Settlement Negotiations & Agreements

[Sybil226]

What is the name of your state? NY

I filed a complaint against my previous employer for discrimination. After 3 months of discovery, they decided to settle.
The thing is, in the agreement, it says that they expressely deny any wrongdoing and that they had legitimate cause for their actions.

What does this mean? Does this mean that
(a) They are only settling because they don't want the expense of litigation, even though they didn't do anything wrong?
Or
(b) Does this mean they know I have a case of discrimination but they just won't admit it?

If (a) is true, then any single employee could allege discrimination and get a settlement because the employer will always settle to avoid the expense of litigation, even when the employee couldn't remotely have a case?

If (a) is false, then they did discriminate but will not admit it. Why would they settle and not admit it? What would happen if they admitted it? Would they get in trouble? Is this always the case when the parties settle outside of court? Does the defendant ALWAYS settle but deny the charges?

And finally, both parties are supposed to keep everything "confidential." What does this mean? Rumors always run, people always talk. If I tell my friends and they spread the word, will this be considered breach of contract?

Thank you,

 

[cbg]

Either (a) or (b) could be true. We have no way of knowing which.

 

[BeenAround]

I think you are not understanding the concept of having your case "settled" out side of court. When you go to court, it must be decided whether or not someone is guilty or not guilty.

To avoid this decision of who is guilty or not, you SETTLE.

So it would be insane for anyone to settle and also admit to being guilty.

Basically, your company bought you out - they gave you money to shut you up so that they can keep going on with their life as if you never existed.

If you read your settlement agreement carefully, I'm sure it says you will have to pay back any money you received if you break this "confidentiality". Sure, rumors can run wild - but you will be the one in trouble if any chatter box points a finger at you and declare that you have told her all about this "confidential" agreement. Just make sure you don't talk about the agreement itself - because that's the most confidential part - the fact that you were bought out and the dollar amount. The rest - I'm sure is already on the front cover of your company's own National Enquirer - so there's no point hiding.

As for the company - I have a feeling your agreement says nothing about penalizing them if they talk about you... but believe me, they are not interested in talking about you and this case to anyone.

By the way, congratulations. I hope you settled well.

 

[Sybil226]

Thanks for your response, BeenAround.

Yes, I really don't know very well how or why settlement negotiations take place.

I thought that a settlement occurred when the defendant realized that there's a 51%+ chance that they will lose, so they settle in order to avoid the expense of litigation and the possible punitive damages. I thought they did settle ONLY after realizing that they are indeed guilty or partly guilty, as in a mixed motive.

What you are saying is that, even if plaintiff has absolutely no remote possibility of winning, as in NO CASE WHATSOEVER, (e.g. someone declaring out of nowhere that their national origin was the motive, after being fairly fired for excessive tardiness).. will the defendant always settle just in order to avoid litigation and to avoid putting themselves at risk of being found guilty? Even when plaintiff has not established prima facie for discrimination?

I am just wondering whether they settled because they realized I was right, or just to avoid going to court, regardless of whether I was right or not?

Maybe I'll never know. The settlement was ok. Not great, but it was fair.

Any comments about my dilemma?

Regarding the issue with confidentiality, I told two of my friends (current employees of my ex-employer) about the settlement. But this was before I signed the contract, and before I knew the contents of the contract. My lawyer did not tell me ahead of time about the terms of the contract, so I was thrilled when I heard the good news and I told my friends.

If the company finds out, will this be breach of contract?

Thanks again for your help,

 

[Beth3]

I am just wondering whether they settled because they realized I was right, or just to avoid going to court, regardless of whether I was right or not? There are all kinds of reasons an employer or individual may opt to settle a suit rather than go to court, including avoiding the cost of litigation even if they believe the claim is without merit and that they may prevail in the end.

If the company finds out, will this be breach of contract? You need to discuss this with your attorney. At the very least, your two friends should probably be told about the confidentality requirement in the settlement agreement and that they need to keep their lips buttoned.

 

[BeenAround]

I can only take an educated guess on what you are asking..but I can't even do that without knowing a little bit about your company- such as how big is this company, what type of case did you have, does it have a history of EEOC issues, which industry sector did you work in ?, etc. etc.

Like Beth is saying, it could be a whole number of reasons. BUT I have a feeling that if a discovery process was taking 3 months and it could have gone on longer, it was most likely disrupting the work operation. It may have been cheaper for the company to just get rid of this problem by paying you off if the amount was small enough for them. Again - that depends on the financial health of your ex-company.

Sometimes, it's just not worth the time and money for the company to go to court to prove that they did nothing wrong. They have better thing to do with that time and money.

So I'm sorry, but I can never answer your question. And if you want my good guess, I need hell of a lot more detail.

About confidentiality - if you didn't discuss the dollar amount, and your friends are not in "management", then I wouldn't worry about it. Just don't talk about it again to anyone ever again - even about the fact that you settled.

Of course, I'm not a lawyer - nor a psychic - so I can't tell you 100% sure. I'm just telling you from what I've seen in the past, that the extent of what you did - will most likely not prompt your company to come after you.

If they do, just deny about it ALL THE WAY to the end. They can never prove that you spoke - unless your friends know the specifics of your agreement (like the dollar amount), and they tape recorded you or something like that.

Now, let the issue rest for now, and move on with your new life. Lots of luck.