Why Should Settlement Agreements Not Be Confidential

The notice notes that this investigation goes beyond the usual confidentiality of the terms of the settlement agreement and “raises the question whether, in the context of a settlement, one lawyer discloses to another the subsequent disclosure of already public information, including the name of the defendant and the allegations of the complaint, as well as information that can be easily inferred from the public record, may be prohibited. such as the fact that the dispute has been resolved. In most settlement agreements, there will be only a brief description of the case, including a note that there was a cash payment. Since these details are so scarce, it is impossible for the general public to understand what factors were involved in the deal. If a settlement agreement does not contain a confidentiality clause, it may result that plaintiffs in future lawsuits have an unrealistic idea of how to be harmed. Lawsuits where the litigant has unrealistic expectations regarding their claim can be very difficult to resolve successfully. Confidentiality clauses in settlement agreements pose unique risks to lawyers and their clients. If an agreement contains a strict confidentiality clause, there can be almost endless obligations for the parties and their lawyers. Taking into account the following considerations, lawyers can work to meet clients` expectations while respecting their ethical obligations in accordance with the rules of ethics. It is not uncommon for the defense to attempt to include a lump sum clause in the agreement, often for the full amount paid to settle the case. The applicant should never accept such a delay.

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