Evidence of settlement talks between lawyers in a pregnancy discrimination case should not have been admitted, and the lawyers should not have been disqualified as trial counsel, the U.S. Court of Appeals for the Second Circuit held Thursday.

Western District Magistrate Judge Hugh Scott had ruled that an offer of reinstatement, made by the lawyer for M&T Bank to pregnant employee Jia Sheng as she was about to lose her job for refusing to relocate, could be offered as evidence that Sheng had not attempted to mitigate her damages.

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