California, United States of America
The following excerpt is from Covell v. Superior Court, 159 Cal.App.3d 39, 205 Cal.Rptr. 371 (Cal. App. 1984):
Real parties argue, however, that the evidence which they seek through discovery would not be offered to prove petitioner's liability for loss or damage. Rather, they wish to prove that the earlier action was not brought without probable cause or initiated with malice (Iram Enterprises v. Veditz (1981) 126 Cal.App.3d 603, 607, 179 Cal.Rptr. 1), by demonstrating through evidence of a settlement offer that petitioner recognized the validity of their claim in the earlier action.
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