When the topic of privacy comes up, timing is everything. Once the transaction terms have been agreed, they can only be changed by mutual agreement at the new maturity. Typically, the terms are agreed upon and a party subsequently establishes a written settlement agreement. Difficulties may arise at this stage. If confidentiality was not mentioned prior to the agreement, it cannot be imposed on an opposing party by later incorporating it into the settlement agreement (see Dyer v. Bilaal, 983 A.2d 349 (D.C 2009)). The confidential agreement and publication stated that the amount of the agreement was $US 200,000 and that Rodman would be released from any claims related to damages, losses or injuries suffered by Amos as a result of the incident. The press release also said part of the idea was for the terms of the deal and release to remain confidential. The press release also contained a lump-sum indemnification clause that Rodman would be entitled to $200,000 in the event of a material breach of the confidentiality agreement. Confidentiality prevents the public from knowing about systemic misconduct. It can also prevent regulatory and government authorities from fulfilling their duty to enforce the law and protect the public. The purpose of the Court is to be equal to all, so that everyone is protected by law. When offences are concealed by confidentiality, the judicial system itself is prevented from fulfilling one of its fundamental objectives: to protect citizens from unlawful behaviour.

In order to avoid this trap, those who enter into an NDA should have the contract drawn up which specifies exactly which party is for the damages and which party for the confidentiality of the transaction. Protect your customers and be sure to accept confidentiality clauses in any transaction agreement. Burdge said the tax consequences can be significant if a confidentiality agreement is not carefully crafted. All privacy considerations are taxable income for the beneficiary, he said. “Given that the very nature of the confidentiality clause was compensation for non-personal violations, a certain amount would be taxable,” Burdge said. . . .