Legal Question in Civil Litigation in California
Settlement Agreement as Instrument of Fraud
If a person enters into a confidentiality settlement agreement that aims to prohibit him from publicly or privately revealing information about the opposing party's persistent violations of the law, is there an argument that the settlement agreement is null since the sole aim is to protect the large corporation while it continues violating numerous laws? Or is the settlement/confidentiality agreement an absolute regardless of whether this person wishes to violate the agreement in order to protect fellow consumers?
1 Answer from Attorneys
Re: Settlement Agreement as Instrument of Fraud
If you agreed to keep the settlement confidential, why would you believe you are not bound by that agreement? The purpose of such an agreement is to keep the information out of the hands of other potential litigants. It is not against public policy to allow such agreements. Normally there is a penalty clause for violating the agreement; certainly the other side could ask for its money back if you failed to keep up your side of the agreement.
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