At any time more than fifteen (15) 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 the defending party for the money or property or to the effect specified in the offer, with costs then accrued. If within ten (10) days after the 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 thereof and thereupon the clerk shall enter judgment. An offer not accepted shall be deemed withdrawn and evidence thereof is not admissible except in a proceeding to determine costs. If the judgment finally obtained by the offeree is not more favorable than the offer, the offeree must pay the costs incurred after the making of the offer. The fact that an offer is made but not accepted does not preclude a subsequent offer. 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 ten (10) days, prior to the commencement of hearings to determine the amount or extent of liability.
Rule 68.Offer of judgment.
Last verified July 6, 2026
In one sentenceRule 68 lets a party defending against a claim make a formal offer of judgment more than fifteen days before trial, and if the offeree rejects it but later obtains a judgment no more favorable than the offer, the offeree must bear the costs incurred after the offer was made, creating a financial incentive for both sides to settle before trial.
Full Text of Rule 68
(dc) District court rule. Rule 68 applies in the district courts except that the time period of fifteen (15) days is reduced to fourteen (14) days and the time period of ten (10) days is reduced to seven (7) days.
Amendment History
[Amended eff. 10-1-95.]
Committee Comments
Committee Comments on 1973 Adoption
The rule requires an offer of judgment to be made at least 15 days before the trial begins, and thus ensures that it must be either accepted or rejected at least 5 days before trial. Thus a party will not make final preparations for a trial which will never be held. The companion federal rule requires an offer of judgment to be made at least 10 days before the trial begins and that it must be accepted or rejected within 10 days. In all other respects, the rule is based on Federal Rule 68. Alabama law has had no similar procedure whereby an offer of judgment may be made. Indeed, the device was new to the federal courts when the Federal Rules of Civil Procedure were adopted in 1938. But it was a familiar device in the practice of other states prior to that time. And the general principle, that a party may be denied costs where he sues vexatiously after refusing an offer of settlement, and recovers no more than he had been previously offered, has been held to be within the powers of an equity court regardless of the existence of a rule such as Rule 68. Crutcher v. Joyce, 146 F.2d 518 (10th Cir.1945).
As to procedure under the rule, see 7 Moore’s Federal Practice, ¶¶ 68.0368.06 (2d ed.1971); Udall, May Offers of Judgment under Rule 68 be Revoked Before Acceptance, 19 F.R.D. 401 (1956). ”Before this trial begins” has been construed to mean before the trial date is set. Cruz v. Pacific American Ins. Corp., 337 F.2d 746 (9th Cir.1964).
The last sentence provides for an offer of judgment after liability is determined but before ascertainment of damages. This is desirable in a complex declaratory proceeding on an instrument where threshold questions of validity and, therefore, liability, may exist. Also, upon the entry of a partial summary judgment declaring liability, such a provision could be useful.
Committee Comments to October 1, 1995, Amendment to Rule 68
The amendment is technical. No substantive change is intended.
Plain-English Summary
Rule 68 allows a party defending against a claim to serve the adverse party with an offer to let judgment be entered against the defending party for a specified amount of money, property, or other relief, plus whatever costs have accrued so far. The offer must be made more than fifteen days before trial begins, giving the offeree time to consider it well in advance of trial preparation.
If the party receiving the offer accepts it in writing within ten days, either side can file the offer and the notice of acceptance along with proof of service, and the clerk then enters judgment accordingly. If the offer is not accepted within that window, it is treated as withdrawn, and the fact that it was made cannot be used as evidence in the case except in a later proceeding over costs. Rejecting one offer does not prevent the defending party from making another offer later.
The rule's teeth come into play when the case is finally resolved. If the judgment the offeree ultimately obtains is not more favorable than the rejected offer, the offeree must pay the costs incurred after the offer was made. This shifts the financial risk of continuing to litigate onto a party who turns down a reasonable offer and then fails to do better at trial. Rule 68 also applies after liability has already been determined but before damages are set, allowing a party found liable to make an offer of judgment on the remaining amount, so long as it is served a reasonable time, and no less than ten days, before hearings on damages begin.
Frequently Asked Questions
Who can make an offer of judgment under Rule 68?
Only a party defending against a claim can serve an offer of judgment on the party asserting that claim.
What happens if the other party accepts an offer of judgment?
If the adverse party serves written notice of acceptance within ten days, either party can file the offer and the acceptance with proof of service, and the clerk enters judgment accordingly.
What is the consequence of rejecting an offer of judgment and later recovering less at trial?
If the judgment the offeree finally obtains is not more favorable than the rejected offer, the offeree must pay the costs incurred after the offer was made.
Can a defending party make more than one offer of judgment in the same case?
Yes, making an offer that is not accepted does not prevent the defending party from making a subsequent offer later in the case.
Can an offer of judgment be used as evidence at trial if it is rejected?
No, an unaccepted offer is deemed withdrawn and evidence of it is not admissible, except in a later proceeding to determine costs.
Does Rule 68 apply after liability has already been decided but before damages are set?
Yes, a party found liable may still make an offer of judgment on the remaining damages issue, as long as it is served a reasonable time, and at least ten days, before hearings on the amount of liability begin.
Source & verification. The rule text, amendment history, and Committee Comments are reproduced verbatim from the
official Alabama Rules of Civil Procedure (Ala. R. Civ. P. 68). Prescribed by the Supreme Court of Alabama (Ala. Const. amend. 328, § 6.11). The plain-English summary is original and written by us. Last verified July 6, 2026. ·
Official source
Also known as: offer of judgment AlabamaRule 68 costs shiftingsettlement offer before trialAla. R. Civ. P. 68