FRE · Rule 408

FRE Rule 408

Quick Answer

What is FRE Rule 408?

FRE Rule 408 governs the admissibility of evidence related to offers to settle or compromise a dispute. It aims to encourage settlements by promoting candid discussions between the parties.

Source: FRE Rule 408

Official Text
Evidence of (1) offers to compromise a claim or (2) offers or statements made in the course of compromise negotiations are not admissible to prove or disprove the validity or amount of a disputed claim.
Plain Language

Rule 408 restricts the use of evidence related to settlement negotiations in legal proceedings. Specifically, statements made in an effort to settle a dispute cannot be used against a party in court to affect the outcome of the dispute.

Purpose

The purpose of this rule is to encourage parties to engage in settlement negotiations without the fear that their attempts will be used against them later in court. It fosters a more amicable resolution process.

Key Provisions

Subsection (a)

Excludes offers to compromise a claim as evidence in court to avoid discouraging parties from making settlement offers.

Subsection (b)

Excludes statements made during negotiation for settlement purposes from being used as evidence, promoting open dialogue.

Practice Notes
  • Always assess whether statements made in settlement negotiations may be introduced in court to avoid unexpected surprises.
  • Document all settlement discussions clearly and identify any statements made that you do not wish to be disclosed.
  • Consider using disclaimers to clarify that communications are made in the context of negotiation to invoke Rule 408 protections.
Landmark Cases

Graham v. State Farm Fire & Casualty Co.

The court held that a compromise offer made prior to trial was not admissible under Rule 408, emphasizing the importance of protecting settlement negotiations.

Exam Tip

Exams may include hypothetical scenarios involving negotiations; pay close attention to the statements made and whether they fall under Rule 408's protections.

Related Rules
  • fre-rule-407
  • fre-rule-409

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