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non-disparagement clause validity

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paula55

Junior Member
I live in Washington state and purchased two properties from a company located in Utah. I am looking for advice concerning a non-disparagement clause that was included in a settlement agreement and mutual release. I purchased the properties from the real estate company through the internet in 2010. Their website advertises all of their properties as fully rehabbed, cash flowing with tenants and property management in place. Not only were the properties not rehabbed but they cost me money in taxes, utility bills and fines for various violations during the period of time that I owned them.

This nightmare continued for almost two years until the owner and CEO of the company agreed to buy back the properties for what I purchased them for from their company and make monthly payments over the course of a year. I agreed to that in order to minimize my losses to just what it cost me during the time that I owned them. That was a year and a half ago and I have not received one payment from the company. He included a non-disparagement clause in the settlement agreement which I signed in good faith because he kept promising me that he would make things right. He has not responded to any of my emails or phone calls since last August.

I believe this person committed fraud and would like to report him to the BBB, the Utah State Attorney General and write a negative review on Ripoff Reports to hopefully spare some other unsuspecting person from suffering the same trauma that I did. I believe the contract would be void as no consideration ever exchanged hands therefore breaking the terms of the contract and I should be able to write my reviews and report him without fear of legal consequences.

Has anyone else experienced something similar or know if my assumptions are correct? Thank you for any responses.
 


Just Blue

Senior Member
I live in Washington state and purchased two properties from a company located in Utah. I am looking for advice concerning a non-disparagement clause that was included in a settlement agreement and mutual release. I purchased the properties from the real estate company through the internet in 2010. Their website advertises all of their properties as fully rehabbed, cash flowing with tenants and property management in place. Not only were the properties not rehabbed but they cost me money in taxes, utility bills and fines for various violations during the period of time that I owned them.

This nightmare continued for almost two years until the owner and CEO of the company agreed to buy back the properties for what I purchased them for from their company and make monthly payments over the course of a year. I agreed to that in order to minimize my losses to just what it cost me during the time that I owned them. That was a year and a half ago and I have not received one payment from the company. He included a non-disparagement clause in the settlement agreement which I signed in good faith because he kept promising me that he would make things right. He has not responded to any of my emails or phone calls since last August.

I believe this person committed fraud and would like to report him to the BBB, the Utah State Attorney General and write a negative review on Ripoff Reports to hopefully spare some other unsuspecting person from suffering the same trauma that I did. I believe the contract would be void as no consideration ever exchanged hands therefore breaking the terms of the contract and I should be able to write my reviews and report him without fear of legal consequences.

Has anyone else experienced something similar or know if my assumptions are correct? Thank you for any responses.
Why on Earty would you buy property through the internet? :eek:
 

quincy

Senior Member
I live in Washington state and purchased two properties from a company located in Utah. I am looking for advice concerning a non-disparagement clause that was included in a settlement agreement and mutual release. I purchased the properties from the real estate company through the internet in 2010. Their website advertises all of their properties as fully rehabbed, cash flowing with tenants and property management in place. Not only were the properties not rehabbed but they cost me money in taxes, utility bills and fines for various violations during the period of time that I owned them.

This nightmare continued for almost two years until the owner and CEO of the company agreed to buy back the properties for what I purchased them for from their company and make monthly payments over the course of a year. I agreed to that in order to minimize my losses to just what it cost me during the time that I owned them. That was a year and a half ago and I have not received one payment from the company. He included a non-disparagement clause in the settlement agreement which I signed in good faith because he kept promising me that he would make things right. He has not responded to any of my emails or phone calls since last August.

I believe this person committed fraud and would like to report him to the BBB, the Utah State Attorney General and write a negative review on Ripoff Reports to hopefully spare some other unsuspecting person from suffering the same trauma that I did. I believe the contract would be void as no consideration ever exchanged hands therefore breaking the terms of the contract and I should be able to write my reviews and report him without fear of legal consequences.

Has anyone else experienced something similar or know if my assumptions are correct? Thank you for any responses.
Blue Meanie's question is one I have, as well. Purchasing property over the internet, sight unseen, seems to be an awfully good way to be conned.

That said, if you have the agreement with the company in writing - that they will buy back the properties from you - then you can take them to court for breach of contract. A non-disparagement clause does not prevent a party from suing. A lawsuit, in other words, is your legal recourse.

A negative review on Ripoff Report and filing a complaint with the BBB does nothing to resolve your problem, and it puts you in a position of violating your signed agreement. Very rarely will writing a negative review about a company be a good idea - with or without a non-disparagement clause in place. Contacting Utah's Attorney General is probably a smart idea, though.

Here is a link to another thread from 2014 on non-disparagement clauses: https://forum.freeadvice.com/business-contracts-franchises-85/clause-against-negative-reviews-605564.html. As an update to that thread, California has since banned non-disparagement clauses in contracts and a Utah couple was awarded multi-thousands of dollars in a suit over a non-disparagement clause, defamation and violations of the FDCPA.

I suggest you try to resolve matters by, first, consulting with an attorney in your area (or in Utah), paula55. And go from there. Good luck.



(thank you, by the way, for starting your own thread :))
 
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