Question: Damage Reduction and Stacking Skills

My question is: do the effects of reducing damage stack when two (or potentially more) skills are in effect that each reduce damage? Specifically, i am wondering if the effects from the two Paragon skills "There's nothing to fear!" and "They're on Fire" stack?

The obvious result would be (with a level 8 Sunspear rank and a leadership attribute of 12) very good if the effects stack (taking 60% less damage - from burning foes of course).

So is there a cap on the amount of damage reduced from stacking skills?

Damage reduction stacks with no cap, but armor cap is +25AL.

Further Reading