CWCapital Invs. LLC v. CWCapital Colbalt VR Ltd.

2024 NY Slip Op 34512(U)

• Court: New York Supreme Court, New York County
• Decided: December 24, 2024
• Docket: Index No. 652092/2018
• Status: Unpublished

Opinion

CWCapital Invs. LLC v CWCapital Colbalt VR Ltd. 2024 NY Slip Op 34512(U) December 24, 2024 Supreme Court, New York County Docket Number: Index No. 652092/2018 Judge: Andrea Masley 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. 652092/2018 NYSCEF DOC. NO. 936 RECEIVED NYSCEF: 12/24/2024

SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK: COMMERCIAL DIVISION PART 48 -----------------------------------------------------------------------------------X CWCAPITAL INVESTMENTS LLC and GALAXY INDEX NO. 652092/2018 ACQUISITION LLC,

Plaintiffs, MOTION DATE -

-v- MOTION SEQ. NO. 028 CWCAPITAL COLBALT VR LTD., OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC, OZ MANAGEMENT L.P., DECISION + ORDER ON OZ MASTER FUND, LTD., OZ ENHANCED MASTER MOTION FUND, LTD., OZ CREDIT OPPORTUNITIES MASTER FUND, LTD., OZ GC OPPORTUNITIES MASTER FUND, LTD., OZSC, L.P., CARBOLIC, LLC, OCH-ZIFF HOLDING CORPORATION, MERRILL LYNCH, and PIERCE, FENNER & SMITH INCORPORATED,

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

HON. ANDREA MASLEY:

The following e-filed documents, listed by NYSCEF document number (Motion 028) 911, 912, 913, 914, 915, 916, 924, 925 were read on this motion to/for SEAL .

In motion sequence number 028, nonparty Sculptor Capital Management, Inc.

(Sculptor) moves pursuant to the Uniform Rules of the New York State Trial Courts (22

NYCRR) § 216.1 to redact the following documents:

1. Blair Wallace’s affirmation (NYCSEF Doc. No. [NYSCEF] 617, 738, 915)1

2. Matthew Tuten’s affirmation (NYSCEF 618, 737, 915)2

3. CWCapital memorandum of law (NYSCEF 744, 915)3

4. CWCapital opposition (NYSCEF 756, 915)4

1 A publicly redacted copy is filed at NYSCEF 916. 2 A publicly redacted copy is filed at NYSCEF 916. 3 A publicly redacted copy is filed at NYSCEF 916.

4 A publicly redacted copy is filed at NYSCEF 916.

652092/2018 CWCAPITAL INVESTMENTS LLC vs. CWCAPITAL COLBALT VR LTD. Page 1 of 4 Motion No. 028

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5. CWCapital reply (NYSCEF 764, 915)5

The motion is unopposed. There is no indication that the press or public have an

interest in this matter.

Section 216.1(a) of the Uniform Rules for Trial Courts empowers courts to seal

documents upon a written finding of good cause. It provides:

“(a) [e]xcept where otherwise provided by statute or rule, a court shall not enter an order in any action or proceeding sealing the court records, whether in whole or in part, except 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 the parties. Where it appears necessary or desirable, the court may prescribe appropriate notice and an opportunity to be heard.”

“Under New York law, 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] [citations omitted].) The “party seeking to seal court records has the

burden to demonstrate compelling circumstances to justify restricting public access” to

the documents. (Id. at 349 [citations omitted].) Good cause must “rest on a sound

basis or legitimate need to take judicial action.” (Danco Lab, Ltd. v Chemical Works of

Gedeon Richter, Ltd., 274 AD2d 1, 8 [1st Dept 2000] [internal quotations omitted].)

Sculptor has demonstrated good cause to redact NYSCEF 617, 738, 618, 737,

744, 756, 764, and 915 which contain nonparty financial information. Courts have

recognized a compelling interest in sealing a third-party’s financial or private information

as disclosure could imping upon the privacy rights of these nonparties. (See Mancheski

v Gabelli Group Capital Partners, 39 AD3d 499, 502 [2d Dept 2007]; Natixis Real Estate

Capital Tr. 2007-HE2 v Natixis Real Estate Capital, Inc., 77 Misc 3d 1224 [A] [Sup Ct,

5 A publicly redacted copy is filed at NYSCEF 916. 652092/2018 CWCAPITAL INVESTMENTS LLC vs. CWCAPITAL COLBALT VR LTD. Page 2 of 4 Motion No. 028

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NY County 2023].) Here, disclosure of Sculptor’s financial information would impair its

privacy rights and result in harm to its competitive advantage. Accordingly, these

documents shall be redacted.

Accordingly, it is

ORDERED that motion sequence 028 is granted, and the County Clerk, upon

service of this order, shall seal NYSCEF 617, 738, 618, 737, 744, 756, 764, and 915;

and it is further

ORDERED that movant serve a copy of this order upon the Clerk of the Court

and the Clerk of the General Clerk’s Office in accordance with the procedures set forth

in the Protocol on Courthouse and County Clerk Procedures for Electronically Filed

Cases (accessible at the “E-Filing” page on the court’s website at the address

www.nycourts.gov/supctmanh); and it is further

ORDERED the County Clerk shall restrict access to the sealed documents with

access to be granted only to authorized court personnel and designees, the parties and

counsel of record in this action, and any representative of a party or of counsel of record

upon presentation to the County Clerk of written authorization from counsel; and it is

further

ORDERED that if any party seeks to redact identical information in future filings

that the court is permitting to be redacted here, that party shall submit a proposed

sealing order to the court (via SFC-Part48@nycourts.gov and NYSCEF) instead of filing

another seal motion; and it is further

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ORDERED that this order does not authorize sealing or redacting for purposes of

trial or other court proceedings on the record, e.g., arguments on motions.

12/24/2024 DATE ANDREA MASLEY, J.S.C. CHECK ONE: CASE DISPOSED X NON-FINAL DISPOSITION

X GRANTED DENIED GRANTED IN PART OTHER

APPLICATION: SETTLE ORDER SUBMIT ORDER

CHECK IF APPROPRIATE: INCLUDES TRANSFER/REASSIGN FIDUCIARY APPOINTMENT REFERENCE

652092/2018 CWCAPITAL INVESTMENTS LLC vs. CWCAPITAL COLBALT VR LTD. Page 4 of 4 Motion No. 028

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