Rule 68.Offer of Judgment.

Last amended April 15, 2005 · Last verified July 6, 2026

In one sentenceRule 68 lets either side offer to let judgment be entered on stated terms before trial, and shifts costs and attorney's fees onto a party who turns down an offer that later proves at least as good as the judgment — using one formula for cases filed before August 7, 1997, and a different one for cases filed on or after that date.

Full Text of Rule 68

Text sizePre-1997 version — jump to: (a) (b) (c)

Post-1997 version — jump to: (a) (b) (c)

Rule 68. [Applicable to cases filed before August 7, 1997.] Offer of Judgment.

(a) At any time more than 10 days before the trial begins, either the party making a claim or the party defending against a claim may serve upon the adverse party an offer to allow judgment to be entered in complete satisfaction of the claim for the money or property or to the effect specified in the offer, with costs then accrued. The offer may not be revoked in the 10 day period following service of the offer. If within 10 days after service of the offer the adverse party serves written notice that the offer is accepted, either party may then file the offer and notice of acceptance together with proof of service, and the clerk shall enter judgment. An offer not accepted within 10 days is considered withdrawn and evidence of the offer is not admissible except in a proceeding to determine costs. The fact that an offer is made but not accepted does not preclude a subsequent offer.

(b) If the judgment finally rendered by the court is not more favorable to the offeree than the offer, the prejudgment interest accrued up to the date judgment is entered shall be adjusted as follows:

(1) if the offeree is the party making the claim, the interest rate will be reduced by the amount specified in AS 09.30.065 and the offeree must pay the costs and attorney’s fees incurred after the making of the offer (as would be calculated under Civil Rules 79 and 82 if the offeror were the prevailing party). The offeree may not be awarded costs or attorney’s fees incurred after the making of the offer.

(2) if the offeree is the party defending against the claim, the interest rate will be increased by the amount specified in AS 09.30.065.

(c) 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 served within a reasonable time not less than 10 days prior to the commencement of hearings to determine the amount or extent of liability.

Rule 68. [Applicable to cases filed on or after August 7, 1997.] Offer of Judgment.

(b) If the judgment finally rendered by the court is at least 5 percent less favorable to the offeree than the offer, or, if there are multiple defendants, at least 10 percent less favorable to the offeree than the offer, the offeree, whether the party making the claim or defending against the claim, shall pay all costs as allowed under the Civil Rules and shall pay reasonable actual attorney’s fees incurred by the offeror from the date the offer was made as follows:

(1) if the offer was served no later than 60 days after the date established in the pretrial order for initial disclosures required by Civil Rule 26, the offeree shall pay 75 percent of the offeror’s reasonable actual attorney’s fees;

(2) if the offer was served more than 60 days after the date established in the pretrial order for initial disclosures required by Civil Rule 26 but more than 90 days before the trial began, the offeree shall pay 50 percent of the offeror’s reasonable actual attorney’s fees;

(3) if the offer was served 90 days or less but more than 10 days before the trial began, the offeree shall pay 30 percent of the offeror’s reasonable actual attorney’s fees.

(c) If an offeror would be entitled to receive costs and reasonable actual attorney’s fees under paragraph (b), that offeror shall be considered the prevailing party for purposes of an award of attorney’s fees under Civil Rule 82. Notwithstanding paragraph (b), if the amount awarded an offeror for attorney’s fees under Civil Rule 82 is greater than a party would receive under paragraph (b), the offeree shall pay to the offeror attorney’s fees specified under Civil Rule 82 and is not required to pay reasonable actual attorney’s fees under paragraph (b). A party who receives attorney’s fees under this rule may not also receive attorney’s fees under Civil Rule 82.

End

Amendment History

Pre-1997 version

(Adopted by SCO 5 October 9, 1959; amended by SCO 818 effective August 1, 1987)

Post-1997 version

(Adopted by SCO 5 October 9, 1959; amended by SCO 818 effective August 1, 1987; by SCO 1281 effective August 7, 1997; and by SCO 1565 effective April 15, 2005)

Notes

Pre-1997 version

EDITOR’S NOTE: See Note to SCO 1281 following text of Rule 68 applicable after August 7, 1997.

Post-1997 version

Note to SCO 1281: In 1997 the legislature amended AS 09.30.065 concerning offers of judgment. According to ch. 26, sec 52, SLA 1997, the amendment to AS 09.30.065 has the effect of amending Civil Rules 68 and 82 by requiring the offeree to pay costs and reasonable actual attorney fees on a sliding scale of percentages in certain cases, by eliminating provisions relating to interest, and by changing provisions relating to attorney fee awards. According to sec. 55 of the session law, the amendment to AS 09.30.065 applies “to all causes of action accruing on or after the effective date of this Act.” However, the amendments to Civil Rule 68 adopted by paragraph 5 of this order are applicable to all cases filed on or after August 7, 1997. See paragraph 17 of this order.

Plain-English Summary

Under both versions of the rule, more than 10 days before trial either side can serve the other with an offer to let judgment be entered on stated terms, with costs then accrued. The offer can't be revoked for 10 days, and if it isn't accepted within that window it's treated as withdrawn — evidence of the unaccepted offer can't be used at trial, only later in a proceeding over costs, and turning one offer down doesn't stop either side from making another later. Under the pre-1997 version only, the same mechanism also applies after liability has already been decided but the amount is still open, as long as the offer is served a reasonable time — at least 10 days — before the hearing on damages begins.

The two versions part ways on what happens when the offeree does worse at trial than the offer would have provided. In cases filed before August 7, 1997, an offeree who does no better than the offer has the prejudgment interest rate on the judgment adjusted under AS 09.30.065 — reduced if the offeree was the claimant, increased if the offeree was defending against the claim — and a claimant-offeree must also pay the offeror's costs and attorney's fees incurred after the offer, on top of recovering none of its own. In cases filed on or after August 7, 1997, the consequence is a sliding-scale fee shift instead of an interest adjustment: if the judgment comes in at least 5 percent worse for the offeree (10 percent with multiple defendants), the offeree pays the offeror's costs and a share of the offeror's reasonable actual attorney's fees — 75, 50, or 30 percent, depending on how early the offer was made relative to initial disclosures and trial. An offeror entitled to fees this way is treated as the prevailing party for purposes of Rule 82, though a party can't collect fees under both rules for the same work.

Frequently Asked Questions

Why does this page show two versions of Rule 68?

The rule itself was rewritten effective August 7, 1997, and Alaska's own compiled rules text still prints both dated versions in full, side by side, because which one applies depends on when the underlying case was filed rather than when the offer of judgment was made.

What happens if I turn down an offer of judgment and then do worse at trial?

It depends which version applies. Before August 7, 1997, the consequence is an adjustment to the prejudgment interest rate on the judgment, and a claimant who turned down the offer must also pay the offeror's post-offer fees and costs while recovering none of its own. On or after that date, the consequence is instead a fee shift — the offeree pays the offeror's costs and a percentage of the offeror's actual attorney's fees that grows the earlier the offer was made.

Does the jury or judge get to hear about an offer of judgment that wasn't accepted?

No — under both versions, evidence of an unaccepted offer can't come in at trial. It only becomes relevant later, in a proceeding to determine costs or fees.

Source & verification. The rule text, Amendment History, and Notes are reproduced verbatim from the official Alaska Rules of Civil Procedure (Alaska R. Civ. P. 68). Prescribed by the Supreme Court of Alaska (Alaska Const. art. IV, § 15). The plain-English summary is original and written by us. Last verified July 6, 2026. · Official source

Also known as: offer of judgment Alaska ruleRule 68 offer AlaskaAlaska R. Civ. P. 68