Motion to Redact 9019 Motion and Seal Settlement Agreement

Summary

This template motion is for use by an attorney representing a debtor that wants to file a settlement agreement under seal and needs to redact portions of the motion to approve the settlement. This template includes practical guidance, drafting notes, and alternate and optional clauses. Bankruptcy Rule 9019 generally requires that all proposed settlements of claims be made by motion after notice and a hearing. A settlement subject to Bankruptcy Rule 9019 may contain confidential information. In that case, counsel needs to file a motion to file the settlement under seal or to redact the settlement pursuant to Section 107(b) of the Bankruptcy Code and Bankruptcy Rule 9018. As part of a motion to seal a settlement agreement, the movant will need to specify the factual and legal authority demonstrating that the settlement is properly classified as confidential or scandalous under Section 107(b). Togut v. Deutsche Bank AG (In re Anthracite Capital, Inc.), 492 B.R. 162, 174-75 (Bankr. S.D.N.Y. 2013). Counsel may also need to redact portions of the Bankruptcy Rule 9019 motion when moving to seal the entire settlement. The basis for redacting a document is also Section 107(b) and Bankruptcy Rule 9018. It is important that the motion still include the factual basis for approving a Bankruptcy Rule 9019 motion. For instance, the amounts of the claims and the settlement should usually be included in the Bankruptcy Rule 9019 motion even if the settlement has been sealed or redacted. Geltzer, 2007 U.S. Dist. LEXIS 6794 at *14. Note that it is difficult to convince a court to grant a motion to seal under Section 107(b) because there is a strong presumption to allow public access to filings in bankruptcy cases, including settlement agreements filed under Bankruptcy Rule 9019. Geltzer v. Andersen Worldwide, S.C., 2007 U.S. Dist. LEXIS 6794 at *14 (S.D.N.Y. Jan. 30, 2007). As an alternative, counsel may have more success protecting confidential information by moving to redact those portions of the settlement that are confidential instead of seeking to seal the entire settlement. Given a choice, courts generally prefer that parties redact those portions of the settlement agreement that contain sensitive information rather than sealing the entire settlement agreement. In re Oldco M Corp., 466 B.R. 234, 237, n.2 (Bankr. S.D.N.Y. 2012) ("rather than wholesale sealing of documents containing some confidential information, redacting the document to remove only confidential information is the preferred form of protection"). In this template, the debtor is moving to file a settlement agreement under seal and redact portions of the motion to approve the settlement. Counsel can revise this template to reflect a debtor (or other movant) seeking to redact the settlement agreement and the Bankruptcy Rule 9019 motion (instead of sealing the settlement and redacting the motion). For a full listing of key content that provides an overview of important topics when litigating disputes in bankruptcy cases, see Bankruptcy Litigation Resource Kit. For more information, see Rule 9019 Settlement Agreements, Settlement Agreements in Bankruptcy, and Data Privacy and Bankruptcy. For related templates, see Rule 9019 Motion to Approve Settlement and Order Approving Settlement Agreement.