“Tax returns are generally afforded special protection from public disclosure.”
How later courts described this case
- “Tax returns are generally afforded special protection from public disclosure.”
Written by the judges who cited it.
The opinion
UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF NEW YORK
------------------------------------x
DELA YADOR,
Plaintiff, MEMORANDUM & ORDER
19-CV-4128 (EK)(RML)
-against-
JASON MOWATT,
Defendant.
------------------------------------x
ERIC KOMITEE, United States District Judge:
Before the Court are defendant Jason Mowatt’s motions
to seal portions of the trial record. See ECF Nos. 169, 182.
The Court assumes the parties’ familiarity with the relevant
procedural and factual background. For the reasons outlined
below, the motions are granted in part and denied in part.
Legal Standard
There is a “strong presumption” that “judicial
documents” should remain unsealed. In re Demetriades, 58 F.4th
37, 45-46 (2d Cir. 2023).1 A “judicial document” is one that is
“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).
1 Unless otherwise noted, when quoting judicial decisions this order
accepts all alterations and omits all citations, footnotes, and internal
quotation marks.
Trial exhibits and testimony are judicial documents,
because they are a “direct part of the process of adjudication.”
Encyclopedia Brown Prods., Ltd. v. Home Box Off., Inc., 26 F.
Supp. 2d 606, 612 (S.D.N.Y. 1998). Indeed, the presumption of
access to “evidence introduced in trials” is “especially
strong.” United States v. Amodeo, 71 F.3d 1044, 1049 (2d Cir.
1995). Such evidence will remain unsealed absent a showing that
sealing “is essential to preserve higher values and is narrowly
tailored to serve that interest.” Lugosch, 435 F.3d at 120.
Discussion
Mowatt seeks to seal (1) all exhibits and testimony
from the damages phase of the trial, (2) select plaintiff
exhibits containing confidential business information, (3)
select plaintiff exhibits containing personal information, and
(4) testimony regarding his income and tax returns. The Court
addresses each category in turn.
A. Exhibits and Testimony from Damages Phase
Mowatt first asks that all exhibits and testimony from
the damages phase be sealed “pending the resolution of the
motion for an accounting and to set aside the verdict as
advisory.” See First Def. Mot. to Seal 2, ECF No. 169 (“First
Mot.”). This is appropriate, he argues, because if the Court
decides to treat the jury’s damages verdict as advisory, then
those exhibits and testimony “will have no bearing on the
outcome” of the damages calculation. Id.
This argument is unavailing. Mowatt cites no
authority for the proposition that the “strong presumption” of
public access to trial documents, In re Demetriades, 58 F.4th at
45-46, vanishes when the court treats a trial verdict as
advisory. And there is little reason to believe that it would.
The Court would consider, and likely rely on, the documents and
testimony from the damages phase when conducting a judicial
accounting. So, even if the jury verdict were set aside, the
damages adjudication would still hinge (at least in part) on the
same evidence Mowatt now seeks to remove from public view. The
Second Circuit has made clear that when documents “are used to
determine litigants’ substantive legal rights, the presumption
of access is at its zenith, and thus can be overcome only
extraordinary circumstances.” Bernstein v. Bernstein Litowitz
Berger & Grossmann LLP, 814 F.3d 132, 142 (2d Cir. 2016).
Mowatt has not shown such circumstances here.
B. Plaintiff Exhibits with Confidential Business Information
Mowatt also argues that certain exhibits introduced by
Yador during trial contain confidential business information,
and therefore should be sealed.2 The Court disagrees.
2 These exhibits are PTX-012, PTX-014, PTX-020, PTX-025, PTX-035, PTX-
068, PTX-070, PTX-072, PTX-096, PTX-114, PTX-159a, PTX-178, PTX-179, PTX-218,
“[T]he protection of sensitive, confidential, or
proprietary business information” can justify sealing. TileBar
v. Glazzio Tiles, 723 F. Supp. 3d 164, 209 (E.D.N.Y. 2024). But
“conclusory statements that documents contain confidential
business information” will not overcome the presumption of
public access. Id. Instead, the moving party “must make a
particular and specific demonstration of fact” as to why sealing
is necessary. Id.
Here, Mowatt has not sufficiently explained why the
exhibits in question should be sealed. In his briefing, he
relies on conclusory assertions that certain exhibits contain
information that could “undercut Trap Karaoke’s competitive
advantage,” “be misused by a competitor,” or “potentially
damage[] Trap Karaoke.” E.g., First Mot. 3; Second Def. Mot. to
Seal 3, ECF No. 183 (“Second Mot.”). But he does not
specifically explain why such competitive harm is likely to
occur. And this omission is particularly pronounced given that
much of the information in question is at least five years old.
“[T]he older the information is, the less appropriate it is to
seal that information, particularly when the party does not
and PTX-219. Mowatt also appears to suggest that these exhibits should be
sealed because they were marked “confidential” during discovery. First Mot.
3-7. But “the mere fact that [a] document was marked confidential during
discovery does not establish that sealing is required.” Syntel Sterling Best
Shores Mauritius Ltd. v. TriZetto Grp., No. 15-CV-211, 2021 WL 1541385, at *2
(S.D.N.Y. Apr. 20, 2021) (citing Lugosch, 435 F.3d at 126).
explain with specificity why, despite the passage of time, the
information should still be sealed.” In re Keurig Green Mtn.
Single-Serve Coffee Antitrust Litig., No. 14-MC-2542, 2023 WL
196134, at *4 (S.D.N.Y. Jan. 17, 2023) (collecting cases). So,
the dated information invoked by Mowatt “cannot support the
necessary finding of harm” absent a credible explanation as to
why continued sealing is necessary. See Dawson v. Merck & Co.,
No. 12-CV-1876, 2021 WL 242148, at *8 (E.D.N.Y. Jan. 24, 2021)
(collecting cases).3
C. Plaintiff Exhibits with Personally Identifying Information
Mowatt asserts that other exhibits should be sealed
(or at least redacted) because they contain sensitive personal
information, including his phone number, email address, business
address, Venmo username, and “messages of a personal nature.”4
First Mot. 5-7. The Court agrees in part.5
3 Mowatt’s justification for sealing PTX-068 is slightly more specific.
He suggests that the exhibit, which contains a detailed schedule and
equipment list for a Trap Karaoke event, would permit a competitor to
“replicate a Trap Karaoke show” or to “hire the individuals listed on the
email.” First. Mot. 4. But it is unclear why a competitor could not acquire
similar information by simply attending a Trap Karaoke show. “Clearly, if
the information is already available to competitors, then it does not qualify
as confidential.” United Techs. Corp., Pratt & Whitney Aircraft Grp. v.
Marshall, 464 F. Supp. 845, 854 (D. Conn. 1979).
4 These exhibits are PTX-073, PTX-139, PTX-163, PTX-179, and PTX-238.
5 The fact that certain evidence was admitted in open court does not
mean that post hoc redactions are categorically inappropriate. See generally
United States v. Akhavan, 532 F. Supp. 3d 181 (S.D.N.Y. 2021) (permitting
post-trial redaction of exhibits that were admitted in open court). Indeed,
in this case, the cat is not entirely out of the bag. The exhibits that
Mowatt seeks to seal or redact have not been filed on the public docket. So,
if a member of the public wishes to view an exhibit, they must obtain that
exhibit from the parties, who will have the opportunity to apply any
necessary redactions. Similarly, while the trial transcripts are on the
“Typically, sealing of personal information such as
the applicants’ home addresses, personal phone numbers, and
email addresses, that is not public is warranted unless that
information has bearing on issues before the court.” Farris v.
Avon Prods., Inc., No. 23-CV-2023, 2024 WL 4441811, at *4
(S.D.N.Y. Oct. 7, 2024) (emphasis added). Here, Mowatt’s
personal contact information has no bearing on the issues before
the Court. So, the exhibits that contain Mowatt’s personal
phone number, email address, or Venmo username — which Mowatt
identifies as PTX-073, PTX-139, and PTX-163 — may be redacted to
exclude that information.6 First Mot. 5-6.
However, not all the information cited by Mowatt is
sensitive enough to justify sealing or redaction. Trap Karaoke
LLC’s business address is already public as a matter of New York
law. See N.Y. Limit. Liab. Co. §§ 203, 206. Furthermore,
Mowatt’s request to seal or redact the “messages . . . of a
personal nature” that appear in PTX-179 is also unwarranted.
First. Mot. 6-7. Mowatt does not explain why those messages are
so personally sensitive that they should be shielded from public
docket, members of the public cannot freely access them until June 30. See
ECF Nos. 161-164.
6 The Court notes that while several other exhibits in Mowatt’s motion
also contain personal contact information, he has not moved to seal or redact
them on that basis. Out of an abundance of caution, the Court makes clear
that its rulings as to PTX-073, PTX-139, and PTX-163 also permit Mowatt to
redact personal contact information from any other trial exhibits provided to
the public or filed on the public docket. He may also seek targeted
redactions of the trial transcript to remove any references to personal
contact information.
view. And the Court’s own review does not suggest that any such
explanation exists.
D. Testimony about Mowatt’s Income
Finally, Mowatt seeks to redact testimony about his
personal tax returns — specifically, his business income — that
was elicited on cross-examination. First. Mot. 8. This request
is both conclusory and overbroad.
“Sealing is warranted to protect personal . . . income
tax information.” Vanguard Dealer Servs., LLC v. Bottom Line
Driven, LLC , No. 21-CV-659, 2023 WL 4746180, at *1 (D. Conn.
Apr. 27, 2023); see also Solomon v. Siemens Indus., Inc., 8 F.
Supp. 3d 261, 285 (E.D.N.Y. 2014) (“Tax returns are generally
afforded special protection from public disclosure.”). However,
any such sealing must still be “narrowly tailored.” In re
Applications to Unseal 98 CR 1101(ILG), 568 F. App’x 68, 70 (2d
Cir. 2014); see Fung-Schwartz v. Cerner Corp., No. 17-CV-233,
2021 WL 4776461, at *2 (S.D.N.Y. Oct. 12, 2021) (declining to
seal “deposition [testimony] discussing tax returns” absent
“appropriately limited redactions”).
Here, Mowatt seeks to redact around thirty lines of
his testimony on cross-examination. But only a small fraction
of that testimony even references financial information. And
Mowatt has not explained why the financial information that is
referenced (i.e., business income attributed to Trap Karaoke in
2016 and 2017) is sensitive enough to justify redaction. The
Court therefore declines to redact the testimony at this time.
Conclusion
For the foregoing reasons, Mowatt’s motions to seal
are granted in part and denied in part.
SO ORDERED.
/s/ Eric Komitee
ERIC KOMITEE
United State
s District Judge
D ated: June 18, 2025
Brooklyn, New York