§ 8-1-225 — Enforcement Requirements; Sealing of Pleadings and Motions

(a) A covered contract containing a non-disparagement obligation in writing requires the parties to the covered contract to file under seal all initial and responsive pleadings and motions, including, but not limited to, motions under Alabama Rule of Civil Procedure 65 seeking enforcement of a covered contract.
(b) A court of competent jurisdiction may exercise its judgment regarding what, if any, filings filed under seal pursuant to this section must remain under seal. In making this judgment, the court shall consider the extent to which unsealing any or all parts of the record would cause, perpetuate, or increase any injury to any of the litigants or related third parties.
(c) If any party files a motion to seal the pleadings, motions, or other filings associated with a claim under this article, the court shall seal or continue to seal the pleadings, motions, or other filings absent a showing by the non-moving party of a compelling public interest to partially or completely unseal the pleadings, motions, or other filings.
(d) To the extent allowed by law, the parties may include in a covered contract a requirement that notice be provided prior to providing to outside third parties information protected under this article.
(e) In a civil action for breach of a covered contract in which the only damage pleaded and requested by the plaintiff is liquidated damages, there shall be no required proof of actual damage. As used in this subsection, a request for an award of attorneys’ fees, costs, and expenses is not considered damages or liquidated damages.

Legislative History

(Act 2021-503, §6.)