Violating confidentiality agreements may cost you

How social media postings can harm an employment case
THE internet has become a powerful instrument for socializing and reaching people. Networking sites are now virtual coffee shops for meeting new friends or catching up with old ones by posting comments or photos. Like all other tools, social media has its good and bad side. People can benefit or suffer unforeseen consequences because of social media activities.
For persons who have pending claims in a lawsuit, they are well advised to exercise discretion in what they post online. Various internet activities are hardly private, especially if internet access is in a publicly-shared space such as a café or a workplace. Additionally, just because  privacy settings appear to be restricted and online postings are directed only to family or friends, it does not mean strangers will not have access to one’s postings.
Persons with pending lawsuits may at times be prohibited from talking about certain facts of their case to anyone. In a situation where the parties have agreed to settle a case, the settlement agreement may include a confidentiality provision. A confidentiality agreement requires the parties not to disclose certain information covered by the agreement.
The terms of a confidentiality agreement differ. It may state that one cannot talk to the media about the case, or disclose the amount of money paid. It may also restrict disclosure to the public, which may include family members or close friends, about the results of the case.
The penalty for violating a confidentiality agreement varies. There are instances when the violating party must pay a fixed amount as stated in the agreement. At other times, the violating party may forfeit the settlement money. Consider the following story derived from an actual case:
Patrick Snay filed a case for age discrimination and retaliation against Gulliver Schools, his former employer. The case was eventually settled and provided, among other things, the payment to the employee of $80,000. The settlement agreement included a confidentiality provision that strictly prohibited Mr. Snay from “directly or indirectly” discussing with anyone (except to his attorneys or wife) any information regarding the terms of the agreement. A violation by the employee may result in the forfeiture of the money.
Four days after the agreement was signed, the school notified the employee that he had violated the agreement based on the Facebook posting of his college-age daughter, where she stated: “Mama and Papa Snay won the case against Gulliver. Gulliver is now officially paying for my vacation to Europe this summer. SUCK IT.”
This Facebook comment went out to approximately 1,200 of the daughter’s Facebook friends, many of whom were either current or past Gulliver students. The school sent a letter to the employee’s attorney stating that it not going to tender the $80,000 to him because he had breached the confidentiality provision.
Since the school refused to pay him the $80,000, the employee asked the trial court to enforce the settlement. The trial court ruled in the employee’s favor, but the school appealed. The appellate court agreed with the school and ruled that the employee violated the confidentiality provision of the agreement and was not entitled to the payment.
Unfortunate as it may seem, employees can learn a lesson from this story. A careless disclosure of settlement terms may violate confidentiality and result in not receiving the benefits of a favorable settlement.

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The Law Offices of C. Joe Sayas, Jr. welcomes inquiries about this topic. All inquiries are confidential and at no-cost.  Atty. Sayas’ Law Office is located at 500 N. Brand Blvd. Suite 980, Glendale, CA 91203. You can contact the office at (818) 291-0088 or visit  www.joesayaslaw.com. 

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C. Joe Sayas, Jr., Esq. is trial attorney who has obtained several million dollar recoveries for his clients against employers and insurance companies. He has been selected as a Super Lawyer by the Los Angeles Magazine, featured in the cover of Los Angeles Daily Journal’s Verdicts and Settlements, and is a member of the Million Dollar-Advocates Forum.

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