This continues the article begun in the post here on Sunday, February 17, 2013.
In the case in which the parties even stipulated that certain Insurance Coverage information they released in discovery could not be made known to the public or anyone else, the stipulation itself was not enough. They would have to show "good cause" to keep the information secret under Federal Rule of Civil Procedure 26(c)(1): "The records and decisions of the courts should be within the public's view to allow the public access to the reasoning upon which judicial decisions rest." Kreuger Int'l, Inc. v. Federal Ins. Co., 2008 WL 5264021 *2 (E.D. Wis. Dec. 16, 2008).
According to a Court Order opening all such materials but one to public scrutiny until the case was terminated on July 28, 2009 pursuant to a Stipulation of Dismissal filed with the Court the day before, on July 28, 2009, according to the Federal Court's online docket on PACER, the attorneys in this case requested only one item to be kept secret under the "good cause" requirement. Kreuger Int'l, Inc. v. Federal Ins. Co. (E.D. Wis. Case No. 07-C-0736, Order entered January 26, 2009).
Note that a recently announced settlement was reported to be confidential, in a dispute over coverage for defense legal fees between a major pharmaceutical company, and its insurer, a Zurich Group member company. The amount of legal fees incurred by the policyholder was reported to be over $400,000,000 to “defend” OxyContin product defect claims--not one of which went to trial, it was reported. Anita Raghavan & Heather Won Tesoriero, “OxyContin Maker, Insurer Settle Legal-Bill Dispute,” Wall Street Journal, Col. 1, Page A3 (Tuesday, June 13, 2006). OxyContin is a narcotic and a pain killer. In a criminal proceeding over the marketing program for OxyContin, its manufacturer reportedly will pay penalties totaling $634,500,000 after both the manufacturing company and its CEO, its General Counsel, and its former Chief Medical Officer all pled guilty and will reportedly pay differing fines or penalty amounts without receiving jail time. Heather Won Tesoriero, "OxyContin Maker Pleads Guilty” Wall Street Journal Friday, May 11, 2007 (Col. 1, p. B3). See Storlie v. State Farm Mut. Auto. Ins. Co., 2011 WL 116881 *6 & n.3 (D. Nev. Jan. 13, 2011).
Everything is changing. Nothing is new. It may be best to open settlement secrets to the public in the first place. See also Dennis J. Wall, Litigation and Prevention of Insurer Bad Faith §§ 3:107 & 9:28 (3d Ed. 2012, West Publishing Company; 2013 Supplement in process).
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