united-states contract-law texas non-disclosure
Can I be sued for violating an NDA if I refund what I was paid?
<p>I have a client who ordered art from me that they asked be private between us, due to it's embarrassing nature.  The extent of the agreement was "Don't post this online" to which I said "Okay."</p>

<p>My commission rate is less than 50 dollars.  After completing their work, I discovered that this client is a very wealthy and divisive politician.  This presents challenges and risks to myself that, had I known prior, would've changed my price to reflect the burden.</p>

<p>I have contacted them and made clear that I must increase my price to 150,000 USD, or I will have to refund them because I cannot reasonably secure the art against a sophisticated attack that a political opponent can mount, and may just release it to the public to eliminate their interest in me, for my own safety.  </p>

<p>They have threatened to sue me for defamation and black-mail.  </p>

<p>Do they have a legitimate case against me if I release the art and give them a full refund?  I won't interpret any answers as legal advice, I am only doing preliminary research while I save money to consult an attorney.</p>

<p>Addendum: It's worth noting that the "NDA" in question was very weak and never specified a duration, penalties, scope, and was never in formal writing, merely as a casual email exchange. </p>

<p>You have a contract - they have fulfilled their obligation (they paid you), if you do not fulfil their obligation (not to post it online) then you are in breach of the contract. Your obligation continues even if you gift the money back to them.</p>

<p>If you breach the contract then they can sue you for the damage that they suffer. Presumably this would be damage to their reputation and for a public figure this could run into millions of dollars.</p>

<p>In demanding additional money from them beyond what you are legally entitled to you are, at least, flirting with the crime of extortion/blackmail. This would not be a matter for them to sue you for, it would be a matter for the DA to prosecute if they chose to make a complaint.</p>

<p>There doesn't seem to be a defamation issue here because you are not stating anything that isn't true.</p>

<p>Now, the extent of the agreement appears to prohibit you posting it on the internet, however, the spirit of the agreement is that you will keep the information secret in all respects - that is likely how a court would look at it.</p>

<p>Of course, if someone does steal the information from you then you haven't broken the agreement but you would probably have to prove that it <em>was</em> stolen when they sue you.</p>
