What Happens When You Violate an NDA in a Personal Injury Case?

by Clauson on July 20, 2018



Reaching a settlement in a personal injury case often requires months of depositions, document requests, court appearances, interrogatories and negotiations. Your personal injury attorney has put in much time and effort to help you get the personal injury case settlement you deserve from the other side’s insurance company. However, in many cases, once the settlement paperwork arrives you find that a condition of the settlement requires that you agree to keep the details of the settlement under lock and key. But something even more startling is the fact that your settlement agreement outlines that in the event that you end up violating the non-disclosure agreement, you will be held responsible for penalties that could include repayment of part or all of the total settlement amount.

NDA Violation

What Are the Possible Penalties of an NDA Violation?

While the specific details of each personal injury case settlement can vary greatly, the common penalties contained in a non-disclosure agreement state that the violating party must either:

· Return the entire injury case settlement amount.

· Return a predetermined sum that is less than the full amount of the settlement. This is known as liquidated damages.

Additionally, most NDA agreements state that if the violating party fails to pay back the required sum upon demand, they will be financially responsible for covering the attorney fees and any additional costs that the insurance company may incur in the event that further legal proceedings are required.

How Can You Protect Yourself from a Non-Disclosure Agreement Violation?

It is clear to see that the penalties attached to an NDA violation can be very severe but there are some steps you can take to protect yourself from liability or at least soften the blow if you do breach the contract. Speaking with an experienced personal injury attorney is the first step in protecting your rights and preventing any future NDA violations.

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