What is the function of Rule 408 about settlement negotiations?

• A. Evidence of conduct or statements during compromise negotiations is not admissible to prove liability, but may be admissible for other purposes such as proving bias or to prove obstruction of justice.
• B. They are always admissible to prove liability.
• C. They are admissible to prove the amount of damages.
• D. They are admissible to prove that the settlement offer was made in bad faith regardless of context.

Answer: (A)

Rule 408 keeps settlement negotiations out of evidence when deciding who is liable or the size of a claim, to encourage people to settle without fearing their offers or statements will be used against them. The key point is that statements or conduct during compromise discussions cannot be admitted to prove liability or the amount of a disputed claim, nor to impeach a witness with a prior statement. However, the rule does allow these negotiations to be admitted for other legitimate purposes, such as showing a witness’s bias or prejudice, or to argue about undue delays or even obstruction of justice. So the function is to protect the settlement process while permitting limited use of negotiations for specific, non-fault-finding purposes.