A representative for Donald Trump reportedly won an arbitration proceeding against an adult-film star just days before she filed a lawsuit against Trump in a California trial court. In the case, Stephanie Clifford, who is also known by the stage name Stormy Daniels, seeks a court order stating she is free to speak about a purported 2006 extra-marital affair with Trump despite that she signed a non-disclosure agreement (“NDA”) in exchange for monetary compensation. According to Clifford, the agreement is invalid because Trump failed to sign the document.
Interestingly, the NDA contains a dispute resolution clause that waives the right to trial and requires disputes arising under the contract to be arbitrated pursuant to JAMS procedures. Clifford’s complaint states that Trump’s personal attorney, who has admitted to paying Clifford $130,000 in exchange for signing the NDA, has initiated an arbitration against her. According to news reports, however, an unidentified arbitrator issued a Temporary Restraining Order (“TRO”) barring Clifford from discussing the alleged affair approximately one week before Clifford filed her court case. Trump did not participate in the arbitral proceeding.
An attorney who is representing Trump’s lawyer stated:
The Settlement Agreement contained an arbitration clause that permitted EC, LLC. to seek an injunction in the event of a breach or threatened breach of the agreement. The designated judge from the arbitration tribunal found that Ms. Clifford had violated the agreement and enjoined her from, among other things, filing this lawsuit. We intend to pursue our recourse in the context of the arbitration as agreed to by the parties and continue to categorically refute the claims alleged by Ms. Clifford and her counsel.
White House spokesperson Sarah Sanders has added the case was already “won in arbitration and anything beyond that, I would refer you to the president’s outside counsel.”
You may read Clifford’s complaint online.
Photo credit: Foter.com
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