A party can make an offer of judgement to settle a case by accepting a specific judgement against them. If the other party declines the offer and later receives a judgement that is not more advantageous than the offer, they may be responsible for paying the costs incurred after the offer was made. This rule is applicable in federal cases and numerous state cases.
An offer of judgement is a proposal made by one party to agree to a specific judgement against them. This means that the party making the offer is willing to accept a particular outcome in the case. For instance, if a plaintiff offers to resolve a case for $10,000, they are presenting an offer of judgement. If the defendant agrees to the offer, the case is settled for that amount. However, if the defendant rejects the offer and the case proceeds to trial, and the plaintiff wins a judgement for $8,000, the defendant may be obligated to cover the plaintiff’s legal expenses incurred after the offer was made. In federal procedure and many states, if the opposing party declines the offer and the final judgement obtained by that party is not more favorable than the offer, then that party must bear the costs incurred after the offer was made. This is referred to as a Rule 68 offer of judgement. Another example of an offer of judgement is seen in a personal injury case. If the defendant proposes to settle the case for a specific amount, and the plaintiff rejects the offer and proceeds to trial, but the jury awards the plaintiff a lesser amount than the settlement offer, the plaintiff may be responsible for covering the defendant’s legal costs incurred after the offer was made.
An Offer of Judgment is a legal tool used in civil litigation where one party offers a settlement amount to the opposing party to resolve the case.
The party making the offer proposes a specific amount to settle the case. If the opposing party accepts the offer, the case is resolved, and the agreed-upon amount is paid. If the offer is rejected, the case continues to trial.
Yes, an Offer of Judgment can be made at any point during the litigation process, including before trial, during trial, or even after a verdict has been reached.
If the opposing party rejects the offer and proceeds to trial, they run the risk of receiving a less favorable judgment. If the final judgment is less favorable than the offer, the rejecting party may be responsible for paying the opposing party’s legal costs incurred after the offer was made.
Yes, an Offer of Judgment can be made in any civil case, including personal injury, contract disputes, employment disputes, and more.
Once accepted by the opposing party, an Offer of Judgment becomes a legally binding agreement, and both parties are obligated to fulfill the terms of the settlement.
In most cases, an Offer of Judgment cannot be withdrawn once it has been made. However, there may be exceptions if both parties agree to withdraw the offer or if there are significant changes in circumstances.
No, an Offer of Judgment must be made in writing to ensure clarity and avoid any misunderstandings. It should clearly state the proposed settlement amount and any conditions or terms.
Yes, either the plaintiff or the defendant can make an Offer of Judgment. It is a strategic decision made by the party seeking to resolve the case.
Making an Offer of Judgment can incentivize the opposing party to settle the case, potentially saving both parties time and money associated with continued litigation. Additionally, if the offer is rejected and the final judgment is less favorable, the rejecting party may be responsible for paying the opposing party’s legal costs incurred after the offer was made.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 16th April 2024.
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