S.C. federal judges to stop sealing lawsuit settlements

By The Associated Press

08.01.02

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COLUMBIA, S.C. — South Carolina's 10 federal judges have agreed to stop sealing lawsuit settlements they preside over.

The judges voted unanimously last week for an outright ban on sealed, court-sanctioned settlements. Chief U.S. District Court Judge Joe Anderson had wanted the ban to apply only in those cases involving public safety.

The legal community is going to be "a little shocked" by the broad secrecy ban, said Richard Rosen, president of the South Carolina Bar.

While the federal judges' vote will not affect state-court approved settlements, the South Carolina Supreme Court could consider a similar ban.

"These rules can be very influential on state practices," said Columbia lawyer Richard Gergel, who specializes in medical malpractice and personal-injury cases. "I think they (secret settlements) are going to become very disfavored in both state and federal courts."

Opponents of the secrecy ban say the openness could hamper the quick settlement of potentially long and complicated cases.

Secrecy can protect people who bring suits as well as the reputation of defendants, said Mills Gallivan, a Greenville attorney and president of the state Defense Trial Attorneys Association.

Gallivan said he would like to see federal judges keep the discretion they now have to seal settlements.

"This is the kind of thing that will catch national attention," said Robert Clifford, a Chicago attorney who chairs the American Bar Association's litigation section. "I certainly hope that it is a signal of an emerging trend."

No other federal court district has a similar ban, said Mary Squiers, a legal consultant based in Massachusetts who works with a national rule-making committee for federal courts. A rule in Michigan unseals secret settlements after two years.

"It's going to change the dynamic of settlements," Squiers said.

The new rule is set to take effect in the fall after a public comment period that ends Sept. 30. Proponents hope it will increase public awareness of faulty products, such as Firestone tires, and other potential dangers, such as Catholic priests accused of child molestation and medical malpractice.

State Supreme Court Chief Justice Jean Toal has said she was not ready to go as far as Anderson's initial proposal to ban secrecy in cases involving public safety. But, she has said she will air the issue of secret settlements when the state's 100-plus judges meet next month for their annual conference.

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