Attending Justin Bieber's latest house party just might just get you sued if you blab to your fellow Beliebers about how great (or lame) it was.
Bieber party invites apparently come with a mandatory non-disclosure agreement (NDA) that prevents the signing party from discussing or publishing any details about the party and its adorable host. Breaching the agreement may cost a guest $5 million in liquidated damages, TMZ reports.
Can Justin Bieber actually legally force his party guests to pay $5 mil just for talking about his party?
Non-Disclosure Agreements (NDAs)
Celebrity non-disclosure agreements are actually a fairly common practice, and they serve to keep certain information confidential for a period of time.
Businesses often use these agreements to ensure that their valuable trade secrets and plans are not disseminated to the general public and particularly to their competition.
Similarly, The Bieb's NDA is attempting to have his guests keep quiet about Bieber's "business and personal activities," his health, and his philosophical and spiritual views.
What About Free Speech?
How does free speech play into this? Remember that the First Amendment largely protects you from government laws and regulation that would restrict your speech, and not from contracting with private parties like Justin Bieber.
However, private contracts can be struck down as unenforceable if they place too much of a burden on constitutional rights, or if they are unconscionable.
A quick look at Justin Bieber's agreement shows it might border on unenforceable for two reasons:
- The contract seems to give no time period for how long the parties have to keep the information confidential, and
- The liquidated damages amount is extremely high.
$5M in 'Liquidated Damages'?
Contracts often contain liquidated damages provisions in order to compensate one party when the other party fails to live up to the agreement.
According to Justin Bieber's NDA, $5 million dollars from party guests for talking about his party is a substitute for the difficult task of calculating the damages done from gossiping. However, a liquidated damages provision can be struck down by a court if it is viewed as more of a penalty than a future estimation of actual damages.
Given the unreasonably large amount in the NDA for liquidated damages, it is unlikely that sued Bieber party guests will actually be held by a court to write the pop star a $5 million check.
- Justin Bieber May Sue You For $5 Million If You Say One Word About His Parties (Vibe)
- How an NDA Can Protect Your Invention (FindLaw's Free Enterprise)
- Kim Kardashian Sues Jonathan Jaxson: Ex-Publicist Called Marriage a Sham (FindLaw's Celebrity Justice)
- What is the Most Common Legal Remedy for a Breach of Contract? (FindLaw)