Volume 1, Issue 10                    The Traut Firm eNewsletter              October 2005            www.trautfirm.com


Secret Settlements

Secrecy and gag orders in our state and federal courts undermine every American’s right to know. Since the mid-1970’s, defendants in civil litigation, as a condition of settlement, have sought to keep out of the public’s eye important information that should emerge from litigation.

For instance, over the past 20 years, secret settlements have been reached to conceal very important information about sexual abuse of children by clergy, injuries from medical malpractice, automobiles that flip over or explode in accidents, and medical procedures and products that endanger health.

This insidious practice also affects Americans’ perceptions of their courts and our justice system. “Protective Orders” close off the nation’s courts, which are supposed to be institutions open to public scrutiny and review. “Sealed Court Files” deny a presumption of openness and honesty to court proceedings. “Confidentiality Agreements” undermine the public’s respect for the courts and justice. And “Secret Agreements” increase the likelihood of additional litigation to find the truth.

Governor Schwartznegger just vetoed a bill that would have ended secret settlements in cases involving dangerous products. He claimed it would hamper business in California and encourage litigation. But the truth is that if the information about these dangerous products is revealed, rather than hidden from the public, such will be damaging to the manufacturers of the products. And these manufacturers happen to be campaign contributors to Governor Schwartznegger. So these secret settlements will continue indefinitely.

The Traut Firm
"When You Mean Business"


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