Non-disclosure agreements (NDAs) are legal contracts used to protect sensitive information from unintended third parties. They are commonly used in business transactions, employment contracts and other scenarios where confidentiality is important.
A party bound by an NDA may fail to comply with its terms by disclosing confidential information without permission or using the information inappropriately. In such cases, can you sue them for breaching the NDA? The short answer is yes, but there are specific steps and considerations involved.
Review the NDA
Most NDAs include provisions for legal recourse in the event of a violation. These provisions can outline the specific damages or penalties the breaching party might face, such as monetary compensation for any harm caused by the breach, employment termination or even criminal liability.
As such, reviewing the NDA carefully before filing a lawsuit is essential. The agreement will likely guide you on the way forward. For instance, the NDA may require you to attempt mediation or arbitration before taking legal action.
What damages can you recover?
You may seek the court’s intervention if efforts to address the situation fail or if the breach continues to jeopardize your interests. Depending on the nature of the violation, you could pursue various legal remedies. They include:
- Actual damages or financial losses resulting from the disclosure of confidential information.
- Consequential damages, like lost business opportunities.
- The legal costs of the lawsuit.
- Punitive damages if the breach was particularly harmful or intentional.
Seeking a qualified assessment of your situation and the strength of your case can help you understand the best approach to resolve the issue. It may not necessarily involve going to court, but it helps to prepare for such an eventuality well in advance.
