Christine Savage v. Township of Neptune
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The case involves Christine Savage, a police officer who filed a lawsuit against the Neptune Township Police Department and others for sexual harassment, sex discrimination, and retaliation. The parties entered into a settlement agreement in 2014, which included a non-disparagement clause. Savage filed a second lawsuit in 2016, alleging continued and intensified discrimination, harassment, and retaliation. The parties entered into another settlement agreement in 2020, which also included a non-disparagement clause. After a television interview with Savage aired in 2020, the defendants claimed that Savage violated the non-disparagement provision of the settlement agreement.
The trial court granted the defendants' motion to enforce the second settlement agreement, finding that the Law Against Discrimination (LAD) barred only non-disclosure and confidentiality agreements, and that Savage violated a non-disparagement clause. The Appellate Division affirmed in part and reversed in part, finding the non-disparagement clause enforceable but holding that Savage had not violated it.
The Supreme Court of New Jersey held that the non-disparagement clause in the settlement agreement is against public policy and cannot be enforced. The court found that the LAD protects Savage’s statements. The court concluded that the non-disparagement clause in the agreement directly conflicts with the LAD as it encompasses and would bar speech the statute protects. The court reversed in part, affirmed in part, and remanded the case.
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