## Facts

- Joanne Payton worked for the New Jersey Turnpike Authority (NJTA) as a maintenance records clerk starting in 1990.
- Payton alleged that two NJTA supervisors subjected her to ongoing sexual harassment soon after she began work.
- In September 1994, Payton filed an internal sexual-harassment complaint with NJTA and contended that the harassment continued and that NJTA did not act promptly.
- On March 10, 1995, Payton sued NJTA and the two supervisors under the New Jersey Law Against Discrimination (LAD), alleging harassment and employer liability based on inadequate response.
- After suit was filed, NJTA suspended the supervisors without pay, demoted them, and reduced their salaries, asserting these actions showed it did not participate in or acquiesce in harassment.
- In discovery, Payton sought NJTA documents about its handling of her complaint, including EEO materials, an advisory committee review, and commissioners’ executive-session materials.
- NJTA sought to block production, asserting a “self-critical analysis” privilege, confidentiality, attorney–client privilege, work-product protection, and protections tied to executive-session confidentiality.

## Issues

1. In an LAD sexual-harassment action, are an employer’s internal investigatory and remedial records regarding the complaint generally discoverable?
2. Does a “self-critical analysis” privilege or generalized confidentiality categorically bar discovery of such materials?
3. How should courts handle attorney–client privilege, work-product claims, and asserted executive-session confidentiality in evaluating these discovery requests?

## Decision

- The Supreme Court of New Jersey affirmed the Appellate Division and vacated the broad protective order.
- The Court held internal investigatory and remedial materials concerning the complaint are generally discoverable because they are highly relevant to employer liability and defenses.
- The Court declined to recognize a blanket “self-critical analysis” privilege and rejected categorical confidentiality as a basis to bar discovery.
- The Court directed document-by-document review (including in camera review where needed) to determine whether specific materials are protected by attorney–client privilege or work product and whether non-privileged portions must be produced.
- Confidentiality concerns were to be addressed through tailored protective orders (e.g., redactions, limited dissemination), not wholesale denial of discovery.
- Executive-session materials were not categorically immune; they remained subject to ordinary discovery and privilege analysis.

## Legal Principles

- Discovery in LAD matters is broad; materials bearing on an employer’s knowledge, investigation, and remedial response to harassment allegations are typically central and therefore discoverable.
- New Jersey does not recognize a general “self-critical analysis” privilege that shields internal employer evaluations of discrimination or harassment complaints.
- Confidentiality policies do not create an evidentiary privilege; courts should manage confidentiality through protective measures while allowing relevant discovery.
- Attorney–client privilege and work-product protection apply only when their established elements are met and must be evaluated item-by-item; factual portions may be discoverable if separable from privileged material.
- Statutory or policy-based executive-session confidentiality does not itself create a litigation privilege barring discovery.

## Conclusion

The court required broad access to internal harassment-investigation and remedial records in LAD litigation, rejected categorical “self-critical analysis” and confidentiality shields, and mandated a document-specific privilege review with in camera inspection and tailored protective orders where appropriate.


Payton v. N.J. Turnpike Auth., 148 N.J. 524, 691 A.2d 321 (N.J. 1997)