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DonViejo

(60,536 posts)
Mon Dec 10, 2018, 07:24 PM Dec 2018

A Former Trump Campaign Staffer Was Ordered To Pay $25,000 For Violating Her Nondisclosure Agreement

Source: BuzzFeed News



Jessica Denson is going to court to challenge the award to the campaign, which came out of secret proceedings in arbitration.

Zoe Tillman
BuzzFeed News Reporter
Reporting From Washington, DC

Posted on December 10, 2018, at 5:28 p.m. ET

WASHINGTON — Jessica Denson, a former staffer for President Donald Trump's campaign, is fighting an order to pay nearly $25,000 for violating a nondisclosure agreement, according to court papers.

The award to the Trump campaign came out of arbitration — non-public proceedings the campaign pursued against Denson after she filed two lawsuits against it. Denson was ordered to pay $25,000 to the campaign in October, but the award wasn't made public until Denson's lawyers included it in court filings in New York County Supreme Court in late November. The documents obtained by BuzzFeed News this week were not filed electronically.

The award payment is part of a complicated, ongoing legal battle between the Trump campaign and Denson, who, according to her court filings, worked on the campaign as a national phone bank administrator and as director of Hispanic engagement. Denson sued the campaign in New York County Supreme Court in November 2017, claiming that officials discriminated against her, cyberbullied her, and were otherwise hostile towards her; it did not include any allegations against Donald Trump personally. She sought $25 million in damages.

But the Trump campaign claimed Denson's lawsuit violated the terms of her nondisclosure agreement, which prohibited her from disclosing confidential information, disparaging the campaign, competing with the campaign, or violating its intellectual property. The NDA gave the campaign the power to take issues that arose under the agreement to arbitration, and so the Trump campaign went to the American Arbitration Association and initiated the arbitration case against Denson, which has taken place behind closed doors; she has declined to participate.

Read more: https://www.buzzfeednews.com/article/zoetillman/trump-campaign-nda-lawsuit-jessica-denson-discrimination

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A Former Trump Campaign Staffer Was Ordered To Pay $25,000 For Violating Her Nondisclosure Agreement (Original Post) DonViejo Dec 2018 OP
I really don't care, you U? TheBlackAdder Dec 2018 #1
Yeah, who cares? Anyone connected to Trump is all about money. Bluepinky Dec 2018 #2
Still, I'd like to see her win. A loss for his campaign and NDAs... mpcamb Dec 2018 #20
I agree. The Trump campaign is counter suing in such a way to silence whistle blowers apnu Dec 2018 #25
I'd like to see both sides lose jberryhill Dec 2018 #27
If she was stupid enough to sign that NDA, then.... Honeycombe8 Dec 2018 #3
Yes. The Arbitrators know who is buttering their bread. KWR65 Dec 2018 #8
What you have read was perobably written by a trial lawyer who wants business. former9thward Dec 2018 #10
Lawyers handle the arbitrations. They don't lose business. Jim Lane Dec 2018 #17
Perhaps such contracts should be required to include language so that arbitrators must be randomly cstanleytech Dec 2018 #19
No, a lawyer does not make nearly the money they would in court. former9thward Dec 2018 #22
One-third is one-third, period. Jim Lane Dec 2018 #30
Arbitration is founded on the inherent ... Whiskeytide Dec 2018 #21
Trial lawyers have always tried to kill the golden goose. former9thward Dec 2018 #23
That's painting with a pretty broad brush. Of course ... Whiskeytide Dec 2018 #24
A clear example of what you write: the GM ignition switch recall Jim Lane Dec 2018 #35
You have it exactly wrong. It's the defendants who benefit. Jim Lane Dec 2018 #31
I said "almost always," not "always. Ord. people wouldn't have power in an arbitration. Honeycombe8 Dec 2018 #29
Thank you! The case you report illustrates a huge problem. (n/t) Jim Lane Dec 2018 #32
Class action bans have made it more true than ever ... Whiskeytide Dec 2018 #36
Maybe she'll have enough money left over to buy herself some flea bath. SaintLouisBlues Dec 2018 #4
Reminded me of that UpInArms Dec 2018 #13
This is one of probably 100s of NDA that need to be invalidated. erronis Dec 2018 #5
Hard to feel sorry for anyone who willingly worked to elect that POS Power 2 the People Dec 2018 #6
Darling Jessica, You made four mistakes that will follow you for life: NCjack Dec 2018 #7
She made a fifth mistake. Jim Lane Dec 2018 #18
If you are taking the position ScratchCat Dec 2018 #28
I disagree. Invalidity of the NDA could be raised in the arbitration. Jim Lane Dec 2018 #33
LOL. "director of Hispanic engagement" LOL How'd that work out for ya? PSPS Dec 2018 #9
Maybe that should have been Hispanic "encagement?" watoos Dec 2018 #14
I hope it becmones another massive public embarrassment for the campaign, but that just me. Julian Englis Dec 2018 #11
"I just dislike those folks in the tRump campaign" jberryhill Dec 2018 #26
Look For A Loophole ProfessorGAC Dec 2018 #34
He really needs the $25k for his next attorney du jour. lindysalsagal Dec 2018 #12
Oh please! SergeStorms Dec 2018 #15
You beat me to it. My thought was: Ilsa Dec 2018 #16
For TrumpCo. SergeStorms Dec 2018 #37

Bluepinky

(2,275 posts)
2. Yeah, who cares? Anyone connected to Trump is all about money.
Mon Dec 10, 2018, 07:32 PM
Dec 2018

She chose to work for a scum bag’s campaign, how did she think she’d be treated? Hope both sides spend a lot of money fighting each other and neither side gets a penny.

mpcamb

(2,871 posts)
20. Still, I'd like to see her win. A loss for his campaign and NDAs...
Tue Dec 11, 2018, 10:13 AM
Dec 2018

which, it seems to me, generally favor the wrong side, i. e., the side with lots of lawyers, time and money.

apnu

(8,758 posts)
25. I agree. The Trump campaign is counter suing in such a way to silence whistle blowers
Tue Dec 11, 2018, 01:39 PM
Dec 2018

And that can't stand.

These NDAs are bullshit.

 

jberryhill

(62,444 posts)
27. I'd like to see both sides lose
Tue Dec 11, 2018, 01:56 PM
Dec 2018

Let her spend a fortune for a $5 judgment in her favor. Who cares what happens to this lady?

Honeycombe8

(37,648 posts)
3. If she was stupid enough to sign that NDA, then....
Mon Dec 10, 2018, 07:40 PM
Dec 2018

One of the worst provisions is that any conflicts would be arbitrated, rather than allowed to go to Court. Arbitrations, I read, are almost always found in the company's favor.

Just another day in Trumperville. Another stoooopid Trumper.

People sign these things because they want to be attached to the campaign, I guess. No matter what.

KWR65

(1,098 posts)
8. Yes. The Arbitrators know who is buttering their bread.
Mon Dec 10, 2018, 08:27 PM
Dec 2018
One of the worst provisions is that any conflicts would be arbitrated, rather than allowed to go to Court. Arbitrations, I read, are almost always found in the company's favor.

former9thward

(32,030 posts)
10. What you have read was perobably written by a trial lawyer who wants business.
Mon Dec 10, 2018, 10:52 PM
Dec 2018

Arbitration agreements are very common and much cheaper than going to court. That is why trial lawyers oppose them. They are lose business. Almost all labor unions have arbitration agreements as part of their contracts. Why would they do that if arbitration was "always in the company's favor"?

 

Jim Lane

(11,175 posts)
17. Lawyers handle the arbitrations. They don't lose business.
Tue Dec 11, 2018, 08:35 AM
Dec 2018

I don't try cases but I work with lawyers who do. If there's an arbitration (or, for that matter, a mediation), the client doesn't toss the lawyer aside and go it alone. The client is represented by his or her lawyer, just as if it were a trial.

The most common type of case is the suit for personal injury in which the plaintiff's lawyer is on a contingency fee. IOW, the defendant's lawyer is paid by the hour but the plaintiff's lawyer is not. The plaintiff's lawyer receives a percentage of the amount collected, whether it's pursuant to arbitration, settlement, or trial.

The big problem with many contractual arbitration clauses is in the selection of the arbitrator(s). A union negotiating a collective bargaining agreement has the ability to ensure a fair process. When one individual must sign an arbitration agreement in order to get a job, however, the power relationship is quite imbalanced. The employer can and does arrange for arbitration in a friendly forum. For example, the arbitrator knows that he or she will never see this employee again, but the employer will be in a position to direct future cases (and fees) to arbitrators it likes.

cstanleytech

(26,303 posts)
19. Perhaps such contracts should be required to include language so that arbitrators must be randomly
Tue Dec 11, 2018, 10:01 AM
Dec 2018

selected from a pool then to offset such issues?

former9thward

(32,030 posts)
22. No, a lawyer does not make nearly the money they would in court.
Tue Dec 11, 2018, 01:01 PM
Dec 2018

Much shorter time and a streamlined process. Basically your position is that arbitrators are bought and paid for frauds. How they survive ethics complaints if that is the case is beyond me.

 

Jim Lane

(11,175 posts)
30. One-third is one-third, period.
Tue Dec 11, 2018, 02:59 PM
Dec 2018

In the typical personal-injury case, the plaintiff's attorney receives one-third of the net recovery (after expenses). If the defendant wins -- because a judge dismisses a case, because a jury finds against the plaintiff, or because an arbitrator rules against the plaintiff -- the lawyer gets nothing. If there is an ultimate award from any of those sources or from a settlement, then the lawyer gets one-third, regardless.

Sometimes a defendant recognizes the strength of the case and settles early on, in which case the lawyer doesn't have to do a trial or an arbitration. Other times, there might be many hours spent in trial preparation, then a lengthy trial, then after an appeal there has to be a retrial, and the lawyer spends an enormous amount of time. An arbitration would be somewhere in between those extremes. In all three scenarios, though, the lawyer for the injured victim gets one-third, a fee that does not depend on the time expended.

You don't need to believe that arbitrators are bought and paid for frauds. Believe only that they're human. As humans they have tendencies, known proclivities, etc. To take a well-known example, the Justices of the Supreme Court are commonly divided into blocs based on their beliefs. None of them are frauds, but you can usually make an accurate prediction about how Clarence Thomas or Ruth Bader Ginsburg will vote on a particular case. The difference with SCOTUS is that all nine Justices hear each appeal, regardless of what the parties want. Imagine if the appeal were decided by only one Justice and one of the parties could pick which one that would be. Don't you think that the party doing the picking would have a wee bit of an unfair advantage?

Whiskeytide

(4,461 posts)
21. Arbitration is founded on the inherent ...
Tue Dec 11, 2018, 10:38 AM
Dec 2018

Last edited Tue Dec 11, 2018, 01:40 PM - Edit history (1)

... bias of the arbitrators. Arbitrators want business just like everyone else. If they arbitrate a case between XYZ, Inc. and Joe Smith, they know that Mr. Smith will probably never have another arbitration. On the other hand XYZ, Inc. may have 10 or 15 a year. Some ins companies have hundreds each year. If the arbitrator rules in favor of Mr Smith, they are less likely to get future business. That’s why it’s is often true that arbitrations tend to go for the defendant, and even when they don’t, the amounts awarded are generally much less.

This is not just a trial lawyer issue. It’s true that trial lawyers lose revenue because of arbitration, but that’s because they work for a percentage and are less able to win money for their clients.

The best example of this is the auto sales industry. Before the 1990s, one of the most sued industries in the US was car dealerships. The array of scams they used to sell you a car and finance it for you was impressive. Then they started using arbitration agreements. Now they are almost never sued. Do you think they had a change of heart and stopped employing all the scams? Unlikely. If anything, it’s worse. But they save billions on litigation costs because “greedy trial lawyers”.

Edited for a typo - used to sued.

There is a reason the insurance industry spent a lot of $ demonizing trial lawyers and promoting arbitration in the 80s and 90s.

former9thward

(32,030 posts)
23. Trial lawyers have always tried to kill the golden goose.
Tue Dec 11, 2018, 01:05 PM
Dec 2018

It is inherent in what they do. The system has reacted to that as it does to anything and created other forms of dispute resolution. If you have a small claim good luck finding a trial lawyer who will take your case.

Whiskeytide

(4,461 posts)
24. That's painting with a pretty broad brush. Of course ...
Tue Dec 11, 2018, 01:39 PM
Dec 2018

... there are trial lawyers who are greedy. Just as there are doctors, real estate developers, CEOs etc... who are greedy.

But virtually every safety device on your car, every safety rule/protection at your job, every guard on your lawn mower, every worker’s benefit required by labor laws, every anti-fraud policy associated with your mortgage purchase (and on and on) is the result of some trial lawyer filing a lawsuit because someone got hurt or screwed. That is just a fact. You don’t really think Ford developed seatbelts and anti rollover technology, or that Firestone has stricter quality control because they wanted to save lives, do you? And don’t tell me the consumer market drove such innovations. That is a fairy tale.

Some trial lawyers become wealthy. Some are first class assholes. But they are influential and vocal allies of the progressive movement and consumer/workers rights policies. Why else would the business and insurance lobbies spend so much time demonizing them with false stories of the Stella Leibeck case?

 

Jim Lane

(11,175 posts)
35. A clear example of what you write: the GM ignition switch recall
Tue Dec 11, 2018, 03:37 PM
Dec 2018

GM knew about the problem for years. It corrected the defect in its newer models but didn't recall all the deathtrap vehicles it had already manufactured -- didn't, that is, until a plaintiff's lawyer got involved. As summarized in the Wikipedia article on the subject:

The defect was not disclosed by GM nor was it discovered by government regulators or transportation safety agencies. Instead, public knowledge came about because Lance Cooper, a Marietta, Georgia attorney who sued GM on behalf of the family of a woman who had died in a crash, obtained thousands of pages of documents from GM and took the depositions of several GM engineers. According to Sean Kane, the president of a vehicle safety research firm, Cooper "single-handedly set the stage for this recall."[22]


I don't know how much money that lawyer made off the case, but I do know that his work saved many people from serious injury or even death. I don't begrudge him one penny of whatever fee he received.
 

Jim Lane

(11,175 posts)
31. You have it exactly wrong. It's the defendants who benefit.
Tue Dec 11, 2018, 03:19 PM
Dec 2018

In most cases, the plaintiff isn't entitled to pre-judgment interest, so a defense lawyer who manages to protract the litigation can bill more hours and gets his or her client an interest-free loan of the ultimate payout. Defendants can also exploit the frequent situation that an injured victim can't work and is in desperate financial straits, and is thus forced to accept a lowball settlement instead of fighting for additional years.

You write, "If you have a small claim good luck finding a trial lawyer who will take your case." Yes, it's really horrible that trial lawyers refuse to work for free or nearly so. Look at the example cited by Honeycombe8 in #29. The woman got screwed out of $600 by AT&T. She ended up having to pay the unjust fee of $600. There was an arbitration clause but, whether it had been arbitration or litigation, you're right that she wouldn't be able to find a lawyer to take the case. Fie on those greedy trial lawyers (and their greedy landlords who demand payment of office rent and their greedy secretaries who demand payment of wages).

Honeycombe8

(37,648 posts)
29. I said "almost always," not "always. Ord. people wouldn't have power in an arbitration.
Tue Dec 11, 2018, 02:30 PM
Dec 2018

There's a difference in the sophistication and knowledge of the average person vs. a large company or a lawyer working for a wealthy person. There's no match at all.

As for trial lawyers wanting a trial, you should know that the companies have lawyers, as well, who stand to gain MORE MONEY than any trial lawyer, since they get paid by the hour, win or lose.

Why would you think companies would choose arbitration, if they don't have a better chance of prevailing?

Here's an article for your perusal:

Arbitration Everywhere, Stacking the Deck of Justice

***
By inserting individual arbitration clauses into a soaring number of consumer and employment contracts, companies like American Express devised a way to circumvent the courts and bar people from joining together in class-action lawsuits, realistically the only tool citizens have to fight illegal or deceitful business practices.
***
Some state judges have called the class-action bans a “get out of jail free” card, because it is nearly impossible for one individual to take on a corporation with vast resources.
**
Patricia Rowe of Greenville, S.C., learned this firsthand when she initiated a class action against AT&T. Ms. Rowe, who was challenging a $600 fee for canceling her phone service, was among more than 900 AT&T customers in three states who complained about excessive charges, state records show. When the case was thrown out last year, she was forced to give up and pay the $600. Fighting AT&T on her own in arbitration, she said, would have cost far more.

By banning class actions, companies have essentially disabled consumer challenges to practices like predatory lending, wage theft and discrimination, court records show.

“This is among the most profound shifts in our legal history,” William G. Young, a federal judge in Boston who was appointed by President Ronald Reagan, said in an interview. “Ominously, business has a good chance of opting out of the legal system altogether and misbehaving without reproach.”

https://www.nytimes.com/2015/11/01/business/dealbook/arbitration-everywhere-stacking-the-deck-of-justice.html




Whiskeytide

(4,461 posts)
36. Class action bans have made it more true than ever ...
Tue Dec 11, 2018, 07:08 PM
Dec 2018

... that if you screw someone out of $10,000,000, you’ll get your ass sued. But if you screw a million people out of $10 each, you’re golden.

erronis

(15,308 posts)
5. This is one of probably 100s of NDA that need to be invalidated.
Mon Dec 10, 2018, 07:50 PM
Dec 2018

This whole arbitration mess has got to be cleaned up. The major party in an arbitration usually owns the proceedings. Just try winning something against your credit card company when you have signed an arbitration agreement.

Good luck, Jessica.

NCjack

(10,279 posts)
7. Darling Jessica, You made four mistakes that will follow you for life:
Mon Dec 10, 2018, 07:56 PM
Dec 2018

1. Became a Repug.
2. Signed a Trump NA.
3. Worked the Trump campaign and saw some of his confidential stuff.
4. Talked about his confidential stuff.

Now, you have to pay the man his money. See how he works?

 

Jim Lane

(11,175 posts)
18. She made a fifth mistake.
Tue Dec 11, 2018, 08:45 AM
Dec 2018

According to the OP, she declined to participate in the arbitration. In my experience, this kind of boycott makes the party feel good in the short run but redounds to that party's disadvantage in the long run.

For example, perhaps the fourth mistake you list wasn't a mistake. I don't know the law in this area, but maybe there's a valid argument to be made that the NDA is overridden by the public policy in favor of enforcing the antidiscrimination laws. On that theory, the NDA is subject to an implied-in-law exception for disclosures made in a lawsuit alleging discrimination. She gave up any opportunity to make that argument to the arbitrators.

ScratchCat

(1,998 posts)
28. If you are taking the position
Tue Dec 11, 2018, 02:13 PM
Dec 2018

that the NDA is not valid, then you don't participate in the arbitration.

 

Jim Lane

(11,175 posts)
33. I disagree. Invalidity of the NDA could be raised in the arbitration.
Tue Dec 11, 2018, 03:27 PM
Dec 2018

The correct conclusion might well be that the arbitration provision of the employment agreement is valid, while the NDA provision of the employment agreement is generally valid but is subject to an exception. On that view, the arbitrators would make the decision and would decide to reject Trump's claim.

Now that there's an arbitration award against her, she'll have a tough row to hoe in challenging that award in court. Public policy is to favor voluntary dispute resolution, and this one is voluntary because it's pursuant to a contract signed by both parties. There are only limited grounds on which courts will overturn an arbitration award. "The arbitrators made a mistake" is not one of them.

ETA: Now, having read the full article, I see that federal court agreed with me:

The federal court judge, US District Judge Jesse Furman, ruled later that month that Denson’s challenge to whether the campaign could enforce the NDA at all did have to go to arbitration, however.


I can also add a sixth mistake: "Denson was handling her cases on her own without lawyers until late October, when she hired counsel."

Julian Englis

(2,309 posts)
11. I hope it becmones another massive public embarrassment for the campaign, but that just me.
Mon Dec 10, 2018, 11:17 PM
Dec 2018

I just dislike those folks in the tRump campaign. I also hate Illinois Nazis.

 

jberryhill

(62,444 posts)
26. "I just dislike those folks in the tRump campaign"
Tue Dec 11, 2018, 01:55 PM
Dec 2018

She was one of them.

This is one of those situations where instead of rooting for either team, you root for a long scoreless game with lots of injuries.

She chose, of her own free will, to sell Chump to Hispanics. What happens to her does not move the needle on my givashitometer.

SergeStorms

(19,204 posts)
15. Oh please!
Tue Dec 11, 2018, 03:38 AM
Dec 2018

The Trump campaign has an NDA against "violating it's intellectual property".

Never should the words 'Trump' and 'intellectual' be used together in the same sentence!

Ilsa

(61,695 posts)
16. You beat me to it. My thought was:
Tue Dec 11, 2018, 08:26 AM
Dec 2018

"I can't believe the trump campaign would have 'intellectual property.'"

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