SACRAMENTO - A bill that would threaten trade secrets, spread misinformation, and clog the courts was passed out of the California State Senate Appropriations Committee today. The bill (SB 1254 - Schiff) would prohibit judges from issuing protective orders covering information that "indicates an allegation" of product defect, toxic hazards, or financial fraud.

The Civil Justice Association of California argues that the term "indicates an allegation" is so broad and vague that it will force the release of proprietary information about California companies-including trade secrets and financial information-even if it is found that the information has no bearing on the case.

"This bill would lead to the dissemination of information that will be misconstrued as proof of some wrongdoing simply because it was part of 'a legal action," said John H. Sullivan, president of the Association.

Sullivan added that the bill would force judges into line-by-line review of reams of court documents, yet, at the same time limit a judge's power to sort out genuine threats from junk science, vindictive exaggerations, or vague rumors.

"Personal injury lawyers with no connection to the case would have access to this information and could misuse it to file additional lawsuits," said Sullivan. "SB 1254 is distinctly pro-litigation."

SB 1254 now moves to a vote by the full Senate.