In Plaintiff 1 v. Board of Education of Lake Forest High School District 115, 2024 IL App (2d) 230173, the Illinois appellate court found that a school district was immune from tort claims alleging that the district had publicly disclosed private information and details of a settlement agreement with a student and the student’s parents. However, the district may be liable for breaching the terms of the settlement agreement when making the alleged disclosures, under a breach-of-contract theory.
In the case, the district entered into a settlement agreement with a family, which included provisions requiring both parties to maintain the confidentiality of the agreement and not to disparage each other. In connection with posting the agenda, district employees allegedly published and emailed links to unredacted versions of the agreement itself, and later shared folders containing the agreement with other district employees and engaged in other communications that explicitly identified information about the family. As a result, the now-former student filed the lawsuit, arguing that the district breached the settlement agreement by disclosing details about the agreement itself and private information relating to the settlement. In addition, the former student pursued three tort claims related to the published information that were subsequently dismissed because the Local Governmental and Governmental Employees Tort Immunity Act provides immunity to local public entities for injuries caused by actions of its employees in the “provision of information.”
Regarding the breach of contract claim, the court found that disclosures of information prior to the parties signing the settlement agreement did not constitute a breach of contract because no contract existed. At the same time, allegations of disclosures after the settlement agreement was signed would be further examined by a lower court to determine if those disclosures violated the agreement.
This decision serves as a reminder that confidentiality provisions in settlement agreements can be difficult to adhere to. While districts may have immunity for certain claims, individuals can bring other causes of action, such as breach of contract. Be cautious about agreeing to confidentiality and non-disparagement provisions and be sure to inform all relevant staff of those terms. When agents of school districts are sharing documents and publishing materials that may contain private information, it is always important to take great care in the process of disclosing such information.
Please contact a member of our Board Governance/Corporate practice group with questions.
Source: Plaintiff 1 v. Bd. of Educ. of Lake Forest High Sch. Dist. 115, 2024 IL App (2d) 230173
