Nondisclosure agreements, including nondisparagement and confidentiality agreements, limit the ability of one party to reveal non-public information about another person or a business. Nondisclosure agreements can help protect trade secrets and other intellectual property.
They can also prevent reputation damage after a business or employment dispute. Some organizations sign nondisclosure agreements when taking on new vendors, negotiating arrangements with service providers or hiring new employees. Others may require their signatures as part of employment termination proceedings or a partnership buyout. Legal action may be necessary if an affected party does not uphold their obligations, as specified in nondisclosure agreements.
How can litigation help?
When there is documentation validating the claim that the other party disclosed private information protected by a valid nondisclosure agreement, the courts can offer multiple solutions. The party affected by the breach can file a lawsuit that protects the company and enforces the terms of the agreement.
A lawsuit provides an opportunity to request specific remedies from the court. The courts could issue an injunction preventing future disclosures or requiring steps to undo the release of information, such as deleting information shared online.
The courts can also enforce clauses in contracts that may impose financial consequences for breaching a nondisclosure agreement. Finally, the courts can award damages, which means granting financial compensation for the impact the breach of the agreement had on one party.
Reviewing an agreement itself, and the impact that a breach has had, with the lawyer may make it easier for frustrated business leaders to limit the impact of problematic disclosures of non-public information. An attorney can help assess a contract, document the infringement and take appropriate legal action in response to legitimate concerns.