Opinion

Northwell Health, Inc. v. Blue Cross and Blue Shield of Massachusetts, Inc.

Court
District Court, E.D. New York
Filed
Jul 17, 2024
Cited by
0 cases
Authority
More cited than 31.6%

The opinion

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF NEW YORK

Northwell Health, Inc.,

Plaintiff,

2:23-cv-00977

-v- (NJC)(AYS)

Blue Cross and Blue Shield of Massachusetts, Inc., ORDER

Defendant.

NUSRAT J. CHOUDHURY, District Judge:

Defendant Blue Cross and Blue Shield of Massachusetts, Inc. (“BCBSM”) and Plaintiff

Northwell Health, Inc. (“Northwell”) have filed a joint motion for leave to file under seal

unredacted copies of the parties’ legal memoranda supporting and opposing BCBSM’s Motion to

Dismiss (ECF Nos. 20, 22, 24), as well as Exhibits A, B, and C attached to the Kadosh

Declaration in support of BCBSM’s Motion (ECF Nos. 22-1–3), Exhibit A attached to the

McBride Declaration in support of Northwell’s Opposition Brief (ECF No. 23), and Exhibit A to

the Kadosh Declaration in support of BCBSM’s Reply Brief (ECF No. 25-1). (Mot. Seal, ECF

No. 26.) The parties propose that if I grant their request, BCBSM will file redacted copies of the

parties’ legal memoranda supporting and opposing BCBSM’s Motion to Dismiss on the public

docket, while the four exhibits to the Kadosh Declarations and the McBride Declaration and its

accompanying exhibit will be sealed in their entirety. (Id. at 2.) For the following reasons, I grant

the Motion to Seal.

The law on sealing in the Second Circuit is “largely settled.” Brown v. Maxwell, 929 F.3d

41, 47 (2d Cir. 2019). “The common law right of public access to judicial documents is firmly

rooted in our nation’s history.” Stafford v. Int’l Bus. Machines Corp., 78 F.4th 62, 69–70 (2d Cir.

2023) (citations omitted). “The presumption of access is based on the need for federal courts,

although independent—indeed, particularly because they are independent—to have a measure of

accountability and for the public to have confidence in the administration of justice.” Id. In

addition to the common law, the First Amendment affords “a qualified right of access . . . to civil

trials and to their related proceedings and records.” N.Y.C.L.U. v. N.Y. City Transit Auth., 684

F.3d 286, 298 (2d Cir. 2012).

Evaluating a request to file a document under seal is a three-step process. A court’s

decision to “seal[] documents may be justified only with specific, on-the-record findings that

sealing is necessary to preserve higher values and only if the sealing order is narrowly tailored to

achieve that aim.” Brown, 929 F.3d at 47.

“First, the court determines whether the record at issue is a ‘judicial document’—a

document to which the presumption of public access attaches.” Mirlis v. Greer, 952 F.3d 51, 59

(2d Cir. 2020) (citation omitted). Documents filed in support of a motion to dismiss are

considered judicial documents. See P&L Dev., LLC v. Gerber Prod. Co., No.

CV215382MKBAYS, 2022 WL 1441999, at *3 (E.D.N.Y. May 6, 2022) (citing Bernstein v.

Bernstein Litowitz Berger & Grossman LLP, No. 14-CV-6867, 2016 WL 1071107, at *5

(S.D.N.Y. Mar. 18, 2016), aff’d, 814 F.3d 132 (2d Cir. 2016)). Here, the documents the parties

seek to file under seal—unredacted copies of the Motion to Dismiss papers and attached

exhibits—are judicial documents. See id.

Second, “if the record sought is determined to be a judicial document, the court proceeds

to determine the weight of the presumption of access to that document.” Mirlis, 952 F.3d at 59.

(quotation marks omitted). Because “the necessity of public understanding is present even in

private business disputes,” and the documents at issue here are judicial documents to which a

presumption of public access attaches, I find that there is a strong presumption of public access.

P&L Dev., LLC, 2022 WL 1441999, at *3 (quotation marks omitted).

Third, “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.” Mirlis, 952 F.3d at 59. The privacy interests of third parties

“establish a ‘venerable common law exception to the presumption of access.’” Kewazinga Corp.

v. Microsoft Corp., No. 1:18-CV-4500-GHW, 2021 WL 1222122, at *5 (S.D.N.Y. Mar. 31,

2021) (citing United States v. Amodeo, 71 F.3d 1044, 1051 (1995)). Courts commonly seal

documents that contain “trade secrets, confidential research and development information,

marketing plans, revenue information, pricing information, and the like.” Id. (quotation marks

omitted).

The parties argue that they should be permitted to file the documents under seal because

they are, or contain references to, contracts between Northwell and non-party Empire Blue Cross

and Blue Shield (“Empire”), which were designated “Attorneys Eyes Only” under the governing

protective order and which contain “confidential and proprietary business information,”

including pricing information “that, if accessed by Plaintiff’s competitors, would allow the

competitors to gain an improper and unfair competitive advantage.” (Mot. Seal at 1–2.) The

contracts and their amendments are attached as Exhibits A, B, and C to the Kadosh Declaration

in support of BCBSM’s Motion (ECF Nos. 22-1–3), as Exhibit A attached to the McBride

Declaration in support of Northwell’s Opposition Brief (ECF No. 23), and as Exhibit A to the

Kadosh Declaration in support of BCBSM’s Reply Brief (ECF No. 25-1).

Here, I find that the privacy interests implicated by Northwell’s contracts with Empire

outweigh the presumption of access for several reasons. First, the contracts are between

Northwell and a non-party and discuss pricing terms. See Cunningham v. Cornell Univ., No. 16-

CV-6525 (PKC), 2019 WL 10892081, at *2 (S.D.N.Y. Sept. 27, 2019) (granting motion to seal

documents “discuss[ing] fees of the third parties, pricing and customer information, or other

information related to their perceived competitive advantages”). Second, the parties have agreed

to file redacted versions of the parties’ legal memoranda supporting and opposing the Motion to

Dismiss on the public docket. (Mot. Seal at 2.) I have reviewed the material that the parties

proposed to file entirely under seal and the material proposed to be redacted from publicly filed

documents and finds the material to be withheld from public view to be limited and narrowly

tailored to references to the contracts at issue. See Brown, 929 F.3d at 47.

Because the material proposed to be filed under seal or redacted from publicly filed

documents is limited and narrowly tailored to preserve higher values—here, Northwell and non-

party Empire’s confidential and proprietary business information—I grant the parties’ request.

By July 24, 2024, BCBSM shall file redacted copies of the fully briefed Motion to Dismiss on

the public docket.

Dated: Central Islip, New York

July 16, 2024

/s/ Nusrat J. Choudhury

NUSRAT J. CHOUDHURY

United States District Judge

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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