Rule 68.Offer of Settlement or Judgment.

Last amended July 1, 1999 · Last verified July 3, 2026

In one sentenceRule 68 lets a party offer to settle or let judgment be entered against either party before trial, and shifts costs onto an offeree who later does worse at trial than the offer.

Full Text of Rule 68

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At any time more than 10 days before the trial begins, any party may serve upon any adverse party an offer of settlement or an offer to allow judgment to be taken against either party for the money or property or to the effect specified in the 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 thereupon the clerk shall, in accordance with the agreement, enter an order of dismissal or a 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 An offer not accepted shall be deemed withdrawn and evidence thereof is not admissible except in a proceeding to determine costs.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, either party 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.

End

Amendment History

Amended May 15, 1972, effective July 1, 1972

further amended May 25, 1999, effective July 1, 1999

Plain-English Summary

More than 10 days before trial starts, a party may serve an offer of settlement or an offer to let judgment be entered against either party, for money, property, or other specified relief, plus costs already accrued. If the other side accepts in writing within 10 days, either party can file the offer and acceptance with proof of service, and the clerk enters a dismissal or judgment matching the agreement. An unaccepted offer is deemed withdrawn, and evidence of it can't be used except in a later dispute over costs; making an offer doesn't prevent a party from making another one later.

The real teeth of the rule show up after trial: if the offeree's own eventual judgment isn't more favorable than the rejected offer, the offeree has to pay the costs incurred after the offer was made. Once liability has been decided but the amount still needs to be worked out through further proceedings, either side can still make an offer of judgment on the same terms as a pre-trial offer, so long as it's served at least 10 days before the hearing on damages begins.

Frequently Asked Questions

What happens if an offer of settlement is rejected and the offeree does worse at trial?

The offeree must pay the costs incurred after the offer was made, giving both sides a real incentive to take a reasonable offer seriously.

Can evidence of a rejected settlement offer be used at trial?

No, except in a later proceeding to determine costs; an unaccepted offer is deemed withdrawn and otherwise inadmissible.

Can an offer of judgment be made after liability has already been decided?

Yes. Rule 68 lets either party make an offer of judgment on damages alone once liability is determined, so long as it's served at least 10 days before the hearing on the amount of liability.

Source & verification. The rule text and History are reproduced verbatim from the official Hawaii Rules of Civil Procedure (Haw. R. Civ. P. 68). Prescribed by the Supreme Court of Hawaii (Haw. Rev. Stat. § 602-11; Haw. Const. art. VI, § 7). The plain-English summary is original and written by us. Last verified July 3, 2026. · Official source

Also known as: offer of judgmentoffer of settlementcost-shifting rejected offer