Robert E. Levy
Partner
201-896-7163 rlevy@sh-law.comAuthor: Robert E. Levy|March 7, 2014
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:
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.
Partner
201-896-7163 rlevy@sh-law.comA 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:
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.
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