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3d 116, 126, 208 Cal. Rptr. 444 (1984) (?While evidence of a settlement agreement is inadmissible to prove liability (see Evid. Code, § 1152), it is admissible to show bias or prejudice of an adverse party.?).
Federal Rule of Evidence 408 provides security for parties by prohibiting settlement offers, or other statements made during settlement negotiations, from being admitted as evidence to prove the validity or amount of a claim in dispute.
Most parties do not want too many other persons to know if negotiations fail or the sale does not close.
The Florida Senate ?Evidence of an offer to compromise a claim which was disputed as to validity or amount, as well as any relevant conduct or statements made in negotiations concerning a compromise, is inadmissible to prove liability or absence of liability for the claim or its value. History.
COMPROMISE AND OFFERS TO COMPROMISE Evidence of conduct or statements made in compromise negotiations is likewise not admissible. This rule does not require exclusion of any evidence otherwise discoverable merely because it is presented in the course of compromise negotiations.
Confidentiality protection in settlement negotiations comes from Evidence Code Section 1152. Section 1152 states that evidence of a compromise or offer of compromise is inadmissible to prove liability for loss or damage.
Rule 408 as submitted by the Court reversed the tradi- tional rule. It would have brought statements of fact within the ban and made them, as well as an offer of settlement, inadmissible. The House amended the rule and would continue to make evidence of facts disclosed during compromise ne- gotiations admissible.
The purpose of this privilege is to encourage open and honest dialogue by ensuring that anything said or written cannot be used against the parties in court if the negotiations fail and litigation ensues.