The Truth About NDAs: Debunking Myths and Understanding Legalities

The Civil Nature of NDAs and Potential Consequences

NDAs (Non-Disclosure Agreements) have become a hot topic of discussion in recent years, particularly due to high-profile cases involving public figures. There are several misconceptions surrounding NDAs, their enforceability, and the consequences of breaking them. In this article, we will debunk these myths and provide a clear understanding of the legalities surrounding NDAs.

NDAs are civil, contractual matters and breaking them does not result in punishment, but rather potential lawsuits and damages. It is important to note that NDAs are not criminal offenses. When someone violates an NDA, the injured party can file a lawsuit seeking damages for the breach of contract. The damages awarded can vary depending on the specific circumstances of the case (1).

The Case of Stormy Daniels: A Landmark Ruling

One high-profile case that shed light on the enforceability of NDAs is the legal battle between Stormy Daniels and former President Donald Trump. Stormy Daniels fought the NDA in court and won, making it not legally binding. The court ruled that the NDA was unenforceable due to various factors, including the lack of mutual consideration and the circumstances surrounding the agreement (2).

Legality Determines Enforceability

The legality of an NDA plays a crucial role in its enforceability. Illegal agreements, such as those involving illegal activities or attempts to conceal criminal behavior, are unenforceable. In such cases, courts will not uphold the NDA as it would be against public policy to do so. It is essential for both parties to ensure that the subject matter of the NDA is legal and does not violate any laws (3).

Evolving Perspectives: Trump, Cohen, and Omarosa

In 2018, it was revealed that Donald Trump and his former attorney, Michael Cohen, decided to no longer hold Stormy Daniels to the NDA. This effectively rendered the agreement void, as both parties agreed to release each other from its obligations. This highlights the fact that NDAs can be mutually terminated by the parties involved (4).

Similarly, in another high-profile case, a judge ruled that Omarosa did not have to abide by the NDA she signed with the Trump campaign. The judge deemed the NDA to be overreaching and vague, which ultimately led to its unenforceability. This case emphasizes the importance of ensuring that NDAs are reasonable and not overly restrictive (4).

The Cost of Challenging an NDA

Challenging an NDA in court can be an expensive and daunting process, making it not feasible for many individuals. Legal fees, time-consuming proceedings, and the potential risks involved make it a challenging endeavor. However, as seen in the aforementioned cases, it is possible to successfully challenge an NDA if there are valid legal grounds to do so (5).

Civil Court, Not Criminal Court

It is crucial to understand that NDAs are not dealt with in criminal court but rather in civil court as a type of contract. The violation of an NDA does not lead to criminal charges, but rather legal action seeking remedies for the breach of contract. This distinction is important to comprehend when discussing the consequences of breaking an NDA (5).

NDAs are civil, contractual matters, and breaking them can result in potential lawsuits and damages. The enforceability of an NDA depends on its legality and the specific circumstances surrounding the agreement. High-profile cases have shed light on the complexities of NDAs, highlighting the importance of ensuring their reasonableness and legality. Challenging an NDA in court can be a costly endeavor, and it is crucial to differentiate between civil and criminal consequences.