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As to mediations, confidentiality protections come from Evidence Code Sections 1115 -1128 and 703.5. Section 1119(c) states that all communications, negotiations, or settlement discussions by and between participants in the course of a mediation shall remain confidential (emphasis added).
Settlement negotiations are not protected from discovery by a settlement-negotiation privilege. Although the Federal Circuit declined to create a settlement-negotiation privilege, it did not hold that settlement negotiations are presumptively discoverable.
The Senate amendment provides that evidence of conduct or statements made in compromise negotiations is not admissible. The Senate amendment also provides that the rule does not require the exclusion of any evidence otherwise discoverable merely because it is presented in the course of compromise negotiations.
This rule as reported makes evidence of settlement or attempted settlement of a disputed claim inadmissible when offered as an admission of liability or the amount of liability. The purpose of this rule is to encourage settlements which would be discouraged if such evidence were admissible.
Noting that a number of district courts have recognized that settlement agreements are not privileged, the Kelley court ruled that, although the Sixth Circuit recognizes that the settlement privilege protects settlement negotiations from discovery, 'this privilege does not extend to the terms of the final
Relevant to the subject matter. But while the participants in settlement discussions could contractually agree to confidentiality and breach of contract penalties, absent such an agreement, the information is neither privileged nor confidential.
The Court first reiterated that settlement communications are not privileged. Instead, the inquiry must focus on California Code of Civil Procedure section 2017.010--i.e., whether the information is relevant or reasonably calculated to lead to the discovery of admissible evidence.
The desire may be to have frank, candid conversations. However, when engaging in these communications, it is important to realize that, despite common misconceptions, settlement communications generally are not confidential and could even be used against a party in court.