You settled your injury claim and want your neighbors and coworkers never to learn the amount. Will it show up in public records?
It depends on three things. Personal injury settlement privacy is strongest when no lawsuit was ever filed, because the deal is then a private contract. Once a case is in court, the file starts out open to the public. A confidentiality clause binds the people who sign it, but only a judge can seal a court record, and only after making specific findings.
Personal Injury Settlement Privacy Before a Lawsuit
Most injury claims settle with an insurer with no suit ever filed. In that case, the agreement is a contract between you, the other party and the insurer. No court file exists for the public to search.
Your release and the payment stay among the people involved, their lawyers and the insurers. Each of those people may have reporting duties of their own.
Court Records Start Out Open
Filing a lawsuit changes the picture. California Rules of Court rule 2.550 says that unless a law requires confidentiality, the public may presume court records are open.
That covers the complaint, motions, exhibits and most other papers. In Sacramento Superior Court, anyone can look up a civil case’s register of actions, which lists the filings and dates even when the documents themselves are not online.
Notices the Court Receives About an Injury Settlement
Rule 3.1385 requires the plaintiff to file and serve a notice of settlement, form CM-200, right away when an entire case settles. For an unconditional settlement, a request for dismissal must follow within 45 days.
Neither form needs to state the amount or terms. In a typical case, the public file shows a settlement and a dismissal, not the amount paid. You can read rule 3.1385 on the courts website.
What a Confidentiality Clause Does and Does Not Do
For personal injury settlement privacy, most people look first to a confidentiality clause in the agreement. It is a promise between the parties to keep certain terms private, often the amount and sometimes the negotiations.
A clause like that binds whoever signs it, within the limits of the law. It does not seal anything in a court file. If the amount appears in a filed document, the clause does not remove it from public view.
How Sealing a Court Record Works
A sealing order closes a record to the public. Under rule 2.550, a judge may seal a record only after expressly finding five things.
- An overriding interest overcomes the right of public access
- That interest supports sealing the record
- A substantial probability exists that the interest will suffer without sealing
- The proposed sealing reaches no further than necessary
- No less restrictive means exist to protect the interest
Any order must seal only the pages or parts that need it. Parties cannot simply agree to seal a record. A judge has to make those findings. You can read rule 2.550 on the courts website.
Privacy When a Judge Must Approve a Personal Injury Settlement
Settlements for a minor or a person with a disability need court approval. Rule 7.950 requires a verified petition with full disclosure of everything bearing on whether the deal is reasonable, including the amount, medical bills and fees.
That petition goes into the court file, which puts far more detail before the court compared to a private deal. Whether any part can be kept from public view depends on the law and any sealing order. For bills and liens paid from the settlement, see how medical bills are handled before a settlement.
Limited Privacy for a Personal Injury Settlement With a Public Agency
Claims against a city, county or state agency follow different rules. California courts have held that settlement agreements involving public entities are public records in most cases. A confidentiality clause offers little protection there.
If the City of Sacramento or Sacramento County pays a claim, expect the amount to be available on request. You can read about the claim process in how California government injury claims work.
A Sacramento Example
Here is a hypothetical. A driver hurt on Sunrise Boulevard settles with the other driver’s insurer three months after the crash, before any lawsuit. Her release includes a confidentiality clause, and no court record exists.
A coworker of hers, hurt in a different crash, files suit first and settles a year later. That case’s register of actions shows the settlement notice and dismissal. But his amount stays out of the file unless someone files it or the court requires it.
Questions to Ask Before Signing
- Has anyone filed a lawsuit, and what is already in the court file?
- Does the release include a confidentiality clause, and what exactly does it cover?
- Will the settlement need court approval?
- Is a public agency a party?
- What happens if someone breaks the confidentiality promise?
Common Questions
Can I tell my family about a confidential settlement?
Check the clause. Many agreements allow disclosure to a spouse, tax preparer or financial adviser, often on the condition that they keep it confidential too. Breaking the clause can expose you to a claim for damages. Read the exceptions closely.
Will my settlement amount appear online?
Usually not in a private pre-lawsuit settlement. In a filed case, the amount appears only if someone files a document containing it, such as a petition to approve a minor’s settlement.
Can the insurer force me to keep the settlement private?
Only through the agreement. Confidentiality is a negotiated term, and you can ask to narrow or remove it before signing. A lawyer can explain the tradeoffs, and tips on choosing one are in what to ask before hiring an injury attorney.
Personal injury settlement privacy comes down to timing and paperwork. Settling before suit keeps the most private, and a filed case shows that it settled but rarely the amount. More basics are in the personal injury hub.
This article is general information, not legal advice. Laws and deadlines change and every case is different. Talk with a licensed California attorney about your situation.