Loose lips sink ships!
The Texas Fifth Court of Appeals at Dallas recently held that a settlement party’s loose talk about settlement terms violated the confidentiality provision of a settlement agreement and excused the other party from making the remaining settlement payments. Opinion
The case was recently featured in the Texas Lawyer. See Texas Lawyer
In ruling, the Court accepted the argument that the settlement agreement recited that the confidentiality provision was a material term of the contract.
My partner, Brett Myers has written a recent blog post featuring the importance to the Court of the recitation of materiality of the confidentiality term in the settlement agreement in this case. Blog Post
But, the larger point? In Texas-contracts mean what they say.
If you sign a settlement agreement that states that its terms are confidential-keep your mouth shut!