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An assignment of claims is a legal and financial process that allows one party to transfer or “assign” a claim to someone else, provided that the other party is in full knowledge of the assignment and agrees to it. In this process, the party that transfers the claim is called the assignor, and the party to whom the claim is transferred is called the assignee. Essentially, this situation entitles the assignee to the rights previously held by the assignor, according to the claim or contract. The assignment of claims, however, may also involve transference of some liabilities and legal responsibilities to the assignee.

There are many situations wherein assignment of claims can be applicable, such as in insurance claims, bankruptcies, and damages to compensate for an accident or injury. In the US, companies abide by the “Assignment of Claims Act of 1940” to carry out an assignment of claim when a contract between the said company and a client expires or is about to expire. One condition under the act is that there is a sum of $1,000 US Dollars or higher involved in the contract; if the sum is lower than that, then an assignment may not be able to push through.

The company may only assign the claim to an assignee of a “financing institution,” like banks, government-funded lending agencies, or trust companies or corporations. This condition ensures that the assignee is able to take on the responsibilities involving the claim, especially for financial aspects. The existing contract between the assignor and another party should also not state any problem with assigning the claim to a new assignee; otherwise, the party with whom the assignor has a contract can sue the assignor for contract violation. Another condition would be that the assignor can only assign the claim to only one assignee, and that the latter cannot transfer the claim to another party.

Many cases require that the assignment be formally filed, especially when it involves property of high value, such as a huge sum or money, land, or forms of collateral . Generally, the courts do not have to investigate why an assignment was filed, but require the filing primarily for documentation purposes. In this process, another contract should be drawn up, stating that the claim will be transferred from the assignor to the assignee. Once the contract is agreed to and the two parties have willingly signed the contract, the assignment of claims is complete and a novation takes place, making the assignee the new claim holder.

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Assignment of claims

Assignment of claims clause samples

(i)No Assignment of Claims. Neither ACLP, nor any other ACLP Releasor, nor anyone acting on any of their behalves, has ever sold, assigned, transferred, conveyed or otherwise disposed of all or any part of the ACLP Released Claims released thereby hereunder, whether known or unknown.

05/27/2020 (Summit Wireless Technologies, Inc.)

9.No Assignment of Claims. Each set of parties represents and warrants to the other that it has not heretofore assigned or transferred, or purported to assign or transfer to any person or entity any claims that it might have against the other.

09/27/2019 (Green Stream Holdings Inc.)

13. Indemnity Regarding Assignment of Claims. Executive represents and warrants that Executive has not heretofore assigned or transferred, or purported to assign or transfer, to any person, entity, or individual whatsoever any of the released claims. Executive agrees to indemnify and hold harmless the Company and its agents, heirs, executors, and assigns against any claim, demand, debt, obligation, liability, cost, expense, right of action, or cause of action based on, arising out of, or in connection with any such transfer or assignment or purported transfer or assignment.

08/08/2017 (B. Riley Financial, Inc.)

9. No Assignment of Claims. Employee hereby represents and warrants that Employee has not previously assigned or purported to assign or transfer to any person or entity any of the claims or causes of action herein released.

02/02/2017 (InvenSense Inc)

No Assignment of Claims.Casella warrants that he has not transferred to any other person or entity any of the rights or causes of action released in this Agreement.

05/09/2019 (NAVIGATORS GROUP INC)

8. No Assignment of Claims. The Parties each acknowledge and represent that they have not assigned any claim arising out of and/or in connection with the Asset Purchase Agreement and/or Side Letter Agreement Dated May 24, 2018 to any third party prior to the date of this Agreement. The Parties acknowledge and represent that they have not assigned any claim arising out of and/or in connection with the Asset Purchase Agreement and/or Side Letter Agreement Dated May 24, 2018 to any third party prior to the date of this Settlement Agreement.

02/01/2019 (PLAYERS NETWORK)

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Assignment of Claims

• First Online: 02 September 2017

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• İlhan Helvacı 2  

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A claim arising from a contract or some other source of obligation, such as a tort or unjust enrichment, may be transferred to third parties. A claim may be transferred by an agreement, by a court order or by law. In this section, assignment of claims effected by agreement and those effected by a court decision or operation of law are analysed respectively.

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For further explanations, see Kocaman ( 1989 ), Dayınlarlı ( 2008 ), Günergök ( 2014 ).

Cession des créances , Abtretung von Forderungen .

Becker ( 1941 ), art. 164, N. 4.

Tercier ( 2004 ), p. 304; Thévenoz and Werro ( 2012 ), art. 164, N. 32–35; Eren ( 2015 ), p. 1236; Tercier et al. ( 2016 ), p. 521; Engel ( 1997 ), p. 872.

Eren ( 2015 ), p. 1237; Tercier et al. ( 2016 ), p. 522; Engel ( 1997 ), p. 872; Tercier ( 2004 ), p. 305; Thévenoz and Werro ( 2012 ), art. 164, N. 36.

Tekinay et al. ( 1993 ), p. 247; Eren ( 2015 ), p. 1237; Oğuzman and Öz ( 2016 ), pp. 571–574; Tercier et al. ( 2016 ), p. 522.

Becker ( 1941 ), art. 164, N. 5; Tercier ( 2004 ), p. 305; Tekinay et al. ( 1993 ), p. 240; Tercier et al. ( 2016 ), p. 522.

Déclaration de volonté , Willenserklärung .

Thévenoz and Werro ( 2012 ), art. 164, N. 20; Oğuzman and Öz ( 2016 ), p. 566.

Oğuzman and Öz ( 2016 ), pp. 562–563; Reisoğlu ( 2014 ), p. 466; Nomer ( 2015 ), p. 449.

Acte de disposition , Verfügungsgeschäft . See Chap. 14 fn. 5–6.

Conversely, such a contract is an acquisitive transaction with regard to the assignee.

Pouvoir de disposer, Verfügungsmacht .

Tercier ( 2004 ), p. 306.

Oğuzman and Öz ( 2016 ), p. 560.

Eren ( 2015 ), p. 1231; Tekinay et al. ( 1993 ), pp. 241–242.

von Tuhr and Escher ( 1974 ), § 93, II, p. 333; Oğuzman and Öz ( 2016 ), p. 560; Reisoğlu ( 2014 ), p. 465; Becker ( 1941 ), art. 164, N. 1. For further explanations see Honsell et al. ( 2003 ), art. 164, N. 23–25.

Nomer ( 2015 ), p. 449; Oğuzman and Öz ( 2016 ), p. 569.

Oğuzman and Öz ( 2016 ), p. 563.

See Sect. 8.2.2 .

Nomer ( 2015 ), p. 449; Oğuzman and Öz ( 2016 ), pp. 566–567; Eren ( 2015 ), pp. 1234–1235.

See Sect. 29.2 .

Thévenoz and Werro ( 2012 ), art. 164, N. 19.

See Sect. 29.3 .

Tekinay et al. ( 1993 ), p. 250; Thévenoz and Werro ( 2012 ), art. 164, N. 61; Tercier ( 2004 ), p. 307.

Tercier et al. ( 2016 ), p. 524; Oğuzman and Öz ( 2016 ), pp. 574–575; Eren ( 2015 ), p. 1238.

Oğuzman and Öz ( 2016 ), p. 577.

Feyzioğlu ( 1977 ), p. 641; Tekinay et al. ( 1993 ), p. 241; Oğuzman and Öz ( 2016 ), p. 575.

See Sect. 26.4 .

Tekinay et al. ( 1993 ), p. 251; Oğuzman and Öz ( 2016 ), pp. 577–578.

For further explanations, see Helvacı ( 2008 ).

Thévenoz and Werro ( 2012 ), art. 170 fn. 30, cf. Feyzioğlu ( 1977 ), p. 651; Tekinay et al. ( 1993 ), p. 260.

For further explanations see Çetiner ( 2010 ).

Eren ( 2015 ), p. 1240; Oğuzman and Öz ( 2016 ), p. 576; Oğuzman et al. ( 2016 ), p. 1049, compare to Thévenoz and Werro ( 2012 ), art. 170, N. 9.

Oğuzman and Öz ( 2016 ), p. 576; Nomer ( 2015 ), p. 450.

Feyzioğlu ( 1977 ), p. 651; Tekinay et al. ( 1993 ), p. 259; Oğuzman and Öz ( 2016 ), p. 578.

Thévenoz and Werro ( 2012 ), art. 170, N. 11; Oğuzman and Öz ( 2016 ), p. 578; Feyzioğlu ( 1977 ), p. 651; Tekinay et al. ( 1993 ), p. 260.

For further explanations see Günergök ( 2014 ).

Tercier ( 2004 ), p. 308.

Thévenoz and Werro ( 2012 ), art. 167, N. 21; Oğuzman and Öz ( 2016 ), pp. 582–583; Nomer ( 2015 ), p. 452; Reisoğlu ( 2014 ), p. 470.

Becker ( 1941 ), art. 168, N. 7; Engel ( 1997 ), p. 884; Thévenoz and Werro ( 2012 ), art. 168, N. 4; Feyzioğlu ( 1977 ), p. 656; Oğuzman and Öz ( 2016 ), pp. 583–584.

Öz ( 1990 ), pp. 57–58.

Tekinay et al. ( 1993 ), p. 252 ff ; Oğuzman and Öz ( 2016 ), p. 586; Eren ( 2015 ), p. 1241

See Sect. 18.4.2.2 .

Thévenoz and Werro ( 2012 ), art. 169, N. 11; Feyzioğlu ( 1977 ), p. 658; Oğuzman and Öz ( 2016 ), p. 587; Eren ( 2015 ), p. 1241.

For further explanations see Engin ( 2002 ).

Oğuzman and Öz ( 2016 ), p. 591.

Oğuzman and Öz ( 2016 ), p. 593.

See Sect. 24.2 .

Tekinay et al. ( 1993 ), p. 266; Eren ( 2015 ), p. 1227; Oğuzman and Öz ( 2016 ), p. 596.

See Sect. 25.4.2 , fn. 43.

The transfer of possession is of a factual nature. The material transfer of possession must be complemented by the parties’ agreement (referred to as a real agreement) concerning the transfer of ownership or the constitution of rights in rem . The real agreement is a bilateral legal act and does not require any specific form. It may be formed by the parties’ express or implied declarations of will (intention).

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Helvacı, İ. (2017). Assignment of Claims. In: Turkish Contract Law. Springer, Cham. https://doi.org/10.1007/978-3-319-60061-1_32

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Change Number: DFARS Change 04/25/2024 Effective Date: 04/25/2024

Subpart 232.8 - ASSIGNMENT OF CLAIMS

232.803 policies..

(b) Only contracts for personal services may prohibit the assignment of claims.

(d) Pursuant to 41 U.S.C. 6305, and in accordance with Presidential delegation dated October 3, 1995, Secretary of Defense delegation dated February 5, 1996, and Under Secretary of Defense (Acquisition and Sustainment) delegation dated February 23, 1996, the Director of Defense Procurement determined on May 10, 1996, that a need exists for DoD to agree not to reduce or set off any money due or to become due under the contract when the proceeds under the contract have been assigned in accordance with the Assignment of Claims provision of the contract. This determination was published in the Federal Register on June 11, 1996, as required by law. Nevertheless, if departments/agencies decide it is in the Government's interest, or if the contracting officer makes a determination in accordance with FAR 32.803(d) concerning a significantly indebted offeror, they may exclude the no-setoff commitment.

232.805 Procedure.

(b) The assignee shall forward—

(i) To the administrative contracting officer (ACO), a true copy of the instrument of assignment and an original and three copies of the notice of assignment. The ACO shall acknowledge receipt by signing and dating all copies of the notice of assignment and shall—

(A) File the true copy of the instrument of assignment and the original of the notice in the contract file;

(B) Forward two copies of the notice to the disbursing officer of the payment office cited in the contract;

(C) Return a copy of the notice to the assignee; and

(D) Advise the contracting officer of the assignment.

(ii) To the surety or sureties, if any, a true copy of the instrument of assignment and an original and three copies of the notice of assignment. The surety shall return three acknowledged copies of the notice to the assignee, who shall forward two copies to the disbursing officer designated in the contract.

(iii) To the disbursing officer of the payment office cited in the contract, a true copy of the instrument of assignment and an original and one copy of the notice of assignment. The disbursing officer shall acknowledge and return to the assignee the copy of the notice and shall file the true copy of the instrument and original notice.

232.806 Contract clauses.

(a)(1) Use the clause at 252.232-7008 , Assignment of Claims (Overseas), instead of the clause at FAR 52.232-23, Assignment of Claims, in solicitations and contracts when contract performance will be in a foreign country.

(2) Use Alternate I with the clause at FAR 52.232-23, Assignment of Claims, unless otherwise authorized under 232.803 (d).

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31 U.S. Code § 3727 - Assignments of claims

In subsection (a)(1), the words “or share thereof” and “whether absolute or conditional, and whatever may be the consideration therefor” are omitted as surplus. In clause (2), the word “authorization” is substituted for “powers of attorney, orders, or other authorities” to eliminate unnecessary words.

In subsections (b) and (c), the word “official” is substituted for “officer” for consistency in the revised title and with other titles of the United States Code.

In subsection (b), the words “Except as hereinafter provided” are omitted as unnecessary. The words “read and” are omitted as surplus. The words “to the person acknowledging the same” are omitted as unnecessary. The text of 31:203(1st par. last sentence) is omitted as superseded by 39:410. The words “Notwithstanding any law to the contrary governing the validity of assignments ” and the text of 31:203(last par.) are omitted as unnecessary.

In subsection (c), before clause (1), the words “bank, trust company, or other . . . including any Federal lending agency” are omitted as surplus. The words “of money due or to become due under a contract providing for payments totaling at least $1,000” are substituted for “in any case in which the moneys due or to become due from the United States or from any agency or department thereof, under a contract providing for payments aggregating $1,000 or more” to eliminate unnecessary words. The text of 31:203(2d par. proviso cl. 1) is omitted as executed. In clause (1), the words “in the case of any contract entered into after October 9, 1940 ” are omitted as executed. In clause (2)(A), the words “payable under such contract” are omitted as surplus. In clause (3), the words “true” and “instrument of” are omitted as surplus. The words “department or” are omitted because of the restatement. The words “if any” and “to make payment” are omitted as surplus.

In subsection (d), before clause (1), the words “During a war or national emergency proclaimed by the President or declared by law and ended by proclamation or law” are substituted for “in time of war or national emergency proclaimed by the President (including the national emergency proclaimed December 16, 1950 ) or by Act or joint resolution of the Congress and until such war or national emergency has been terminated in such manner” to eliminate unnecessary words. The words “ Department of Energy (when carrying out duties and powers formerly carried out by the Atomic Energy Commission)” are substituted for “Atomic Energy Commission” (which was reconstituted as the Energy Research and Development Administration by 42:5813 and 5814) because of 42:7151(a) and 7293. The words “other department or . . . of the United States . . . except any such contract under which full payment has been made” and “of any moneys due or to become due under such contract” before “shall not be subject” are omitted as surplus. The words “A payment subsequently due under the contract (even after the war or emergency is ended) shall be paid to the assignee without” are substituted for “and if such provision or one to the same general effect has been at any time heretofore or is hereafter included or inserted in any such contract, payments to be made thereafter to an assignee of any moneys due or to become due under such contract, whether during or after such war or emergency . . . hereafter” to eliminate unnecessary words. The words “of any nature” are omitted as surplus. In clause (1), the words “or any department or agency thereof” are omitted as unnecessary. In clause (2), the words “under any renegotiation statute or under any statutory renegotiation article in the contract” are omitted as surplus.

Subsection (e)(1) is substituted for 31:203(4th par.) to eliminate unnecessary words.

In subsection (e)(2), the words “person receiving an amount under an assignment or allotment” are substituted for “assignees, transferees, or allottees” for clarity and consistency. The words “or to others for them” and “with respect to such assignments , transfers, or allotments or the use of such moneys” are omitted as surplus. The words “person making the assignment or allotment” are substituted for “assignors, transferors, or allotters” for clarity and consistency.

Assignment Of Rights Agreement

Jump to section, what is an assignment of rights agreement.

​​An assignment of rights agreement is a written document in which one party, the assignor, assigns to another party all or part of their rights under an existing contract. The most common example of this would be when someone wants to sell their shares of stock in a company.

When you buy shares from someone else (the seller), they agree to transfer them over and give up any control they had on that share. This way, another party can take ownership without going through the trouble of trying to buy the whole company themselves.

Common Sections in Assignment Of Rights Agreements

Below is a list of common sections included in Assignment Of Rights Agreements. These sections are linked to the below sample agreement for you to explore.

Assignment Of Rights Agreement Sample

Reference : Security Exchange Commission - Edgar Database, EX-99.(H)(7) 5 dex99h7.htm FORM OF ASSIGNMENT AGREEMENT , Viewed December 20, 2021, View Source on SEC .

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Understanding an assignment and assumption agreement

Need to assign your rights and duties under a contract? Learn more about the basics of an assignment and assumption agreement.

Get your assignment of agreement

by   Belle Wong, J.D.

Belle Wong, is a freelance writer specializing in small business, personal finance, banking, and tech/SAAS. She ...

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Updated on: November 24, 2023 · 3 min read

The assignment and assumption agreement

The basics of assignment and assumption, filling in the assignment and assumption agreement.

While every business should try its best to meet its contractual obligations, changes in circumstance can happen that could necessitate transferring your rights and duties under a contract to another party who would be better able to meet those obligations.

If you find yourself in such a situation, and your contract provides for the possibility of assignment, an assignment and assumption agreement can be a good option for preserving your relationship with the party you initially contracted with, while at the same time enabling you to pass on your contractual rights and duties to a third party.

An assignment and assumption agreement is used after a contract is signed, in order to transfer one of the contracting party's rights and obligations to a third party who was not originally a party to the contract. The party making the assignment is called the assignor, while the third party accepting the assignment is known as the assignee.

In order for an assignment and assumption agreement to be valid, the following criteria need to be met:

• The initial contract must provide for the possibility of assignment by one of the initial contracting parties.
• The assignor must agree to assign their rights and duties under the contract to the assignee.
• The assignee must agree to accept, or "assume," those contractual rights and duties.
• The other party to the initial contract must consent to the transfer of rights and obligations to the assignee.

A standard assignment and assumption contract is often a good starting point if you need to enter into an assignment and assumption agreement. However, for more complex situations, such as an assignment and amendment agreement in which several of the initial contract terms will be modified, or where only some, but not all, rights and duties will be assigned, it's a good idea to retain the services of an attorney who can help you draft an agreement that will meet all your needs.

When you're ready to enter into an assignment and assumption agreement, it's a good idea to have a firm grasp of the basics of assignment:

• First, carefully read and understand the assignment and assumption provision in the initial contract. Contracts vary widely in their language on this topic, and each contract will have specific criteria that must be met in order for a valid assignment of rights to take place.
• All parties to the agreement should carefully review the document to make sure they each know what they're agreeing to, and to help ensure that all important terms and conditions have been addressed in the agreement.
• Until the agreement is signed by all the parties involved, the assignor will still be obligated for all responsibilities stated in the initial contract. If you are the assignor, you need to ensure that you continue with business as usual until the assignment and assumption agreement has been properly executed.

Unless you're dealing with a complex assignment situation, working with a template often is a good way to begin drafting an assignment and assumption agreement that will meet your needs. Generally speaking, your agreement should include the following information:

• Identification of the existing agreement, including details such as the date it was signed and the parties involved, and the parties' rights to assign under this initial agreement
• The effective date of the assignment and assumption agreement
• Identification of the party making the assignment (the assignor), and a statement of their desire to assign their rights under the initial contract
• Identification of the third party accepting the assignment (the assignee), and a statement of their acceptance of the assignment
• Identification of the other initial party to the contract, and a statement of their consent to the assignment and assumption agreement
• A section stating that the initial contract is continued; meaning, that, other than the change to the parties involved, all terms and conditions in the original contract stay the same

In addition to these sections that are specific to an assignment and assumption agreement, your contract should also include standard contract language, such as clauses about indemnification, future amendments, and governing law.

Sometimes circumstances change, and as a business owner you may find yourself needing to assign your rights and duties under a contract to another party. A properly drafted assignment and assumption agreement can help you make the transfer smoothly while, at the same time, preserving the cordiality of your initial business relationship under the original contract.

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Legal Templates

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Assignment Agreement Template

Use our assignment agreement to transfer contractual obligations.

Updated February 1, 2024 Reviewed by Brooke Davis

An assignment agreement is a legal document that transfers rights, responsibilities, and benefits from one party (the “assignor”) to another (the “assignee”). You can use it to reassign debt, real estate, intellectual property, leases, insurance policies, and government contracts.

What Is an Assignment Agreement?

What to include in an assignment agreement, how to assign a contract, how to write an assignment agreement, assignment agreement sample.

Partnership Interest

An assignment agreement effectively transfers the rights and obligations of a person or entity under an initial contract to another. The original party is the assignor, and the assignee takes on the contract’s duties and benefits.

It’s often a requirement to let the other party in the original deal know the contract is being transferred. It’s essential to create this form thoughtfully, as a poorly written assignment agreement may leave the assignor obligated to certain aspects of the deal.

The most common use of an assignment agreement occurs when the assignor no longer can or wants to continue with a contract. Instead of leaving the initial party or breaking the agreement, the assignor can transfer the contract to another individual or entity.

For example, imagine a small residential trash collection service plans to close its operations. Before it closes, the business brokers a deal to send its accounts to a curbside pickup company providing similar services. After notifying account holders, the latter company continues the service while receiving payment.

Create a thorough assignment agreement by including the following information:

• Effective Date:  The document must indicate when the transfer of rights and obligations occurs.
• Parties:  Include the full name and address of the assignor, assignee, and obligor (if required).
• Assignment:  Provide details that identify the original contract being assigned.
• Third-Party Approval: If the initial contract requires the approval of the obligor, note the date the approval was received.
• Signatures:  Both parties must sign and date the printed assignment contract template once completed. If a notary is required, wait until you are in the presence of the official and present identification before signing. Failure to do so may result in having to redo the assignment contract.

Review the Contract Terms

Carefully review the terms of the existing contract. Some contracts may have specific provisions regarding assignment. Check for any restrictions or requirements related to assigning the contract.

Check for Anti-Assignment Clauses

Some contracts include anti-assignment clauses that prohibit or restrict the ability to assign the contract without the consent of the other party. If there’s such a clause, you may need the consent of the original parties to proceed.

Determine Assignability

Ensure that the contract is assignable. Some contracts, especially those involving personal services or unique skills, may not be assignable without the other party’s agreement.

Get Consent from the Other Party (if Required)

If the contract includes an anti-assignment clause or requires consent for assignment, seek written consent from the other party. This can often be done through a formal amendment to the contract.

Prepare an Assignment Agreement

Draft an assignment agreement that clearly outlines the transfer of rights and obligations from the assignor (the party assigning the contract) to the assignee (the party receiving the assignment). Include details such as the names of the parties, the effective date of the assignment, and the specific rights and obligations being transferred.

Include Original Contract Information

Attach a copy of the original contract or reference its key terms in the assignment agreement. This helps in clearly identifying the contract being assigned.

Execution of the Assignment Agreement

Both the assignor and assignee should sign the assignment agreement. Signatures should be notarized if required by the contract or local laws.

Notice to the Other Party

Provide notice of the assignment to the non-assigning party. This can be done formally through a letter or as specified in the contract.

File the Assignment

File the assignment agreement with the appropriate parties or entities as required. This may include filing with the original contracting party or relevant government authorities.

Communicate with Third Parties

Inform any relevant third parties, such as suppliers, customers, or service providers, about the assignment to ensure a smooth transition.

Keep Copies for Records

Keep copies of the assignment agreement, original contract, and any related communications for your records.

Here’s a list of steps on how to write an assignment agreement:

Step 1 – List the Assignor’s and Assignee’s Details

List all of the pertinent information regarding the parties involved in the transfer. This information includes their full names, addresses, phone numbers, and other relevant contact information.

This step clarifies who’s transferring the initial contract and who will take on its responsibilities.

Step 2 – Provide Original Contract Information

Describing and identifying the contract that is effectively being reassigned is essential. This step avoids any confusion after the transfer has been completed.

Step 3 – State the Consideration

Provide accurate information regarding the amount the assignee pays to assume the contract. This figure should include taxes and any relevant peripheral expenses. If the assignee will pay the consideration over a period, indicate the method and installments.

Step 4 – Provide Any Terms and Conditions

The terms and conditions of any agreement are crucial to a smooth transaction. You must cover issues such as dispute resolution, governing law, obligor approval, and any relevant clauses.

Step 5 – Obtain Signatures

Both parties must sign the agreement to ensure it is legally binding and that they have read and understood the contract. If a notary is required, wait to sign off in their presence.

Related Documents

• Purchase Agreement : Outlines the terms and conditions of an item sale.
• Business Contract : An agreement in which each party agrees to an exchange, typically involving money, goods, or services.
• Lease/Rental Agreement : A lease agreement is a written document that officially recognizes a legally binding relationship between two parties -- a landlord and a tenant.
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• New Jersey Supreme Court Decision Requires Review of Non-Disparagement Agreements

On May 7, 2024, the New Jersey Supreme Court ruled that non-disparagement provisions precluding discussion of discrimination, retaliation, or harassment claims are unenforceable. We delve into the Court’s reasoning, as well as the implications for employers in the state.

Christine Savage, a former police officer for the Township of Neptune Police Department, first sued her employer, the Township of Neptune, and others under the New Jersey Law Against Discrimination (LAD) in December 2013. The parties eventually settled, mutually agreeing not to make any statements “regarding the past behavior of the parties” that “would tend to disparage or impugn the reputation of any party.”

However, Savage later participated in a televised news segment about her lawsuit, during which she stated that Neptune’s police department was a “good ol’ boy system” that “abused [her] for about eight years” and “[didn’t] want women there,” and that she was “being financially choked out” and “oppressed.” The news reporter also referred to “harassment and retaliation,” “bogus disciplinary charges,” a “psych exam” that Savage claimed was a “set up” and resulted in an unpaid leave, and the “uphill battle” women seeking promotions faced in the police department.

Citing these statements, the defendants moved to enforce the non-disparagement provision in Savage’s settlement agreement. A trial court granted their motion, awarded them fees and costs, and ordered Savage to abide by the non-disparagement provision. New Jersey’s Appellate Division affirmed in part and reversed in part, holding that while the non-disparagement clause was enforceable, Savage had not violated it because Savage’s comments were about present or future behavior—not the past behavior that the parties’ non-disparagement agreement concerned.

Savage appealed to the New Jersey Supreme Court, seeking a ruling that the non-disparagement provision was unenforceable under section 12.8(a) of the LAD (N.J.S.A. 10:5-12.8(a)), which prohibits as against public policy any provision in an employment contract or settlement agreement that “has the purpose or effect of concealing the details relating to a claim of discrimination, retaliation or harassment.”

The New Jersey Supreme Court Decision

The Supreme Court held that the parties’ non-disparagement provision was unenforceable under section 12.8(a) of the LAD for several reasons.

First, the Court interpreted section 12.8(a)’s plain language, highlighting that it barred contractual “non-disclosure provisions” that have the “the purpose or effect of concealing the details relating to a claim of discrimination, retaliation or harassment.” The Court held that the term “non-disclosure provision[s]” was simply a “shorthand reference,” so the statute’s “operative language” applied equally to non-disparagement provisions. The Court also explained that subsection 12.8(c) of the LAD exempted certain types of nondisclosure clauses, namely non-competition provisions and agreements not to disclose proprietary information or trade secrets, but did not exempt non-disparagement provisions.

As part of its analysis, the Court broadly construed the statute to prohibit any agreement that prevented statements about past, present, and future harassment, discrimination, or retaliation claims, regardless of whether or not those claims give rise to a settlement agreement. Thus, the Court determined that section 12.8(a) protected all the post-settlement statements Savage and the reporter had made during the news conference.

The Court further emphasized that section 12.8(a) was enacted in the wake of the “#MeToo” movement, with the overall purpose of preventing settlement agreements or employment contracts from silencing individuals as to certain claims, so the statute’s legislative history reinforced its plain meaning.

Although the Court noted that parties could, in theory, agree not to disparage one another as to information having nothing to do with a claim of discrimination, retaliation, or harassment, it warned that such an agreement would have to be “narrowly drawn to ensure that details relating to the claims listed in section 12.8 could be revealed publicly.”

Implications

In New Jersey, employment contracts and settlement agreements may not restrict speech that touches, even broadly, on alleged “discrimination, retaliation or harassment,” in the past, present, or future. Provisions to that effect, whether styled as non-disclosure or non-disparagement, are unenforceable.

In light of this ruling, employers in New Jersey should assess their use of employment contracts or settlement agreements with regard to non-disclosure or non-disparagement provisions to ensure their agreements do not have the “the purpose or effect” of barring statements that could relate to discrimination, retaliation, or harassment.

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Los Angeles Dodgers

Cincinnati Reds

Steer and benson homer and the reds get another solid start from greene in a 3-1 win over dodgers.

CINCINNATI -- — Spencer Steer and Will Benson homered, Hunter Greene pitched six innings of one-run ball and the Cincinnati Reds dealt the Los Angeles Dodgers a season-high fourth straight loss, securing the weekend series with a 3-1 victory Saturday night.

After outlasting the Dodgers 9-6 on Friday, the Reds got some big hits and shutdown relief pitching to clinch a season series for the first time in over a month.

“We know we’ve been struggling with it, but at the same time we’ve remained confident, and we take the field every day believing in what we’re capable of doing,” Cincinnati manager David Bell said. “But the results obviously matter, you know, and it’s important to have what you’re working toward show up and get that feeling of winning. And that can go a long way."

Greene (3-2) allowed five hits and struck out five in six innings. The Reds got scoreless innings of relief from Fernando Cruz , Sam Moll and closer Alexis Diaz , who retired the Dodgers in order in the ninth for his ninth save.

After Steer’s solo homer in the first, Greene got into a jam in the second. Two singles and a walk loaded the bases for the Dodgers with no outs, but they came away with just one run as Greene got Jason Heyward to hit into a double-play after an eight-pitch at-bat, and Kiké Hernández grounded out.

“I think it was important to the team to keep the momentum on our side,” Greene said of escaping the 32-pitch inning.

With two outs in the second, Benson crushed a fastball from Buehler 411 feet into the upper deck in left field for a 2-1 Cincinnati lead. Elly De La Cruz drove in another run with a single in the sixth.

The Dodgers threatened again in the sixth when Shohei Ohtani cracked a one-out triple into the right-field corner, but he was stranded there when Greene got Freddie Freeman and Will Smith on flyouts. Ohtani struck out in his other three plate appearances.

Los Angeles got a second straight decent outing from Walker Buehler (1-2), who allowed three runs and six hits in 5 2/3 innings.

“I don’t know the answer to why we’re in a lull," Dodgers manager Dave Roberts said. “I think you can sort of dissect each game and then figure out whether it was situational hitting or we didn’t take good at-bats or giving credit to the opposing staff. I thought today Hunter threw the baseball well.”

The Reds won back-to-back games for the first time since April 23-24.

TRAINER’S ROOM

Ohtani has been slowed by a bruised hamstring suffered during the last Dodgers homestand, Roberts said, and has been told to “be smart with it.” Ohtani was clearly not at full speed when he legged out his triple.

The Dodgers send RHP Yoshinobu Yamamoto (5-1, 3.17 ERA) to the mound against Reds LHP Brent Suter for the series finale Sunday. Game time was changed to 12:10 p.m. EDT from 1:40 p.m. because severe weather is predicted.

AP MLB: https://apnews.com/hub/MLB

CIN wins 3-0

Game information.

• Home Plate Umpire - Ryan Blakney
• First Base Umpire - Dan Merzel
• Second Base Umpire - Sean Barber
• Third Base Umpire - Alan Porter

2024 National League West Standings

2024 national league central standings, fantasy baseball pitcher rankings, lineup advice for wednesday's mlb games, mets catcher francisco alvarez to begin rehab assignment, astros claim reliever kaleb ort off waivers from orioles.

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Washington Nationals

Atlanta Braves

M. parker 4-2, c. morton 3-2.

• 2B Rosario (6, Morton); Senzel (4, Morton); Thomas 2 (2, Herget, Morton)
• HR Abrams (9, 2nd inning off Morton 0 on, 1 Out)
• RBI Rosario (19), Winker (23), Senzel 2 (13), Abrams 2 (26), Young (12)
• 2Out RBI Rosario, Winker, Senzel 2
• GIDP Thomas
• Team RISP 4-13 (Young 1-1, L. García Jr. 0-2, Gallo 0-2, Thomas 0-2, Winker 1-2, Senzel 1-1, Ruiz 0-1, Rosario 1-2)
• Baserunning
• CS Ruiz (1, 2nd base by Morton/Murphy)
• SB Rosario (8, 3rd base off Morton/Murphy); Winker (7, 2nd base off Morton/Murphy); Young (16, 2nd base off Morton/Murphy)
• Picked Off Ruiz (1st base, Morton); Young (1st base, Morton)
• DP 1 (L. García Jr.-Abrams-Gallo)
• 2B Olson (11, Parker)
• HR Duvall (5, 7th inning off Parker 1 on, 1 Out)
• RBI Arcia (19), Duvall 2 (13), Murphy (1)
• GIDP Albies
• Team RISP 2-7 (Arcia 1-1, Murphy 0-1, Duvall 1-1, Ozuna 0-1, Kelenic 0-1, Albies 0-1, Olson 0-1)
• SB Harris II (8, 2nd base off Law/Ruiz)
• DP 1 (Riley-Albies-Olson)
• First-pitch strikes/Batters Faced Law 3/4; Harvey 1/3; Finnegan 4/5; Parker 19/24
• Called strikes-Swinging strikes-Foul balls-In play strikes Law-3-1-4-2; Harvey-1-3-1-2; Finnegan-3-6-2-2; Parker-14-17-25-18
• Ground Balls-Fly Balls Law 1-0; Harvey 1-1; Parker 6-7
• Game Scores M Parker 57
• First-pitch strikes/Batters Faced Morton 18/28; Chavez 5/5; Herget 5/8
• Called strikes-Swinging strikes-Foul balls-In play strikes Morton-12-18-22-19; Chavez-2-2-8-3; Herget-2-4-7-6
• Ground Balls-Fly Balls Morton 2-5; Chavez 2-1; Herget 0-4
• Game Scores C Morton 18

Scoring Summary

Wsh @ atl videos, cj abrams rocks a solo home run for nationals, wsh leads 1-0, game information.

• Home Plate Umpire - Lance Barksdale
• First Base Umpire - Nic Lentz
• Second Base Umpire - Will Little
• Third Base Umpire - Quinn Wolcott

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Fantasy baseball pitcher rankings, lineup advice for wednesday's mlb games, mets catcher francisco alvarez to begin rehab assignment, astros claim reliever kaleb ort off waivers from orioles.

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NCAA signs off on deal that would change landscape of college sports — paying student-athletes

A major change could be coming for college athletes — they may soon start getting paid.

A tentative agreement announced Thursday by the NCAA and the country’s five biggest conferences to a series of antitrust lawsuits could direct millions of dollars directly to athletes as soon as fall 2025.

The nearly $2.8 billion settlement, which would be paid out over the next decade to 14,000 former and current student-athletes, “is an important step in the continuing reform of college sports that will provide benefits to student-athletes and provide clarity in college athletics across all divisions for years to come,” NCAA President Charlie Baker said in a joint statement Thursday night with the commissioners of the ACC, the Big 10, the Big 12, the Pac-12 and the SEC.

The federal judge overseeing the case must still sign off on the agreement, but if it is approved, it would signal a major shift in college sports in which students would play for compensation, not just scholarships, exposure and opportunities.

“This landmark settlement will bring college sports into the 21st century, with college athletes finally able to receive a fair share of the billions of dollars of revenue that they generate for their schools,” said Steve Berman, one of the lead attorneys for the plaintiffs. “Our clients are the bedrock of the NCAA’s multibillion-dollar business and finally can be compensated in an equitable and just manner for their extraordinary athletic talents.”

The NCAA and power conferences called the settlement a “road map” that would allow the uniquely American institution to provide unmatched opportunity for millions of students and write the “next chapter of college sports.”

The case, which was set to go to trial early next year, was brought by a former and a current college athlete who said the NCAA and the five wealthiest conferences improperly barred athletes from earning endorsement money. Former Arizona State swimmer Grant House and Sedona Prince, a former Oregon and current TCU basketball player, also contended in their suit that athletes were entitled to a piece of the billions of dollars the NCAA and those conferences earn from media rights agreements with television networks.

Michael McCann, a legal analyst and sports reporter at Sportico , told NBC News in an interview on Top Story with Tom Llamas the case has two components that “move away from amateurism” — one that deals with how players are paid for the past loss of earnings, including money they could have made for name, image and likeness.

“The going forward part is that colleges can opt in, conferences can opt in, as well, to pay players, to share revenue with them, to have direct pay, and that would be of course a radical from the traditions of college sports,” McCann said, adding many would say that change is warranted. “Now the athletes, at least at some schools, will get a direct stake.”

Terms of the deal were not disclosed, though some details have emerged in the past few weeks. They signal the end of the NCAA’s bedrock amateurism model that dates to its founding in 1906. Indeed, the days of NCAA punishment for athletes driving booster-provided cars started vanishing three years ago when the organization  lifted restrictions on endorsement deals  backed by so-called name, image and likeness, or NIL, money.

Now it is not far-fetched to look ahead to seasons when a star quarterback or a top prospect on a college basketball team not only is cashing in big-money NIL deals but also has a $100,000 school payment in the bank to play.

A host of  details are still to be determined . The agreement calls for the NCAA and the conferences to pay $2.77 billion over 10 years to more than 14,000 former and current college athletes who say now-defunct rules prevented them from earning money from endorsement and sponsorship deals dating to 2016.

Some of the money would come from NCAA reserve funds and insurance, but even though the lawsuit specifically targeted five conferences that comprise 69 schools (including Notre Dame),  dozens of other NCAA member schools  would get smaller distributions from the NCAA to cover the mammoth payout.

Schools in the Big Ten, the Big 12 and the Atlantic Coast and Southeastern conferences would end up bearing the brunt of the settlement at a cost of about $300 million apiece over 10 years, the majority of which would be paid to athletes going forward.

The Pac-12 is also part of the settlement, with all 12 current schools sharing responsibility even though Washington State and Oregon State will be the only league members left by this fall after the 10 other schools leave.

Paying athletes

In the new compensation model, each school would be permitted but not required to set aside up to $21 million in revenue to share with athletes per year, though as revenues rose, so could the cap.

Athletes in all sports would be eligible for payments, and schools would be given the freedom to decide how the money is divvied up among sports programs. Roster restrictions would replace scholarship limits by sport.

McCann said the back pay would disproportionately go to some sports — such as football and basketball.

“The schools that I think that are certainly big football schools will probably opt in because they’re going to want to compete, they’re going to want to get the best players, because college football generates a lot of revenue,” he said. 

Whether the new compensation model is subject to the Title IX gender equity law is unknown, along with whether schools would be able to bring NIL activities in-house as they hope and squeeze out the booster-run collectives that have sprouted up in the last few years to pay athletes. Both topics could lead to more lawsuits.

“There are all sorts of areas of turbulence that could present themselves,” McCann said of roadblocks that could arise.

More sports coverage

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• Mario Andretti: Formula 1 owner personally threatened to shut out team Andretti
• Student-athletes are inking lucrative endorsement deals, but a patchwork of laws has created chaos in college sports

Other cases

The settlement is expected to cover two  other antitrust cases  facing the NCAA and major conferences that challenge athlete compensation rules. Hubbard v. the NCAA and Carter v. the NCAA are also in front of judges in the Northern District of California.

A fourth case, Fontenot v. NCAA, creates a potential complication, as it remains in a Colorado court after a judge  denied a request  to combine it with Carter. Whether Fontenot becomes part of the settlement is unknown, and it matters because the NCAA and its conferences don’t want to be on the hook for more damages should they lose in court.

“We’re going to continue to litigate our case in Colorado and look forward to hearing about the terms of a settlement proposal once they’re actually released and put in front of a court,” said George Zelcs, a plaintiffs’ attorney in Fontenot.

Headed in that direction

The solution agreed to in the settlement is a landmark but not surprising. College sports have been trending in this direction for years, with athletes receiving more and more monetary benefits and rights they say were long overdue.

In December, Baker, the former governor of Massachusetts who has been on the job for 14 months,  proposed creating a new tier of Division I athletics  in which the schools with the most resources would be required to pay at least half their athletes $30,000 per year. That suggestion, along with many other possibilities, remains under discussion.

The settlement would not make every issue facing college sports go away. There is still a question of whether athletes should be  deemed employees  of their schools, which Baker and other college sports leaders  are fighting.

Some type of federal legislation or antitrust exemption would most likely still be needed to codify the terms of the settlement, protect the NCAA from future litigation and pre-empt state laws that attempt to neuter the organization’s authority. As it is,  the NCAA still faces lawsuits  that challenge its ability to govern itself, including setting rules limiting multiple-time transfers.

“This settlement is also a road map for college sports leaders and Congress to ensure this uniquely American institution can continue to provide unmatched opportunity for millions of students,” the joint statement said. “All of Division I made today’s progress possible, and we all have work to do to implement the terms of the agreement as the legal process continues. We look forward to working with our various student-athlete leadership groups to write the next chapter of college sports.”

Federal lawmakers have indicated they would like to get something done, but while  several bills have been introduced , none have gone anywhere.

Despite the unanswered questions, one thing is clear: Major college athletics is about to become more like professional sports than ever before.