Rodman, suspended by the NBA and liable to a fine of 25,000 $US, had paid the photographer US$200,000. The court said $80,000 was attributable to the confidentiality clause. If you make the mistake of consenting to confidentiality as part of a settlement agreement, you must insist that defendants who demand confidentiality keep the plaintiff harmless from the income tax obligation in the event of an assault. Of course, defendants will never accept such a security clause with respect to the income tax obligation and, if they disagree, why would you? Defendants may also wish for a lawyer for the plaintiff to sign and be bound by the confidentiality agreement. The lawyer should remember that the parties sign the settlement agreement and are bound by their terms – the matter belongs to the client and not to the lawyer. (3) include mutual promises of confidentiality without additional consideration. Here too, the service can look at the substance above the form. Clearly, the defendant would have an interest in keeping secret either the existence of his conduct or the amount of the transaction. The reason for the complainant`s confidentiality may be more difficult to prove, but it could include the desire that friends and neighbours not know that he received money or, if so, how much money.
Most of the time, the amount of consideration for a defendant is of small importance – it is the clause itself that is desired. However, because of the taxable income it creates, it is best to use a reasonable but nominal amount, such as $100. Any payment you receive for entering into restrictive agreements, including a confidentiality agreement, must also be taxable. The famous Amos case involved Dennis Rodman when he was still playing for world champion Chicago Bulls. In a game against the Minnesota Timberwolves, after struggling after a loose ball, Rodman fell into a group of photographers on the sideline. As the television cameras rolled, Rodman kicked a cameraman, Eugene Amos, in the groin. Amos asked a lawyer to file an assault complaint against Rodman. Before the complaint was filed, Amos and Rodman`s lawyers negotiated a settlement agreement for $US 200,000. This agreement contained a confidentiality clause stipulating that Amo had to keep secret the nature and amount of the transaction.
It is unethical for opposing lawyers to request a prior restriction of the right to freedom of expression as a measure of the client`s comparison, as this would harm the lawyer`s advice to current and/or future clients (see abA-Model of Professional Conduct, Rule 5.6(b), tinyurl.com/7j8at7g; District of Columbia Bar, Ethics op. . .