NDA after filing small claims

[kuromi]

What is the name of your state? CA

I ordered some shoes from a company. They never delivered so I filed a small claims in court. The amount is over 10k so I lowered my claim amount to 10k.

After serving the court papers to their registered agent, they reached out to me for a settlement. However they want me to sign an NDA before beginning the settlement talk. The NDA is basically saying I cannot disclose whatever being discussed in the settlement meeting.

Does signing the NDA after my small claims case at all? I do not want to jeopardize my case if a settlement is not reached.

 

[Zigner]

This sounds like pretty standard practice, but receiving advice based on an actual review of the proposed NDA is your best bet. Such advice is considered the practice of law, so you will want to speak to an attorney.

 

[adjusterjack]

However they want me to sign an NDA before beginning the settlement talk. The NDA is basically saying I cannot disclose whatever being discussed in the settlement meeting.

General information: what is said during settlement negotiations is not admissible in court anyway so I'm not sure that it would be of harm to you to sign.

However, I agree with Zigner, for the money involved you need to understand what you are signing and take it to an attorney if you don't.

 

[quincy]

And I agree with both Zigner and adjusterjack.

You do not want to sign anything until you understand exactly what you are signing. I recommend having an attorney personally review the NDA. If you cannot reach a satisfactory settlement with the company, you want to make sure what you signed allows you to continue on with your lawsuit.

 

[zddoodah]

Does signing the NDA after my small claims case at all?

I assume you meant "alter," not "after." If so, it's impossible for anyone who hasn't read the NDA to answer your question.

FWIW, I have never once asked or been asked to sign an NDA before starting settlement discussions. Given that settlement discussions are generally inadmissible, I can't conceive what the point would be. Absent a good explanation, I'd be inclined to respond in the negative.

 

[quincy]

... Absent a good explanation, I'd be inclined to respond in the negative.

I agree that it seems an unusual request.

A settlement agreement will frequently have a “confidentiality clause” that prohibits parties from discussing the terms of the agreement or from disclosing discovery materials. I suppose having parties sign a non-disclosure agreement prior to settlement talks could work to those same ends - but also could lead to a breach of the NDA if a settlement is not reached and the lawsuit were to go forward.

I certainly would not sign any agreement without knowing exactly what it says, what would cause a breach in the agreement, and what the possible damages would be if the agreement is breached. I see no good reason offhand to signing a NDA going into settlement talks.

 

[Zigner]

I assume you meant "alter," not "after." If so, it's impossible for anyone who hasn't read the NDA to answer your question.

FWIW, I have never once asked or been asked to sign an NDA before starting settlement discussions. Given that settlement discussions are generally inadmissible, I can't conceive what the point would be. Absent a good explanation, I'd be inclined to respond in the negative.

I took "after" to mean "affect" - but that doesn't alter the correctness of your response.

 

[quincy]

I took "after" to mean "affect" - but that doesn't alter the correctness of your response.

“Affect” is how I read it. And there could be an effect on the small claims case if a NDA is signed prior to a settlement, depending on the terms of the NDA.

It is for that reason that kuromi will want the contents of the NDA personally reviewed by an attorney.

 

[Litigator22]

What is the name of your state? CA

I ordered some shoes from a company. They never delivered so I filed a small claims in court. The amount is over 10k so I lowered my claim amount to 10k.

After serving the court papers to their registered agent, they reached out to me for a settlement. However they want me to sign an NDA before beginning the settlement talk. The NDA is basically saying I cannot disclose whatever being discussed in the settlement meeting.

Does signing the NDA after my small claims case at all? I do not want to jeopardize my case if a settlement is not reached.

Assuming there is nothing in your purchase transaction requiring it, remind these officious, dictatorial jerks that they aren't driving the bus that they are about to get thrown under. (That's as gutsy as demanding a new set of clothes from the hangman.)

Also, that the only document of their making that you intend to sign is their certified check in full payment of all of your out-of-pocket as itemized herein. (Including all filing and service fees and not limited to small claims jurisdiction.)

 

[adjusterjack]

Agree with L22. And if they don't comply, just move forward with the lawsuit you have already filed.

 

[quincy]

Assuming there is nothing in your purchase transaction requiring it ...

... the only document of their making that you intend to sign is their certified check in full payment of all of your out-of-pocket as itemized herein. (Including all filing and service fees and not limited to small claims jurisdiction.)

I like that response.

It probably would not lead to a very pleasant settlement talk, though.

 

[Litigator22]

I like that response.

It probably would not lead to a very pleasant settlement talk, though.

Can you guys believe the brass of these people? They fail to deliver pre-paid merchandize and now shamelessly insist on a covert sit-down to wrangle over how much of the customer's money they get to keep. Sounds like lawyers.