Duncan v. OHM Spa LLC

Background

The parties asked the court to enter a consent decree that would resolve, settle, and compromise all issues in the case. A consent decree is a settlement that becomes enforceable as a court order.

Court’s analysis

The court explained that parties may settle a case and dismiss it without court involvement under Federal Rule of Civil Procedure 41(a). But when parties ask a court to enter a consent decree, the judge must make a minimal determination that the agreement is appropriate for treatment as a judicially enforceable decree. The court stated that a judge does not simply sign the proposed decree without reviewing the relevant materials.

The court also addressed possible sealing of settlement materials. It said the parties could file documents in unredacted form under seal, but they had to explain why the documents should remain sealed or why particular portions should be redacted. The parties were directed to discuss whether the settlement agreement is a judicial document subject to a presumption of public access under common law or the First Amendment, the strength of that presumption, and any interests that could overcome it.

Ruling and effect

Judge John G. Koeltl ordered the parties to provide all documents relating to the settlement and proposed consent decree by May 15, 2020. The opinion did not approve or reject the consent decree. It also did not make a final ruling on whether the settlement materials should be sealed.