The filing of the lawsuit by Janel Grant against Vince McMahon presents some interesting questions including the validity of a Nondisclosure Agreement. The Agreement, attached to the lawsuit filed by Grant is allegedly the exact Agreement signed by the parties.
The payout total of $3 million was to be paid in increments with Grant receiving the first $1 million and then subsequent annual payments of $500,000 as follows:
February 1, 2023 – $500,000.00
February 1, 2024 – $500,000.00
February 1, 2025 – $500,000.00
February 1, 2026 – $500,000.00
The payouts came with language which indicated that she would be required to pay damages and repay the money if she were to breach the Agreement.
It also names John Laurinaitis as a “reference” for future employers.
The Agreement also includes an Arbitration agreement which will be a point of contention between the parties.
According to the attorneys for Grant, the Agreement signed by grant is too broad and is void. The nondisclosure itself should be specific and the language in the NDA attached to the lawsuit is not. In addition, the Arbitration Agreement found in the NDA cannot be enforced. The Speak Out Act effectively bans judicial enforcement of employment nondisclosure and nondisparagment terms when sexual harassment or assault is alleged, entered into prior to a dispute, with the goal of combating workplace sexual harassment and assault, holding perpetrators accountable, and empowering victims coming forward.
Essentially, NDA clauses are unenforceable if they are entered prior to a dispute and prevent disclosure of discussion of sexual harassment or assault or the existence of a settlement involving sexual harassment or assault.
Payout Perspective:
This will be the key piece of evidence argued by McMahon and the WWE (in separate contexts). Obviously, Grant shall argue the NDA was breached due to failure of payment. Moreover, the NDA is unenforceable due to the Speak Out Act preventing such NDA’s. Even if viable, the Speak Out Act would prevent an arbitration in this case.
The NDA in this case has many layers. The first will be its validness. Second is the Arbitration Agreement viable. Third, does Grant have to repay the $1 million if the NDA is not valid. Look for WWE lawyers to poke holes in Grant’s lawsuit and proclaim that the NDA is valid based on her signature and consent. Its worthy to point out that the lawsuit was filed prior to the February 1, 2023 payout of $500K which we presume Grant did not receive. We shall see what became of this transaction once WWE responds to this lawsuit.
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