The attorney representing a Rhode Island agency in its lawsuit against failed video-game company 38 Studios has denied a state senator's request for all depositions and exhibits related to the suit.
Thomas Carlotto, the attorney representing the Rhode Island Economic Development Corp. -- now Commerce RI -- told Sen. James Sheehan, D-Narrahansett, that certain defendants to the litigation have filed a motion for protective order in Superior Court.
In a March 5 letter, he added: "Once a party moves for a protective order, this order shall act as a stay of the obligation to respond to the [Access to Public Records Act] request and the confidential material or attorneys' eyes-only material shall not be produced until the court rules on the motion."
Sheehan, who made the request late last month, said he was "disappointed by the motion to stay public access to these documents" and said he will wait for the Superior Court ruling to determine what, if any, action to take at that time.
He said he requested the court material to make the records available for review by the Oversight Committee to help complete the public record and to help policymakers avoid a recurrence of the 38 Studios deal.
"The public and policymakers are entitled to know what transpired to bring about this failure," he said.
The EDC in 2010 made a $75 million loan guarantee, backed by the state's moral obligation, to entice former Boston Red Sox pitcher Curt Schilling to move 38 Studios to downtown Providence from Maynard, Mass. The company in 2012 filed for liquidation under Chapter 7 of the bankruptcy code, leaving taxpayers on the hook to repay the bonds.
Controversy over the fiasco triggered national debate over state funding for companies in high-risk sectors. Gov. Lincoln Chafee last month signed a bill enhancing the chances of a settlement.
