Summary:
The parties in this case, where the Plaintiff alleged that personal identifying information had been disclosed in a Proof of Claim, reached a settlement but sought a Motion to Seal in order so that such settlement would not be construed as binding for similar claims.
The bankruptcy court, however, found that 11 U.S.C. § 107(a) was very restrictive, allowing only sealing of documents to “protect an entity with respect to a trade secret or confidential research, development, or commercial information; or protect a person with respect to scandalous or defamatory matter . . . .” The disclosure of personal information (while itself subject to being sealed) did not fit either narrow criteria.
Commentary:
Unfortunately, the parties appear to have found a way around this decision, by stipulating a dismissal of the Adversary Proceeding. Attached below, however, is a copy of the Complaint filed in this case, which should assumed to be accurate.
Hopefully, Thompson Pump & Manufacturing has taken steps to clean up any other illegal Proof of Claim that it has filed, as a failure to do so at this date would likely be seen as egregiously willful violation.
For a copy of the opinion, please see:
Bornman v. Thompson Pump & Manufacturing Co.- Motion to Seal Denied
Complaint
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