Opinion ID: 1865703
Heading Depth: 2
Heading Rank: 3

Heading: Choosing The Proper Standard

Text: Use of the common law balancing standard to resolve questions of access to civil court files is well established in the United States. As noted above, however, only a few courts have elevated such access to a constitutional standard. In addition, the United States Supreme Court has not specifically considered what standard should apply to questions of access to civil court files or, more specifically for this case, to settlement documents and transcripts within those files. The Court has, however, analyzed whether a question of access to court proceedings or records should be made under a common law or constitutional standard. See, e.g., Richmond Newspapers, Inc. v. Virginia, 448 U.S. 555, 100 S.Ct. 2814, 65 L.Ed.2d 973 (1980) (access to trial proceedings in a criminal case); Gannett Co. v. De Pasquale, 443 U.S. 368, 99 S.Ct. 2898, 61 L.Ed.2d 608 (1979) (access to pretrial proceedings in a criminal case); see also Seattle Times Co. v. Rhinehart, 467 U.S. 20, 104 S.Ct. 2199, 81 L.Ed.2d 17 (1984) (similar analysis used to decide questions of access to pretrial discovery materials in civil actions). We turn to the Court's analysis in these cases to determine the appropriate legal standard for access to the settlement documents and transcripts in this case. Before turning to this analysis, however, we wish to emphasize the narrowness of the question presented to us and the narrowness of our decision. We are specifically considering only what standard should apply when a party seeks to restrict access to settlement documents or transcripts made part of a civil court file by statute. We do not intend this decision to apply to other civil trial records or documents. The United States Supreme Court has applied a two-part analysis when considering whether the standard for access to a particular aspect of trial or a particular court document must be based upon common law or constitutional grounds. See Richmond Newspapers, 448 U.S. at 564-80, 100 S.Ct. at 2820-29; Gannett Co., 443 U.S. at 378-93, 99 S.Ct. at 2904-12. The Court first examines the proceeding or document to determine whether it has historically and philosophically been presumed open to the public. See, e.g., Richmond Newspapers, 448 U.S. at 564-75, 100 S.Ct. at 2820-26. If a historical and philosophical analysis leads to a presumption of openness, id. at 573, 100 S.Ct. at 2825, the Court then examines the constitutional right asserted to determine whether it affords protection to the proceeding or document in question. Id. at 575-81, 100 S.Ct. at 2826-29. The Richmond Newspapers and Gannett Co. decisions provide a helpful contrast for the present case. In Gannett Co., the Court considered whether access to pretrial proceedings in a criminal case falls within the purview of the sixth and fourteenth amendments. The Court found that historically the public had little or no right to attend pretrial criminal proceedings. 443 U.S. at 389-91, 99 S.Ct. at 2910-11. The Court also found a philosophical objection to public access to pretrial proceedings in the strong societal interest in [the] constitutional guarantees extended to the accused   . Id. at 383-84, 99 S.Ct. at 2907. This strong societal interest in an accused's constitutional guarantees meant that [r]ecognition of an independent public interest in the enforcement of Sixth Amendment guarantees [to a public trial was] a far cry    from the creation of a constitutional right on the part of the public. Id. at 383, 99 S.Ct. at 2907. The lack of a presumption of openness to pretrial proceedings from both a historical and philosophical perspective meant that members of the public have no constitutional right under the Sixth and Fourteenth Amendments to attend criminal trials. Id. at 391, 99 S.Ct. at 2911. By contrast, in Richmond Newspapers the Court found a first amendment right of access to trial proceedings in criminal cases. The Court examined at length the history of criminal trials and stated that the historical evidence demonstrates conclusively that    criminal trials both here and in England had long been presumptively open. 448 U.S. at 569, 100 S.Ct. at 2823. Philosophically, the Court stated that the open processes of justice serve an important prophylactic purpose, providing an outlet for community concern, hostility, and emotion. Id. at 571, 100 S.Ct. at 2824. The crucial prophylactic aspects of the administration of justice [could not] function in the dark; no community catharsis [could] occur if justice is `done in a corner [or] in any covert manner.' Id. The fact that criminal trials have historically and philosophically been presumed open to the public was strong evidence that the first amendment protected this right of access. The right of access to places traditionally open to the public, as criminal trials have long been, may be seen as assured by the amalgam of the First Amendment guarantees of speech and press   . Id. at 577, 100 S.Ct. at 2827. This was true even though the first amendment did not specifically guarantee to the public the right to attend criminal trials. Id. at 579-80, 100 S.Ct. at 2828-29. Applying this same analysis to the case at hand, we conclude that no first amendment right of access exists in the settlement documents and transcripts sealed by the court. Historically, the majority of settlements entered into between parties have been private. The parties agree to settle in private, outside of the courtroom and without the participation of the court. The court is only involved by accepting a stipulated agreement in which the parties inform the court that there has been a settlement and ask that the case be dismissed. The court, however, does not approve, or even inquire into, the terms of the settlement. The historic privacy of settlement agreements is borne out by the fact that settlements, offers to settle, and statements made during settlement negotiations are all inadmissible under the Rules of Evidence to prove liability. See Minn.R. Evid. 408; Esser v. Brophey, 212 Minn. 194, 3 N.W.2d 3 (1942); 11 P. Thompson, Minnesota Practice: Evidence § 408.01 (1979 & Supp.1986). Such a history of privacy does not justify a presumption of openness for settlement documents such as those filed in this case. The fact that the settlements here today were required by statute to be brought before the court does not destroy the historical fact that settlements have been private agreements not subject to public scrutiny. Although Minn.Stat. § 573.02 and Rule 2 of the Code of Rules for the District Courts require a court to approve the distribution of wrongful death settlement funds, the court does not participate in the settlement negotiations or approve the settlement terms. The intent of section 573.02 and Rule 2 in requiring court participation is not to bring wrongful death settlements within the public eye, but rather to facilitate the effective and proper distribution of the settlement funds. Similarly, the intent of Minn.Stat. § 540.08 in requiring court approval of settlements involving minors is to protect minors, not to expose these settlements to the public. These statutes, therefore, do not affect the historical fact that settlements have been private. The philosophical reasoning behind allowing private settlements also leads to the conclusion that such agreements should remain private. This court has often stated that it favors the settlement of disputed claims without litigation. See, e.g., Johnson v. St. Paul Insurance Co., 305 N.W.2d 571, 573 (Minn.1981); Hentschel v. Smith, 278 Minn. 86, 153 N.W.2d 199 (1967) (This court has always supported a strong public policy favoring the settlement of disputed claims without litigation); see also Esser, 212 Minn. 194, 3 N.W.2d 3. To allow public access to settlement documents filed with a court may circumvent this policy. One of the reasons parties agree to settle is that they do not wish to go to trial and expose their disputes to the public. This fact was raised by the appellants in this case. It would therefore be inconsistent with our public policy encouraging settlement to allow the settlement documents in this case to be made public. Such reasoning would tend to discourage settlements rather than encouraging them. The historical and philosophical analysis detailed above fails to demonstrate any such right of access to civil settlement documents that are of constitutional dimension. Therefore, we hold that the balancing test of the common law applies. We also hold that access to the transcripts of the settlement hearings falls under the common law standard. Although we recognize that these transcripts are records of a trial court proceeding, we believe that, for the reasons stated above regarding settlement documents, access to the transcripts should come under the common law standard. The transcripts are of hearings held solely for the purpose of approving the distribution of the settlement funds under section 573.02 and approving the minor settlement under section 540.08. Absent these statutes, designed to protect heirs and minors, no such hearings would be required.