Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Facebook Post Leads to Costly Breach of Settlement Agreement

Author: Robert E. Levy

Date: March 7, 2014

Key Contacts

Back

A daughter’s ill-advised Facebook post recently cost her father $80,000 of his settlement in an age-discrimination case.

As has been widely reported in the media, Gulliver Preparatory School agreed to pay Patrick Snay, 69, an $80,000 lump-sum payment to resolve alleged violations of the Age Discrimination in Employment Act (ADEA) and retaliation. However, four days after the settlement, Gulliver informed Snay that he had violated the settlement’s confidentiality agreement when his daughter posted the following message to her 1,200 followers: “Mama and Papa Snay won the case against Gulliver…Gulliver is now officially paying for my vacation to Europe this summer. SUCK IT.”

Earlier this month, a Florida judge refused to enforce the settlement agreement. Judge Linda Ann Wells found that Snay violated the settlement agreement by discussing its terms with his daughter. “His daughter then did precisely what the confidentiality agreement was designed to prevent,” she wrote.

Settlement agreements routinely contain a confidentiality provision that prevents both sides from discussing the terms of the settlement with outside third parties.

From a defendant’s perspective, the appearance of a lucrative settlement may increase the chances of future litigation or be used against the company in future settlement negotiations. Plaintiffs also value privacy and may not want the facts of their case to become public knowledge. Even plaintiffs who are not overly wary of confidentiality can use it as a bargaining chip during negotiations.

So what should an effective confidentiality clause contain? Below are a few key tips:

  • Explicitly state that the terms of the settlement along with the facts of the underlying dispute and the negotiation process are strictly confidential.
  • Identify any situations in which either party may divulge the terms of the settlement, i.e. disclosure to attorneys and accountants, disclosure to government regulators, disclosure in court filings to enforce the terms of the settlement agreement.
  • Clearly state that violating the confidentiality provision constitutes a material breach of the settlement agreement;
  • Set forth the penalty for breaching the settlement agreement, which typically involves the payment of liquidated damages; and
  • Specifically outline the appropriate response that the parties should give when asked about the resolution of the lawsuit.

 If you have any questions about this case or would like to discuss the use of settlement agreements, please contact me, Robert Levy, or the Scarinci Hollenbeck attorney with whom you work. 

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Navigating Director and Officer Liability in Times of Financial Distress post image

Navigating Director and Officer Liability in Times of Financial Distress

Director and officer liability increases sharply when a company is in financial distress. Decisions that would draw little attention in a healthy business can later be challenged by creditors, shareholders, bankruptcy trustees, and regulators as breaches of fiduciary duty, fraudulent transfers, or oversight failures. Understanding where that exposure comes from, and how to manage it, […]

Author: Michael Mietlicki

Link to post with title - "Navigating Director and Officer Liability in Times of Financial Distress"
Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey post image

Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey

For developers pursuing battery energy storage system (BESS) projects, finding the right property is only the beginning. BESS site selection is as much a legal and transactional exercise as a real estate decision, with risk analysis central to the project’s ultimate success. Key Takeaways The core questions for BESS site selection in New York and […]

Author: Nicholas Wall

Link to post with title - "Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey"
What Business Owners Get Wrong Before Meeting a Litigation Attorney post image

What Business Owners Get Wrong Before Meeting a Litigation Attorney

What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]

Author: Michael Mietlicki

Link to post with title - "What Business Owners Get Wrong Before Meeting a Litigation Attorney"
Arbitration vs. Litigation vs. Mediation: What New Jersey Businesses Should Know Before Signing a Contract post image

Arbitration vs. Litigation vs. Mediation: What New Jersey Businesses Should Know Before Signing a Contract

Arbitration resolves disputes privately before an arbitrator whose decision is usually final, while litigation resolves them in court with full rights of appeal. Whether a business ends up in arbitration or litigation is often decided when it signs the contract, long before any dispute arises. Key Takeaways When facing a contract dispute, carefully consider your […]

Author: Graham Staton

Link to post with title - "Arbitration vs. Litigation vs. Mediation: What New Jersey Businesses Should Know Before Signing a Contract"
Can You Own Part of a New Jersey Business Without a Written Agreement? post image

Can You Own Part of a New Jersey Business Without a Written Agreement?

Can you own part of a business in New Jersey without a written agreement? Yes, it is possible. Under New Jersey’s Uniform Partnership Act, a partnership can arise when two or more people carry on a business as co-owners for profit, whether or not they ever intended to form one. Ownership doesn’t necessarily depend on […]

Author: Michael Mietlicki

Link to post with title - "Can You Own Part of a New Jersey Business Without a Written Agreement?"
Crisis-Proofing Your New Jersey Business: Building a Crisis Response Plan Before You Need One post image

Crisis-Proofing Your New Jersey Business: Building a Crisis Response Plan Before You Need One

For New Jersey businesses, crisis preparedness should be viewed as a legal and operational function, not simply an emergency-management exercise. A well-designed crisis response plan can help preserve evidence, protect confidential communications, meet reporting obligations, limit unnecessary exposure, and prevent an already difficult situation from becoming a larger legal problem. Key Takeaways A serious crisis […]

Author: Sean M. Pena

Link to post with title - "Crisis-Proofing Your New Jersey Business: Building a Crisis Response Plan Before You Need One"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.
“If you would like to submit a file, please email it directly to info@sh-law.com.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!