Breach of Confidentiality Clause Leads to Disgorgement of Settlement


In this employment termination case, plaintiff Snay (a school principal), and Defendant, Gulliver (the school), settled and agreed to keep the settlement confidential.  Four days after the parties signed the settlement agreement, the plaintiff’s daughter posted the following 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.”

On appeal, the issue was whether the breach of the confidentiality provision required the plaintiff to disgorge the $80,000 settlement.  The appellate court found that a disgorgement was appropriate, holding, “Snay violated the agreement by doing exactly what he had promised not to do.  His daughter then did precisely what the confidentiality agreement was designed to prevent, advertising to the Gulliver community that Snay had been successful in his age discrimination and retaliation case against the school.”

Gulliver Schools, Inc. v. Snay, 39 Fla. L. Weekly D457a (Fla. 3d DCA Feb. 26, 2014).

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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