A communication, often in written form, intended to facilitate settlement negotiations is marked with a specific phrase indicating that the content should not be admissible as evidence in court, should those negotiations fail. This protects parties by allowing them to explore potential resolutions openly, without fear that admissions or concessions made during discussions will be used against them later in litigation. For instance, a message proposing a specific payment amount to resolve a dispute, while acknowledging potential liability, might include this specific notation to safeguard the communicator.
Using such communications is vital in dispute resolution as it fosters candid dialogue. This protection promotes settlement by removing the risk of self-incrimination in subsequent legal proceedings. Historically, this principle has been a cornerstone of legal practice, encouraging compromise and reducing the burden on court systems by facilitating out-of-court settlements. Parties are therefore emboldened to suggest various solutions, explore middle ground, and openly discuss their positions without reservation.
