Hui v. Federal Reserve Bank of New York

District Court, S.D. New York·Decided May 4, 2025·No. 1:24-cv-06788·Unknown

Opinion

UNITED STATES DISTRICT COURT ELECTRONICALLY FILED DOC #: _________________ SOUTHERN DISTRICT OF NEW YORK DATE FILED: 5/4/2025 ----------------------------------------------------------------- X : QIANG JAY HUI, : : Plaintiff, : 1:24-cv-6788-GHW : -v- : ORDER : FEDERAL RESERVE BANK OF NEW YORK, : : Defendant. : : ------------------------------------------------------------------ X GREGORY H. WOODS, United States District Judge: On April 30, 2025, Plaintiff filed an application to seal this case in its entirety. Dkt. Nos. 33–35. One distinguishing facet of the American legal system is its commitment to public access to the trial process. This legacy of “open justice” is as old as America itself. See, e.g., Richmond Newspapers, Inc. v. Virginia, 448 U.S. 555, 590 (1980) (Brennan, J., concurring). Because the plaintiff has not overcome the strong presumption to public access that attaches to judicial documents— including the complaint and the existence of the case itself—the motion to seal the case is DENIED. I. BACKGROUND Plaintiff commenced this action through attorneys on September 6, 2024. Dkt. No. 1. Plaintiff had received a right-to-sue notice from the U.S. Equal Employment Opportunity Commission on June 10, 2024. See id. The Court held an initial pretrial conference on November 8, 2024, during which the parties discussed Defendant’s proposed motion to dismiss Plaintiff’s claims. See Dkt. Nos. 10–12. The Court issued a case management plan and scheduling order that same day. Dkt. No. 14. Plaintiff filed an amended complaint on November 15, 2024. Dkt. No. 15. Defendant answered on December 13, 2024. Dkt. No. 20. On January 15, 2025, the Court held a conference to discuss a discovery dispute in the matter, overruling in part and sustaining in part Plaintiff’s objections to Defendant’s discovery requests. Dkt. No. 28. On March 10, 2025, the parties informed the Court that this case settled, Dkt. No. 29, and on April 16, 2025, the parties filed a stipulation of voluntary dismissal, pursuant to Fed. R. Civ. P. 41(a)(1)(A)(ii), Dkt. No. 32. On April 30, 2025, Plaintiff Qiang Jay Hui filed, pro se, a motion to seal the records of this case in its entirety. Dkt. Nos. 33–35. Plaintiff cited “severe reputational damage” due to the public access, which he asserts has resulted in “deep personal and family financial difficulty.” Dkt. No. 34

at 1–2. II. LEGAL STANDARD There is a long-established “general presumption in favor of public access to judicial documents.” Collado v. City of New York, 193 F. Supp. 3d 286, 288 (S.D.N.Y. 2016). The Second Circuit has defined “judicial documents” as documents filed with a court that are “relevant to the performance of the judicial function and useful in the judicial process[.]” Lugosch v. Pyramid Co. of Onondaga, 435 F.3d 110, 119 (2d Cir. 2006) (quotation omitted); see also Lytle v. JPMorgan Chase, 810 F. Supp. 2d 616, 620–21 (S.D.N.Y. 2011). The presumption of access is “based on the need for federal courts . . . to have a measure of accountability and for the public to have confidence in the administration of justice.” United States v. Amodeo, 71 F.3d 1044, 1048 (2d Cir. 1995). Applications to seal documents must therefore be “carefully and skeptically review[ed] . . . to insure that there really is an extraordinary circumstance or compelling need” to seal the documents

from public inspection. Video Software Dealers Ass’n v. Orion Pictures Corp., 21 F.3d 24, 27 (2d Cir. 1994). “Documents may be sealed if specific, on the record findings are made demonstrating that closure is essential to preserve higher values and is narrowly tailored to serve that interest.” Lugosch, 435 F.3d at 120 (quotation omitted); see also Bernstein v. Bernstein Litowitz Berger & Grossmann LLP, 814 F.3d 132, 141 (2d Cir. 2016) (requiring that a court make specific, rigorous findings before sealing a document or otherwise denying public access). Higher values that may justify the sealing of documents include national security concerns, attorney-client privilege, law enforcement interests, or the privacy interests of third-parties. See E.E.O.C. v. Kelley Drye & Warren LLP, No. 10 Civ. 655 (LTS) (MHD), 2012 WL 691545, at *2 (S.D.N.Y. Mar. 2, 2012) (collecting cases). “The burden of demonstrating that a document submitted to a court should be sealed rests on the party seeking such action[.]” DiRussa v. Dean Witter Reynolds Inc., 121 F.3d 818, 826 (2d Cir. 1997). To meet its heavy burden, the moving party “must offer specific facts demonstrating that

closure is essential to preserve higher values and is narrowly tailored to serve that interest.” Wells Fargo Bank, N.A. v. Wales LLC, 993 F. Supp. 2d 409, 413 (S.D.N.Y. 2014) (quotation omitted). “[T]he decision as to access [to judicial records] is one best left to the sound discretion of the trial court, a discretion to be exercised in light of the relevant facts and circumstances of the particular case.” Nixon v. Warner Commc’ns, 435 U.S. 589, 599 (1978). In Mirlis v. Greer, the Second Circuit summarized the three steps that the Court must follow to determine whether the presumption of public access attaches to a particular document and bars disclosure. See 952 F.3d 51, 59 (2d Cir. 2020). First, the Court determines whether the document is a “judicial document,” namely, “one that has been placed before the court by the parties and that is relevant to the performance of the judicial function and useful in the judicial process.” Id. (quotation omitted). Second, the Court “proceeds to ‘determine the weight of the presumption of access to that document.’” Id. (quoting United States v. Erie Cnty., 763 F.3d 235, 239, 241 (2d Cir.

2014)). “The weight to be accorded is ‘governed by the role of the material at issue in the exercise of Article III judicial power and the resultant value of such information to those monitoring the federal courts.’” Id. (quoting Amodeo, 71 F.3d at 1049). “Finally, the court must identify all of the factors that legitimately counsel against disclosure of the judicial document, and balance those factors against the weight properly accorded the presumption of access.” Id. III. DISCUSSION Plaintiff has failed to meet his burden to show that this case as a whole should be sealed. “[S]ealing an entire case file is a last resort.” In re Platinum & Palladium Commodities Litig., 828 F. Supp. 2d 602, 604 (S.D.N.Y. 2011) (quoting Judicial Conference of the United States, Judicial Conference Policy on Sealed Cases (Sept. 13, 2011)). Step one of the Circuit’s test is easily satisfied: the information the plaintiff wants to seal

consists of the entire case file, including his complaint and his amended complaint.

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Related

Nixon v. Warner Communications, Inc.
435 U.S. 589 (Supreme Court, 1978)
Richmond Newspapers, Inc. v. Virginia
448 U.S. 555 (Supreme Court, 1980)
United States v. Amodeo
71 F.3d 1044 (Second Circuit, 1995)
Lugosch v. Pyramid Co. of Onondaga
435 F.3d 110 (Second Circuit, 2006)
Lytle v. JPMORGAN CHASE
810 F. Supp. 2d 616 (S.D. New York, 2011)
United States v. Erie County
763 F.3d 235 (Second Circuit, 2014)
Mirlis v. Greer
952 F.3d 51 (Second Circuit, 2020)
DiRussa v. Dean Witter Reynolds Inc.
121 F.3d 818 (Second Circuit, 1997)
Collado v. City of New York
193 F. Supp. 3d 286 (S.D. New York, 2016)
In re Platinum & Palladium Commodities Litigation
828 F. Supp. 2d 602 (S.D. New York, 2011)
Wells Fargo Bank, N.A. v. Wales LLC
993 F. Supp. 2d 409 (S.D. New York, 2014)