Settlement and negotiations

Question 1

Parole Evidence

Answer 1

excludes evidence that, if introduced, would change the terms of a written agreement. However, only evidence of prior or contemporaneous negotiations is subject to the parol evidence rule; evidence of negotiations conducted after the execution of the written contract is not prohibited by the parol evidence rule and may be offered to prove subsequent modifications.

Question 2

Settlement offer admissible?

Answer 2

NO!!!

1. A settlement offer made by any party is not admissible to prove liability for, invalidity of, or the amount of, a disputed claim, NOR
2. can it be used as a prior inconsistent statement to impeach a party. Admitting communications made during settlement negotiations would be against public policy, as it would discourage parties from entering settlements.

Question 3

When can settlement offer be admissible?

Answer 3

Communications made during settlement negotiations may be admitted for very limited purposes, such as to prove

1. bias or
2. prejudice of a witness,
3. negate a claim of undue delay, or
4. prove obstruction of a criminal proceeding