COLUMBIA, S.C. - A new rule by the South
Carolina Supreme Court that limits secret settlements in state
courts got support from a House subcommittee Thursday.
The House Constitutional Laws Subcommittee passed out the rule,
which sets strict guidelines for state judges to approve secret
settlements or seal documents used in lawsuits.
The Supreme Court submitted the rule Jan. 31. It should take
effect in 90 days - the beginning of May - unless the General
Assembly kills it with a three-fifths vote in each chamber.
Under the rule, judges must consider why the public's health or
safety would be best served by sealing the documents.
The rule allows judges to keep secret "private financial matters"
and "sensitive custody issues."
Opponents of secret settlements say the practice often prevents
the public from learning sooner about health or safety hazards. They
also say the public should be allowed to know the details of
settlements approved by tax-financed courts.
But doctors, insurers, lawyers who defend businesses and family
attorneys oppose a mandatory ban on settlements. They say secrecy
often is needed to protect such things as trade secrets or sensitive
financial or medical information.