763, 764, 781,

            798,801,817,820,826,833,842,843,846,848,997, 1007, 1171, 1172, 1173, 1175, 1185,

            1186, 1194, 1195, 1203, 1208, 1209, 1210, 1211, 1218, and 1221 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 document consistent with

            this Decision and Order within that 21-day period, the document 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; it is further

             653625/2021 INTERNATIONAL BUSINESS vs. GLOBALFOUNDRIES U.S. INC.                     Page 5 of 6
             Motion No. 047 048

[* 5]                                                       5 of 6
                                                                                                      INDEX NO. 653625/2021
  NYSCEF DOC. NO. 1359                                                                          RECEIVED NYSCEF: 03/29/2024

                    ORDERED that the County Clerk shall unseal the documents filed to the docket as

            NYSCEF Document Numbers 675, 710, 996, 1140, 1153, and 1217; it is further

                    ORDERED that, to the extent they have not already done so, the parties shall upload

            redacted copies to NYSCEF of the documents filed at NYSCEF Document Numbers 672,673,

            685,687,691,693,694,695,696,705,708,711,718,719,722,724,744,745,746,749,750,

            752,755,803,804,805,806,811,816,828,830,834,835,840,841,849,850,851,852,992,

            993, 1003, 1004, 1141, 1142, 1145, 1146, 1147, 1148, 1149, 1150, 1152, 1154, 1158, 1159,

            1160, 1161, 1164, 1165, 1166, 1167, 1168, 1169, 1170, 1187, 1188, 1189, 1190, 1191, 1193,

            1199, 1200, 1204, 1205, 1206, 1207, 1212, 1213, 1214, 1215, 1219, 1220, 1222, 1223, 1224,and

            1225; it is further

                    ORDERED that nothing in this Decision and Order shall be construed as sealing

            documents or testimony to be admitted at trial; it is further

                    ORDERED that, as it relates to future submissions that contain subject matter that the

            court has authorized to be sealed by this Decision and Order which are made by any party, the

            parties may file a ioint stipulation, to be So Ordered, which will authorize the filing of such

            future submissions to be filed in sealed and/or redacted form on NYSCEF, provided that an

            unredacted copy of any document is contemporaneously filed with a request to seal.

                    This constitutes the Decision and Order of the Court.

                    3/29/2024
                      DATE                                                           JOEL M. COHEN, J.S.C.

                                     ~
             CHECK ONE:                  CASE DISPOSED                      NON-FINAL DISPOSITION

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

             CHECK IF APPROPRIATE:       INCLUDES TRANSFER/REASSIGN         FIDUCIARY APPOINTMENT    □ REFERENCE
             653625/2021 INTERNATIONAL BUSINESS vs. GLOBALFOUNDRIES U.S. INC.                         Page 6 of 6
             Motion No. 047 048

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