Crisis Response

NDA Breach Response

What to do when an NDA is breached - whether you're accused of violating it or the other party broke their obligations. Step-by-step guidance for contractors.

Select Your Situation

I'm Being Accused

Client claims I breached the NDA

Client Breached the NDA

The other party violated our agreement

Don't Panic, But Act Quickly

Receiving a cease and desist or breach accusation is stressful, but hasty responses can make things worse. Take a breath, preserve evidence, and follow these steps systematically.

Stop and Assess the Accusation

Before responding, carefully analyze what you're being accused of:

  • What specific breach is alleged? General accusations are weak; specific claims need specific responses.
  • What evidence do they claim to have? The letter may reveal their knowledge gaps.
  • What are they demanding? Cease and desist, return of materials, damages, or something else?
  • What's the deadline? Note any response deadlines but don't let them pressure you into a premature response.

Immediate Action

Read the NDA again. Understand exactly what was promised and what exceptions exist.

Preserve All Evidence

Immediately implement a litigation hold:

  • Do NOT delete any emails, messages, files, or documents
  • Suspend any automatic deletion policies
  • Back up all communications with the accusing party
  • Gather evidence of your prior knowledge and independent work
  • Document your access to their confidential information (or lack thereof)

Immediate Action

Use our Evidence Checklist to systematically gather relevant documentation.

Analyze Your Defenses

Consider which defenses might apply to your situation:

  • No breach occurred: The information wasn't confidential, wasn't covered by the NDA, or wasn't actually disclosed.
  • Prior knowledge: You possessed the information before the engagement.
  • Independent development: You developed the work independently, not using their confidential information.
  • Public availability: The information was publicly available.
  • Authorization: You had permission to disclose.
  • Expired obligations: The confidentiality period has ended.

Consult an Attorney

Even if you believe the accusation is meritless, get legal advice before responding:

  • An attorney can identify weaknesses in their claims you might miss
  • Your response can be used against you - get it right the first time
  • Some deadlines may need to be acknowledged even if you're disputing the claims
  • An attorney letter often carries more weight than a pro se response

Immediate Action

If you can't afford an attorney, many bar associations offer low-cost consultations.

Craft Your Response

Your response should be professional, factual, and strategic:

  • Acknowledge receipt without admitting wrongdoing
  • Reserve all rights and defenses
  • Request specifics if their accusations are vague
  • Offer resolution if appropriate (but don't admit liability)
  • Set your own timeline if theirs is unreasonable

Common Defenses for Contractors

Prior Knowledge

You knew the information before signing the NDA. Prove this with dated documents, prior client work, educational records, or published materials from before the engagement.

Independent Development

You created the work without using their confidential information. Git commits, development logs, and contemporaneous notes can establish this.

Public Information

The allegedly confidential information was publicly available. Archive.org snapshots, press releases, and public documentation can prove this.

Not Covered by NDA

The information doesn't fall within the NDA's definition of "Confidential Information." This is why narrow definitions matter.

Authorized Disclosure

You had permission to share the information. Emails approving disclosure or portfolio use can establish authorization.

Expiration

The confidentiality obligations have expired. Check the NDA's duration clause - many have 2-5 year limits for non-trade-secret information.

Document Everything Before Acting

Before confronting the client about a breach, gather evidence systematically. Once they know you're aware, evidence may become harder to obtain.

Confirm the Breach

Verify that a breach actually occurred:

  • Review the NDA: What exactly did they promise? Is this disclosure covered?
  • Document the disclosure: Screenshots, recordings, witness statements, or other proof.
  • Identify the recipient: Who received your confidential information?
  • Assess the damage: What harm has occurred or might occur?

Immediate Action

Capture evidence before it disappears. Screenshot social media posts, save emails, and record dates and times.

Assess Your Damages

Understanding your damages helps determine the appropriate response:

  • Lost business opportunities: Did you lose clients or contracts?
  • Competitive harm: Did a competitor gain an advantage?
  • Reputational damage: Has your professional reputation suffered?
  • IP devaluation: Has your intellectual property lost value?
  • Ongoing harm: Is the breach continuing?

Review Available Remedies

Your NDA likely specifies available remedies. Common options include:

Remedy Description When It's Available
Injunctive Relief Court order to stop ongoing disclosure When breach is ongoing and damages are irreparable
Actual Damages Compensation for provable financial losses When you can document specific monetary harm
Liquidated Damages Pre-set amount specified in the NDA If your NDA includes a liquidated damages clause
Attorney's Fees Recovery of legal costs from the breaching party If the NDA has a fee-shifting provision
Account of Profits Disgorgement of profits gained from the breach When the breaching party profited from your information

Send a Cease and Desist

Often, a well-crafted demand letter can resolve the situation without litigation:

  • Identify the breach: Specifically describe what they disclosed and to whom.
  • Cite the NDA: Reference the specific provisions violated.
  • Demand action: Specify what you want (stop disclosure, return materials, etc.).
  • Set a deadline: Give a reasonable timeframe for response (7-14 days).
  • Preserve rights: Reserve your right to seek all legal remedies.

Immediate Action

Consider having an attorney send the letter - it often gets faster and better responses.

Escalate If Necessary

If the cease and desist doesn't resolve the issue:

  • Mediation: Some NDAs require mediation before litigation. Check yours.
  • Arbitration: If the NDA requires arbitration, you may be bound to that process.
  • Litigation: File a lawsuit seeking injunctive relief and damages.
  • Small claims: For smaller amounts, small claims court may be faster and cheaper.

Consider the Business Relationship

Sometimes the breach is minor or inadvertent. Before going nuclear, consider whether the relationship is worth preserving and whether a negotiated resolution might serve you better than litigation.

Related Resources

Facing an NDA Dispute?

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