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