Acklin v. Eichner

DOCUMENT ELECTRONICALLY FILED DOC #: DATE FILED: □ 10/27/20 STEARNS WEAVER MILLER — WEISSLER ALHADEFF & SITTERSON, Pa. Grace L. Mead Stearns Weaver Miller 150 West Flagler Street Suite 2200 Miami, FL 33130 (305) 789-3559 gmead@stearnsweaver.com October 26, 2020 Hon. Gregory H. Woods United States Courthouse MEMORANDUM ENDORSED 500 Pearl Street, Room 12C New York, NY 1007 Re: Charles R. Acklin, et al. v. lan Bruce Eichner, et al., Case No 1:20-CV-07042 — Letter Motion for Approval of Sealed Filing Dear Judge Woods: We represent Defendant Bluegreen Vacations Unlimited, Inc. (“Bluegreen’”) in this case and write to further address the confidentiality of the 2018 Asset Purchase Agreement. Bluegreen continues to believe that, according to the broadest interpretation of the Asset Purchase Agreement’s confidentiality provisions, only the consideration paid is potentially confidential. But, based on a request from the “Eichner Defendants,” we respectfully request that the copies of the Asset Purchase Agreement filed with Bluegreen’s motion to dismiss, see Dkt. 72-1 & 72-2, be temporarily filed entirely under seal until counsel for the Eichner Defendants has an opportunity to brief what parts of the Asset Purchase Agreement they believe are confidential and why. As this Court may recall, this litigation involves a dispute between Plaintiffs, who are timeshare owners, and the Eichner Defendants, who were involved in selling Plaintiffs their timeshare interests. Plaintiffs also sued Bluegreen, claiming it bears successor liability under the Asset Purchase Agreement. At a telephonic hearing before filing the motion to dismiss, on October 15, counsel for Bluegreen explained that the Asset Purchase Agreement would be central to the motion to dismiss and that she had, out of an excess of caution, forwarded a copy to plaintiffs’ counsel with the price terms redacted. Tr. of Oct. 15, 2020 Hr. at 9:23-25. Consistent with what was discussed at that conference and on the day of filing the motion to dismiss, we sent an email to the parties indicating that we would be filing the Asset Purchase Agreement with the price terms redacted. 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SSeeccttiioonn 1133..11 ooff tthhee AAsssseett PPuurrcchhaassee AAggrreeeemmeenntt ccoonntteemmppllaatteedd tthhaatt bbeeffoorree tthhee ffiirrsstt ppeerriiooddiicc cclloossiinngg,, tthhee ppaarrttiieess wwoouulldd ttaakkee "“eeffffoorrttss ttoo kkeeeepp tthhee ffiinnaanncciiaall tteerrmmss ooff tthhiiss AAggrreeeemmeenntt ccoonnffiiddeennttiiaall..”" EExx.. 11,, §§ 1133..11.. TThheenn,, "“FFrroomm aanndd aafftteerr tthhee FFiirrsstt Hon. Gregory H. Woods United States Courthouse October 26, 2020 Page 3 Closing, either Party may make press releases and such other disclosures as it deems appropriate (without including the confidential business terms of the Transactions) and the provisions of this Section 13.1 shall no longer be applicable.” /d. Unlike other provisions that expressly “survive termination,” Section 13.1 no longer constrains the parties’ disclosures after the Asset Purchase Agreement’s undisputed termination. Ex. 1, § 15.3; Ex. 1, §§ 12.3, 16.16 & 16.18. Upon termination, “the rights and obligations [Junder” a contract generally “cease.” Twitchell v. Town of Pittsford, 483 N.Y.S.2d 524, 525 (4th Dep’t 1984), aff'd, Twitchell v. Town of Pittsford, 66 N.Y. 2d 824 (1985). Even putting that aside, the only potentially confidential business terms supplied within the four comers of the Asset Purchase Agreement were the price terms. We understand that the Eichner Defendants’ submission further articulating their position, under Your Honor’s Individual Practice, is due within three days of service of this letter. Plaintiffs have not yet taken a position on the matter. Respectfully submitted, Grace L. Mead ce: All Counsel In accordance with Rule 4(A)(i1) of the Court's Individual Rules of Practice in Civil Cases, the Eichner Defendants are directed to submit a letter explaining the need to redact information other than price term: October 29, 2020. The Eichner Defendants are further directed to file (a) a public copy with proposed redactions, and (b) a sealed copy of the unredacted document with the redactions highlighted. The Court expects that it will rule on the motion to seal in conjunction with or shortly after its decision on Bluegree motion to dismiss. SO ORDERED. Dated: October 27, 2020 beast WOODS New York, New York United States District Judge STEARNS WEAVER MILLER WEISSLER ALHADEFF & SITTERSON, Pa.