In re John Doe Partnership

145 Misc. 2d 783, 548 N.Y.S.2d 389, 1989 N.Y. Misc. LEXIS 759
New York Supreme Court·Decided October 27, 1989·Published

Opinion

OPINION OF THE COURT

John Carey, J.

The law firm of Bryan, Cave, McPheeters & McRoberts, [784] hereinafter referred to as the Law Firm, asks the court in this proceeding to seal designated parts of the application on the basis of which was issued a search warrant that was executed at the New York City office of the Law Firm on October 3, 1989. The Law Firm’s identity was revealed in a New York Times article on October 20. The article did not name certain lawyers at the Law Firm who were mentioned in the application nor did it disclose the legal reasoning embodied in the application. The parts of the application which reflect the reasoning and lawyers’ names were: designated by the Law Firm’s counsel at oral argument on October 20, 1989. As set forth below, the parts reflecting reasoning will not be sealed while the lawyers’ names will be.

BACKGROUND

Sherman Krisher pleaded guilty to third degree grand larceny of drawings from the Museum of Cartoon Art in the Town of Rye, where he had been a curator. At his sentencing on October 6, 1989, 44 pieces of cartoon art found in the search at the Law Firm’s office were produced and stipulated to have been among those stolen. Krisher was given credit accordingly towards the restitution that formed part of his sentence.

Through its counsel, the Law Firm stated the following to this court in an affidavit of October 13th (referring to the Law Firm as "the John Doe Partnership”) submitted in support of its request for sealing:*

"3. Following the theft, some of the art work was sold to a client of the John Doe Partnership. I am advised that the firm’s client, an art dealer, was unaware that the art work he purchased and later resold was stolen property.
"4. A member of the John Doe Partnership was advised that the thief was seeking to restore the stolen art work to the museum and to reimburse unwitting purchasers for the [785] money they had expended on the property. At the request of the attorney for the thief, this member of the firm helped to arrange a closing which was intended to serve as a means by which the victims of the theft (both the unwitting purchasers and the museum) would be made whole for their losses. The closing was scheduled to take place at the firm’s offices on October 3, 1989.”

In paragraph 8 of his affidavit, counsel referred to "the innocent role which the Partnership played.”

The same counsel’s memorandum of law in support of sealing also stated that, when the search warrant was executed at the Law Firm’s office: "The subject materials had been brought to the John Doe Partnership’s offices in order to facilitate the return of the drawings to the museum from which they had been stolen and to reimburse the unwitting purchasers to whom the drawings had been sold. A closing was scheduled to take place at the John Doe Partnership’s offices in New York City. The offices of the John Doe Partnership were designated as the site for this closing because the partnership represented an art dealer who was in possession of the art work at the time of the planned exchange. Alerted of the planned closing, the Westchester County District Attorney’s office obtained a search warrant, conducted the search, and seized the materials.” The memorandum went on to refer to the Law Firm as "an innocent third party.” While counsel was not so clear in writing as at oral argument that the Law Firm was to collect money for the stolen art at the "closing,” the facts publicly stated by the Law Firm as set forth above are not substantially at odds with what appears in the designated parts of the application. Where they differ is in the inferences drawn from those facts.

Having thus made public its own explanation for possessing stolen property and for making it the subject of a "closing,” the Law Firm seeks to seal not only the names of certain of its lawyers but also the legal reasoning relied upon for issuance of the search warrant. The justification given for sealing is potential damage to the reputations of the Law Firm and its named lawyers.

FINDINGS OF FACT

(1) The interest of the Law Firm in not having its explanations publicly compared with the legal reasoning relied upon for issuance of the search warrant is outweighed by the [786] public’s interest in knowing whether the search warrant process was appropriately utilized.

(2) The interest of individual lawyers in the Law Firm in not being publicly singled out exceeds any interest the public might have in identifying them as directly involved persons within the Law Firm.

(3) Deletion of the individuals’ names from the application and from court transcripts is the narrowest tailoring possible consistent with their protection.

CONCLUSIONS OF LAW

The Legal Reasoning

Counsel for both the Law Firm and Gannett Newspapers agreed at oral argument on October 20, 1989, that the court has inherent power to seal the designated parts of the search warrant application. They differed on whether a weighing process required by either a constitutional or a common-law right of access would preclude sealing in the present circumstances.

A threshold question is whether any weighing must take place prior to not sealing as distinct from situations where sealing is ordered. While access afforded by constitutional or common law cannot be closed off without weighing the competing factors, nonsealing does not impact those rights. Arguably therefore nonsealing is not reviewable. Nonetheless the Seventh Circuit did review a District Court’s decision not to seal, and approved it after performing a weighing process. (Matter of Continental Ill. Sec. Litig., 732 F2d 1302 [7th Cir 1984].)

"Having concluded that the presumption of access applies to the Report, we must balance the public interest underlying that presumption against Continental’s interest in confidentiality. * * *

"While better practice would dictate more specific findings, no case has been cited to us which holds that appellate review is precluded by the failure to accompany a disclosure order with findings.” (732 F2d, supra, at 1313.)

In a footnote, the court made the following observation pertinent hereto: "Because a denial of access may amount to a denial of first amendment rights, it is ¡perhaps more important that findings accompany a denial than a grant of access. Nevertheless, we think findings in all cases are desirable.” [787] (Supra, at 1313, n 17.) This court agrees, and has set forth above its relevant finding.

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In re John Doe Partnership, 145 Misc. 2d 783, 548 N.Y.S.2d 389, 1989 N.Y. Misc. LEXIS 759 (N.Y. Super. Ct. 1989).

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