- 17 - petitioner are within the ambit of rule 408 of the Federal Rules of Evidence. Petitioner primarily relies on the second sentence of rule 408 of the Federal Rules of Evidence, which states "Evidence of conduct or statements made in compromise negotiations is likewise not admissible." The exception contained within rule 408 of the Federal Rules of Evidence for "evidence otherwise discoverable" mitigates the general rule where evidence is discoverable from a source independent of the settlement negotiations. See Hulter v. Commissioner, supra, at 665-666. The purpose of this exception is to prevent parties from insulating evidence that is obviously damaging to them by incorporating the evidence in settlement discussions and/or offers. In general, rule 408 of the Federal Rules of Evidence states a broad proscription excluding statements made during settlement negotiations when offered to prove the validity or amount of a claim. Specifically, this rule does not distinguish between offers to settle and admissions of fact made during settlement negotiations. See Fiberglass Insulators, Inc. v. Dupuy, 856 F.2d 652 (4th Cir. 1988). Accordingly, the issue here is not whether the statement was one that was made as an offer to settle, but whether it was made during settlement negotiations. Thus, we must inquire here, as a factual matter, whether petitioner's admissions were made during a settlement conference.Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
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