Posted on Thu, Feb. 20, 2003


Court rule on secret settlements passes first hurdle


Associated Press

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.





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