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The third sentence of Rule 68 has been altered to make clear that evidence of an unaccepted offer is admissible in a proceeding to determine the costs of the action but is not otherwise admissible.
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.
? At any time more than 10 days before the trial begins, a party defending against a claim may serve upon the adverse party an offer to allow judgment to be taken against him for the money or property or to the effect specified in his offer, with costs then accrued.
When the liability of one party to another has been determined by verdict or order or judgment, but the amount or extent of the liability remains to be determined by further proceedings, the party adjudged liable may make an offer of judgment, which shall have the same effect as an offer made before trial if it is ...
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.
- A party making a defendant's offer is offering something to settle their opponent's claim, counterclaim, additional claim, appeal, cross-appeal or costs assessment proceedings and to accept a liability to pay costs.
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. Kenneth E. Pitcoff and Andrea M. Alonso, New York Law Journal.