Question: 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
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 settle
ments 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 resolu
tion 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 Settle
ments, NY Times, Spt at A
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