Legal Question in Business Law in California

Contract exclusion?

Is a clause in a contract which prohibits reporting illegal activity enforceable?


Asked on 10/21/04, 11:56 pm

3 Answers from Attorneys

Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Contract exclusion?

No. Nobody can be sued in California for calling the cops. A contract term such as you describe would be thrown out by the judge as contrary to public policy. He or she who drops a dime (actually 50 cents these days) is immune from being sued for it, even if the accusation is made maliciously and without probable cause (believe it or not). See Civil Code Section 47(b) at www.leginfo.ca.gov . The only possible exception might be if your contract is with the gubmint and relates to classified information. Also, by "enforceable" I assume you mean enforceable in a court. You break your contract not to rat out the Mob, you might have an altogether different kind of contract to worry about.

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Answered on 10/22/04, 12:53 am
Terry A. Nelson Nelson & Lawless

Re: Contract exclusion?

No. You can always report illegal activity, and can't be fired for doing so. Contact me if you are retaliated against for doing that, or for raising the issue.

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Answered on 10/25/04, 3:35 pm
Larry Rothman Larry Rothman & Associates

Re: Contract exclusion?

That provision is not enforceable. Please contact us if you have any more questions.

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Answered on 10/22/04, 5:47 am


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