Public disclosure needed

The latest consumer safety concerns raised by the recall of millions of Firestone tires will generate a large class action lawsuit.

Bridgestone/Firestone, the tire maker's parent company, and Ford Motor Company, who sold sports-utility vehicles using the affected tires, will likely have to pay out heavy damages.

Both companies can settle the lawsuit, which can often cost them less than the damages awarded through a civil trial, which Bridgestone/Firestone and Ford would likely lose. A settlement also offers secrecy, as no party in the suit may discuss aspects of the suit.

When the safety of consumers is on the line, public disclosure is very important. Settlement terms should not be shrouded in secrecy.

Chris Ledermuller

The Los Angeles Times reveals hundreds of settlements where the terms were never discussed, ranging from defective manufacturing to routine slip-and-fall injuries to securities fraud cases. The plaintiffs obviously receive money, but nobody knows how much or any other findings.

Elected officials have tried, and are trying, to change the law so settlement outcomes can be made public. Guess what? Lobbying pressure from business groups prevents any such laws from being passed -- or even discussed.

Settlements obviously have their benefits. Big companies can still end up paying millions of dollars to plaintiffs, but a jury trial can be far more damaging. Juries tend to sympathize with affected plaintiffs and rule against corporations, and every statement within the trial can be a matter of public record.

A trial can also cause major corporations' stock value - and consumers' confidence in the good or service -- to plummet.

Settlements often mitigate these dire consequences. Unfortunately, with secrecy, people may never know that they have been harmed until it is too late. How would people know if their cars have a defective part or design flaw that could hurt them or others in the road? How would people know if they received a medical treatment that may make them sicker? How would people know if the nearby supermarket has a history of slip-and-fall or falling object cases?

They wouldn't be able to know.

The bottom line: consumers deserve to know. Businesses have concerns about snowballing litigation, but many people do not have the time for lengthy lawsuits, which can drag out for years. Also, settlement disclosure laws can include protections from these suits. The intent is not really litigation, but public safety.