Wal-Mart loses bid for sealed papers

Ruling: Tax fight with state to be open

Wal-Mart lost its bid to prevent the public from viewing court filings in its multi-million-dollar tax fight with the state.

In a terse order filed Wednesday, Wake County Superior Court Judge Clarence Horton Jr. denied Wal-Mart's request for a protective order to seal future documents filed in the case.

Wal-Mart sued the state Department of Revenue last year, arguing that it was overcharged and seeking a $30.2 million income-tax refund. The state contends that the world's largest retailer used tax shelters to obscure its "true earnings" in North Carolina.

Last month, after The Wall Street Journal posted court documents online, Wal-Mart filed a motion seeking to prevent the public from seeing future filings. It complained that the online posting created "unreasonable and undue annoyance" in the midst of a serious legal battle.

Documents already filed with the state -- the stack is 6 feet high -- wouldn't have been affected by such an order.

The attorney representing Wal-Mart, Jasper L. Cummings Jr. of Alston & Bird in Raleigh, could not be reached for comment.

Noelle Talley, a spokeswoman for the state Attorney General's Office, which represents the state, declined to comment because the case is pending.

In opposing Wal-Mart's motion, the state wrapped itself in the First Amendment. It argued that the retailer had failed to prove the "unusual circumstances" necessary to overrule the public's right to see court documents.