Looking out for Goliath

IN A CLASSIC David-versus-Goliath contest, the Berkeley Daily Planet succeeded in getting internal Wal-Mart records from a class-action lawsuit made public. But in a surprise ruling July 19, Alameda County Superior Court judge Ronald Sabraw decided the Daily Planet would still have to pay attorney fees. If the decision stands, it would set a terrible precedent that places corporate secrecy ahead of the public's right to know and a small community newspaper's ability to gather news.

For Wal-Mart, the amount of money involved – an estimated $76,000 – is peanuts. For the Daily Planet, a free newspaper that goes to press twice weekly and distributes 50,000 copies a week, it's more than the company spends in a month.

But what's worse is the underlying principle here. California law allows parties to collect legal fees when they sue in the public interest and win. In the Wal-Mart suit, 204,000 employees allege they were cheated out of money and time off during the workday, and the Daily Planet provided a major public service by suing to unseal thousands of documents that outline the retailer's labor practices.

But Sabraw said that because the Daily Planet has a private commercial interest in covering the Wal-Mart suit, it doesn't need the financial incentive of a fee award. He concluded that if the court granted the Daily Planet's request for attorney fees, it could open the door to challenges of every decision to seal court records from the public view. Now there's a good idea.