Ny Settlement Agreement With Confidentiality Clause
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FAQ
In many cases, including a confidentiality clause is a necessity in a settlement agreement. When these clauses are included, the parties, as well as their attorneys, are not allowed to disclose how the agreement was reached.
The terms of this Settlement shall be confidential and shall not disclosed, except as required by law or to partners of the Parties to this Agreement and the Commitment, their attorneys, their accountants, their investors or potential investors, their lenders or potential lenders, officers, directors, employees, rating ...
Confidentiality clauses in settlement agreements are the rule these days. Defendants want to avoid the bad publicity and do not want the reputation of being a soft target for marginal claims.
That the employee must not disclose either the existence of or the terms and conditions of the settlement agreement to any outside third parties, except for their legal adviser, their immediate family, and those organisations where there is an obligation to do so (e.g. the HMRC).
In some cases, the opposing party will add a confidentiality clause that restricts our client from affirmatively stating there was a settlement, who it was with, or how much was awarded in compensation for the alleged negligence.