Recently, a Florida district court ruled that a daughter’s Facebook post mentioning the settlement of her father’s lawsuit breached the confidentiality clause in the settlement agreement resulting in the father having to forfeit his settlement proceeds.
The father sued his former employer for age discrimination and retaliation. The parties entered into a settlement agreement to resolve the lawsuit. The agreement contained a confidentiality clause (which is standard practice) which clause specifically prohibited the Plaintiff from discussing with any entity or person (except his attorneys, other professional advisors, or his spouse) any information regarding the “existence or terms” of the settlement agreement.
The agreement specifically set forth that the penalty for breach of this provision was disgorgement of the Plaintiff’s portion of the settlement payments.
After signing the agreement, the Plaintiff (and his wife) apparently felt compelled to tell their daughter that the case settled. The daughter, as so many people these days do, felt compelled to share the news with her “friends”. The following message was posted by the daughter on her Facebook page:
“Mama and Papa Snay won the case against Gulliver. Gulliver is
now officially paying for my vacation to Europe this summer. SUCK IT.”
now officially paying for my vacation to Europe this summer. SUCK IT.”
It did not take long for this post to be noticed by her 1,200 Facebook friends, many of whom were either current or former students of the Defendant, as well as others familiar with the case. As soon as the former employer learned of the disclosing Facebook post, it sued for breach of the agreement. The Appellate Court held that the Plaintiff violated the confidentiality clause based on the plain language of the settlement agreement and required the employee to give back a portion of the settlement proceeds-$80,000- as per the settlement agreement.
What Does This Case Mean for Me?
- Take seriously the confidentiality requirements when resolving litigation (or discussing any business related matter).
- Be mindful of conversations and disclosure of information pertaining to any lawsuit – especially the terms of settlement.
- Understand that social media disclosures are treated the same as any other disclosure and can result in a claim of breach of confidentiality resulting in substantial financial consequences.
- Understand that family members, unless specifically included in an agreement, are off limits for discussing terms of settlement.
(Gulliver Schools, Inc., et al. v. Snay)