T.C. Memo. 1996-487 UNITED STATES TAX COURT LEE D. FROEHLICH, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 15382-94. Filed October 19, 1996. P, P’s accountant, and R’s counsel engaged in a pretrial conference. The conference began with a discussion of settlement. R’s counsel did not believe that settlement would be achieved and, from his perspective, he began what he believed to be a discussion of matters to be stipulated for trial. P and his accountant, who were not familiar with the pretrial procedures of this Court, believed that the settlement discussions had continued. The matter discussed between R’s counsel, P, and P’s accountant involved whether there had been a duplication of a $400,000 amount and whether P was entitled to losses that were capital or ordinary in character. R, at trial, offered statements made by or on P’s behalf as admissions against P’s interest. P contends that Fed. R. Evid. 408 prohibits R’s offer of admissions because the statements were made in the context of settlement negotiations. Held: Under Fed. R. Evid. 408 both offers of settlement and statements made during settlement negotiations are not admissible to prove liability orPage: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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