Lee D. Froehlich - Page 15

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               A.  Evidentiary Matter                                                 
               At trial, respondent proffered her counsel's testimony to              
          offer admissions against interest made by or on behalf of                   
          petitioner.  See Fed. R. Evid. 801(d)(2).  Petitioner seeks to              
          exclude all of respondent's counsel's testimony on the ground               
          that it consisted of statements made in the course of settlement            
          negotiations.                                                               
               Proceedings in this Court are conducted in accordance with             
          the Federal Rules of Evidence.  Sec. 7453; Rule 143.  Rule 408 of           
          the Federal Rules of Evidence provides as follows:                          
               Rule 408. Compromise and Offers to Compromise                          
                    Evidence of (1) furnishing or offering or                         
               promising to furnish, or (2) accepting or offering or                  
               promising to accept, a valuable consideration in                       
               compromising or attempting to compromise a claim which                 
               was disputed as to either validity or amount, is not                   
               admissible to prove liability for or invalidity of the                 
               claim or its amount.  Evidence of conduct or statements                
               made in compromise negotiations is likewise not                        
               admissible.  This rule does not require the exclusion                  
               of any evidence otherwise discoverable merely because                  
               it is presented in the course of compromise                            
               negotiations.  This rule also does not require                         
               exclusion when the evidence is offered for another                     
               purpose, such as proving bias or prejudice of a                        
               witness, negativing a contention of undue delay, or                    
               proving an effort to obstruct a criminal investigation                 
               or prosecution.                                                        
          This proscription is limited to evidence of settlement                      
          negotiations and documents concerning the compromise of a claim.            
          In addition, the limitation on using such evidence applies only             







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