Lawsuits are bad for business, especially in New York where big companies thrive. Because of the public nature of litigation, it doesn’t take long for word to spread about the alleged misdeeds of a company. Reputational harm and stakeholder suspicions are often not far behind.
But there are other, more practical risks inherent to the litigation process. A company could see its trade secrets and confidential business practices exposed, which can help their competitors. Are there ways to keep your business litigation private?
If your company is facing a lawsuit, turn to the Manhattan business law firm of Levy Goldenberg LLP. We can review the circumstances of your case and explain whether there are ways to shield aspects of it from public view.
Possible Options For Keeping Information Private
Civil lawsuits are generally public matters, in that a filed complaint and other court documents enter the public record immediately. Although there is value to this level of transparency, it can also harm a company by exposing sensitive information like trade secrets, proprietary data, and the like. Depending on the facts in your case, you may be able to limit public access to portions of your lawsuit by using such tools as:
Sealing court documents
Unlike criminal cases, it is far more difficult to seal court records in civil matters. New York judges disfavor sealing records because doing so undermines transparency and erodes public trust in the court system. Nevertheless, it may be possible to seal certain records that contain:
- Trade secrets: Allowing competitors to view sensitive proprietary information could give them an unfair advantage in the marketplace.
- Personal privacy: Documents which contain customer information like medical records and financial data are more likely to be sealed.
- Risk of harm: Perhaps leaving certain documents public may lead to harm or other serious consequences, prompting a court to seal them.
Redacting documents
A court in Manhattan may be amenable to redacting portions of documents rather than sealing them entirely. Sensitive information can be blacked out from the document while general content can remain accessible to the public. Although this does not provide the level of privacy that sealing a document does, it can limit the consequences of having confidential data and information publicized.
In-camera inspections
A New York court may conduct an in-camera inspection of documents so that only the judge can see them. The public is not given access to what the judge sees. The judge can then decide how relevant the information in the document is and whether it should be redacted or sealed.
Protective orders
Opposing counsel can generally inspect a host of documents, but protective orders may limit what the plaintiff or defendant does with them. More specifically, the order may determine who can view the document, how they can use it, and the conditions under which the document may be disclosed to others. For example, a company with proprietary technology included in a document can obtain a protective order that restricts access to the document to legal counsel and a few other key individuals.
Confidentiality agreements
Parties to a lawsuit can enter into agreements which spell out limitations on how private documents and information must be handled. The terms of these documents are legally binding and can be customized to the exact needs of a specific lawsuit. Learn more about these agreements by speaking with our Manhattan business lawyers.
Taking the Steps to Protect Your Business Interests
New York companies know that the release of sensitive data and documents could spell financial and even legal trouble for them. That’s why they trust Levy Goldenberg LLP to manage all aspects of their litigation needs. Connect with our Manhattan office today to learn more.