Parties cannot have a settlement agreement sealed simply because they have agreed to keep the settlement amount secret from the public. In re Thomas, No. 17-20527 (Bankr. E.D. Ky. March 1, 2018).
In the bankruptcy case she shared with her husband Andrew, Brittany Thomas filed an adversary proceeding against AT&T and DirecTV alleging violation of the automatic stay. She sought to make the case a class action alleging that the complained of conduct extended to other non-party contract-holders with the telecommunications companies. Ms. Thomas and the companies settled their claims as to Ms. Thomas alone, and she agreed to dismiss the class action claims. The parties presented their settlement to the bankruptcy court for approval and sought to have the agreement sealed from public view in perpetuity pursuant to section 107(b)(1) (though in a separate brief to the court, the companies sought a five-year sealing period and limited the request to the amount of settlement only). Read More
