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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.
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.
(a) Making an Offer; Judgment on an Accepted Offer. At least 14 days before the date set for trial, a party defending against a claim may serve on an opposing party an offer to allow judgment on specified terms, with the costs then accrued.
For example, if a defendant issues a written offer of judgment of $30,000 and the plaintiff chooses to let that offer lapse and to go to trial, the plaintiff must receive a judgment in excess of $30,000 to avoid having to pay the defendant's court costs.
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.
An offer of judgment is used to encourage settlements and protect parties willing to settle early in the litigation process. It is an extremely useful tool however there are important nuances to using this strategy successfully.
Further, when the statute under which the plaintiff has sued defines ?costs? to include ?attorney's fees,? a plaintiff who rejects a Rule 68 offer of judgment and then achieves a less favorable judgment at trial cannot recover attorney's fees under the statute.