Can’t Seal Case to Prevent Damage to Business Reputation, Even If Case Settled Quickly
From FTL Displays, LLC v. Blackout Inc., decided May 27 by the Nevada Court of Appeals (Chief Judge Michael Gibbons, joined by Judges Jerome Tao and Judge Bonnie Bulla):
… Blackout Inc. filed a complaint against FTL, alleging breach of contract. The parties quickly settled the matter and Blackout filed a voluntary dismissal with prejudice.
FTL then filed a motion to seal, seeking to seal the case, prohibiting public access to the documents filed in the case and the names of the parties. In its motion, FTL asserted that sealing the entire case was warranted pursuant to the Rules Governing Sealing and Redacting Court Records (SRCR) 3(4)(h) because the parties quickly resolved the case; FTL’s reputation could be damaged if potential clients discovered the case, despite the fact that it was a mere misunderstanding between the parties; FTL was involved in other litigation and believe
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