John McShain, Inc. v. Cessna Aircraft Co.
United States Court of Appeals for the Third Circuit
563 F.2d 632 (3d Cir. 1977)
John McShain, Inc. (McShain) (plaintiff) bought a plane manufactured by Cessna Aircraft Company (Cessna) (defendant) that developed landing-gear problems, which persisted even after McShain hired Butler Aviation-Friendship, Inc. (Butler) to repair them; McShain sued Cessna for defective design and joined Butler as a third-party defendant. Before filing suit, McShain had released Butler from liability in exchange for $10 and the use of Ralph Harmon, an employee of Butler's sister corporation, as an expert consultant; at trial, Harmon testified for McShain, and Cessna introduced the release agreement over McShain's objection. The jury found for Cessna, the trial court denied McShain's motion for a new trial, and McShain appealed.
Whether, under Federal Rule of Evidence 408, evidence of a settlement offer is admissible to prove a witness's bias or prejudice.