30. On cross-examination, should the court allow the plaintiff to elicit from the witness the fact that he is an adjuster for the defendant's insurance company?

Evidence that a witness is biased or has an interest in the outcome of a suit tends to show that the witness has a motive to lie. A witness may always be impeached by extrinsic evidence of bias or interest, provided a proper foundation is laid.

Federal Rule of Evidence (FRE) 411 on liability insurance states: «Evidence that a person was or was not insured against liability is not admissible to prove whether the person acted negligently or otherwise wrongfully. But the court may admit this evidence for another purpose, such as proving a witness's bias or prejudice or proving agency, ownership, or control.»

The FRE do not contain any explicit «collateral issue» rule. However, the trial judge has general discretion under FRE 403 to exclude evidence whose probative value is substantially outweighed by «a danger...of confusing the issues...undue delay [or] wasting time[.]» This discretion allows the judge to keep out evidence that would, under the common law approach, be banned as extrinsic evidence of a collateral issue. A witness's bad character for truthfulness is not considered a collateral matter, regardless of whether that witness has affirmatively asserted his good character for truthfulness.

D is correct. The court should allow the plaintiff to cross-examine the witness on his employment as an adjuster with the defendant's insurance company, but only for impeachment purposes. This is because FRE 411 does not permit evidence of liability insurance to prove negligence or wrongful conduct, but it is admissible as evidence of bias or prejudice as impeachment material.

A is incorrect. This is an overstatement of the law. Although FRE 411 does bar evidence of liability insurance to prove negligence or wrongful conduct substantively, it contains an exception allowing the use of such evidence to prove bias for impeachment purposes.

B is incorrect. Impeachment for bias is not a collateral issue because it goes to motive to lie (or character for truthfulness). This means that the witness's employment as an insurance adjuster who, based on his affiliation with the defendant, is potentially prejudiced, will not be deemed a collateral issue.

C is incorrect. This answer is only partially correct. As previously explained, this line of questioning on cross-examination is permissible for impeachment, not for substantive purposes under FRE 411.