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155 calculation under certain circumstances. Petitioners in
their reply brief did not dispute respondent’s contention.
Therefore, Exhibit 10-J has been admitted into evidence for that
purpose.
Exhibits 16-J and 19-J are documents reflecting the
settlement agreement between Mr. Blonien and the trustee of
Finley Kumble’s bankruptcy estate regarding Mr. Blonien’s
agreement to make payments as part of Finley Kumble’s
reorganization plan. The settlement document refers to Mr.
Blonien as a “partner”.
Petitioners argue that the documents are not admissible
under rule 408 of the Federal Rules of Evidence because the
statements were made in settlement of a dispute. We do not agree
with petitioners. Rule 408 only bars the admissibility of
evidence to “prove liability for * * * the claim or its amount.”
Mr. Blonien’s settlement is not offered in this proceeding to
prove liability for or the amount of the bankruptcy trustee’s
claim against Mr. Blonien. See Bituminous Constr., Inc. v.
Rucker Enters., Inc., 816 F.2d 965 (4th Cir. 1987) (letters
containing settlement offers were properly admitted to show the
defendant’s understanding of its obligations under a joint-check
agreement). The settlement agreement is being offered for the
purpose of impeaching Mr. Blonien’s credibility and establishing
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