Case 15-21233

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IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF CONNECTICUT
HARTFORD DIVISION
IN RE:
CURTIS JAMES JACKSON, III,
DEBTOR.

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CHAPTER 11
CASE NO. 15-21233 (AMN)

MOTION FOR ORDER (1) LIMITING ACCESS TO TRADE SECRET AND
CONFIDENTIAL COMMERCIAL INFORMATION, AND (2) FOR
AUTHORIZATION TO FILE A MARKETING AND BRAND
COLLABORATION AGREEMENT UNDER SEAL
Curtis James Jackson, III (the “Debtor”), the debtor and debtor in possession in the
above-captioned bankruptcy case (the “Bankruptcy Case”), that was filed under chapter 11 of
title 11 of the United States Code, 11 U.S.C. §§ 101-1532, as amended (the “Bankruptcy
Code”),1 files this Motion For Order (1) Limiting Access to Trade Secret and Confidential
Commercial Information, and (2) For Authorization to File a Marketing and Brand
Collaboration Agreement Under Seal (the “Motion”) under §§ 105(a), 107(b)(1) and Rule 9018
of the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”), seeking the entry of an
order limiting access to trade secret and confidential commercial information regarding his
endorsement of and contractual appointment as a spokesman for Effen® Vodka (“Effen®”), and
for authorization to file that contract under seal, if at all. In support of this Motion, Debtor
submits the following:
I. Jurisdiction and Venue
1.

On July 13, 2015 (the “Petition Date”), the Debtor filed its voluntary petition for

relief under chapter 11 of the Bankruptcy Code, thereby initiating the Bankruptcy Case. Under §
301, the filing of the petition constituted an order for relief under chapter 11 and, since that
1

All of the section references contained in this Application not otherwise defined are to the Bankruptcy
Code.

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filing, under §§ 1107 and 1108, the Debtor has continued in possession and control of his assets
and property, and has continued to operate his businesses and manage his affairs. This Court has
jurisdiction over this matter under 28 U.S.C. §§ 157 and 1334. This Application is a core
proceeding under 28 U.S.C. § 157(b)(2). Venue is proper before this Court in this district under
28 U.S.C. §§ 1408 and 1409. The statutory predicate for the relief requested in this Motion
includes §§ 105(a), 107(b)(1) and Bankruptcy Rule 9018.
II. Factual Background
A. Introduction to the Debtor and the Filing of this Bankruptcy Case
2.

The Debtor, Curtis James “50 Cent” Jackson, III, is an internationally recognized

recording artist, an actor, an entrepreneur and a philanthropist. Since his entrance onto the music
scene in 2003 with his multi-platinum debut album, the Debtor has sold more than 22 million
albums worldwide, and has received numerous awards and Grammy nominations throughout his
career.
3.

As a result of the Debtor’s success, he has been fortunate to acquire a significant

amount of assets. Like many other celebrity entertainers that make their living in full view of the
public eye, however, the Debtor has accumulated a substantial amount of liabilities as well.
Notwithstanding this fact, the Debtor’s bankruptcy filing is not primarily a result of excessive
current expenses exceeding his current revenues, but rather the substantial costs of litigation and
resulting awards against him in the past year which total in excess of $20 million, and which are
discussed in more detail below. While the Debtor has substantial assets, he does not have the
ability to pay the full amount of these litigation claims and all of the other asserted claims at the
present time, thereby necessitating this chapter 11 filing.

MOTION FOR ORDER (1) LIMITING ACCESS TO TRADE SECRET AND CONFIDENTIAL COMMERCIAL
INFORMATION, AND (2) FOR AUTHORIZATION TO FILE A MARKETING AND BRAND
COLLABORATION AGREEMENT UNDER SEAL -- PAGE 2

 Case 15-21233

4.

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The Debtor filed his chapter 11 petition to obtain the full protections of the

bankruptcy laws in order to reorganize his financial affairs in a reasonable and timely manner
and in accordance with an approved plan for the benefit of his estate and all of his creditors. In
connection with this bankruptcy proceeding, the Court will determine the extent and value of the
Debtor’s assets and liabilities – and, thus, Debtor’s net worth.
B. The Debtor’s Contractual Appointment as a Spokesman for Effen®
5.

Effen®, which is owned by Beam Suntory (“Beam”), is a vodka that is

manufactured in Holland. In the Dutch language, “effen” means self-colored and smooth. The
distinguishing characteristics of Effen® are detailed below.

6.



Base. Effen® is made from premium wheat from Northern Holland. Of all the
base materials used to make vodka – grapes, potato, corn, soy, grain, rye – wheat
contains the purest kind of starch. The result is a silky smooth liquid.



Distillation. Effen® is distilled hundreds of times, effectively, through a process
called “continuous rectification,” in which the liquid circulates within giant steel
columns. This distillation occurs at lower temperatures than other vodkas to
avoid carmelization (the harsh alcohol taste that can be caused by traces of burnt
sugar).



Filtration. Effen® undergoes a rigorous filtration process. The liquid is filtered
five (5) times through active carbon using a patented “bottom-up” filtration
process. By pumping the alcohol up through the filtrate, the channels that
typically develop are eliminated, optimizing the liquid’s contact with the filtrate.



Water. The water used in Effen® goes well beyond the standard filtering
process. Hydraulic pumps force pure spring water through a membrane at
extremely high pressures. The process, called reverse osmosis, strips away all
impurities and leaves water that is technically perfect. Then, to ensure a balanced,
crisp vodka, the water is mixed with alcohols in tanks for several days prior to
bottling.
Pre-petition, the Debtor and, a related entity, Sire Spirits, LLC, entered into a

Marketing and Brand Collaboration Agreement (the “Beam Contract”) with Beam to, among
other things, become a spokesman for Effen®. That contract is subject to a confidentiality

MOTION FOR ORDER (1) LIMITING ACCESS TO TRADE SECRET AND CONFIDENTIAL COMMERCIAL
INFORMATION, AND (2) FOR AUTHORIZATION TO FILE A MARKETING AND BRAND
COLLABORATION AGREEMENT UNDER SEAL -- PAGE 3

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provision that prohibits the disclosure of its terms and conditions as well as all material received
under or in connection with that contract.
III. Relief Requested
7.

Because the Beam Contract is subject to a confidentiality provision, the Beam

Contract, and its terms and conditions, contain trade secrets and confidential commercial
information. By this Motion, the Debtor seeks an order that (a) permits the Debtor to file the
Beam Contract with this Court under seal, if at all; and (b) limits access to the Beam Contract to
those parties that sign the non-disclosure agreement (the “Effen® NDA”) that is attached as
Exhibit A.
IV. Basis For Relief
8.

Under Section § 107(b)(1), on the request of a party in interest, the bankruptcy

court shall, and on the bankruptcy court’s own motion, the bankruptcy court may, among other
things, protect an entity with respect to a trade secret or confidential research, development, or
commercial information.2 Likewise, under Bankruptcy Rule 9018, on a motion or on its own
initiative, with or without notice, the court may make any order which justice requires to, among
other things, protect the estate or any entity in respect of a trade secret or other confidential
research, development, or commercial information.3
9.

Although “[T]here is a strong presumption and public policy in favor of public

access to court records,”4 this common law right is not absolute and concealment may be needed

2
3
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Section 107(b)(1) (emphasis added).
Bankruptcy Rule 9018.
In re Anthracite Capital, Inc., 492 B.R. 162, 170 (Bankr. S.D.N.Y. 2013) (“Anthracite Capital”), citing, In
re Borders Group, Inc., 462 B.R. 42, 46 (Bankr. S.D.N.Y. 2011) (“Borders Group). See also § 107(a),
which codifies the common law right of the public to inspect and copy judicial records and creates a
presumption that all documents that are filed in a bankruptcy case are open and accessible to the public and
subject to examination by the public at reasonable times and at no charge. Anthracite, 492 B.R. at 170,
citing Video Software Dealers Assoc. v. Orion Pictures Corp. (In re Orion Pictures Corp.), 21 F.3d 24, 26

MOTION FOR ORDER (1) LIMITING ACCESS TO TRADE SECRET AND CONFIDENTIAL COMMERCIAL
INFORMATION, AND (2) FOR AUTHORIZATION TO FILE A MARKETING AND BRAND
COLLABORATION AGREEMENT UNDER SEAL -- PAGE 4

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if access is sought for an improper reason.5 Section 107(b) creates a statutory exception to this
presumption of public access by requiring courts to protect, among other things, trade secrets and
confidential commercial information, when requested by a party in interest.6 And Bankruptcy
Rule 9018 puts into place the procedure to apply § 107(b) and allows the court to “make any
order which justice requires.”7
10.

In order to overcome the presumption of access and invoke the limitations and

restrictions of § 107(b)(1), the requesting party must provide the court with specific factual and
legal authority showing that a certain document is correctly classified as confidential.8 The
burden of proof is on the movant, the Debtor here, to show the court that the information sought
to be protected from public viewing is both commercial and confidential.9 The standard is not
good cause.10 The standard that must be met is that the information at hand be confidential and
commercial.11

The language used in § 107(b)(1) separates trade secret from confidential

commercial information with the word “or,” which means that the information sought to be
restricted can be either or both. In other words, the subject information is not required to rise to
the level of trade secret status.12

5
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10
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(2nd Cir. 1994) (“Video Software”); and Nixon v. Warner Commc’ns, 435 U.S. 589, 597 (1978) (“Nixon”)
(“It is clear that courts in this country recognize a general right to inspect and copy public records and
documents, including judicial records and documents.”) (citations omitted).
Anthracite, 462 B.R. at 170, citing Nixon, 435 U.S. at 597-598.
Video Software, 21 F.3d at 27 (“[I]f the information fits any of the specified categories, the court is
required to protect a requesting interested party and has no discretion to deny the application.”) (emphasis
added). Anthracite Capital, 492 B.R. at 170-171.
Anthracite Capital, 492 B.R. at 171. Borders Group, 462 B.R.at 46. Bankruptcy Rule 9018.
Anthracite Capital, 492 B.R.at 171, citing United States v. Continental Airlines, Inc. (In re Continental
Airlines, Inc.), 150 B.R. 334, 340-341 (Bankr. D.Del. 1993) (refusing to seal documents based on “nothing
more than the mere possibility” that they contained defamatory information).
Anthracite Capital, 492 B.R. at 177, citing In re Oldco M Corp., 466 B.R. 234, 237 (Bankr. S.D.N.Y.
2012); and In re Northwest Airlines Corp., 363 B.R. 704, 706 (Bankr. S.D.N.Y. 2007).
Anthracite Capital, 492 B.R. at 177, citing Video Software, 21 F.3d at 28.
Anthracite Capital, 492 B.R. at 177, citing Video Software, 21 F.3d at 28. Section 107(b)(1).
Anthracite Capital, 492 B.R. at 177. Borders Group, 462 B.R. at 47. Video Software, 21 F.3d at 28.

MOTION FOR ORDER (1) LIMITING ACCESS TO TRADE SECRET AND CONFIDENTIAL COMMERCIAL
INFORMATION, AND (2) FOR AUTHORIZATION TO FILE A MARKETING AND BRAND
COLLABORATION AGREEMENT UNDER SEAL -- PAGE 5

 Case 15-21233

11.

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Commercial information is “information which would cause ‘an unfair advantage

to competitors by providing them information as to the commercial operations of the debtor.’”13
When information “is so critical to the operations of the entity seeking the protective order that
its disclosure will unfairly benefit that entity’s competitors[,]” that information should be sealed
under § 107(b).14
12.

An endorsement contract is an often used device for an entertainer like the Debtor

to obtain publicity, solidify his brand and provide a significant stream of income. The Beam
Contract is an example of this. That contract gives the Debtor widespread exposure as the
spokesman for Effen®, a premium high-end vodka, associates the Debtor with the luxury end of
the consumer market, and provides the Debtor with a stream of income that will help pay back
his creditors.
13.

Endorsement contracts are competitive. Entertainers compete to endorse certain

consumer products. No entertainer wants the terms of its endorsement contracts made public
because the results of that disclosure would be disastrous by giving competitors an unfair
advantage in allowing them to undercut the financial terms of the entertainer’s endorsement
deals. That is why the Beam Contract has a confidentiality provision, which prevents the
disclosure of the Beam Contract’s terms and conditions.

13

14

Gowan v. Westford Asset Mgmt. LLC (In re Dreier, LLP), 485 B.R. 821, 822-823 (Bankr. S.D.N.Y. 2013).
Anthracite Capital, 492 B.R. at 178.
In re Barney’s, Inc., 201 B.R. 703, 709 (Bankr. S.D.N.Y. 1996) (the bankruptcy court provided examples of
commercial information that should be sealed including pricing formulae, short and long term marketing
strategies, and the terms of agreements with suppliers). In re Frontier Group, LLC, 256 B.R. 771, 774
(Bkrtcy. E.D.Tenn. 2000) (a physician list of a debtor-corporation that procured and assigned physicians to
temporary positions in emergency rooms was held to confidential commercial information). In re Nunn, 49
B.R. 963, 965 (Bankr. E.D.Va. 1985) (a customer list of a creditor was held to qualify as confidential
commercial information). Anthracite Capital, 492 B.R. at 178.

MOTION FOR ORDER (1) LIMITING ACCESS TO TRADE SECRET AND CONFIDENTIAL COMMERCIAL
INFORMATION, AND (2) FOR AUTHORIZATION TO FILE A MARKETING AND BRAND
COLLABORATION AGREEMENT UNDER SEAL -- PAGE 6

 Case 15-21233

14.

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For these reasons, the terms and conditions of the Beam Contract constitute trade

secrets15 and confidential commercial information under § 107(b)(1). That contract is one of the
significant ways that the Debtor intends to pay back his creditors, and that contract must be
protected so that the income stream that it generates for the Debtor is preserved. This can be
accomplished by permitting the Debtor to file the Beam Contract under seal, if at all, and
conditioning access to the Beam Contract only to those parties who sign the Effen® NDA,
Exhibit A hereto. The Debtor reserves the right to object to any parties signing the Effen®
NDA and gaining access to the Beam Contract to the extent that such parties (1) are competitors
of the Debtor; or (2) are not creditors of the Debtor.
V. Prayer
The Debtor prays that this Court grant this Motion by entering an order (a) authorizing
the Debtor to file the Beam Contract under seal, if at all; (b) limiting access to the Beam Contract
to those parties that sign the Effen® NDA, Exhibit A hereto; and (c) awarding the Debtor such
other and further relief, special or general, at law or in equity, as this Court may deem just and
proper.

15

A trade secret is a “combination of characteristics and components, each of which, by itself, is in the public
domain, but the unified process, design and operation of which, in unique combination, affords a
competitive advantage and is a protectable secret.” Integrated Cash Management Services, Inc. v. Digital
Transactions, Inc., 920 F.2d 171, 173 (2nd Cir. 1990). In re American Preferred Prescription, Inc., 186 B.R.
350, 356 (Bankr. E.D.N.Y. 1995).

MOTION FOR ORDER (1) LIMITING ACCESS TO TRADE SECRET AND CONFIDENTIAL COMMERCIAL
INFORMATION, AND (2) FOR AUTHORIZATION TO FILE A MARKETING AND BRAND
COLLABORATION AGREEMENT UNDER SEAL -- PAGE 7

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Dated: August 13, 2015.

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Respectfully submitted,
NELIGAN FOLEY LLP
/s/ Patrick J. Neligan, Jr.
Patrick J. Neligan, Jr.
Texas State Bar No. 14866000
pneligan@neliganlaw.com
James P. Muenker
Texas State Bar No. 24002659
jmuenker@neliganlaw.com
Seymour Roberts, Jr.
Texas State Bar No. 17019150
sroberts@neliganlaw.com
325 N. St. Paul, Suite 3600
Dallas, Texas 75201
Telephone: 214-840-5300
Facsimile: 214-840-5301
ZEISLER & ZEISLER, P.C.
/s/ James Berman
James Berman
CT Bar No. 06027
jberman@zeislaw.com
10 Middle Street, 15th Floor
Bridgeport, Connecticut 06604
Telephone: (203) 368-4234
Facsimile: (203) 367-9778
PROPOSED COUNSEL FOR THE DEBTOR

Certificate of Service
I hereby certify that on the 13th day of August, 2015, a true and correct copy of the
foregoing was served via this Court’s ECF notification system.
/s/ Patrick J. Neligan, Jr.
Patrick J. Neligan, Jr.

MOTION FOR ORDER (1) LIMITING ACCESS TO TRADE SECRET AND CONFIDENTIAL COMMERCIAL
INFORMATION, AND (2) FOR AUTHORIZATION TO FILE A MARKETING AND BRAND
COLLABORATION AGREEMENT UNDER SEAL -- PAGE 8
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