This case highlights the problem of the application of confidentiality clauses in a transaction, especially when the payment of the transaction is made at the same time (which is normally the case) and the breach of confidentiality occurs after payment. If this happens, it can be difficult to quantify the financial loss (if any), so an innocent ex-employer can remain without damages. The High Court ruled that the confidentiality clause was not a condition of the contract; This was not explicitly mentioned and confidentiality was not the duchy`s main reason for concluding the agreement. The judge commented that “parties often overestimate the harm that can be caused by a relatively minor breach of a confidentiality clause.” In reality, the duchy`s main objective was for Mr Steels to renounce the requirements of the agreement. The agreement contained the following confidentiality clause: whereas in this case it was a COT3 agreement, comments on conditional and intermediate terms are also relevant for each form of settlement agreement. The recent case of Duchy Farm Kennels Limited vs. Steels resulted in an important judgment on the consequences of breaching a confidentiality clause of a settlement agreement. It is recalled that if the confidential aspect of a settlement agreement is particularly important to an employer, it should ensure that it is properly protected. If confidentiality is a central concern for you as an employer, you can take into consideration in the settlement agreement: After Duchy had first paid a portion of the weekly payments, duchy suspended payments and claimed that Mr. Steels had breached the confidentiality clause by disclosing the fact and amount of the transaction to a third party.
Stop Loss Confidentiality Agreement
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