Confidentiality and Non-Disparagement Clauses in Settlement Agreements

Litigation5

If you settle a personal injury case, it is almost certain that the other side will require you to sign a settlement agreement, a document that memorializes the terms of your settlement. Of course, that document will detail what you get, as the victim—but it will also document some things that the liable party or its insurance company wants.

Confidentiality Agreements

One of those things that is in almost every settlement agreement is a confidentiality agreement. As the name implies, this is your agreement to keep the terms of the settlement absolutely confidential. In some cases it can mean just what you settled for, but in other cases, depending on the wording, it can even require that you keep private every fact or detail about the accident itself.

Whatever you agree to keep confidential doesn’t apply just to your verbal conversations. It applies to any conversations—even social media, message boards or the internet. Obviously, it would also prohibit you from telling the media about your settlement or the facts of the case.

But they go even further than that. Many confidentiality agreements restrict you from telling friends or even close family facts about the case or settlement. You may ask: how would anybody know if you told your husband about the settlement at the dinner table? Possibly nobody – until your husband mentions something about it on his social media feed, or at work.

Practically, are there agents from the insurance company monitoring your whole family for violations of your confidentiality clauses? Not really. But we do live in a social media age. If something went viral, or just got into the hands (or social media feeds) of someone who works at a given insurance company, there could be a problem.

Non-Disparagement Clauses

In some settlement agreements, the defendant may want you to agree to a non-disparagement clause. In these kinds of agreements, you aren’t just agreeing not to say anything about the settlement or the facts of your case—you’re agreeing you won’t say anything bad about the defendant at all, anywhere.

Because these are very broad, they really act as a restraint on your ability to speak your mind or your opinion. Simply saying “Company X is a terrible company and has drivers who can’t drive” could be a violation of your non-disparagement clause. Saying that a company is “ruthless,” or “has no ethics” can get you in trouble if you have signed a non-disparagement clause.

You should speak with your personal injury attorney about what is in your settlement agreement. Don’t just be tempted to accept it, just because it has a dollar figure you want to accept. Remember that if you go to trial, there is no confidentiality if you win. That’s one benefit of trying your case in court before a jury.

Call the Knoxville dangerous drug & defective medical device attorneys at Fox, Farley, Willis & Burnette, today to schedule a free consultation to discuss your injury, malpractice, or drug defect case.

By Fox, Farley, Willis & Burnette | Posted on January 27, 2021

Archives

Categories

Bruce Fox

Bruce D. Fox

Bruce Fox is a partner and co-founder of Fox Farley Willis & Burnette His personal injury practice focuses on automobile accidents, workers’ compensation, products liability, hospital and nursing home injuries, and trucking litigation. In addition, Bruce has significant multi-state lead counsel . Learn More

Michael Farley

Michael Farley

Michael Farley is a co-founder of Fox Farley Willis & Burnette. Michael focuses his practice on criminal defense law. Michael has practiced law for over 23 years. Most of Michaels’ clients are referrals from past clients or other attorneys. Michael proves himself as being known as “the go to guy” if you’re in trouble with the law . Learn More

John Andrew Willis

John Andrew Willis

My name is John Willis. I grew up in the town of Rogersville, Tennessee, the son of an attorney and a social worker. I learned firsthand from my Mom how vulnerable many people were to forces beyond their control. I also learned from my Dad how much an attorney could help others . Learn More

Bradley Clyde Burnette

Bradley Clyde Burnette

Brad Burnette is a native of New Orleans, Louisiana. He moved to Johnson City, Tennessee in 1990 with his mother and two brothers. He learned the value of public service and hard work at a young age. His mother was a social worker at the Veteran’s Administration and she had her sons . Learn More

Michael C. Beehan

Michael C. Beehan

Michael Beehan joined Fox Farley Willis & Burnette in January 2016. His practice is focused on serious personal injury, products liability, auto, motorcycle and trucking wrecks, and immigration. Michael grew up in Oak Ridge, Tennessee and played football at Oak Ridge High School where he was an . Learn More

Harrison Dušek

Harrison Dušek

Mr. Harrison C. Dusek is a native of Chapel Hill, North Carolina (and an avid Tar Heel fan). He has since relocated to East Tennessee with his wife, daughter and Sarplaninac (a giant livestock guardian dog breed from Serbia, pronounced: Shar-Plan-Een-Ats). Outside of his time in the office . Learn More