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In some litigation cases, the two sides might decide to settle their case for one of many reasons. Frequently, one or both of the parties wants a confidentiality clause included in the settlement agreement. The purpose of a Confidentiality clause is to limit the disclosure of certain parts of the case.
Confidentiality Clause Defined Confidentiality clauses, also known as non-disclosure agreements, prevent the signing party from divulging sensitive information, personally identifiable information (PII), and trade secrets. These protections are for documents as well as verbal communications.
I agree to treat as confidential all information about clients or former clients and their families that I learn during the performance of my duties as (position title), and I understand that it would be a violation of policy to disclose such information to anyone without checking first with my
Confidentiality clauses are not legally binding if they try to stop you talking to the police or a regulator about issues between you and your employer or someone at work. An agreement may not be legally binding if you're not given reasonable time to think about it and/or get independent legal advice before signing it.
It does not matter whether an employee's employment contract includes a clause protecting confidentiality, all employees have an implied duty, during and after employment, to protect confidential information or trade secrets they acquired during their employment.
Given the strong public policy favoring confidential settlements, California courts will generally rule in favor of nondisclosure. As a result, in most cases, it is reasonable to resist the production of confidential settlement agreements in discovery.
In some litigation cases, the two sides might decide to settle their case for one of many reasons. Frequently, one or both of the parties wants a confidentiality clause included in the settlement agreement. The purpose of a Confidentiality clause is to limit the disclosure of certain parts of the case.
By executing confidentiality agreements, the receiving party is legally prohibited to disclose and is required to protect and maintain the secrecy any act which in violation which defeats the purpose of such agreement results in breach against which the disclosing party has remedies to sought.
A typical confidentiality clause might say, "The phrases and circumstances of this Agreement are completely confidential between the parties and shall not be disclosed to anybody else. Any disclosure in violation shall be deemed a breach of this Agreement."