RedHill Biopharma Ltd. v. Kukbo Co., Ltd.

2024 NY Slip Op 32846(U)
CourtNew York Supreme Court, New York County
DecidedAugust 13, 2024
DocketIndex No. 653200/2022
StatusUnpublished

This text of 2024 NY Slip Op 32846(U) (RedHill Biopharma Ltd. v. Kukbo Co., Ltd.) is published on Counsel Stack Legal Research, covering New York Supreme Court, New York County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
RedHill Biopharma Ltd. v. Kukbo Co., Ltd., 2024 NY Slip Op 32846(U) (N.Y. Super. Ct. 2024).

Opinion

RedHill Biopharma Ltd. v Kukbo Co., Ltd. 2024 NY Slip Op 32846(U) August 13, 2024 Supreme Court, New York County Docket Number: Index No. 653200/2022 Judge: Nancy M. Bannon 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. 653200/2022 NYSCEF DOC. NO. 458 RECEIVED NYSCEF: 08/13/2024

SUPREME COURT OF THE STATE OF NEW YORK NEW YORK COUNTY PRESENT: HON. NANCY M. BANNON PART 61M Justice ----------------------------------------------------------------- ----------------X INDEX NO. 653200/2022 REDHILL BIOPHARMA LTD., MOTION DATE Plaintiff, 009 012 014 - V - MOTION SEQ. NO. _ _ _0_1_5_ _

KUKBO CO., LTD., DECISION + ORDER ON Defendant. MOTION

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The following e-filed documents, listed by NYSCEF document number (Motion 009) 211,212,213,215 were read on this motion to/for SEAL

The following e-filed documents, listed by NYSCEF document number (Motion 012) 217,218,219,220 were read on this motion to/for SEAL

The following e-filed documents, listed by NYSCEF document number (Motion 014) 312, 313, 314, 315, 316 were read on this motion to/for SEAL

The following e-filed documents, listed by NYSCEF document number (Motion 015) 443,444,445,446, 447 were read on this motion to/for SEAL

I. INTRODUCTION In this breach of contract action arising from the development and planned commercialization of "Opaganib", a Covid-19 medication, the plaintiff, RedHill Biopharma Ltd. ("RedHill"), moves by order to show cause pursuant to 22 NYCRR 216.1 (a) to redact certain documents filed in support of its motion for summary judgment, MOT SEQ 010, and its motion for sanctions, MOT SEQ 011 (MOT SEQ 009 [NYSCEF Doc. Nos. 131, 133, 165-68] and MOT SEQ 012 [NYSCEF Doc. Nos. 130, 134-36, 138, 141-42, 144-49, 151-53, 163, 171, 183-84, 197-99, 201-06]). Additionally, the defendant, Kukbo Co., Ltd. ("Kukbo"), moves by order to show cause pursuant to 22 NYCRR 216.1 (a) to seal or redact certain documents filed in support of its own motion for partial summary judgment, MOT SEQ 013 (MOT SEQ 014 [NYSCEF Doc. Nos. 228, 233-38, 242, 244-45, 247-50, 252-54, 257-59, 261-63, 265-67, 269-73, 275-76, 280-

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86, 301]), and in opposition to RedHill's summary judgment motion (MOT SEQ 015 [NYSCEF Doc. Nos. 379,385, 387-91, 394-95, 397-99, 403,407,409, 411-12, 415-20, 424-26, 429, 440]). Kukbo, in MOT SEQ 15, also seeks to unseal certain documents filed in opposition to RedHill's summary judgment motion (NYSCEF Doc. Nos. 386, 396, 404, 406, 408, 413, 427), which were filed temporarily under seal pursuant to the parties' so-ordered Stipulation and Order for the Production and Exchange of Confidential Information (the "Confidentiality Stipulation") (see NYSCEF Doc. No. 86), and to allow for the public filing of these documents without redaction. The court granted the parties' requests for TROs to keep the subject documents temporarily under seal pending a decision on the instant motions. The motions are all unopposed. MOT SEQ 009 is denied, MOT SEQ 012 is granted, and MOT SEQ 014 and 015 are granted in part.

II. DISCUSSION 22 NYC RR 216.1 (a) provides that "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 of the parties." "[P]ublic access to court proceedings is strongly favored, both as a matter of constitutional law (Richmond Newspapers v Virginia, 448 U.S. 555 [1980]) and as a statutory imperative (Judiciary Law§ 4)." Anonymous v Anonymous, 158 AD2d 296,297 (1 st Dept. 1990); see also Herald Co. v Weisenberg, 59 NY2d 378 (1983) (closure of courtroom). Moreover, "the public interest in openness is particularly important on matters of public concern, even if the issues arise in the context of a private dispute." Danco Labs., Ltd. v Chemical Works of Gedeon Richter, Ltd., 274 AD2d 1, 7 (1 st Dept. 2000). Accordingly, the Appellate Division, First Department, 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 (1 st Dept. 2010). Because "confidentiality is clearly the exception, not the rule" (Matter of Hofmann, 284 AD2d 92, 93-94 [1 st Dept. 2001]), that Court has authorized sealing "only in strictly limited circumstances" (Gryphon Dom. VI, LLC v APP Intl. Fin. Co., 28 AD3d 322, 325 [1 st Dept. 2006]; see Mosallem v Berenson, supra).

As stated, in any application to seal court records, the burden is on the party seeking sealing to establish "good cause." 22 NYCRR 216.1 (a). "Since there is no absolute definition, a finding of good cause, in essence, 'boils down to ... the prudent exercise of the court's

653200/2022 REDHILL BIOPHARMA LTD. vs. KUKBO CO., LTD. Page 2 of 10 Motion No. 009 012 014 015

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discretion."' Applehead Pictures, LLC v Perelman, 80 AD3d 181, 192 (1st Dept. 2010), quoting Mancheski v Gabelli Group Capital Partners, 39 AD3d 499, 502 (2 nd Dept. 2007) (some internal quotation marks and citation omitted). In the business context, good cause may be established "where trade secrets are involved (Matter of Crain Communications, Inc., 135 AD2d 351, 352 [1 st Dept. 1987]), or where the release of documents could threaten a business's competitive advantage." Mosallem v Berenson, supra at 350, citing Matter of Twentieth Century Fox Film Corp., 190 AD2d 483,488 (1 st Dept. 1993); see Vergara v Mission Capital Advisors, LLC, 187 AD3d 495 (1 st Dept. 2020); Matter of Bernstein v On-Line Software Inter. Inc., 232 AD2d 336 (1 st Dept. 1996) Iv denied 89 NY2d 810 (1997). However, these circumstances are the exception, not the rule.

"Conclusory claims of the need for confidentiality ... [are] not ... sufficient bas[es] for a sealing order'' (Matter of Hofmann, supra at 93-94), and "the court will not approve wholesale sealing of [court] papers, even when both sides to the litigation request sealing" (Applehead Pictures, LLC v Perelman, supra [citations omitted]; see Gryphon Dom. VI, LLC v APP Intl. Fin. Co., supra; Liapakis v Sullivan, 290 AD2d 393 (1 st Dept. 2002); Matter of Hofmann, supra). That is, a party's own "designation of the materials as confidential or highly confidential is not controlling on the court's determination whether there is good cause to seal the record pursuant to 22 NYCRR 216.1." Eusini v Pioneer Electronics (USA), Inc., 29 AD3d 623, 625 (2 nd Dept. 2006); see Mosallem v Berenson, supra. Even where there is a proper basis for sealing, redaction is favored over sealing of an entire document or record. See Vergara v Mission Capital Advisors, LLC, supra; Danco Labs., Ltd. v Chemical Works of Gedeon Richter, Ltd., supra.

The parties have shown "good cause" for sealing to the extent indicated below.

A. Motion Sequence 009 In MOT SEQ 009, RedHill seeks to redact exhibits D and F to the affirmation of Adi Frish (the "Frish Aff.") in support of its motion for summary judgment (NYSCEF Doc. Nos.

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Bluebook (online)
2024 NY Slip Op 32846(U), Counsel Stack Legal Research, https://law.counselstack.com/opinion/redhill-biopharma-ltd-v-kukbo-co-ltd-nysupctnewyork-2024.