Here’s Why Stormy Daniels May Not Be Afraid Of Breaking That NDA During ’60 Minutes’ Interview


Stormy Daniels, Donald Trump’s alleged mistress, may have less to fear from the non-disclosure agreement she signed than we imagine. At least that according to a former U.S. State attorney and assistant deputy attorney general. Writing for CNN, attorney Harry Litman claims that the NDA is not as threatening as Michael Cohen, Trump’s personal lawyer, would have us think. According to Litman, that’s because of something called the “liquidated damages” clause in the contract.

As the Wex Legal Dictionary defines it, liquidated damages refer to a type of actual damages. In contracts, it is used to define damages that are difficult to prove or quantify. Normally there’s a pre-determined price tag attached, but it’s not meant to be a punishment for breaking the contract. They are just meant to cover the damages that result from the breach. If liquidated damages are used as a punitive measure, they are sometimes not enforced.

Litman notes in his article that the “set amount must be a reasonable forecast of the anticipated or actual harm from a breach.” So the dollar amount can’t be some random number plucked out of the sky, it has to directly relate to the damage caused.

In the Stormy Daniels case, the liquidated damages clause in her agreement states that she has to pay $1 million dollars every time that she violates the NDA. A law firm linked to Trump has recently filed a suit against her for an alleged 20 violations, meaning that they want $20 million from her for talking about the purported affair in public.

But, as Litman outlines, it’s questionable that her revelations about the affair would cause $20 million in damages for Trump. Remember, it’s not meant to be used as a punishment. The timing of these revelations is what makes the liquidated damages clause weak.

“The initial breach, had it occurred when the election was on the knife’s edge, could indeed have been cataclysmic, incalculable even,” he writes. “But subsequent breaches, whenever they would have occurred, would have been old news, and any additional damage would have been marginal at best.”

So, how much will Stormy, real name Stephanie Clifford, share? On Thursday, her lawyer, Michael Avenatti, hinted that there may be a major bombshell as he tweeted a picture of a CD or DVD in a safe. The text of his tweet implied that this was evidence of the affair. As CNN reports, Avenatti confirmed that the disc held that proof in an interview with Wolf Blitzer. But the attorney later tweeted that she did not disclose all of her legal team’s evidence during the interview.

Stormy Daniels’ appearance on 60 Minutes airs on Sunday, March 25, on CBS.

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