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P worked for D between 1980 and 1984. P was quickly promoted through several positions to her final position as Motorhand A at more than double her starting salary. P left in October 1984 because she was experiencing emotional problems caused by a hostile work environment aboard the rig. P was admitted to Riverside Hospital where she was treated for anxiety-related disorders. Upon release, P continued to seek psychiatric counseling, and she did not hold a steady job for over two years. P alleges sexual harassment. In March 1984, P complained to the EEOC that she was discriminated against in promotion decisions and was subjected to sexual harassment. P sued D. During the trial, the district court's refused to exclude portions of hospital records reporting a statement by P's sister, Laird, to a social worker, who recorded that 'informant reports that the patient is a habitual liar and has been all of her life.' P objected on grounds that the evidentiary foundation had not been made under Fed. R. Evid. 803(6) in that D had failed to establish that the records were accurate; that the statement was multiple hearsays under Fed. R. Evid. 805; and, if otherwise admissible, the statement was unduly prejudicial under Fed. R. Evid. 403. It was admitted, and D got the verdict and P appealed.

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