'Confidential' Settlement Agreements In NY? Think Again
March 28, 2013, 9:39 AM EDT
Law360, New York (March 28, 2013, 9:39 AM EDT) -- Settlement agreements almost always provide that the terms are confidential and may include draconian provisions if a signatory to the agreement publicizes its terms. Clients and counsel assume confidentiality of settlement agreements. However, a New York statute turns this assumption on its head in New York state court.
In addition, New York state and federal case law support production of confidential settlement agreements in discovery. Potential disclosure is not the expectation of clients when these documents are signed. We caution practitioners to advise clients that confidential...