If you can’t say something nice, be sure you aren't violating nondisparagement clause

An Ohio appellate court has issued a decision addressing what appears to be a novel issue: whether an employer can be sued for breach of contract for disparaging remarks about a former employee when a settlement agreement provided for a $45,000 payment and a positive reference letter but a nondisparagement clause covered only the ex-employee and not the company. Affirming dismissal of the claims, the court held the former employee got what she bargained for and that contracts must be construed as written. Therefore, there was no implied obligation to desist from disparaging her, notwithstanding the agreement to provide a positive reference.

Facts

Veronica Green worked for CDO Technologies until February 2013, when her employment was terminated. Afterward, she filed a lawsuit alleging various employment claims about the discharge.

In March 2014, Green and CDO entered into a settlement agreement requiring the employer to pay $45,000 and provide her with a letter stating her position "was eliminated due to a reduction in force" and describing her previous roles and responsibilities with the company. The settlement agreement didn’t include any provision prohibiting the company or any of its employees from making disparaging or negative statements about her, but it did preclude her from making those kinds of statements about the employer.