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73 Hastings L.J. 1 (2022)

handle is hein.journals/hastlj73 and id is 1 raw text is: Articles

The Psychology of Secret Settlements
GILAT JULI BACHARt
The #MeToo movement called attention to the use of non-disclosure clauses in settlement
agreements as a tool to silence victims of sexual wrongdoing by repeat offenders such as
movie mogul Harvey Weinstein and Olympic gymnast doctor Larry Nassar. The exposure of
such secret settlements prompted a fierce policy and scholarly debate on the legitimacy and
desirability ofNDAs. Though the risk of NDAs hindering accountability is hardly new, NDAs
are now increasingly the subject of legislative action, in states ranging from California and
New York to Nevada and Tennessee. But should all NDAs be banned or limited by sunshine-
in-litigation laws? And will such legislation adequately reflect the public's attitudes
regarding what it wishes (and doesn't wish) to know? Existing legal scholarship on the
regulation of sexual harassment NDAs fails to benefit from the theoretical wisdom and
empirical methods which psychological research can offer regarding these questions.
This Article is the first to empirically identify psychological factors affecting lay attitudes
towards secret settlements. Using a survey experiment conducted with a large representative
sample, it brings to light the mechanisms underlying the public's tendency to seek information
or remain in the dark regarding sexual harassment. The findings suggest that, counter to
existing psychological theories, lay people actually prefer public disclosure of arguably the
most uncomfortable information. Furthermore, according to the findings, the severity of the
wrongdoer's misconduct and the victim's financial status each have an independent negative
effect on lay people's endorsement of NDAs.
These empirical findings will allow legislatures to regulate secret settlements in a manner
that appropriately embodies the scope of the public's right to know. Such regulation will in
turn help preserve both employees' willingness to come forward about sexual harassment and
employers' inclination to settle. Moreover, these findings should encourage victim advocates
to explore ways to maintain disadvantaged victims' bargaining power under a confidentiality
ban regime. Prudent advocacy would help ensure that the choice between settlement and trial
remains available to financially unstable victims. The findings further show the potential
t J.S.D. '18, Stanford Law School; Visiting Assistant Professor, Villanova University Charles Widger
School of Law. For helpful feedback, I wish to thank Netta Barak-Corren, Michelle M. Dempsey, Nora Freeman
Engstrom, Jacob Goldin, Valerie Hans, David Hoffman, Jennifer K. Robbennolt, Andrew Lund, Robert
MacCoun, J.J. Prescott, Itay Ravid, Fernn Restrepo, Mary Rose, and Yochai Shavit, as well as participants at
the Stanford Legal Research in Progress Workshop, the New Voices in Dispute Resolution speaker series, the
Law and Society Association Annual Meeting, the Legal Theory Workshop at Maryland Carey School of Law,
and law faculty workshops at Villanova, Temple, Rutgers, Seton Hall, Georgia State, Buffalo, Hawaii, Golden
Gate, UIC, Chapman, Missouri and Seattle universities. Grace Wydeven provided helpful research assistance.

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