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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.
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.
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.
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.
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.
Under Rule 68, attorney's fees awardable by statute or contract to a prevailing party are not Rule 68 ?costs? unless the statute or contract at issue defines such fees as ?costs.? Marek, 473 U.S. at 9; King v. Rivas, 555 F.