Ex Parte Knight Ridder, Inc.

982 F. Supp. 1080, 1997 U.S. Dist. LEXIS 16103, 1997 WL 638277
CourtDistrict Court, D. South Carolina
DecidedFebruary 7, 1997
DocketMDL 1041, 3:95-1041-17
StatusPublished

This text of 982 F. Supp. 1080 (Ex Parte Knight Ridder, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ex Parte Knight Ridder, Inc., 982 F. Supp. 1080, 1997 U.S. Dist. LEXIS 16103, 1997 WL 638277 (D.S.C. 1997).

Opinion

ORDER REGARDING SEALED RECORDS

JOSEPH F. ANDERSON, Jr., District Judge.

PROCEDURAL HISTORY

This matter comes before the court on petition “for Access to Settlement Agreement and Vacation or Modification of Confidentiality Order” filed by Knight Ridder, Incorporated, The Associated Press, and The South Carolina Press Association (“Intervenors”). Intervenors’ petition was filed on February 3, 1997 in the present action, which has received considerable media attention since trial commenced on January 21, 1997. A hearing on the Intervenors’ motion was held on February 6, 1997, after prior announcement in open court. After careful consideration of the memoranda submitted by the United States, USAir, and the Intervenors, as well as a full opportunity for oral argument by counsel on behalf of all parties, the court announced its ruling orally. That ruling is memorialized below.

Intervenors seek disclosure of the terms of a settlement agreement entered into between the United States and USAir. This settlement agreement was entered into during the pretrial discovery phase of litigation surrounding the crash of USAir flight 1016. The crash occurred on July 2, 1994, in Charlotte, North Carolina.

Both the United States and USAir were named as defendants in this litigation. Prior to trial, the United States admitted that the negligent acts of its air traffic controllers were a proximate cause of the accident. Because of this admission the court granted summary judgment to USAir on cross-claims it had pending against the United States. The court also severed the plaintiffs’ claims against the United States from their claims against USAir. The claims against USAir proceeded to trial.

The United States’ admission of liability was made in April 1996, in the context of settling the cross-claims of USAir against the United States. The basic agreement to set- *1082 tie the cross-claims for contribution was ultimately memorialized in the settlement agreement now at issue.

Upon learning that the United States was admitting liability and that the defendants had negotiated a settlement agreement between them, the plaintiffs asked the court to review the proposed settlement agreement to ensure that no improper collusion was occurring. The court was told of the terms of the agreement during an in camera conference with counsel for USAir and the United States. A full record was made of that proceeding. The court also ordered that a copy of the agreement be made available for its in camera review once it was reduced to writing. The final written agreement was not executed or provided until the fall of 1996. Both based on the early oral disclosure and the final written agreement, the court determined that the settlement agreement was not the product of collusion.

The plaintiffs petitioned the court to make the settlement agreement available to the Plaintiffs’ Steering Committee (“PSC”). Over USAir’s objection, the corut ordered that a copy be provided to the PSC, but prohibited the PSC from discussing the contents of the agreement with anyone other than the plaintiffs’ counsel. The court also sealed the transcripts of any discussions regarding the substance of the settlement agreement. The settlement agreement itself has never been filed in this ease.

The court’s order for nondisclosure was meant to apply only to the plaintiffs’ attorneys. The court never intended to order the United States or USAir to refrain from discussing or sharing the settlement agreement with outside parties as this issue was never presented to court.

Prior to the trial, USAir filed a motion with the court asking that it be allowed to introduce the admission of liability by the United States at trial. Plaintiffs opposed this motion but asked to introduce the settlement agreement into evidence, at least if the admission was allowed into evidence. Resolution of this issue occupied a great deal of the court's and parties’ time prior to the trial of this case. On December 27, 1996, the court entered an order prohibiting the introduction of the settlement agreement into evidence unless the defendant first put the United States’ admission of liability into evidence. In short, whether the settlement would be put into evidence fell to USAir’s control. This ruling substantially affected the presentation of evidence in this case.

DISCUSSION

Intervenors advance two arguments. First, they argue that the public has a right to access because the settlement agreement is a “judicial record.” Second, the Interve-nors argue that they have a right to access because the United States is a party to the settlement agreement, making that document a public record.

The right to public access to judicial records derives from two independent sources: the common law and the First Amendment. For a document to be considered a judicial record it must play a role in the adjudicative process. See, e.g., Rushford v. New Yorker Magazine, Inc., 846 F.2d 249 (4th Cir.1988); In re: Policy Management Systems Corp., No. 94-2341, 1995 WL 541623 (4th Cir. Sept.13, 1995).

In the present case, the settlement agreement has played an important role. The settlement agreement was a determinative factor in the court’s ruling regarding the use, by USAir, of the United States’ admission of liability. Beyond that, the plaintiffs sought to introduce this settlement agreement itself into evidence. This court has determined that the settlement agreement and the United States’ admission of liability are inextricably linked.

The United States’ admission of liability has been the basis of several rulings by the court. In fact, the court granted summary judgment for USAir against the United States based upon the admission of liability. The settlement agreement, along with the United States’ admission of liability, also played an integral role in several of the most important pre-trial rulings this court has made. For all of these reasons, the court finds that the Intervenors do have a right to gain access to the settlement agreement en *1083 tered into by the United States and USAir because it is a document upon which the court has relied in reaching decisions that substantially affected this litigation.

The Intervenors’ second argument for acquiring access to the settlement agreement is based on the United States being a party to the agreement. Intervenors argue that settlement agreements entered into by public bodies should be accessible because they are public documents. Intervenors cite a number of eases in which courts have allowed access to documents that would otherwise be obtainable through Freedom of Information requests.

The United States has candidly admitted that but for its 'understanding of the court’s earlier protective order, the settlement agreement would be available under FOIA. While the court finds no fault in the United States’ over broad reading of this court’s prior order, the court wishes to clarify that no protective order entered regarding the settlement agreement was ever intended to limit the FOIA process. 1

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982 F. Supp. 1080, 1997 U.S. Dist. LEXIS 16103, 1997 WL 638277, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ex-parte-knight-ridder-inc-scd-1997.