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If the judgment that the offeree finally obtains is not more favorable than the unaccepted offer, the offeree must pay the costs incurred after the offer was made.
It can reduce Plaintiff's attorney's fees Thus, while the rejection of a more favorable offer of judgment does not preclude the recovery of attorney's fees by a prevailing FLSA plaintiff, it can nevertheless substantially reduce the amount of attorney's fees a court will award as reasonable.
If, within 14 days after being served, the opposing party serves written notice accepting the offer, either party may then file the offer and notice of acceptance, plus proof of service. The clerk must then enter judgment.
The third sentence of Rule 68 has been altered to make clear that evidence of an unaccepted offer is admissible in a proceeding to determine the costs of the action but is not otherwise admissible.
Federal Rule of Civil Procedure 68 allows a defendant to make an offer of judgment at any point at least 14 days before trial. After receiving the offer, the plaintiff then has a 14-day window to serve written notice accepting the offer.
When one party's liability to another has been determined but the extent of liability remains to be determined by further proceedings, any party may make an offer of judgment. It must be served within a reasonable time-but at least 10 days-before the date set for a hearing to determine the extent of liability.
As the name suggests, a Rule 68 Offer of Judgment is, in fact, an offer permitting a plaintiff to accept and enter a judgment against a defendant on specified terms, subject to the court's approval of the settlement via Rule 68.
- A party making a defendant's offer is offering something to settle their opponent's claim, counterclaim, additional claim, appeal, cross-appeal or costs assessment proceedings and to accept a liability to pay costs.