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The Case for Transparency: Why Court Settlements Should Not Be Kept Confidential

Updated: Oct 13

by Ram ben Ze'ev


In recent years, the issue of confidentiality in court settlements has sparked significant debate within legal and public circles. The practice of keeping the terms of these settlements under wraps has long been a standard procedure, with the intention of protecting the privacy and reputations of the parties involved. However, it's time to reevaluate this tradition and advocate for greater transparency in the legal system. Within this article, I will argue that court settlements should not be kept confidential and present several compelling reasons why transparency is essential for a just and accountable society, and a proposal of how the system could operate better, in the future.


One of the fundamental principles of a democratic society is the notion that justice should be dispensed openly and transparently. When court settlements are cloaked in secrecy, they undermine this principle by limiting public access to information about the legal system's functioning. This lack of transparency can erode public trust in the judicial system, as it can create an impression of secrecy and favouritism.


Allowing settlements to remain confidential denies the public the opportunity to assess whether justice has truly been served. It fosters a climate where wrongdoing can be hidden from scrutiny, ultimately weakening the justice system's ability to serve as a deterrent against future misconduct.


Confidential settlements can perpetuate systemic injustices by allowing parties, particularly large corporations or institutions, to avoid accountability for harmful actions. For instance, in cases involving environmental pollution or workplace discrimination, confidential settlements can allow corporations to silence victims and continue harmful practices without public knowledge.


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Transparency in settlements can shed light on patterns of wrongdoing, potentially leading to reforms and policy changes that address systemic issues. This transparency can also empower victims by validating their experiences and providing a measure of accountability for wrongdoers.


Arguments against keeping court settlements confidential:


  1. Transparency: Taxpayers fund the court system. Transparency is essential to ensure accountability in how courts operate and how settlements are reached;

  2. Public Interest: In cases involving public safety, consumer protection, or government misconduct, the public may have a legitimate interest in knowing the details of a settlement to assess whether justice is being served;

  3. Misuse of Confidentiality: Confidentiality agreements in settlements can sometimes be used to hide wrongdoing or protect powerful interests, potentially undermining the public's trust in the legal system;

  4. Informed Decision-Making: Access to information about court settlements can help individuals and businesses make informed decisions about engaging in legal actions, understanding potential risks, and evaluating the credibility of the parties involved;


While confidentiality in settlements is often justified as a means to protect the privacy of the parties involved, it can inadvertently harm the vulnerable. In many cases, powerful individuals or entities may use confidentiality clauses to exert pressure on less powerful parties, such as employees or consumers. These individuals may feel compelled to accept unfavourable settlements out of fear of public exposure or retaliation.


Transparency, on the other hand, can level the playing field. By making settlements public, we create an environment where wrongdoers are less likely to exploit the vulnerabilities of others, and victims can seek justice without undue coercion or intimidation.


Confidential settlements can sometimes shield unethical behaviour from public scrutiny, allowing individuals or organizations to continue their misconduct without consequences. This lack of accountability can undermine the moral fabric of society and deter responsible behaviour.


Transparency in settlements sends a clear message that wrongdoing will not be hidden or tolerated. It encourages individuals and entities to act ethically, knowing that their actions will be subject to public scrutiny. This, in turn, can contribute to a culture of accountability and discourage future misconduct.


Court settlements often involve complex legal issues that can set important precedents for future cases. When these settlements are kept confidential, valuable legal knowledge remains hidden from other legal professionals, potentially impeding the development of jurisprudence.


Transparency in settlements allows legal practitioners to access information about how similar cases have been resolved, enabling them to better advise their clients and navigate the legal landscape. It also promotes consistency and fairness in the application of the law.


Transparency in court settlements has the potential to spark public awareness and debate about critical social and legal issues. When settlements are made public, they can become catalysts for discussions on topics such as civil rights, corporate accountability, and government misconduct.


Public awareness and debate are essential for a healthy democracy, as they allow citizens to engage with and influence the legal system. Keeping settlements confidential restricts the public's ability to participate in these important conversations.


While confidentiality in court settlements has long been the norm, it's time to reevaluate its merits in a modern society that values transparency, accountability, and justice. By keeping settlements confidential, we risk perpetuating systemic injustices, protecting wrongdoers, and undermining public trust in the legal system.


Transparency in court settlements not only upholds democratic principles but also empowers individuals promotes ethical behaviour, and fosters public awareness and debate. It is essential for creating a legal system that truly serves the interests of justice and the common good. As society continues to evolve, it is crucial that our legal practices evolve with it, prioritizing transparency and accountability above all else.


My Proposal

In the interest of transparency and responsible stewardship of taxpayer funds, it is proposed that parties involved in litigation should have the option at the start of any litigation to keep the details of any potential settlement confidential, provided they agree to cover the actual court costs of their proceedings. This approach aligns with the principles of fiscal responsibility, as it ensures that those who engage in legal disputes shoulder the financial burden of their actions. By allowing parties to maintain the confidentiality of their settlements under these circumstances, we not only respect their privacy but also promote a sense of personal responsibility in legal matters.


Conversely, when parties opt to have taxpayers cover the costs of their litigation, it is essential for the sake of public accountability that any settlement reached be made public. In such cases, taxpayers are effectively subsidising the dispute resolution process, and therefore, transparency is of paramount importance. This proposal encourages a fair and equitable distribution of the financial burdens associated with litigation, promoting fiscal responsibility among litigants while maintaining the public's right to know how their resources are being allocated in the legal system. Ultimately, it strikes a balance between privacy and accountability in the context of legal settlements.


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Bill White (Ram ben Ze'ev) is CEO of WireNews and Executive Director of Hebrew Synagogue



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