The D.C. Circuit recently held that a “Mutual Non-Disparagement” clause requiring an employer to “direct” its employees not to disparage a former employee could reasonably be interpreted as prohibiting the employer itself from making disparaging statements.

In Wright v. Eugene & Agnes E. Meyer Foundation, Dr. Terri Wright, a former employee of the Eugene and Agnes E. Meyer Foundation (the “Foundation”), filed suit against the Foundation after discovering its CEO, Nicola Goren, had made disparaging statements about her.

The Foundation hired Wright in early February 2018 as its Vice President of Program and Community.  During Wright’s tenure, Goren criticized her “interpersonal skills” and identified “communication issues.” In October 2019, Goren fired Wright, citing the same concerns.  Wright believed these alleged issues were pretextual, but to attempt to avoid litigation, she entered into a Severance Agreement with the Foundation. The Severance Agreement contained a provision titled “Mutual Non-Disparagement” that read as follows:

You agree that you have not made, and will not make, any false, disparaging or derogatory statements to any person or entity, including any media outlet, industry group or financial institution, regarding the Foundation or any of the other Releasees, or about the Foundation’s business affairs and/or financial conditions; provided, however, that nothing herein prevents you from making truthful disclosures to any governmental entity or in any litigation or arbitration. Likewise, the Foundation will direct those officers, directors, and employees with direct knowledge of this revised letter agreement not to make any false, disparaging or derogatory statements to any person or entity regarding you; provided, however, that nothing herein prevents such individuals from making truthful disclosures to any governmental entity in litigation or arbitration.Continue Reading D.C. Circuit Holds Contractual Clause Directing Non-Disparagement Implies Employer Itself Cannot Disparage

In a ruling announced a few days ago, Chief Judge Ruben Castillo of the U.S. District Court for the Northern District of Illinois adjudicated the validity of a non-compete clause in an employment agreement where the employee had worked for only 15 months and then resigned and began competing. Notwithstanding the latest word from the Illinois Appellate Court — “Illinois
Continue Reading Illinois Federal Court Finds Only 15 Months’ Employment Sufficient Consideration For Non-Compete Agreement

Social media clearly has numerous uses and benefits, as hundreds of millions of users worldwide can attest. From connecting with a long lost friend, to marketing a new product or service, to organizing a high school reunion or even an uprising in the Middle East, social media has become a ubiquitous part of our lives. But its rapid proliferation comes
Continue Reading Tips For Protecting Trade Secrets In The Social Media Age