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ONYX ENTERPRISES CANADA INC. v. STANISLAV ROYZENSHTEYN
3:23-cv-02913
D.N.J.
Aug 27, 2024
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Background

  • Onyx Enterprises Canada Inc. filed three motions to seal portions of complaints and exhibits, as well as portions of defendants’ memorandum of law, in a federal civil case.
  • The motions to seal followed a court order that had previously denied sealing for lack of specificity and required Onyx to more clearly articulate its basis for seeking sealing.
  • Onyx based its motions primarily on earlier state court orders to seal similar information and confidentiality/nondisclosure agreements with third parties.
  • The court emphasized the strong presumption of public access to judicial records and the movant’s burden under Local Civil Rule 5.3 to justify sealing with particularity.
  • The district court reviewed the adequacy of Onyx's justifications under both federal law and the local rule, determined they were insufficient, and granted Onyx leave to supplement its filings.
  • The court noted some materials at issue may already be publicly available or previously unsealed, further undermining the sealing requests.

Issues

Issue Plaintiff’s Argument Defendant’s Argument Held
Whether prior state court sealing/confidentiality orders justify sealing in federal court Prior state orders require confidentiality, and breaching them would subject parties to sanctions Reliance on prior state sealing orders is insufficient without specific new justification State orders and confidentiality agreements alone do not justify sealing under federal standards
Whether specific injury must be shown to seal materials Onyx claims potential litigation, sanctions, or breach of agreements if not sealed No specific, concrete injury alleged that meets federal standards Specific, clearly defined injury must be articulated; vague claims insufficient
Whether public access presumption can be overridden by confidentiality agreements Materials are covered by NDAs and confidentiality pacts, so must remain sealed Confidential designations alone are not enough for sealing Merely being confidential/subject to NDA is not enough; must meet Rule 5.3(c) standards
Whether materials already public can be sealed Seeks to seal certain exhibits and filings, including ones already filed publicly Such materials cannot be sealed if already public Documents already public or available cannot be sealed due to lack of injury

Key Cases Cited

  • None listed with official reporter citations in the provided text (all citations are to F. Supp. or use WL references, which do not satisfy the requested format).
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Case Details

Case Name: ONYX ENTERPRISES CANADA INC. v. STANISLAV ROYZENSHTEYN
Court Name: District Court, D. New Jersey
Date Published: Aug 27, 2024
Docket Number: 3:23-cv-02913
Court Abbreviation: D.N.J.