Legal Question in Business Law in Virginia

Re: breach of confidentiality agreement

I would immediately file an injunction action

asking for enforcement of the agreement and

money damages against all concerned. There is law

to the effect that such a confidentiality agreement

is binding on related parties. Also, the

circumstances may be that there is some impropriety

in the way the confidentiality was breached.

To pursue a case like this involves a good deal

of background investigation, discovery, fact-

finding and legal research. Have you discussed

this with your litigtion attorney in the

underlying case? If you are interested in

discussing this case with us, please do not

hesitate to set up a no-obligation meeting.

Re: breach of confidentiality agreement

As you are probably aware if the wife had a contractual agreement with you to keep certain information confidential and then she breached that contract by disclosing the information you could file suit against her for breach of contact and seek damages that resulted from that breach. However, from the information in your note it seems that the wife did not sign the agreement rather her husband did; therefore, it would seem without knowing more that the wife may not be a party to the contract and thus not bound by any confidentiality agreement in the contract, then the question is how did she know the confidential information. On the other hand, depending on many other factors, in Virginia she could be liable to you for tortious interference with your business relationships. My advice to you would be to contact an attorney and provide the attorney with the all the information and then and only then can an attorney fully provide you with an answer.

Re: breach of confidentiality agreement

You need to immediately contact the attorney who represented you at the time the settlement agreement was signed and explain what has happened. Depending on whether the settlement agreement was signed and was to be performed in California or Virginia, you may have some recourse. That being said, you may also have a problem because the information is contained in a lawsuit. In California, a statute exists which may bar your enforcement of the agreement. The statute prohibits what are known as Stratigic Lawsuits Against Public Participation ("SLAPP" suits). As you might guess, the statute is based upon the constitutional right of free speech, and basically prohibits certain classes of lawsuits which attempt to restrain speech. Among the classes of cases prohibited are those which complain about a lawsuit being filed, and statements made to anyone about pending litigation.

Again, the attorney who represented you at the time of the settlement is in a far better position to advise you on what you should do in this case, since that attorney is intimately aware of the facts and circumstances under which the settlement was reached. You should consult that attorney before going anywhere else for advice.

Re: breach of confidentiality agreement

You need to have the settlement agreement reviewed by an attorney. The first question is where the settlement agreement is to be enforced. If California, have a California licensed attorney review it. If Virginia, you need someone licensed to practice law in Virginia review it.

The settlement agreement itself may provide for damages, injunction, etc., as relief for violation of the agreement. There are several issues involved here though such as whether the wife was a party to the agreement. If not, then she may not have liability. However, that probably does not exclude the husband from liability for telling his wife.

You need to discuss this matter with an attorney as soon as possible.

I would be happy to discuss this with you if the contract calls for enforcement in California.

Sincerely,

J. Caleb Donner

DONNER & DONNER

LEGAL WARRRIORS (R)

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Thousand Oaks, CA 91360

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