New rules limiting secret settlements in South Carolina courts
have taken effect.
The state Supreme Court drafted the new rules earlier this year,
and when the Legislature didn't reject them by the beginning of May,
they took effect immediately.
The rules don't ban all secret settlements but create several
legal hurdles lawyers must cross before they can file motions or
settlements that the public can't see.
Even with new rules, plenty of justice still will be administered
behind closed doors because the ban applies only to settlements
approved by a judge. Attorneys estimate about 75 percent of civil
suits in the state are settled before that point.
The push to reduce secret settlements started last summer in U.S.
District Court, where Chief Judge Joe Anderson asked the state's 12
federal judges to ban the practice.
Anderson worried that secrecy prevented quick discovery of faulty
products, such as the Firestone tires the government says
contributed to 300 deaths in the late 1990s.
Other judges agreed, and the federal ban was put in place last
fall.
The state rules aren't as strict as the federal rules.
Settlements in South Carolina still can be sealed as long as
lawyers for the side asking for the secrecy can prove keeping the
settlement under wraps serves public interest and why an alternative
other than secrecy can't be reached.
The state also banned secret settlements involving public
bodies.
Lawyers for doctors worry the new rules will invade patients'
privacy because they might want settlements sealed in malpractice
claims to keep their condition and treatment private.
Other lawyers say secret settlements protect the identity of
molested children or victims of sexual harassment and prevent
identity theft by keeping Social Security numbers, bank account
numbers and other information out of public records.
However, an order signed Monday by the state justices says the
new rules balance "the right of public access to court records with
the need of the parties to protect truly private or proprietary
information from public view and to ensure the rules of the court
are fairly applied."
The new rules provide more latitude to Family Court judges, who
can seal private financial matters or information sensitive to
families in cases such as custody hearings.