Settlements
Confidential or secret settlements are nothing new in litigation. What is new, however, is an increasing media and public outcry against such settlements in cases as diverse as sexual abuse in the Catholic Church to Firestone/Bridgestone tires to a multitude of approved medical treatments. Proponents argue that confidential settlements and maintaining secrecy are a necessary protection of corporations vital to our economy. Opponents cite the public's need to know and need for protection.
As lawyers, we may be faced with a dilemma: Do I agree to a confidentiality agreement that benefits my client if I know that the agreement may cause physical or financial harm to someone else?
Certain states have statutes, ethics opinion or caselaw expressly addressing the ethical considerations regarding entering into confidential settlement agreements. However, caselaw confirms that if settlement agreements are entered into the record or otherwise filed with a court, they may be subject to disclosure, notwithstanding confidentiality provisions.