Pennsylvania Sample Letter to Client regarding Defendant's Offer of Judgment
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FAQ
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.
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.
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.
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.
Rule 68 provides that the defendant may serve on plaintiff an offer of judgment at any point up to fourteen days before trial. In the offer, the defendant must state that it will allow a judgment to be taken against it for a specific sum of money or on other specific terms, along with costs then accrued.
If the plaintiff either (1) declines the offer; or (2) fails to respond to the offer by the deadline, then the offer is considered withdrawn. A withdrawn offer does not preclude the defendant from making a subsequent offer.
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.
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.
