408 evidence code refers to Federal Rule of Evidence 408 (FRE 408), which governs the admissibility of compromise offers and negotiations in legal proceedings. This rule generally prohibits the use of settlement offers, accepted compromises, or any conduct or statements made during settlement negotiations as evidence to prove liability for a claim or its amount.
Understanding Federal Rule of Evidence 408
Federal Rule of Evidence 408 is a crucial component of civil litigation, designed to promote and protect the process of out-of-court dispute resolution. The rule recognizes that encouraging parties to resolve their differences through negotiation is beneficial for the legal system and the parties involved.The Core Principle of Inadmissibility
Under Rule 408, evidence of settlement offers or attempted settlements of a disputed claim is inadmissible when offered as an admission of liability or the amount of liability. This means that if a party offers to settle a case, that offer cannot later be used in court by the opposing party to argue that the offering party admitted fault or agreed to a specific damages figure.Purpose of the Rule
The primary purpose of Rule 408 is to **encourage settlements**. If offers of compromise and statements made during negotiations were routinely admissible in court, parties would be less willing to engage in open and frank discussions to resolve disputes outside of litigation. The risk that their settlement attempts could later be used against them in court would discourage such efforts, leading to more cases proceeding to trial.What Evidence is Covered?
Rule 408 broadly covers various forms of evidence related to dispute resolution:- Offers to compromise or settle a claim: This includes any offer, whether accepted or not, made to settle a disputed claim.
- Accepting a compromise offer: Evidence that a claim was settled or an offer was accepted is also generally inadmissible to prove liability or the amount of the claim.
- Conduct or statements made during settlement negotiations: This is a critical aspect. Any admissions of fact, discussions, or proposals made during the course of settlement talks are generally protected from being introduced as evidence.
Permitted Uses of Settlement Evidence
While Rule 408 largely prevents the use of settlement evidence to prove liability, it does allow for certain exceptions where such evidence may be admissible for other purposes. These exceptions are crucial to ensuring fairness and preventing abuse of the rule:- Proving a witness's bias or prejudice: If a settlement offer demonstrates a witness's motivation or impartiality, it might be admissible. For example, if a witness received a settlement from one party, it could be used to show potential bias.
- Negating a contention of undue delay: If a party claims there was undue delay in a case, settlement discussions might be introduced to show why there was a delay (e.g., they were actively pursuing settlement).
- Proving an effort to obstruct a criminal investigation or prosecution: In criminal cases, settlement discussions might be admissible if they reveal attempts to tamper with evidence or obstruct justice.
- Other specific purposes: Evidence from settlement negotiations might also be admissible to prove agency, ownership, control, or the validity of a claim involved in an entirely different dispute.
Practical Implications and Examples
Understanding Rule 408 is vital for anyone involved in legal disputes, from attorneys to parties themselves.- Example of Prohibited Use: A person is injured in a car accident and offers to settle with the other driver for $5,000. If the case goes to court, the injured person cannot present this offer as evidence to argue that the other driver implicitly admitted fault by offering to pay.
- Example of Permitted Use (Bias): In a personal injury lawsuit, a witness testifies for the defendant. The plaintiff discovers that the defendant previously offered to settle a separate, unrelated claim with this witness. The plaintiff might be able to introduce the settlement offer to show the witness's potential bias or interest in favoring the defendant, but not to prove the defendant's liability in the current case.
- Confidentiality during Mediation: Rule 408 strongly supports the confidentiality often associated with mediation and other alternative dispute resolution (ADR) methods. Parties can speak more freely, knowing their discussions won't be used against them later in court on the issue of liability.
Key Aspects of Rule 408
| Aspect | Description |
|---|---|
| Scope | Applies to offers of compromise, accepted compromises, and any conduct or statements made during settlement negotiations regarding a disputed claim. |
| Purpose | To encourage out-of-court settlements by ensuring that such efforts are not used against parties as admissions of liability in subsequent litigation. |
| Prohibited Uses | Evidence cannot be used to prove liability for, or the invalidity of, a claim or its amount. It also cannot be used to impeach a witness through a prior inconsistent statement or contradiction. |
| Permitted Uses | Evidence may be admissible for other legitimate purposes, such as proving a witness's bias, negating undue delay, or demonstrating an effort to obstruct a criminal investigation. |
