Rule 5.408 Compromise offers and negotiations

If you try to settle a dispute with someone, whatever you say or offer during those settlement talks generally can't be used against you later in court. This means if you offer money to make a claim go away, or if you say something while negotiating, the other side can't bring that up later to prove you were at fault or to show you owed a certain amount. The same protection applies to the other person's offers and statements too.

This rule exists so people feel free to negotiate and try to resolve disputes without worrying that their words will be used as ammunition against them if the case goes to trial. Without this protection, people might refuse to even try settling because anything they say could hurt them later.

However, this protection has limits. A judge can still allow this evidence if it's being used for a different reason, not to prove who's right or wrong in the dispute. For example, the evidence might come in to show a witness is biased, to counter a claim that someone dragged their feet unfairly, or to show someone tried to interfere with a criminal investigation. So while settlement talks are generally protected, they're not automatically off-limits for every possible reason.