SB 5054 -
By Senator Kline
Strike everything after the enacting clause and insert the following:
"Sec. 1 RCW 4.24.611 and 1994 c 42 s 2 are each amended to read
as follows:
As used in RCW 4.24.601 and this section:
(1)(a) "Product liability/
(b) "Confidentiality provision" means any terms in a court order or
a private agreement settling, concluding, or terminating a product
liability/
(c) "Members of the public" includes any individual, group of
individuals, partnership, corporation, or association.
(2) Except as provided in subsection (4) of this section, members
of the public have a right to information necessary for a lay member of
the public to understand the nature, source, and extent of the risk
from alleged hazards to the public.
(3) Except as provided in subsection (4) of this section, members
of the public have a right to the protection of trade secrets as
defined in RCW 19.108.010, other confidential research, development, or
commercial information concerning products or business methods.
(4)(a) Nothing in this chapter shall limit the issuance of any
protective or discovery orders during the course of litigation pursuant
to court rules.
(b) Confidentiality provisions may be entered into or ordered or
enforced by the court only if the court finds, based on the evidence,
that the confidentiality provision is in the public interest. In
determining the public interest, the court shall balance the right of
the public to information regarding the alleged risk to the public from
the product or substance as provided in subsection (2) of this section
against the right of the public to protect the confidentiality of
information as provided in subsection (3) of this section.
(5)(a) Any confidentiality provisions that are not adopted
consistent with the provisions of this section are voidable by the
court.
(b) Any confidentiality provisions that are determined to be void
are severable from the remainder of the order or agreement
notwithstanding any provision to the contrary and the remainder of the
order or agreement shall remain in force.
(c) Nothing in RCW 4.24.601 and this section prevents the court
from denying the request for confidentiality provisions under other law
nor limits the scope of discovery pursuant to applicable court rules.
(6) In cases of third-party actions challenging confidentiality
provisions in orders or agreements, the court has discretion to award
to the prevailing party actual damages, costs, reasonable attorneys'
fees, and such other terms as the court deems just.
(7) ((The following acts or parts of acts are each repealed on May
1, 1994:)) Notwithstanding subsections (4)
and (6) of this section, if a plaintiff who is not a party to a
confidentiality provision initiates litigation against a defendant who
has previously entered into an agreement or been served with an order
containing a confidentiality provision involving a similar claim
arising from the use of the product, the defendant must disclose the
existence of the order or agreement containing the confidentiality
provision. The court in the new action shall determine how and whether
the order, agreement, or discovery in the previous action shall be
disclosed. If the defendant fails to disclose the existence of the
order or agreement containing the confidentiality provision as required
by this section, the court may award exemplary damages for that
nondisclosure."
(a) RCW 4.24.600 and 1993 c 17 § 1;
(b) RCW 4.24.610 and 1993 c 17 § 2;
(c) RCW 4.24.620 and 1993 c 17 § 3;
(d) RCW 4.16.380 and 1993 c 17 § 5; and
(e) 1993 c 17 § 4 (uncodified)
SB 5054 -
By Senator
On page 1, line 1 of the title, after "hazards;" strike the remainder of the title and insert "and amending RCW 4.24.611."
EFFECT: A confidentiality provision may be entered, ordered, or enforced if the court finds it is in the public's interest. If a nonparty to a confidentiality provision initiates an action against a defendant who previously had entered into, or was served with, such a provision involving a similar claim from use of the product, the defendant must disclose the existence of the confidentiality provision. The court may award exemplary damages for the failure to disclose a confidentiality provision when required to do so.