Caudill v. Keller Williams Realty, Inc.

Dist. Ct. did not err in entering judgment in favor of defendant in action seeking to enforce confidentiality clause in settlement agreement that prohibited each party from disclosing terms of settlement and set $10,000 as liquidated damage figure for each breach of confidentiality clause. While plaintiff claimed that she was entitled to $20 million in said damages, where defendant disclosed in its Franchise Disclosure Document amount of settlement and other details of plaintiff’s underlying lawsuit against defendant to 2,000 potential buyers of its franchise, Dist. Ct. could properly find that instant liquidated damage clause was unenforceable under Texas law, where there was no showing that instant disclosure had caused $20 million in loss to plaintiff or that damages to plaintiff were anywhere near average of $10,000 per unauthorized disclosure.