Now, the Dirty Laundry Gets Washed in Public: An appeals court rules that ombudsmen can't keep their records secret

In June, a St. Louis federal appeals court disagreed with McDonnell Douglas Corp. and struck down the ombudsman's privilege, which gave the company the power to shield the ombudsman's documents on an interpersonal dispute issue. The little-publicized decision comes as a shock to many of the large companies with ombudsmen. Suddenly, many of the nasty secrets they may have in their files - which can include allegations of everything from sexual harassment to bribery to safety violations - could now be available to plaintiffs' lawyers and regulators. Ombudsmen are concerned that the decision could cause some companies to shut down their departments. Not only is management becoming worries about litigation, but workers may be less likely to come forward with complaints if there is a chance their words will become public.