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PACHULSKI STANG ZIEHL & JONES LLP 10100 Santa Monica, Boulevard, 11th Floor Los Angeles, California 90067 Telephone: (310) 277-6910 Facsimile: (310) 201-0760 James I. Stang, Esq. (admitted pro hac vice) -and780 Third Avenue, 36th Floor New York, New York 10017 Telephone: (212) 561-7700 Facsimile: (212) 561-7777 Ilan D. Scharf, Esq. Counsel for the Official Committee of Unsecured Creditors of The Christian Brothers Institute and Christian Brothers of Ireland, Inc. UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK Chapter 11 In re: Case No. 11-22820 (RDD) THE CHRISTIAN BROTHERS INSTITUTE, et al., (jointly administered) Debtors. EX PARTE MOTION OF THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS FOR ORDER AUTHORIZING COMMITTEE TO FILE DOCUMENTS UNDER SEAL TO: THE HONORABLE ROBERT D. DRAIN UNITED STATES BANKRUPTCY JUDGE: The Official Committee of Unsecured Creditors (the Committee) of The Christian Brothers Institute (CBI) and Christian Brothers of Ireland, Inc. (CBOI and, collectively with CBI, the Debtors), the debtors and debtors in possession in the above-captioned cases (the Cases) under chapter 11 of Title 11 of the United States Code (the Bankruptcy Code), by and through his undersigned counsel, hereby moves (the Motion) this Court for an order, pursuant to sections 105(a) and 107(b) of the Bankruptcy Code and Rule 9018 of the Federal

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Rules of Bankruptcy Procedure (the Bankruptcy Rules), authorizing the Committee to file certain documents under seal. In support of the Motion, the Committee respectfully represents follows: RELEVANT FACTS A. Background Facts 1. On April 28, 2011 (the Petition Date), each of the Debtors commenced

their Cases by filing a voluntary petition for relief under chapter 11 of the Bankruptcy Code. Pursuant to sections 1107(a) and 1108 of the Bankruptcy Code, the Debtors continue to operate as debtors in possession. 2. CBI alleges that it is a domestic not-for-profit 501(c)(3) corporation

organized under 102(a)(5) of the New York Not-for-Profit Corporation Law. CBOI alleges that it is a domestic not-for-profit 501(c)(3) corporation organized under the Not-for-Profit Corporation Law of the State of Illinois. The Debtors allege that they were formed for the purposes of, among other things, establishing, conducting and supporting Catholic elementary schools. The Debtors state that their immediate need for relief before this court stems from the fact that the [Debtors] have been named in numerous sexual abuse lawsuits which are alleged to have occurred between approximately 30 to 50 years ago primarily in Washington State and St. Johns Newfoundland, Canada. Local Rule 1007-2 Affidavit of Brother Kevin Griffith (the Griffith Aff.) dated April 28, 2011 [Docket No. 2] at 5. 3. On May 2, 2011, the Court entered an order consolidating the Debtors

Cases for administrative purposes only [Docket No. 8]. No trustee or examiner has been appointed in these Cases. 4. On May 11, 2011 the United States Trustee for Region 2 (the U.S.

Trustee) appointed six members to the Committee. On May 23, 2011, the U.S. Trustee 2
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appointed a seventh member to the Committee. The Committee is comprised of seven individuals who are plaintiffs in cases pending against at least one of the Debtors in either Washington State or Canada. B. Bar Date Motion 5. On November 29, 2011, the Debtors filed the Debtors Motion for an

Order Establishing Deadlines for Filing Proofs of Claim and Approving Form and Manner of Notice Thereof (the Bar Date Motion) [Docket No. 170]. 6. The Committee is filing a response (the Response) to the Bar Date

Motion contemporaneously herewith. The Response includes exhibits of documents that were either produced on a confidential basis by the Debtors or refer to information from documents produced on a confidential basis and provide details regarding the identity of potential sex abusers or sex abuse survivors (collectively, the Confidential Material). Specifically the Confidential Material includes (a) Exhibit A to the Response, which is a document that refers to parents complaining of sex abuse by a particular Brother, (b) Exhibit B to the Response, which is a letter that refers to allegations of sexual abuse by a particular Brother, and (c) Exhibit C to the Response, which is an email from counsel to the Committee to counsel to the Debtors discussing references to potential abuse described in the minutes of the Province Leadership Counsel of the North American Province of the Congregation of Christian Brothers. RELIEF REQUESTED 7. By this Motion, the Committee respectfully requests entry of an order

authorizing it to file the Confidential Material under seal. The Confidential Material includes

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information that may be scandalous or defamatory. Thus, public disclosure of the Confidential Material is not appropriate at this time.1 PREDICATES FOR RELIEF/REQUESTED 8. The predicates for the relief requested herein are sections 105(a) and

107(b) of the Bankruptcy Code and Rule 9018 of the Bankruptcy Rules. JURISDICTION AND VENUE 9. This Court has jurisdiction to consider this Motion pursuant to 28 U.S.C.

1334, and this is a core proceeding pursuant to 28 U.S.C. 157(b). Venue is proper in this District pursuant to 28 U.S.C. 1480 and 1409. BASIS FOR RELIEF REQUESTED 10. Section 107(b) of the Bankruptcy Code provides bankruptcy courts with

power to issue orders that will protect entities from potential harm: On request of a party in interest, the bankruptcy court shall, and on the bankruptcy courts own motion, the bankruptcy court may (1) 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 contained in a paper filed in a case under this title[.]

(2)

11 U.S.C. 107(b). 11. Bankruptcy Rule 9018 defines the procedure by which a party may move

for relief under section 107(b):

The Committee has provided an unredacted copy of the Response and all exhibits thereto to the Court and the Debtors.

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On motion or on its own initiative, with or without notice, the court may make an order which justice requires (1) to protect the estate or any entity in respect of a trade secret or other confidential research, development, or commercial information [or] (2) to protect any entity against scandalous or defamatory matter contained in any paper filed in a case under the Code. . . . Fed. R. Bankr. P. 9018. 12. This Court has inherent authority to seal testimony and enter orders of

confidentiality. See In re Robert Landau Assocs., 50 B.R. 670, 677 (Bankr. S.D.N.Y. 1985). In issuing a protective order pursuant to section 107(b), [t]he court determines whether the subject documents fall within the provisions of 107(b) and the appropriate remedy if they do. In re Barneys, Inc., 201 B.R. 703, 707 (Bankr. S.D.N.Y. 1996). If the court determines that the documents in question fall within the parameters of section 107(b), the court is required to protect a requesting interested party and has no discretion to deny the application. In re Orion Pictures Corp., 21 F.3d 24, 27 (2d Cir. 1994) (emphasis in original). 13. A courts determination of whether to authorize a party to file documents

under seal is based upon a totality of the circumstances. In re Gitto/Global Corp., 2005 WL 396327 *3, Case No. 04-45386 (Bankr. D.Mass., Feb. 9, 2005) (citing Phar-Mor, Inc. v. Defendants Named Under Seal (In re Phar-Mor, Inc.), 191 B.R. 675, 678 (Bankr. N.D. Ohio 1995). 14. The Confidential Material includes information that could lead to the

identity of survivors of sex abuse. It also identifies Brothers who may have been abusers and asks the Debtors to investigate whether certain Brothers were accused of sex abuse. As such, the information in the Confidential Material can be viewed as scandalous or defamatory material.

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NOTICE 15. be given. WHEREFORE, the Committee respectfully requests that the Court (i) enter an order, substantially in the form annexed hereto as Exhibit B, and the relief requested herein and (ii) grant such other and further relief as the Court deems just and proper. In accordance with Bankruptcy Rule 9018, no notice of this Motion need

Dated: New York, New York January 17, 2012

PACHULSKI STANG ZIEHL & JONES LLP

/s/ Ilan D. Scharf Ilan D. Scharf, Esq. 780 Third Avenue, 36th Floor New York, NY 10017-2024 Telephone: (212) 561-7700 Facsimile: (212) 561-7777 -andJames I. Stang, Esq. (admitted pro hac vice) 10100 Santa Monica Blvd., Suite 1100 Los Angeles, California 90067-4100 Telephone: (310) 277-6910 Facsimile: (310) 201-0760 Counsel for the Official Committee of Unsecured Creditors of The Christian Brothers Institute and The Christian Brothers of Ireland, Inc.

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EXHIBIT A
(Declaration Ilan D. Scharf)

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UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK Chapter 11 In re: Case No. 11-22820 (RDD) THE CHRISTIAN BROTHERS INSTITUTE, et al., (jointly administered) Debtors. DECLARATION OF ILAN D. SCHARF, PURSUANT TO LOCAL BANKRUPTCY RULE 9077-1, IN SUPPORT OF EX PARTE MOTION OF THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS FOR ORDER AUTHORIZING COMMITTEE TO FILE DOCUMENTS UNDER SEAL I, Ilan D. Scharf, hereby declare and state as follows: 1. I am an attorney at law admitted to practice before this Court and a partner

in the firm of Pachulski Stang Ziehl & Jones LLP, counsel to The Official Committee of Unsecured Creditors (the Committee) of The Christian Brothers Institute (CBI) and Christian Brothers of Ireland, Inc. (CBOI and, collectively with CBI, the Debtors), the debtors and debtors in possession in the above-captioned cases (the Cases) under chapter 11 of Title 11 of the United States Code (the Bankruptcy Code). 2. I submit this declaration in support of the Ex Parte Motion of the Official

Committee of Unsecured Creditors for Order Authorizing Committee to File Documents Under Seal (the Motion ). 3. The Committee is filing a response (the Response) to the Bar Date

Motion contemporaneously herewith. 2 The Response includes exhibits of documents that were either produced on a confidential basis by the Debtors or refer to information from documents produced on a confidential basis, and provide details regarding the identidy of potential sex

Capitalized terms used but not defined herein shall have the meanings and definitions ascribed to them in the Motion.

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abusers or sex abuse survivors (collectively, the Confidential Material). Specifically the Confidential Material includes (a) Exhibit A to the Response, which is a document that refers to parents complaining of sex abuse by a particular Brother, (b) Exhibit B to the Response, which is a letter that refers to allegations of sexual abuse by a particular Brother, and (c) Exhibit C to the Response, which is an email from counsel to the Committee to counsel to the Debtors discussing references to potential abuse described in the minutes of the Province Leadership Counsel of the North American Province of the Congregation of Christian Brothers. 4. Through the Motion, the Committee seek entry of an order authorizing the

Committee to file Confidential Material under seal because it contains potentially scandalous or defamatory information. 5. Motion. Pursuant to 28 U.S.C. 1746, I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Dated: New York, New York January 17, 2012 /s/ Ilan D. Scharf Ilan D. Scharf Based on the foregoing, cause exists to grant the relief requested in the

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EXHIBIT B
(Proposed Order) UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK Chapter 11 In re: Case No. 11-22820 (RDD) THE CHRISTIAN BROTHERS INSTITUTE, et al., (jointly administered) Debtors. ORDER AUTHORIZING COMMITTEE TO FILE DOCUMENTS UNDER SEAL Upon the Ex Parte Motion of the Official Committee of Unsecured Creditors for Entry of an Order Authorizing the Committee to File Documents Under Seal (the Motion );1 and upon the Declaration of Ilan D. Scharf (the Scharf Declaration) attached to the Motion as Exhibit A; and the Court having jurisdiction to consider the Motion and the relief requested therein pursuant to 28 U.S.C. 157 and 1334; and consideration of the Motion and the relief requested therein being a core proceeding pursuant to 28 U.S.C. 157(b); and venue being proper before this Court pursuant to 28 U.S.C. 1408 and 1409; and the Court having determined that the legal and factual bases set forth in the Motion and the Scharf Declaration establish just cause for the relief granted herein; and after due deliberation and sufficient cause appearing therefor, it is hereby ORDERED that 1. 2. The relief requested in the Motion is hereby granted. Pursuant to 11 U.S.C. 105(a) and 107(b) and Fed. R. Bankr. P. 9018,

the Committee is authorized to file unredacted copies of the Confidential Material under seal.

Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Ex Parte Motion.

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3.

The unredacted Confidential Material shall remain confidential, be filed

under seal, and shall be served on and made available only to the Debtors, the Committee, and such other parties as ordered by this Court or as agreed to in writing (including by email) by the Debtors and the Committee. 4. Except as otherwise agreed to by the Debtors and the Committee, any

pleadings filed by a third party in these Cases that reference or disclose any of the redacted information contained in the Confidential Material (and descriptions thereof) shall be filed under seal and served only on those parties authorized to receive the Confidential Material as provided for in paragraph 3 of this Order, and may also be filed in a redacted form whereby any references in such pleadings to the redacted information contained in the Confidential Material (and descriptions thereof) shall also be redacted in such third parties pleadings. 5. Pursuant to 11 U.S.C. 105(a) and 107(b) and Fed. R. Bankr. P. 9018,

any parties filing pleadings in these Cases that reference or disclose any of the redacted information contained in the Agreement (and descriptions thereof) are hereby authorized to file such pleadings under seal consistent with the terms of paragraph 4, above unless otherwise ordered by this Court. Dated: White Plains, New York January __, 2012

UNITED STATES BANKRUPTCY JUDGE

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