NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7473
SPONSOR: Lavine TITLE OF BILL:
An act to amend the civil practice law and rules, in relation to enact-
ing the "sunshine in litigation act" regarding protective orders
PURPOSE:
To enact the Sunshine in Litigation Act to prohibit settlement agree-
ments which conceal a public hazard or any information that would iden-
tify a public hazard.
SUMMARY OF PROVISIONS OF BILL:
Section 3141 titles the bill "Sunshine in Litigation. Act".
Section 3142 defines governmental entity, public hazard, and trade
secret.
Section 3143 (a) prohibits the court from entering an order or judgement
which has the purpose or effect of concealing a public hazard or infor-
mation that may be useful to the public in protecting from a public
hazard.
Section 3143 (b) provides that trade secrets which are not pertinent to
public hazards shall not be subject to disclosure.
Section 3143 (c) provides that any agreement or contract which has the
purpose or effect of concealing a public hazard is Void as contrary to
public policy and may not be enforced by New York courts or otherwise.
Section 3143 (d) provides standing to any substantially affected person,
including news media, to bring an action to challenge an order, agree-
ment or contract on grounds that it prevents the disclosure of a public
hazard.
Section 3143 (e) provides that the courts will review motions to prevent
disclosure "in camera" upon good cause. Only necessary information vital
to the protection of the public will be disclosed by the court. Valuable
trade secrets and confidential information will remain protected.
Section 3143 (d) provides that any settlement involving government enti-
ties that conceals issues of public hazards is void and unenforceable.
Documents related to government case settlements are subject to FOIL.
JUSTIFICATION:
Secrecy agreements that conceal public hazards undermine the civil
justice system and endanger New Yorkers by keeping information vital to
their health and safety from public view. Secret settlements also have a
corrosive effect on public confidence in the courts. The recent recall
and controversy surrounding Firestone tires underscores the need for the
"Sunshine in Litigation" reforms. 'Victims of the dangerous tires began
seeking justice in the courts in 1992, but it was not until 2000 that
the tires were recalled. During the interim there were dozens of
lawsuits settled out of court in which Firestone demanded and obtained
secrecy orders. These effectively blocked the release to the public of
information about the potential dangers associated with the tires. As a
result, there were many unnecessary deaths and injuries which could have
been avoided. Other examples of secret settlements that concealed ongo-
ing harm to the public are asbestos, silicone breast implants, and DES
synthetic estrogen. A number of other states have enacted disclosure
laws, including South Carolina, Texas, Florida, Louisiana, and Washing-
ton.
LEGISLATIVE HISTORY:
2022-2023 A7463 Judiciary
2021-2022; S.472 - Rules Committee
2019-20; A.5632/S.4235-Judiciary Committee/S. Judiciary Committee
2018; A. 9593 - Judiciary Committee 2008; A.3150- A. Codes Committee
2007; A3150- A. Judiciary Committee
2006; A.5943- A. Codes Committee
2005; A.5943- A. Rules Committee
2004; A.7017-B/S.2995-A- A. Rules/S. Codes Committee
2003; A.7017-B/S.2995-A- A.Rules Report Cal. 407/S. Rules Committee
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
EFFECTIVE DATE:
This act shall take effect 30 days after it shall have become a law.
