Badmouthing Pacts Aren’t Absolute: California High Court (1)

An agreement for parties not to disparage each other doesn’t bar a later civil lawsuit arising from the same alleged incident, the California Supreme Court held Thursday.

The unanimous ruling focuses on whether and under what circumstances California’s litigation privilege, which prohibits admitting into evidence any communication made in a judicial or quasi-judicial proceeding, applies to contract claims. The court’s opinion has implications for a variety of cases, including employment where recently enacted California laws about nondisclosure agreements targeted the pacts in sexual abuse and discrimination cases.

The ruling will help courts determine how to review nondisparagement agreements that arise ...