The phrase indicates that statements made or documents disclosed during negotiations or settlement discussions cannot be used as evidence against the party making them if the negotiations fail and the matter proceeds to court. It signifies a reservation of rights, allowing parties to explore compromise without fear that their concessions or admissions will be held against them later. For instance, a letter marked with this phrase, outlining a proposed settlement, is generally inadmissible as proof of liability or the extent of damages in subsequent litigation.
The protection afforded by this principle fosters open and frank dialogue between disputing parties. By removing the risk of self-incrimination or weakening one’s legal position, it encourages parties to consider alternative resolutions and potentially avoid costly and protracted court proceedings. Its historical roots lie in the common law’s recognition of the value of negotiated settlements and the need to protect the integrity of the negotiation process. Without such protection, parties would be hesitant to make any concessions, effectively hindering the potential for amicable resolution.
