Sponsored by:
Assemblyman MICHAEL PATRICK CARROLL
District 25 (Morris and Somerset)
SYNOPSIS
Bars court from ordering disclosure of parties' personal financial information unless certain conditions apply.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning disclosure of certain financial information by court order and supplementing Title 2A of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Except as provided in subsection b. of this section, no court shall order the disclosure of personal financial information, including but not limited to tax returns, in any case in which the party from whom the information is sought has not placed the information into issue, unless the party seeking the information establishes, by clear and convincing evidence, the likelihood of success on the merits of an underlying claim.
In any case in which personal financial information is deemed relevant, the court shall order the production of such information only to the extent necessary to establish a cause of action or contest a cause of action. Prior to issuing an order to release personal financial information, the court shall conduct an in camera review of the requested information and shall release to the requesting party only such information as the court deems relevant to the claim or defense.
b. This act shall not apply to the disclosure of financial information related to the dissolution of a marriage or civil union, or to an obligation to pay child support.
2. This act shall take effect immediately.
STATEMENT
This bill would limit the court's authority to order the disclosure of personal financial information during litigation.
The bill provides that no court shall order the disclosure of personal financial information, including but not limited to tax returns, in any case in which the party from whom the information is sought has not placed the information into issue, unless the party seeking the information establishes, by clear and convincing evidence, the likelihood of success on the merits of an underlying claim.
Under the bill, in any case in which personal financial information is deemed relevant, the court could order the production of such information only to the extent necessary to establish a cause of action or contest a cause of action. Prior to issuing an order to release personal financial information, the court would conduct an in camera review of the requested information and would release to the requesting party only such information as the court deems relevant to the claim or defense.
The bill would not apply to the disclosure of financial information related to the dissolution of a marriage or civil union, or to an obligation to pay child support.
In the view of the sponsor, this bill expresses the view of the Legislature that it is the policy of this State that personal financial information should generally be exempt from disclosure, except where the party from whom such information is sought has placed that subject into issue and then, only upon a demonstration by the party seeking the information, by clear and convincing evidence, of a likelihood of success on the merits.
For example, to the extent that a person pursues a claim for individual support outside of a marital relationship (commonly referred to as "palimony"), before a court could order the disclosure of personal financial information from the party from whom support is sought, the party seeking support would be required to demonstrate by clear and convincing evidence the likelihood that the person would succeed on the merits of the underlying claim.
As an additional example, the bill would not apply in a case involving a claim for lost wages, because the subject of personal financial information would have been placed into issue. The bill would apply in other cases, such as a claim for common law punitive damages.