Settlement Agreements cannot require parties to conceal crimes or refuse to cooperate with government investigators
0February 11, 2025 by Tom Roberts, Esq.
Public Policy precludes agreements to conceal crimes.
In Virginia, confidentiality provisions in settlement agreements cannot lawfully prevent individuals from reporting criminal activity to law enforcement authorities. Such clauses are generally unenforceable due to public policy considerations and the potential for obstructing justice.
While there is no specific Virginia statute explicitly addressing this issue, the principle is supported by public policy favoring the reporting of crimes.
For instance, Virginia Code § 8.01-576.10 outlines exceptions to confidentiality in a dispute resolution program, including situations where (1) a threat to inflict bodily injury is made; (2) where communications are intentionally used to plan, attempt to commit, or commit a crime or conceal an ongoing crime.
This statute reflects the broader legal principle and public policies that confidentiality agreements should not be used to shield or conceal criminal conduct.
That policy is also reflected in Virginia Code § 18.2-462, “Concealing or compounding offenses; penalties”. The statue makes it a crime to take any money, reward or an engagement for the same upon an agreement or understanding, express or implied to “compound or conceal such offense, or not to prosecute therefor, or not to give evidence thereof”
Violation of Public Policy can void the settlement agreement
Contracts that violate Virginia public policy are void. Estes Express Lines, Inc. v. Chopper Express, Inc., 273 Va. 358, 364, 641 S.E.2d 476 (2007)
Public policy can no more be accurately defined than can due process of law.” Old Dominion Transp. Co. v. Hamilton, 146 Va. 594, 608, 131 S.E. 850 (1926) (calling it “a very unruly horse”). “There is no fixed rule by which to determine what contracts are repugnant to it.” Wallihan v. Hughes, 196 Va. 117, 124, 82 S.E.2d 553 (1954). The Virginia Supreme Court has remarked that “[t]he courts have, however, frequently approved [a] definition of public policy as the principle which declares that no one can lawfully do that which has a tendency to be injurious to the public welfare.” Id.
Reading & Language Learning Ctr. v. Sturgill, 94 Va. Cir. 94, 106
Disclaimer
The materials are prepared for information purposes only. The materials are not legal advice. You should not act upon the information without seeking the advice of an attorney. Nothing herein creates an attorney-client relationship.
Category Civil Rights, Contract Law, General, Litigation | Tags: compounding a crime, compounding a felony, confidentiality agreement, confidentiality agreement may not preclude reporting crime
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