Offer Of Judgment

Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. The Offer of Judgment rule is a tort reform law aimed at controlling unnecessary litigation and at encouraging settlement. Under this rule, if a settlement offer designated as an offer of judgment is made in civil litigation, the offer is rejected and the final court decision is less favorable than the final offer that was made, then the party who rejected the offer is subject to certain penalties. The penalties vary by state, but often include some combination of an award to the other party of certain attorneys' fees, compensable litigation costs and prejudgment interest. Most jurisdictions limit these awards to fees, costs and interest accumulated after the offer is made or rejected. In addition, the party who rejected the offer may lose their entitlement to certain attorneys' fees, compensable litigation costs and prejudment interest. Here again, most jurisdictions provide that the party who rejected the offer loses no more than their entitlement to the attorneys' fees, costs and interest incurred after the making or rejection of the settlement offer.