You’ve had an argument with a supplier, or customer, or someone with whom you’ve had a little “fender-bender.” There’s a major disagreement over how much is owed and if you are even responsible.

You believe that you didn’t really do anything wrong, and shouldn’t owe anything. But your lawyer warns you that legal fees to vindicate your position could easily cost you tens of thousands of dollars, which could exceed the total alleged damages, and there’s no way to get your attorney’s fees back.

So, you pick up your phone, call the other party, and without admitting any legal responsibility, offer to pay him $5,000 to “go away.” He says “put it in writing, I’ll think about it.”

So, you write a brief one-sentence email repeating your offer. After some back and forth, the other party refuses your offer, and files a lawsuit.

As the legal maneuvering gets under way, your adversary files a motion with the court, asking for judgment in his favor based on his contention that your written offer to settle, amounts to an admission that you are responsible. After all, why would you offer to settle if you really had no responsibility?

The answer: Your adversary is wrong. California Law (Evidence Code §1152) provides that an offer to compromise cannot be used against you, in an attempt to prove your responsibility.

But do remember that there are exceptions or differing interpretations for many laws. It is risky to try to handle it on your own, so this is another situation where involvement of your attorney at an early stage of attempting to resolve the dispute may be worth its weight in gold.

The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.