Under Rule 408, evidence of settlement negotiations may be admitted for which purpose?

• A. To prove liability.
• B. To prove damages.
• C. To prove bias or obstruction of justice.
• D. To prove the existence of a contract.

Answer: (C)

Key idea: Settlement talks are generally kept out of evidence to encourage people to negotiate freely, but there are important exceptions when those talks reveal something about a witness or ongoing proceedings.

Under Rule 408, evidence from settlement negotiations cannot be used to prove liability or the amount of a claim. However, there is an exception that allows such evidence to be admitted for other purposes, specifically to show a witness’s bias or prejudice, or to show obstruction of justice. This means if settlement discussions reveal that someone is trying to influence a witness or interfere with the investigation or trial, those details can be admitted to establish bias or obstructive conduct, even though the negotiations themselves aren’t admitted to prove the claim.

So, the best answer is that settlement negotiations may be admitted to prove bias or obstruction of justice.