A non-disparagement provision in a settlement agreement is a clause that restricts parties from making negative or derogatory comments about each other. Essentially, it is an agreement to refrain from making negative comments in public or to the media.

Non-disparagement clauses are becoming increasingly common in settlement agreements, particularly in the legal industry. They can be found in a wide variety of settlements, including employment, personal injury, and contract disputes. The purpose of such a clause is typically to ensure both parties move on from a dispute amicably, without further damaging the other party’s reputation or causing any additional harm.

While non-disparagement clauses can be beneficial for preventing further harm to a party’s reputation, it is important to understand that they can also be tricky to navigate. For example, a non-disparagement clause may not necessarily prevent a party from leaving negative reviews or feedback online, as such statements may not be portrayed as disparaging, but rather simply honest opinions. Additionally, certain statements may fall outside the scope of a non-disparagement clause altogether, such as statements required by law or those made to defend oneself in a legal proceeding.

It is also essential to understand the potential consequences of breaching a non-disparagement clause. Doing so can result in serious consequences, such as fines and damages. For instance, if a party breaches a non-disparagement clause by making negative comments about the other party online, the other party may be entitled to damages, and in some cases, even an injunction. Therefore, it is important to exercise caution when considering what you say about the other party, even after a settlement has been reached.

In summary, while non-disparagement clauses in settlement agreements can be useful for preventing further harm and ensuring a peaceful resolution to a dispute, they must be navigated with caution. It is essential to understand the scope of the clause, potential consequences of breaching it, and to consult with a legal professional if in doubt. By doing so, parties can ensure that they adhere to the terms of their agreement and move on from a dispute positively.