November 01, 2012

Confidentiality in Settlement Agreements Is a Virtual Necessity

In all fairness to the fine writer asked to provide the “con” side of this argument, being asked to espouse the positives of including confidentiality clauses in a settlement agreement is akin to being asked to take the “pro” position in a debate titled “Chocolate Chip Cookies—Yes or No?” Including a confidentiality provision in a settlement agreement is generally not only good practice for both sides, but for a defendant, it’s a virtual necessity.

The most obvious purpose for including confidentiality clauses in settlement agreements is to keep the parties (generally the plaintiff but sometimes both) and their counsel from sharing the outcome of a settlement with “the world”—other potential plaintiffs and counsel.

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