The Aluminum Company of America (Alcoa) (defendant) prevailed against Affiliated Manufacturers, Inc. (plaintiff) in a case involving the obligations and payment owed under a contract between the two parties. Affiliated appealed to the United States Court of Appeals for the Third Circuit. Affiliated argued the trial judge improperly granted Alcoa's Federal Rule of Evidence 408 motion to exclude evidence showing the two parties engaged in settlement negotiations. Affiliated contended Rule 408 did not apply to this evidence. Affiliated argued Rule 408 related only to the parties' differing views of the contract, which the parties discussed internally and with each other before commencing litigation.