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Current Developments in the Commercial Divisions of the
New York State Courts
Posted: August 6, 2017

Party Need Not Produce Documents Relating to Settlement Discussions

On July 27, 2017, Justice Ramos of the New York County Commercial Division issued a decision in Five Star Electric Corp. v. A.J. Pegno Construction Co., Inc./Tully Construction Co., Inc., 2017 NY Slip Op. 31591(U), holding that a party was not required to produce documents relating to settlement discussions, explaining:

Documents and claims analyses disclosed during settlement discussions are inadmissible for the purpose of establishing Pegno/Tully or the City’s liability in the underlying action. Moreover, the claims analyses and correspondence that Five Star seeks, with the Confidentiality Agreement in place, are neither material nor necessary to the prosecution of this action.

This Court recognizes the competing public policy concerns between encouraging settlements and pre-trial disclosure, but finds that requiring disclosure would undermine future settlement negotiations.

(Internal quotations and citations omitted).

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