AGP Holdings Two LLC v. Certain Underwriters at Lloyd's of London

2024 NY Slip Op 30917(U)

• Court: New York Supreme Court, New York County
• Decided: March 19, 2024
• Status: Unpublished

Opinion

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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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

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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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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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