Do you have to disclose personal financial information in a civil lawsuit in Florida?
The simple answer is maybe. It depends on the basis of the request and the claims in the lawsuit but generally speaking even when sensitive financial information is relevant and must be disclosed that production can be qualified or restricted to acknowledge the sensitive nature of the information.
What law controls production of financial information in civil actions in Florida
Financial information like any other private information is protected to a certain extend by Florida’s Constitution.
Article I, Section 23 of Florida’s Constitution contains a right to privacy that provides that, “Every natural person has the right to be let alone and free from governmental intrusion into the person’s private life except as otherwise provided herein. This section shall not be construed to limit the public’s right of access to public records and meetings as provided by law.”
That part has been interpreted by courts in Florida to limit the ability of one party in a civil lawsuit to obtain personal financial information from another party or person. While judges evaluate each case and each request on their own merits the general rule is that personal financial information is not discoverable in ordinary civil cases unless it is relevant to the claims meaning part of the case. Gruman v. Bankers Trust Co., 379 So. 2d 658, 659 (Fla. 3d DCA 1980). If personal financial information is not part of the core of the case the it is normally only discoverable after a judgment has been entered in what is called in aid of execution on the judgment.
Article I, Section 23 of Florida’s Constitution contains a right to privacy that provides that, “Every natural person has the right to be let alone and free from governmental intrusion into the person’s private life except as otherwise provided herein. This section shall not be construed to limit the public’s right of access to public records and meetings as provided by law.”
That part has been interpreted by courts in Florida to limit the ability of one party in a civil lawsuit to obtain personal financial information from another party or person. While judges evaluate each case and each request on their own merits the general rule is that personal financial information is not discoverable in ordinary civil cases unless it is relevant to the claims meaning part of the case. Gruman v. Bankers Trust Co., 379 So. 2d 658, 659 (Fla. 3d DCA 1980). If personal financial information is not part of the core of the case the it is normally only discoverable after a judgment has been entered in what is called in aid of execution on the judgment.
What are the most common situations where a party can get discovery of financial information in a Florida civil lawsuit
There are two common situations where a party in a Florida civil lawsuit can obtain financial information from another party or person or business and those are where punitive damages have been added by amendment into a complaint and where the information is relevant to the core claims in the lawsuit.
Punitive damages
Punitive damages are punishment for egregious conduct. They are also not always or automatically millions of dollars. If a judge in his or her discretion and on a proper motion grants an amendment to add punitive damages to the lawsuit that only allows the proponent of that claim to argue later for an award of such damages to the trier of fact whether judge or jury and to undertake financial discovery of the subject party.
The reason why an order adding punitive damages comes with the right to take financial discovery is because one may not bankrupt another party with punitive damages so the purpose of that financial discovery is to identify the upper limit for an award later.
Of course even if punitive damages are added and financial discovery allowed that discovery may still be limited in some fashion depending on the circumstances or the use and disclosure of the information restricted depending on how the judge crafts the order.
The reason why an order adding punitive damages comes with the right to take financial discovery is because one may not bankrupt another party with punitive damages so the purpose of that financial discovery is to identify the upper limit for an award later.
Of course even if punitive damages are added and financial discovery allowed that discovery may still be limited in some fashion depending on the circumstances or the use and disclosure of the information restricted depending on how the judge crafts the order.
Financial information is relevant to the claims
The other common situation where financial discovery is allowed in a civil lawsuit in Florida is where the judge determines that the finances of the party are relevant to the disputed issues in a lawsuit. But even in that case they still may be subject to restrictions imposed by a protective order. Epstein v. Epstein, 519 So. 2d 1042, 1043 (Fla. 3d DCA 1988).
With regard to protective orders under Florida law judges are afforded broad discretion in limiting discovery but must have good cause to issue a protective order under Rule 1.280 of the Florida Rules of Civil Procedure. Towers v. City of Longwood, 960 So. 2d 845, 848 (Fla. 5th DCA 2007); Hepco Data, LLC v. Hepco Med, LLC, 301 So. 3d 406, 410 (Fla. 2d DCA 2020).
The way that protective order work is when the party seeking the protective order demonstrates good cause then the judge may make any order denying or limiting the discovery to protect that party from annoyance, embarrassment, oppression, or undue burden or expense that justice requires. Towers at 848.
But when a judge gets a request for a protective order seeking to prevent financial discovery the judge must balance the interests of both sides. Alterra Healthcare Corp. v. Estate of Shelley, 827 So.2d 936, 944-45 (Fla. 2002).
So if a party deems the personal financial information that is subject to privacy restrictions relevant to its claims in the lawsuit and the other party resists producing such information that party must move to compel the information and has the burden to convince the judge that the information is relevant to the case. If the requesting party meets that burden the other party can still ask the judge to limit or protect the information by way of a protective order or the parties can simply enter into a confidentiality agreement or agreed confidentiality order sign by the judge covering the use and disclosure of the personal financial information
With regard to protective orders under Florida law judges are afforded broad discretion in limiting discovery but must have good cause to issue a protective order under Rule 1.280 of the Florida Rules of Civil Procedure. Towers v. City of Longwood, 960 So. 2d 845, 848 (Fla. 5th DCA 2007); Hepco Data, LLC v. Hepco Med, LLC, 301 So. 3d 406, 410 (Fla. 2d DCA 2020).
The way that protective order work is when the party seeking the protective order demonstrates good cause then the judge may make any order denying or limiting the discovery to protect that party from annoyance, embarrassment, oppression, or undue burden or expense that justice requires. Towers at 848.
But when a judge gets a request for a protective order seeking to prevent financial discovery the judge must balance the interests of both sides. Alterra Healthcare Corp. v. Estate of Shelley, 827 So.2d 936, 944-45 (Fla. 2002).
So if a party deems the personal financial information that is subject to privacy restrictions relevant to its claims in the lawsuit and the other party resists producing such information that party must move to compel the information and has the burden to convince the judge that the information is relevant to the case. If the requesting party meets that burden the other party can still ask the judge to limit or protect the information by way of a protective order or the parties can simply enter into a confidentiality agreement or agreed confidentiality order sign by the judge covering the use and disclosure of the personal financial information
Conclusion
In sum like many legal issues there is no absolute as to whether you must provide personal financial information in a civil action in Florida or whether that is protected from disclosure by privacy laws.
Whether you have to produce personal financial information in a civil action in Florida depends on the nature of the action and the claims in that case. One of the two most common instances where production is required is when punitive damages are added into a case because those can not bankrupt the party subject to them so one has to know the limit if what can be awarded. The other is when the financial information is part of the case itself such as perhaps were future lost profits are claimed and financial information is necessary to define past profits.
Whether you have to produce personal financial information in a civil action in Florida depends on the nature of the action and the claims in that case. One of the two most common instances where production is required is when punitive damages are added into a case because those can not bankrupt the party subject to them so one has to know the limit if what can be awarded. The other is when the financial information is part of the case itself such as perhaps were future lost profits are claimed and financial information is necessary to define past profits.
Written by Board Certified business lawyer David Steinfeld
David Steinfeld is one of the few Board Certified business law experts in Florida. He has been licensed for almost 30 years. He is AV-Preeminent rated, ranked as one of the Best Lawyers in America by U.S. News and World Report, and consistently named a Florida Super Lawyer and one of Florida’s Legal Elite. Dave has also received Martindale’s prestigious Judicial Edition Award for high reviews by Judges, its Platinum Client Champion Award and has a 10.0-Superb rating on AVVO as well as a 10.0 rating on Justia, lawyer reviews websites.
Check out business lawyer David Steinfeld online for helpful videos and articles on Florida business law, real estate disputes, and electronic discovery solutions for your business. This article is provided for informational purposes only.
Check out business lawyer David Steinfeld online for helpful videos and articles on Florida business law, real estate disputes, and electronic discovery solutions for your business. This article is provided for informational purposes only.
