§ 132-1.3. Settlements made by or on behalf of public agencies, public officials, or public employees; public records.

§132‑1.3.  Settlements made by or on behalf of public agencies, publicofficials, or public employees; public records.

(a)        Public records, asdefined in G.S. 132‑1, shall include all settlement documents in anysuit, administrative proceeding or arbitration instituted against any agency ofNorth Carolina government or its subdivisions, as defined in G.S. 132‑1,in connection with or arising out of such agency's official actions, duties orresponsibilities, except in an action for medical malpractice against ahospital facility.  No agency of North Carolina government or its subdivisions,nor any counsel, insurance company or other representative acting on behalf ofsuch agency, shall approve, accept or enter into any settlement of any suchsuit, arbitration or proceeding if the settlement provides that its terms andconditions shall be confidential, except in an action for medical malpracticeagainst a hospital facility.  No settlement document sealed under subsection(b) of this section shall be open for public inspection.

(b)        No judge,administrative judge or administrative hearing officer of this State, nor anyboard or commission, nor any arbitrator appointed pursuant to the laws of NorthCarolina, shall order or permit the sealing of any settlement document in anyproceeding described herein except on the basis of a written order concludingthat (1) the presumption of openness is overcome by an overriding interest and(2) that such overriding interest cannot be protected by any measure short ofsealing the settlement.  Such order shall articulate the overriding interestand shall include findings of fact that are sufficiently specific to permit areviewing court to determine whether the order was proper.

(c)        Except forconfidential communications as provided in G.S. 132‑1.1, the term"settlement documents," as used herein, shall include all documentswhich reflect, or which are made or utilized in connection with, the terms andconditions upon which any proceedings described in this section arecompromised, settled, terminated or dismissed, including but not limited tocorrespondence, settlement agreements, consent orders, checks, and bank drafts.(1989, c. 326.)