France v. France

705 S.E.2d 399, 209 N.C. App. 406, 2011 N.C. App. LEXIS 192
CourtCourt of Appeals of North Carolina
DecidedFebruary 1, 2011
DocketCOA10-313, COA10-425
StatusPublished
Cited by12 cases

This text of 705 S.E.2d 399 (France v. France) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
France v. France, 705 S.E.2d 399, 209 N.C. App. 406, 2011 N.C. App. LEXIS 192 (N.C. Ct. App. 2011).

Opinion

McGEE, Judge.

Plaintiff and Defendant entered into a Contract of Separation, Property Settlement, Child Support, Child Custody and Alimony Agreement (the Agreement) on 17 December 2007. One of the provisions of the Agreement concerned confidentiality. Plaintiff and Defendant agreed that “neither party [would] disclose any financial information relating to the other party or any provision of th[e] Agreement to anyone except” certain professionals, such as their attorneys and financial advisors, unless compelled by law. Plaintiff and Defendant further agreed to keep private certain personal information regarding each other “unless either party is legally compelled to disclose any such information^]” The Agreement stated that breach of the confidentiality provision would constitute a material breach. In the final paragraph of the confidentiality clause, Plaintiff and Defendant agreed

*408 that if either of them institutes or responds to litigation that relates to and requires disclosure of any of the terms of th[e] Agreement, [Plaintiff and Defendant] agree to use their best efforts so that any reference to the terms of th[e] Agreement and the Agreement itself will be filed under seal, with prior notice to the other party.

Plaintiff filed a complaint against Defendant on 11 September 2008, 08 CVD 20661, seeking an order directing the Mecklenburg County Clerk of Superior Court to seal Plaintiffs complaint and any future pleadings and documents filed in that action. Plaintiff amended his complaint on 17 September 2008. Judge N. Todd Owens issued an order (Judge Owens’ order) on 18 December 2008 in which he ruled:

The Clerk of Superior Court shall seal the pleadings and other documents [and] [t]he Clerk ... is directed to file under seal any pleadings and documents filed in any subsequent actions between the parties related to the Agreement [and all such pleadings, documents, and orders] may be unsealed only by further order of the [c]ourt, after reasonable notice to the parties.

Judge Owens based his ruling on conclusions of law 1 that:

2. There is a compelling countervailing public interest in protecting the privacy of the parties as relates to the provisions of the Agreement concerning their young children and their financial affairs, and in avoiding damage or harm to the parties, their business interests, and their children which could result from public access to such provisions of the Agreement.
3. There is a compelling countervailing public interest in protecting the sanctity of contracts such as the Agreement, where people bargain for and agree upon a mechanism to resolve future disputes in a confidential manner and other contract terms which are not contrary to law, and where each party relies on the other party to perform his or her obligations under the contract.
4. The aforesaid countervailing public interests in paragraphs 2 and 3 above outweigh the public’s interest in access to the documents filed in this court proceeding and in future proceedings between the parties concerning the Agreement.
*409 5. The Court has considered whether there are alternatives to sealing the court files in order to protect the public interests referred to in paragraphs 2 and 3 above, and finds there are no such alternatives.

Plaintiff then filed a new complaint, under seal, on 31 December 2008 (the complaint), 08 CVS 28389, in which Plaintiff alleged Defendant had violated certain terms of the Agreement, including the confidentiality clause. Plaintiff specifically referenced Judge Owens’ order and incorporated it in the complaint. Plaintiff’s first claim for relief was for rescission of the Agreement, which, we note, would render void the confidentiality clause. Plaintiff’s alternate claims for relief were for specific performance and breach of contract. Defendant filed an answer, affirmative defenses, and counterclaim on 5 March 2009.

Plaintiff filed motions to seal the proceedings and for a preliminary injunction on 29 September 2009. These motions were heard before Judge Jena P. Culler on 15 October 2009. Defendant joined Plaintiff in seeking to have the proceedings in the action closed. By order filed 13 November 2009 (Judge Culler’s first order), Judge Culler denied both Plaintiffs motion to close the proceedings and Plaintiff’s motion for a preliminary injunction. Judge Culler further ordered: “Proceedings in this case shall be conducted in open court.” Judge Culler based her ruling on her conclusion of law that: “Although both parties affirmatively sought the relief of closing the court proceedings in this litigation, there are no compelling countervailing public interests as related to these parties which outweigh the public’s right and access to open court proceedings.” Plaintiff appealed Judge Culler’s first order on 13 November 2009.

The Charlotte Observer Publishing Company and WCNC-TV, Inc. (Media Movants) filed a motion to determine access to judicial proceedings and documents in these matters on 17 November 2009, whereby they requested that Judge Culler “[o]rder [that] the courtroom remain open to the public and press in both 08 CVD 20661 and 08 CVD 28389” and that she also order that “the records and court files in both [actions] be unsealedf.]” Judge Culler heard Media Movant’s motion on 11 December 2009. In an order filed 18 December 2009 (Judge Culler’s second order), Judge Culler acknowledged Judge Owens’ order. In Judge Culler’s second order, she stated that she had previously ordered the proceedings to be open. Judge Culler then ordered that all “proceedings in connection with 08 CVD 20661 *410 shall be open to the public [and that] the court has already ordered that all courtroom proceedings in connection with 08 CVD 28389 shall be open, and that order has been appealed [and that all court files relating to both 08 CVD 20661 and 08 CVD 28389] shall be unsealed.” Judge Culler based her rulings on conclusions of law that there were “no compelling countervailing public or governmental interests] sufficient” to keep the court filings under seal, or to conduct the proceedings in a closed courtroom. Judge Culler further concluded that:

4. There [are] no compelling countervailing public or governmental interests] to be protected as it relates to the parties that outweighs the public’s longstanding presumptive right to open courts as espoused in the North Carolina Constitution, North Carolina statutory law, . . . and the related case law[.]

Judge Culler’s second order was to be “effective at 12:00 p.m. on December 31, 2009.” Plaintiff filed notice of appeal from Judge Culler’s second order on 21 December 2009 and also filed a motion to stay Judge Culler’s second order. In an order entered that same day, Judge Culler denied Plaintiff’s motion to stay. By motion filed 22 December 2009, Plaintiff moved our Court to stay Judge Culler’s first and second orders.

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Cite This Page — Counsel Stack

Bluebook (online)
705 S.E.2d 399, 209 N.C. App. 406, 2011 N.C. App. LEXIS 192, Counsel Stack Legal Research, https://law.counselstack.com/opinion/france-v-france-ncctapp-2011.