Non-Disparagement Clause (Settlement)
A settlement term barring the parties from making negative public statements about each other after the case resolves.
A non-disparagement clause prohibits the settling parties, and sometimes their employees, agents, or counsel, from making disparaging statements about each other, whether publicly, to the press, or on social media, after the settlement is signed.
Drafting quality matters: an overly broad clause can restrict truthful statements or run into free-speech or whistleblower-protection limits in some jurisdictions and case types, while a narrowly drafted clause typically survives challenge and is enforced through the settlement agreement's own remedy provisions, often liquidated damages for a breach.
Juricratic tracks a non-disparagement obligation as a post-settlement compliance constraint attached to the case record, distinct from the settlement's monetary terms. The simulation does not model reputational-harm risk numerically, but flags the clause's existence and scope wherever the matter's evidence or communications record is later queried.
How it actually shows up
Parties negotiating a non-disparagement clause should scope it precisely, defining what counts as disparagement, who it binds, and what carve-outs exist for compelled testimony or regulatory disclosures, since an ambiguous clause is a common source of post-settlement enforcement disputes.
- Does a non-disparagement clause bar truthful statements?
- Often yes, unless the clause is specifically drafted with a truth carve-out. Most non-disparagement clauses do not distinguish true from false statements.
- Can a non-disparagement clause be enforced against an employee's protected speech?
- Not always. Some jurisdictions and federal labor and whistleblower protections limit enforcement against protected activity, regardless of the clause's language.
- What is the typical remedy for breaching a non-disparagement clause?
- The settlement agreement usually specifies a remedy, commonly liquidated damages per breach, since actual reputational harm can be difficult to prove and quantify.
This page is an educational explainer, not legal advice, and creates no attorney–client relationship. Juricratic is a simulation engine: every probability-like figure is a dial you set, not a calibrated prediction. Verify every rule, deadline, and figure against the authorities and orders that govern your matter.
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