Editorial: Don’t place the public in jeopardy

Friday, April 6, 2001 | 4:44 a.m.

When individuals believe a defective product has harmed them, they may try to seek compensation through the courts. Most of these lawsuits filed never go to trial and more likely than not are settled out of court. These settlements sometimes are kept confidential, which the companies often insist on so that other consumers may not learn about the defective product. This secrecy effectively can put others in danger.

It is unconscionable to allow confidentiality agreements that hide public hazards. That is why it is refreshing that state Sen. Mark James, R-Las Vegas, is seeking legislation that would bar judges from sealing settlements that otherwise would let Nevadans know about public hazards, such as defective products. As Kent Lauer, executive director of the Nevada Press Association, told the Senate Judiciary Committee last week, Firestone paid millions of dollars to people injured because of their defective tires. But confidentiality clauses kept this litigation from becoming known sooner. This secrecy resulted in needless deaths and life-threatening injuries to an unwitting public.

It also is encouraging that the legislation includes a provision that would prohibit the state labor commissioner from entering into a confidential settlement in cases involving violations of labor law. Labor Commissioner Terry Johnson doesn't oppose the bill, and he even believes it should apply to other state agencies as well, an expansion that the Legislature should consider.

The bottom line is this: If companies sell products that endanger the public, they should not be allowed to hide behind a veil of secrecy.