Ala. Code § 8-1-222 (1975) Validity and Enforceability of Non-Disparagement Obligations

• Library: Alabama Statutes
• Edition: 2023
• Currency: Current with legislation from the 2023 Regular and Special Sessions.
• Year: 2023
• Citation: Ala. Code § 8-1-222 (1975)

(a) Non-disparagement obligations in covered contracts, whether unilateral, bilateral, or multilateral, shall be valid and enforceable for any period of time agreed to by the parties.

(b) Except as otherwise prohibited by law, any covered contract between two or more persons or parties obligating one or more parties to the covered contract not to disparage one or more other parties to the covered contract is only enforceable by a civil action where all of the following elements are present:

(1) The covered contract contains language prohibiting one or more of the parties from disparaging one or more of the other parties, and may include specifically named individuals who are affiliated with, are employed by, or are owners of one or more of the parties.

(2) A disparaging statement is made by the person or party who is obligated not to make such statements.