May 11, 2023

Disclosure of settlement agreements.

After a gas explosion, New York City and Con Ed, among other entities, were named as defendants in a number of actions. The City and Con Ed also asserted various claims against each other for property damage, indemnification, and contribution. At a court-ordered mediation, the City and Con Ed reached an agreement on the allocation of liability between them, and plaintiff seeks disclosure of their agreement.

When a nonsettling party seeks disclosure of the terms of a settlement agreement, the terms of the agreement must be material and necessary to the non-settling party's case.  After in camera review of the agreement, disclosure of its terms is prohibited. The agreement is not improper, as it does not demonstrate collusion or undermine the adversarial process because plaintiff may pursue discovery from both defendants.

Matter of Barrios v. Consolidated Edison Co. of N.Y., Inc., NY Slip Op 02378 (1st Dep't May 4, 2023)

Here is the decision.