Nevada Memo regarding Settlement Negotiations
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How to fill out Memo Regarding Settlement Negotiations?
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FAQ
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. Id.
When the purpose of communication is to achieve a settlement, it is generally considered privileged, promoting open dialogue. However, the case of Progressive Holdings Inc v. Crown Life Insurance Co., provides two exceptions to this rule. First, once an agreement is reached, there is no need for privilege to continue.
Some negotiations are more sensitive than others, so all parties should be clear at the outset about information that should be kept confidential. A confidentiality agreement (sometimes known as a non-disclosure agreement) should be signed before giving away any business sensitive information.
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. The protections of Section 1152 extend to conduct and statements made in negotiation of an offer.
As set forth above, Rule 408 provides that settlement communications are inadmissible to "prove or disprove the validity or amount of a disputed claim or to impeach by a prior inconsistent statement?." But, settlement communications may be admissible for "another purpose, such as proving a witness's bias or prejudice, ...
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. The protections of Section 1152 extend to conduct and statements made in negotiation of an offer.
While courts give an expansive reading to Rule 408, they generally find settlement agreements discoverable and admit them and certain settlement communications into evidence in a variety of unexpected situations.
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.
