Opinion

Midway Wind, LLC v. Siemens Gamesa Renewable Energy, Inc.

  • 2025 NY Slip Op 30399(U)
Court
New York Supreme Court, New York County
Filed
Jan 30, 2025
Status
Unpublished
Author
Nancy M. Bannon
Cited by
0 cases
Authority
More cited than 33.9%

The opinion

Midway Wind, LLC v Siemens Gamesa Renewable

Energy, Inc.

2025 NY Slip Op 30399(U)

January 30, 2025

Supreme Court, New York County

Docket Number: Index No. 651234/2023

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. 651234/2023

NYSCEF DOC. NO. 293 RECEIVED NYSCEF: 01/30/2025

SUPREME COURT OF THE STATE OF NEW YORK

NEW YORK COUNTY

PRESENT: HON. NANCY M. BANNON PART 61M

Justice

---------------------------------------------------------------------------------X INDEX NO. 651234/2023

MIDWAY WIND, LLC,

Plaintiff, 12/13/2024,

MOTION DATE 12/20/2024

-v–

MOTION SEQ. NO. 010 013

SIEMENS GAMESA RENEWABLE ENERGY, INC.,

DECISION + ORDER ON

Defendant. MOTION

---------------------------------------------------------------------------------X

The following e-filed documents, listed by NYSCEF document number (Motion 010) 156, 157, 158, 159

were read on this motion to/for SEAL .

The following e-filed documents, listed by NYSCEF document number (Motion 013) 190, 191, 192, 193,

194

were read on this motion to/for SEAL .

In this breach of contract action concerning alleged defects in wind turbines purchased

by the plaintiff, a Texas wind farm, from the defendant, the defendant moves pursuant to 22

NYCRR 216.1 to maintain redactions to a letter submitted to the court by the plaintiff and certain

exhibits thereto (NYSCEF Doc. Nos. 143-44, 149, 152) and to maintain certain other exhibits to

the letter under seal (NYSCEF Doc. Nos. 145-48) (MOT SEQ 010). The defendant separately

moves pursuant to 22 NYCRR 216.1 to maintain redactions to the plaintiff’s memorandum of

law in support of its pending motion to compel (NYSCEF Doc. No. 172) and to maintain certain

exhibits filed in support of that motion under seal (NYSCEF Doc. Nos. 175, 178, 181) (MOT

SEQ 013). By orders dated November 18, 2024, and December 5, 2024, the court granted the

defendant’s requests for TROs to maintain the subject documents under seal pending decision

on the present motions. The motions are granted in part, without opposition.

Pursuant to 22 NYCRR 216.1(a), “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.” The

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NYSCEF DOC. NO. 293 RECEIVED NYSCEF: 01/30/2025

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 (1st Dept. 2010). Because “confidentiality is clearly the exception, not the rule”

(Matter of Hofmann, 284 AD2d 92, 93–94 [1st 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 (1st Dept. 2006); see Mosallem v Berenson, supra. The burden is on the party seeking

to seal court records to establish “good cause.” Maxim, Inc. v Feifer, 145 AD3d 516, 517 (1st

Dept. 2017). Furthermore “[a] finding of ‘good cause’ presupposes that ... no alternative to

sealing can adequately protect the threatened interest.” Mancheski v Gabelli Group Capital

Partners, 39 AD3d 499, 502 (2nd Dept. 2007) citing In re Herald Co., 734 F2d 93, 100 [2nd Cir.

1984]). Appropriate less restrictive alternative relief may and should be granted to balance the

competing interests of public access and the need for secrecy or confidentiality. See Danco

Labs v Chemical Works of Gedeon Richter, 274 AD2d 1 (1st Dept. 2000). It is well settled that

redaction can be such an appropriate alternative relief and is favored over sealing. See Id.; Jose

V. v Smiley & Smiley LLP, 214 AD3d 523 (1st Dept. 2023); Vergara v Mission Capital Advisors,

LLC, 187 AD3d 495 (1st Dept. 2020); Gliklad v Derispaska, 185 AD3d 512 (1st Dept. 2020);

Maxim, Inc. v Feifer, 145 AD3d 516 (1st Dept. 2016).

In the business context, good cause may be established where trade secrets are

involved (see Matter of Bernstein v On-Line Software Inter. Inc., 232 AD2d 336 [1st Dept. 1996]

lv denied 89 NY2d 810 (1997); Matter of Crain Communications, Inc., 135 AD2d 351 [1st Dept.

1987]) or “where the release of documents could threaten a business’s competitive advantage.

(Matter of Twentieth Century Fox Film Corp., supra at 488).” Mosallem v Berenson, supra at

350; see Vergara v Mission Capital Advisors, LLC, supra; Mancheski v Gabelli Group Capital

Partners, supra.

The defendant seeks to redact the plaintiff’s letter to the court, dated November 8, 2024,

concerning the defendant’s alleged noncompliance with its discovery obligations, as well as

exhibits to the letter – exhibits 1, 6, and 9r, consisting of email communications between the

parties’ attorneys regarding the underlying discovery dispute (NYSCEF Doc. Nos. 143-44, 149,

152) and exhibits 2-5 to the plaintiff’s letter, consisting of three deposition transcripts and the

cover letter that accompanied a supplemental document production by the defendant (NYSCEF

Doc. Nos. 145-48)/ The defendant also seeks to seal exhibits 1, 4 and 7 to the affirmation of

Jessica Sabbath in support of the plaintiff’s pending motion to compel, consisting of two

documents produced by the defendant in discovery containing its employees internal

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communications and a deposition transcript (NYSCEF Doc. Nos. 175, 178, 181). The defendant

further seeks to redact portions of the memorandum of law in support of the plaintiff’s motion to

compel that discuss the associated exhibits sought to be sealed (NYSCEF Doc. No. 172).

As to all of the above documents, the defendant contends that redaction or sealing of is

necessary to maintain the confidentiality of its “highly sensitive” and “proprietary” business

information, including details of its proprietary technology and the names of non-party

customers, as well as sensitive and confidential business information of non-litigant third parties.

The court finds “good cause” only to support maintaining the provisional redactions

applied to NYSCEF Doc. Nos. 143-44, 149, 152 and 172 and only to the extent of redacting the

names of non-litigant third parties, as disclosure of this information could impinge on the privacy

rights of third parties who are not litigants herein. See Mancheski v Gabelli Group Capital

Partners, 39 AD3d 499 (2nd Dept. 2007). As to the remaining information sought to be kept

under redaction and the documents sought to be maintained entirely under seal, the defendant’s

conclusory assertions fall short of a “good cause” showing. With respect to the four deposition

transcripts sought to be sealed, which comprise some 700 pages of testimony, the defendant

does not propose any redactions or otherwise identify what information is purportedly so

sensitive as to warrant sealing. As to the redactions it does propose, the defendant claims that

sealing/redaction is necessary to protect sensitive details of its proprietary technology. However,

a review of the defendant’s proposed redactions, as well as the non-deposition documents the

defendant seeks to seal in their entirety, reveals that the defendant does not seek to protect

information regarding product specifications or other similar technical information. Rather, the

defendant principally seeks to seal or redact information regarding fires and/or other

malfunctions or defects in equipment it provided and/or serviced at other wind farms. However,

information regarding such malfunctions and defects is already public, as it forms a substantial

part of the plaintiff’s publicly filed amended complaint. Moreover, where, as here, a case

concerns an allegedly defective product, the interests of the public weighs in favor of disclosure.

See In Re East 51st Street Crane Collapse Litigation, 106 AD3d 473 (1st Dept. 2013) (court

denied sealing of settlement in wrongful death action arising from a tower crane collapse).

Indeed, 22 NYCRR 216.1[a] was enacted largely in response to concerns about “the practice of

sealing records of settlements in product liability and other tort actions where the information

might alert other consumers to potential defects.” Matter of Twentieth Century Fox Film Corp.,

supra at 485-86. The defendant provides and research reveals no decisional authority where a

concern over disclosure of defective products warrants the sealing of any records. Indeed, logic

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dictates that concern over disclosing defects in a product would weigh against sealing as a

matter of public policy. See Matter of Arb. Between Cyprium Therapeutics, Inc. & Curia Glob.,

Inc., 223 AD3d 1042 (3rd Dept. 2024) (compelling public interest in open access to proceeding

pertaining to the manufacture and commercialization of a lifesaving drug); In Re East 51st Street

Crane Collapse Litigation, supra.

Additionally, the fact that the documents sought to be sealed or redacted discuss

information previously designated as confidential pursuant to the so-ordered confidentiality

stipulation entered in this action pertaining to the production of purportedly confidential

documents in discovery “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 (2nd Dept. 2006); see Mosallem v Berenson, supra.

Finally, the court is cognizant that the documents the defendant seeks to seal in their

entirety, particularly the hundreds of pages of deposition transcripts, may well include the

names of non-litigant third parties, specifically other wind farms with equipment provided and/or

serviced by the defendant. As noted, however, the defendant does not propose any redactions

to these transcripts or otherwise identify with any specificity what information contained within

them warrants sealing.

Accordingly, it is

ORDERED that the defendant’s motions to seal (MOT SEQ 010 and 013) are granted to

the extent that the names of non-litigant third parties in NYSCEF Doc. Nos. 143-44, 149, 152

and 172 shall be redacted, as “good cause” was shown for such redactions, and the motions

are otherwise denied; and it is further

ORDERED that service upon the Clerk of the Court of this order shall be made 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); and it is further

ORDERED that the Clerk of the Court is directed to accept for filing redacted copies of

NYSCEF Doc. Nos. 143-44, 149, 152 and 172, to be available for viewing by the public via

NYSCEF, with revised redactions limited to those approved herein.

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NYSCEF DOC. NO. 293 RECEIVED NYSCEF: 01/30/2025

This constitutes the Decision and Order of the court.

1/30/2025

DATE

CHECK ONE: CASE DISPOSED X NON-FINAL DISPOSITION

□

GRANTED DENIED X GRANTED IN PART OTHER

APPLICATION: SETTLE ORDER SUBMIT ORDER

□

CHECK IF APPROPRIATE: INCLUDES TRANSFER/REASSIGN FIDUCIARY APPOINTMENT REFERENCE

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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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