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FAQ

An offer of judgment is a formal proposal to resolve a civil claim. One party makes the offer to the other as a proposal to formally settle the case.

Under the ?offer of judgment? mechanism detailed in Federal Rule of Civil Procedure 68 (Rule 68), a defendant makes a settlement offer to resolve the case. If accepted, the offer is filed at the courthouse and the case ends.

Section 45.061 - Offers of settlement (1) At any time more than 60 days after the service of a summons and complaint on a party but not less than 60 days (or 45 days if it is a counteroffer) before trial, any party may serve upon an adverse party a written offer, which offer shall not be filed with the court and shall ...

The Defendant can accept that amount, and then the entire case is settled. Or, the Defendant can reject your offer. However, if the offer is rejected, and at trial, you win what you originally offered plus 25% (so, in this example, $125,000 or more), the Defendant has to pay that amount, plus your attorneys fees.

The offer of judgment statute and proposal for settlement rule work together to provide different options to litigants. Originally, the statute allowed only a judgment to be entered against a party if an offer of judgment was accepted.