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. If within 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 judgment shall be entered. An offer not accepted shall be deemed withdrawn and evidence thereof is not admissible except in a proceeding to determine costs. If the judgment exclusive of interest from the date of offer 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 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. For purposes of this rule, the term "costs" is defined as reasonable litigation expenses, excluding attorney’s fees.
Rule 68.Offer of Judgment
Last amended January 1, 1989 · Last verified July 13, 2026
In one sentenceRule 68 lets a defending party offer to let judgment be entered against it before trial, and if the other side turns it down but ends up with a less favorable result at trial, that party must pay the costs incurred after the offer was made.
Full Text of Rule 68
Amendment History
Amended November 21, 1988, effective January 1, 1989.
Reporter's Notes
Reporter’s Notes to Rule 68: 1. With the exception of one minor change, Rule 68 is otherwise identical to FRCP 68. This change simply provides for the entry of judgment where an offer of judgment has been accepted as opposed to the provision found in FRCP 68 which authorizes the clerk to enter judgment. This rule is not concerned with the mechanics of preparing and entering the judgment and resort to Rule 58 is necessary to find the procedure for preparing and entering judgment.
2. This rule is substantially the same as superseded Ark. Stat. Ann. §§ 27-1501, et seq. (Repl. 1962). It does, however, follow the provision of FRCP 68 concerning the time for accepting an offer of settlement. Thus, a party is given ten days to accept such an offer as opposed to the five- day period allowed under prior Arkansas law. The purpose behind this rule and FRCP 68 is to encourage the early settlement of claims and to protect the party who is willing to settle from the expense and burden of costs which subsequently accrue. Staffend v. Lake Cent. Airlines, Inc., 47 F.R.D. 218 (D.C, Ohio, 1969).
Addition to Reporter’s Notes, 1988 Amendment: The amendment broadens the definition of the term "costs" for purposes of this rule. In Darragh Poultry & Livestock Equip. Co. v. Piney Creek Sales, Inc., 294 Ark. 427, 743 S.W.2d 804 (1988), the Supreme Court held that, as used in this rule, the term "costs" is limited to costs authorized by statute, a result consistent with prior cases adopting a narrow definition of the term in other contexts. However, a broader approach is warranted with respect to this rule, which is designed to encourage early settlement. The amended rule thus permits assessment of not only those costs authorized by statute, but also reasonable expenses typically incurred in the course of litigation. As a result, expenses disallowed under Darragh—e.g., meals and lodging—are now available under the amended rule. Attorney’s fees, however, are expressly excluded from the new definition.
Plain-English Summary
Rule 68 is a pressure valve for settlement. A party defending against a claim can, at any point more than ten days before trial begins, serve the adverse party with a written offer to let judgment be entered for a stated sum, property, or other specified relief, plus whatever costs have accrued to that point. The adverse party then has ten days to accept in writing. If it does, either side can file the offer and the notice of acceptance with proof of service, and the court enters judgment on those terms -- no trial required.
Turning the offer down carries no immediate penalty by itself, and an unaccepted offer is deemed withdrawn; a jury or judge never hears about it, since it is inadmissible except in a later proceeding to sort out costs. Nothing about making an offer -- or having one rejected -- stops a party from making another offer later as the case develops.
The consequence shows up only after final judgment. If the judgment the offeree ultimately wins, leaving out interest that accrued from the date of the offer, is not more favorable than what was offered, the offeree has to pay the costs incurred after the offer was made. That comparison is what gives Rule 68 its teeth: a plaintiff who rejects a reasonable offer and then recovers less at trial than the offer would have provided ends up worse off financially than if the offer had been accepted in the first place. Under Rule 68, "costs" means reasonable litigation expenses other than attorney's fees -- a definition the rule was amended in 1988 to broaden, after a court decision had confined "costs" to items specifically authorized by statute. The broader definition can reach expenses like travel, lodging, and expert charges that add up over the course of litigation, even though it stops short of shifting the fees paid to a lawyer.
The rule also reaches cases tried in phases. When liability has already been determined by verdict, order, or judgment but the amount of damages remains open, the party found liable can still make an offer of judgment on the damages question, with the same cost-shifting effect, as long as it is served a reasonable time before the hearing on damages begins -- and no less than ten days before that hearing.
Frequently Asked Questions
What is an offer of judgment under Rule 68?
A written offer, made by a party defending against a claim, to let judgment be entered against it for a stated amount or specified relief, plus costs accrued to date. It is served on the opposing party, not filed with the court, unless and until it is accepted.
What happens if I reject an offer of judgment and then win more at trial?
Nothing changes for you. Rule 68 only shifts costs when the judgment you finally obtain is not more favorable than the rejected offer. If you do better than the offer, the offer has no cost consequence.
What happens if I reject an offer and then win less than the offer?
You have to pay the costs incurred after the offer was served -- your own and, depending on how those costs are calculated, potentially costs the offering party incurred defending the case from that point forward. The comparison is made exclusive of any interest that accrued from the date of the offer.
What counts as "costs" that can be shifted?
Reasonable litigation expenses, but not attorney's fees. That definition, added in 1988, is broader than costs authorized by statute alone and can include expenses such as travel and lodging tied to the litigation, while expressly leaving out what a party paid its own lawyer.
Can a plaintiff make an offer of judgment under this rule?
Rule 68, as written, applies to a party defending against a claim. It does not extend the same offer-of-judgment mechanism to the party asserting the claim.
Can I make more than one offer of judgment in the same case?
Yes. Rejecting one offer does not prevent a later offer, and each unaccepted offer is treated as withdrawn and kept out of evidence except in a proceeding to determine costs.
How long does the other side have to accept my offer?
Ten days after service of the offer. If notice of acceptance is served within that window, either party can file the offer and the acceptance with proof of service, and the court enters judgment accordingly.
Does Rule 68 apply when liability is decided but damages are still being worked out?
Yes. A party already found liable can still make an offer of judgment addressed to the amount of damages, with the same cost-shifting effect, as long as it is served a reasonable time -- at least ten days -- before the hearing on damages begins.
Source & verification. Rule text, Reporter's Notes, and amendment
history are reproduced verbatim from the Arkansas Rules of Civil Procedure, prescribed by
the Arkansas Supreme Court. The plain-English summary is original and written by us.
Last verified July 13, 2026. ·
Official source
Also known as: offer of judgmentRule 68 offer of judgmentsettlement offer cost shiftingoffer to allow judgmentten day offer of judgmentcosts after rejected settlement offer