The future of confidential settlements in the wake of increased passage of sunshine laws has taken a new twist. Sunshine laws generally require full public disclosure of settlement terms that affect public safety. The Federal District Court in South Carolina recently passed the most far- reaching of all sunshine provisions.
United States District Court, District of South Carolina, Local Rule 5.03 took effect November 1, 2002. Local Rule 5.03 provides that "[n]o settlement agreement filed with the court shall be sealed pursuant to the terms of this rule." This blanket prohibition on sealing court-filed settlement agreements with no exception is the broadest sunshine provision adopted to this point. It is likely that the state courts in South Carolina may follow suit.
