Jessup v. Luther et al

• Decision Date: 31 August 2000
• Docket Number: MID-ILLINOIS,No. 99-4147,99-4147
• Citation: 227 F.3d 993
• Parties: (7th Cir. 2000) GOBLE JESSUP, Plaintiff-Appellee, v. ROBERT LUTHER, JAMES SHAFFER, individually and in his official capacity, DALE ADAMS, individually and in his official capacity, et al., Defendants-Appellees. APPEAL OFNEWSPAPERS, INCORPORATED, Proposed Intervenor
• Court: U.S. Court of Appeals — Seventh Circuit

Page 993

227 F.3d 993 (7th Cir. 2000)

GOBLE JESSUP, Plaintiff-Appellee, v. ROBERT LUTHER, JAMES SHAFFER, individually and in his official capacity, DALE ADAMS, individually and in his official capacity, et al., Defendants-Appellees.

APPEAL OF MID-ILLINOIS NEWSPAPERS, INCORPORATED, Proposed Intervenor.

No. 99-4147

In the United States Court of Appeals For the Seventh Circuit

Argued May 12, 2000

Decided August 31, 2000

Appeal from the United States District Court for the Central District of Illinois. No. 97 C 2241--David G. Bernthal, Magistrate Judge.

Before RIPPLE, MANION and WILLIAMS, Circuit Judges.

RIPPLE, Circuit Judge.

Mid-Illinois Newspapers, Inc. (the "Newspaper") moved to intervene in this employment dispute for the purpose of contesting the district court's decision to seal the settlement agreement reached between the litigants. The district court denied the Newspaper's motion to intervene, and the Newspaper timely appealed. For the reasons set forth in the following opinion we reverse the judgment of the district court and remand for further proceedings consistent with this opinion.

I BACKGROUND

A.

This action originated from an employment dispute between Goble Jessup and Lake Land College, its president and board of trustees (collectively the "Parties"). Jessup alleged that Lake Land College, a public community college in Illinois, had terminated his employment in violation of the Constitution and other federal laws. Two years later, as a result of a court- conducted settlement conference, Jessup reached a settlement agreement (the "Settlement Agreement") with the defendants. One of the terms of the Settlement Agreement was a confidentiality clause that prohibited the disclosure of any information concerning the terms of settlement. Consistent with the Parties' agreement, the district court entered the following order:

All matters pertaining to the settlement are confidential. Accordingly, all documents related to the settlement are to be sealed. This will include any documents submitted by the parties other than the order of dismissal. The transcript of proceedings on September 3, 1999, filed September 4, 1999, shall likewise be sealed.

Minute Entry of September 15, 1999.

Following the entry of this order, the Newspaper filed a motion to intervene pursuant to Rule 24 of the Federal Rules of Civil Procedure; the motion was not accompanied by a supporting memorandum of law, as required by local rule. The Parties opposed the motion to intervene.

B.

In its disposition of the motion, the district court noted that the Newspaper had failed to file a memorandum in support of its motion to intervene and also had filed a reply memorandum concerning the same motion, both in violation of Central District of Illinois Local Rule 7.1 (B)(1). Despite this shortcoming, however, the district court addressed the merits of the Newspaper's motion.

Looking first at the requirements for intervention as of right under Federal Rule of Civil Procedure 24(a)(2), the district court determined that the Newspaper met three of the four criteria for intervention as of right: (1) the application was timely; (2) the Newspaper's interest would be impaired by disposition of the action without the Newspaper's involvement; and (3) the Newspaper's interest was not adequately represented by one of the existing parties to the action. The district court, however, found that one crucial element was missing: the Newspaper could not establish a direct and substantial interest in the subject matter of the litigation. The court concluded that the Newspaper's claimed interests, "rights of access to judicial records and proceedings, as well as the conduct of the public entity and public officials," was "a general one and applies to any case filed in this Court." R.47 at 3. Because the Newspaper's interests did "not extend to the employment relationship" between the Parties, the district court held that the Newspaper had "failed to assert an interest in the lawsuit that would justify its intervention as of right." Id.

The district court also concluded that the Newspaper had not established a common question of law or fact to justify permissive intervention under Federal Rule of Civil Procedure 24(b)(2). It stated:

The question of whether settlement should be confidential is a question raised by the [Newspaper]. However, the underlying case involves only the rights and obligations of the parties arising from the employment relationship between the Plaintiff and Lakeland [sic] College. There is no common question of law or fact.

Id.

Finally, the district court articulated the policy consideration that, in its view, justified the confidentiality order: the efficient disposition of litigation through settlement. The court noted that its ability to facilitate settlement would be substantially hindered if it could not guarantee confidentiality--a condition that could be imposed if the Parties had chosen extra-judicial settlement methods. According to the district court, this interest, specifically recognized by Congress in the Alternative Dispute Resolution Act, 28 U.S.C. sec. 651 et seq., superseded any interest of the Newspaper to access.¹

The Newspaper timely appealed the denial of its motion to intervene.

II DISCUSSION

A.

The district court found, and the Parties argue on appeal, that the Newspaper has not met the requirements for intervention under Federal Rule of Civil Procedure 24. Rule 24 provides in relevant part:

Rule 24. Intervention

(a) Intervention of Right. Upon timely application anyone shall be permitted to intervene in an action: (1) when a statute of the United States confers an unconditional right to intervene; or (2) when the applicant claims an interest relating to the property or transaction which is the subject of the action and the applicant is so situated that the disposition of the action may as a practical matter impair or impede the applicant's ability to protect that interest, unless the applicant's interest is adequately represented by existing parties.

(b) Permissive Intervention. Upon timely application anyone may be permitted to intervene in an action: (1) when a statute of the Unites States confers a conditional right to intervene; or (2) when an applicant's claim or defense in the main action have a question of law or fact in common. When a party to an action relies for ground of claim or defense upon any statute or executive order administered by a federal or state governmental officer or agency or upon any regulation, order, requirement, or agreement issued or made pursuant to the statute or executive order, the officer or agency upon timely application may be permitted to intervene in the action. In exercising its discretion the court shall consider whether the intervention will unduly delay or prejudice the adjudication of the rights of the original parties.

Fed. R. Civ. P. 24. With respect to Rule 24(a)(2), the Parties argue that the Newspaper does not possess an interest relating to the property or transaction which is the subject of the action--an employment dispute.² Furthermore, the Parties submit, the Newspaper does not present a claim or defense that shares a question of law or fact in common with the main action, such that the Newspaper might be eligible for intervention under Rule 24(b)(2). Because the Newspaper does not articulate an interest cognizable under the language of Rule 24, the Parties conclude, the district court properly denied the Newspaper's motion to intervene. We cannot accept this argument.

The right to intervene to challenge a closure order is rooted in the public's well-established right of access to public proceedings. See Grove Fresh Distribs., Inc. v. Everfresh Juice Co., 24 F.3d 893, 897 (7th Cir. 1994). Having roots in both common law traditions and the First Amendment, the right "serves to (1) promote community respect for the rule of law, (2) provide a check on the activities of judges and litigants, and (3) foster more accurate fact finding." Id. The recognition of the crucial role of the public has led us to find that "the First Amendment provides a presumption that there is a right of access to proceedings and documents which have historically been open to the public and where the disclosure of which would serve a significant role in the functioning of the process in question." Associated Press v. Ladd, 162 F.3d 503, 506 (7th Cir. 1998) (internal quotation marks and citations omitted).

In order to preserve the right of access, "those who seek access to [sealed] material have a right to be heard in a manner that gives full protection to the asserted right." Id. at 507. "[R]epresentatives of the press and general public must be given an opportunity to be heard on the question of their exclusion from the proceedings or access to documents." Id. at 508 (internal quotation marks and citations omitted). Thus, we have recognized intervention as the logical and appropriate vehicle by which the public and the press may challenge a closure order. See, e.g., Associated Press, 162 F.3d at 507 ("In this circuit, we have intimated that the most appropriate procedural mechanism by which to accomplish this task is by permitting those who oppose the suppression of the material to intervene for that limited purpose."); Grove Fresh, 24 F.3d at 895 ("It is apparent, however, that intervention is the procedurally appropriate course for third-party challenges to protective orders."). This method not only guarantees the public's right to be heard, it also ensures that "the issue [of closure will] be examined in a procedural context that affords the court an opportunity for due deliberation." Associated Press, 162 F.3d at 507.

Although we have recognized the right to intervene to challenge a closure order in the civil context, see Grove Fresh, 24 F.3d at 895, we previously have not characterized this intervention in terms of the language of Rule 24. Indeed, as one of...