Question: 2 . 6 One way to avoid future claims is to settle a case pursuant to a confidentiality agreement, whereby the parties agree not to
One way to avoid future claims is to settle a case pursuant to a confidentiality agreement, whereby the parties agree not to disclose the terms of the settlement. Such settlements may delay future lawsuits or even save the company from liability, because the public may never hear about the settled claim. And, if future claims are filed, the plaintiffs will not know the economic particulars associated with the settlement, so they may settle for less than the original claim. Such settlements are a mainstay in conflict resolution and litigation in America and are an indispensable tool in minimizing exposure for companies. If you were a manager responsible for major litigation, what factors would you take into account in deciding whether to insist on a confidentiality clause in an agreement? What factors might lead you not to insist on confidentiality? See Adam Liptak, South Carolina Judges Seek to Ban Secret Settlements, NY Times, Sept. at A
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