Lesson 1.6 – Direct Quotations: Quoted material is introduced by “that.”
(e.) When the quoted material is introduced by 'that' or is in some other manner integrated into the sentence, do not capitalize the first word of the quotation.
Example:
A. Mark, the banker, told me the business deal was a success.
Q. When you say the banker stated that “the business deal was a success,” can you clarify that for me?
(Note: When the attorney is quoting the witness, the word “that” is not part of the original quote so, therefore, should not be included in the quote.)