On September 8, 2025, Justice Cohen of the New York County Commercial Division issued a decision in Cherokee Funding II, LLC v. Express Funding of Am., LLC, 2025 NY Slip Op. 33368(U), holding that the fact that the parties had agreed to keep certain documents confidential was an insufficient basis for sealing court records, explaining:
Pursuant to § 216.1(a) of the Uniform Rules for Trial Courts, this Court may seal a filing upon a written finding of good cause, which shall specify the grounds thereof. In determining whether good cause has been shown, the court shall consider the interests of the public as well as of the parties.
The Appellate Division has emphasized that there is a broad presumption that the public is entitled to access to judicial proceedings and court records. Since the right of public access to court proceedings is of constitutional dimension, any order denying access must be narrowly tailored to serve compelling objectives, such as a need for secrecy that outweighs the public’s right to access. Furthermore, because confidentiality is the exception and not the rule, the party seeking to seal court records has the burden to demonstrate compelling circumstances to justify restricting public access.
The Court has reviewed Defendants’ application to seal NYSCEF 249, 250, 252, and 253 and finds that Defendants’ generalized assertions of good cause do not establish a compelling justification for complete sealing that is proposed. The fact that the parties have stipulated to sealing documents, or that they have designated the documents during discovery as “Confidential” or “Highly Confidential,” does not, by itself, require granting of the motion. To the extent the documents contain some confidential information, Defendants have not shown why such confidential information cannot be properly protected through redaction. In view of the admonition that sealing of court records must be narrowly tailored to serve compelling objectives.
(Internal quotations and citations omitted).