SB176 Summary

• Establishes the Alabama Non-Disparagement Obligations Act to create and enforce non-disparagement clauses in contracts between two or more parties.

• Defines "injurious statement" to include false statements, truthful but private information, truthful but proprietary information, and knowingly misleading statements that cause specific loss.

• Non-disparagement contracts are enforceable only through civil action when the contract prohibits disparagement, an objectively injurious statement is made based on objective facts, and the statement results in specific loss to the plaintiff.

• Requires valid contracts to be in writing, signed by all parties, and supported by adequate consideration; provides exceptions allowing disclosure to law enforcement, government regulators, attorneys, in legal proceedings, and to grand juries.

• Takes effect January 1, 2022, and applies only to contracts entered into on or after that date; allows courts to award injunctive relief, actual damages, and attorneys' fees upon finding a breach.