S.C. chief justice joins call for ban on secret lawsuit settlements
By The Associated Press
08.11.02
COLUMBIA, S.C. — South Carolina's top judge wants state courts to stop sealing the details of lawsuit settlements.
State Supreme Court Chief Justice Jean Toal says she agrees with a vote by South Carolina's federal judges to ban sealed settlements in their courts.
Toal had said earlier she didn't support an outright ban for all settlements, but concluded after talking with other state Supreme Court justices that such a ban would not clog courts with parties unwilling to settle suits.
"Our position has long been that secret settlements are not favored," Toal said. Now, she said, state and federal judges in South Carolina are "two hearts beating as one" on the issue.
At least nine states, including Georgia and North Carolina, have laws or court rules restricting secret settlements.
Toal said rule changes for South Carolina's courts would have to be made by the entire five-member Supreme Court. She plans to propose the change this month at a state judicial conference. If approved, the new rule would start next spring at the earliest.
If lawmakers don't like the rule change, they could override it with a two-thirds vote in each chamber of the General Assembly.
House Majority Leader Rep. Rick Quinn, R-Columbia, said on Aug. 6 that he doesn't support an outright ban.
"A hard-and-fast rule for every case — I wouldn't support it," he said. "But if there were some standards, I would support it."
Toal, who was a Democratic House member from Columbia before being elected a justice, said the General Assembly has voted "pretty strongly in favor of public disclosure."
The new federal court rule is set to start in the fall after a public comment period that ends Sept. 30. Proponents hope it will increase public awareness of faulty products and other potential dangers, such as Catholic priests accused of child molestation and cases of medical malpractice.
Richard Rosen, president of the South Carolina Bar, said insurance, medical and manufacturing groups — and their lawyers — might oppose a blanket ban. "That could be a very contentious debate," he said.
Opponents to the ban also say it could hurt patients who might want their medical conditions kept from public view.
Other reasons for secret settlements include protecting the identities of molested children, or preventing those who are not involved in wrongful death cases from going after large awards, Rosen said.
Toal said information such as trade secrets could remain confidential without sealing the entire file.