Of Miscellaneous ProvisionsConfidential Settlement Agreements

Section § 1001

Explanation

This section of the law prevents settlement agreements from keeping confidential the facts about certain types of cases. These include cases involving acts of sexual assault, sexual harassment, workplace harassment, and discrimination, along with related retaliation. Courts also can’t issue orders to keep these facts secret. However, a claimant can request to protect their identity, unless a government body is involved. The law does not stop agreements from keeping the settlement amounts secret. This rule applies to agreements made after January 1, 2019, with specific updates effective from January 2022.

(a)CA Civil Procedure Code § 1001(a) Notwithstanding any other law, a provision within a settlement agreement that prevents or restricts the disclosure of factual information related to a claim filed in a civil action or a complaint filed in an administrative action, regarding any of the following, is prohibited:
(1)CA Civil Procedure Code § 1001(a)(1) An act of sexual assault that is not governed by subdivision (a) of Section 1002.
(2)CA Civil Procedure Code § 1001(a)(2) An act of sexual harassment, as defined in Section 51.9 of the Civil Code.
(3)CA Civil Procedure Code § 1001(a)(3) An act of workplace harassment or discrimination, failure to prevent an act of workplace harassment or discrimination, or an act of retaliation against a person for reporting or opposing harassment or discrimination, as described in subdivisions (a), (h), (i), (j), and (k) of Section 12940 of the Government Code.
(4)CA Civil Procedure Code § 1001(a)(4) An act of harassment or discrimination, or an act of retaliation against a person for reporting harassment or discrimination by the owner of a housing accommodation, as described in Section 12955 of the Government Code.
(b)CA Civil Procedure Code § 1001(b) Notwithstanding any other law, in a civil matter described in paragraphs (1) to (4), inclusive, of subdivision (a), a court shall not enter, by stipulation or otherwise, an order that restricts the disclosure of information in a manner that conflicts with subdivision (a).
(c)CA Civil Procedure Code § 1001(c) Notwithstanding subdivisions (a) and (b), a provision that shields the identity of the claimant and all facts that could lead to the discovery of the claimant’s identity, including pleadings filed in court, may be included within a settlement agreement at the request of the claimant. This subdivision does not apply if a government agency or public official is a party to the settlement agreement.
(d)CA Civil Procedure Code § 1001(d) Except as authorized by subdivision (c), a provision within a settlement agreement that prevents or restricts the disclosure of factual information related to the claim described in subdivision (a) that is entered into on or after January 1, 2019, is void as a matter of law and against public policy.
(e)CA Civil Procedure Code § 1001(e) This section does not prohibit the entry or enforcement of a provision in any agreement that precludes the disclosure of the amount paid in settlement of a claim.
(f)CA Civil Procedure Code § 1001(f) In determining the factual foundation of a cause of action for civil damages under subdivision (a), a court may consider the pleadings and other papers in the record, or any other findings of the court.
(g)CA Civil Procedure Code § 1001(g) The amendments made to paragraphs (3) and (4) of subdivision (a) by Senate Bill 331 of the 2021–22 Regular Session apply only to agreements entered into on or after January 1, 2022. All other amendments made to this section by Senate Bill 331 of the 2021–22 Regular Session shall not be construed as substantive changes, but instead as merely clarifying existing law.
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Section § 1002

Explanation

This law prevents settlement agreements in civil cases from hiding facts about certain severe offenses. Specifically, it's illegal to make deals that stop people from talking about facts related to cases involving felony sex offenses, childhood sexual assault, sexual exploitation of minors, and sexual assault on vulnerable adults. Courts can't approve agreements that go against this rule. However, it is allowed to keep medical records or personal details of victims private. Any settlement that tries to hide these facts is invalid if made after January 1, 2017. Lawyers who try to include such clauses in settlements can be disciplined.

(a)CA Civil Procedure Code § 1002(a) Notwithstanding any other law, a provision within a settlement agreement that prevents the disclosure of factual information related to the action is prohibited in any civil action the factual foundation for which establishes a cause of action for civil damages for any of the following:
(1)CA Civil Procedure Code § 1002(a)(1) An act that may be prosecuted as a felony sex offense.
(2)CA Civil Procedure Code § 1002(a)(2) An act of childhood sexual assault, as defined in Section 340.1.
(3)CA Civil Procedure Code § 1002(a)(3) An act of sexual exploitation of a minor, as defined in Section 11165.1 of the Penal Code, or conduct prohibited with respect to a minor pursuant to Section 311.1, 311.5, or 311.6 of the Penal Code.
(4)CA Civil Procedure Code § 1002(a)(4) An act of sexual assault, as defined in paragraphs (1) to (8), inclusive, of subdivision (e) of Section 15610.63 of the Welfare and Institutions Code, against an elder or dependent adult, as defined in Sections 15610.23 and 15610.27 of the Welfare and Institutions Code.
(b)CA Civil Procedure Code § 1002(b) Notwithstanding any other law, in a civil action described in paragraphs (1) to (4), inclusive, of subdivision (a), a court shall not enter, by stipulation or otherwise, an order that restricts the disclosure of information in a manner that conflicts with subdivision (a).
(c)CA Civil Procedure Code § 1002(c) Subdivisions (a) and (b) do not preclude an agreement preventing the disclosure of any medical information or personal identifying information, as defined in subdivision (b) of Section 530.55 of the Penal Code, regarding the victim of the offense listed in subdivision (a) or of any information revealing the nature of the relationship between the victim and the defendant. This subdivision shall not be construed to limit the right of a crime victim to disclose this information.
(d)CA Civil Procedure Code § 1002(d) Except as authorized by subdivision (c), a provision within a settlement agreement that prevents the disclosure of factual information related to the action described in subdivision (a) that is entered into on or after January 1, 2017, is void as a matter of law and against public policy.
(e)CA Civil Procedure Code § 1002(e) An attorney’s failure to comply with the requirements of this section by demanding that a provision be included in a settlement agreement that prevents the disclosure of factual information related to the action described in subdivision (a) that is not otherwise authorized by subdivision (c) as a condition of settlement, or advising a client to sign an agreement that includes such a provision, may be grounds for professional discipline and the State Bar of California shall investigate and take appropriate action in any such case brought to its attention.
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