Rev. 05/01/19

OFFER OF JUDGMENT AND NOTICE OF ACCEPTANCE

 Overview:

At least 14 days before the date set for trial, a party defending against a claim may serve upon an opposing party an offer to allow judgment on specified terms, with the costs then accrued.  If, within 14 days after being served, the opposing serves written notice accepting the offer, either party may then file the offer and notice of acceptance together with proof of service.  The clerk must then enter judgment. This procedure may also occur after the liability of a party to another has been determined but the extent of the liability remains to be determined by further proceedings.  In such case, the offer of judgment must be served within a reasonable date (but at least 14 days) before the date set for the hearing to determine the extent of liability. Fed. R. Civ. P. 68; Fed. R. Bankr. P. 7068.

The offer of judgment is a device to encourage settlement in that a party who refuses an offer of judgment, but does not receive a final judgment more favorable than the offer, will be assessed the costs incurred by the offer or after the making of the offer. When this occurs, the court’s final order will so provide and the clerk will be involved in the taxing of costs.

CM/ECF Event(s):

            Miscellaneous, Offer of Judgment and Notice of Acceptance