Court Opinion

ID: 9667012
Source: CourtListenerOpinion
Date Created: 2023-08-24 01:32:44.782415+00
Date Added: 2024-06-11T18:15:34.076782
License: Public Domain

SACKETT, Judge
(dissenting).
I respectfully dissent. I would reverse and remand for a new trial.
I disagree with the majority’s determination the trial court did not abuse its discretion in excluding testimony of a settlement made by Condon & Peavey.
Condon & Peavey is not a party to this litigation. John Peavey testified it only represented Production Credit Association. Robert Ryan and his father claimed they felt the firm was representing them. The Ryans sought to introduce (1) evidence of a claim made against Condon & Peavey by Robert’s father and (2) evidence Condon & Peavey settled the claim with defendant’s father.
The majority has determined the admission of the evidence was discretionary and the trial court did not abuse its discretion in admitting the testimony. The majority cites Gail v. Clark, 410 N.W.2d 662 (Iowa 1987), to support its conclusion.
I find Gail v. Clark inapplicable to the issue before us. Gail involves the offer of evidence of a settlement made by a party to the litigation. We are dealing here with a settlement made by a nonparty. The right to exclude evidence under Rule 408 is akin to a privilege rather than a rule of competency. One has the privilege if he or she has made the offer in question and is a party to the suit in which the evidence is offered. See McCormick § 274, p. 663 (emphasis supplied). When evidence of an offer of settlement made by a nonparty is made, the question of its admissibility to prove liability for or invalidity of the claim in question is not at issue.
Production Credit Association put the witnesses on the stand to verify the attor*386neys were only representing Production Credit Association in the transactions that resulted in Robert and Charlene Myers giving the mortgages. The fact of Condon & Peavey’s payment to Robert’s father serves to impeach that testimony. I find -the evidence relevant and admissible and the exclusion to be error.
Having so held, I would find it unnecessary to address the issue in Division II of the majority opinion. But I do disagree with the majority on this issue. I find Brenton v. Tiffany, 400 N.W.2d 576 (Iowa 1987), instructive on this issue and determine Production Credit Association lost their right to foreclose their security interest when they failed to include it as a part of their suit on the underlying note.