(a) Making an offer; Judgment on an accepted offer. At least 14 days before the date set for trial, a party defending against a claim may serve on an opposing party, but not file in court, an offer to allow judgment on specified terms, which offer is deemed to include all costs and fees accrued. If, within 14 days after being served, the opposing party serves written notice accepting the offer, either party may then file the offer and notice of acceptance, plus proof of service. The clerk must then enter judgment in the amount of the offer without costs.
Rule 68.Offer of judgment
Title IX: Provisional and Final Remedies · Last amended July 1, 2016 · Last verified July 14, 2026
In one sentenceRule 68 lets a defending party formally offer to let judgment be taken on set terms before trial, and shifts costs, and sometimes attorney fees, against a party who rejects an offer and later does no better at trial.
Full Text of Rule 68
(b) Unaccepted offer. An unaccepted offer is considered withdrawn, but it does not preclude a later offer. Evidence of an unaccepted offer is not admissible except in a proceeding to determine costs.
(c) Offer after liability is determined. When one party's liability to another has been determined but the extent of liability remains to be determined by further proceedings, the party held liable may make an offer of judgment. It must be served within a reasonable time, but at least 14 days, before the date set for a hearing to determine the extent of liability.
(d) Paying costs after an unaccepted offer.
(1) Claims for monetary damages. In cases involving claims for monetary damages, any costs under Rule 54(d)(1) awarded against the offeree must be based upon a comparison of the offer and the "adjusted award."
(A) Adjusted award definition. The adjusted award is defined as:
(i) the verdict in addition to,
(ii) the offeree's costs under Rule 54(d)(1) incurred before service of the offer of judgment and,
(iii) any attorney fees under Rule 54(e)(1) incurred before service of the offer of judgment. Provided, in contingent fee cases where attorney fees are awardable under Rule 54(e)(1), the court will pro rate the offeree's attorney fees to determine the amount incurred before the offer of judgment in reaching the adjusted award.
(B) Adjusted award less than offer. If the adjusted award obtained by the offeree is less than the offer, then:
(i) the offeree must pay those costs of the offeror as allowed under Rule 54(d)(1), incurred after the making of the offer;
(ii) the offeror must pay those costs of the offeree, as allowed under Rule 54(d)(1), incurred before the making of the offer; and
(iii) the offeror is not be liable for costs and attorney fees of the offereee awardable under Rules 54(d)(1) and 54(e)(1) incurred after the making of the offer.
(C) Adjusted award more than offer. If the adjusted award obtained by the offeree is more than the offer, the offeror must pay those costs, as allowed under Rule 54(d)(1), incurred by the offeree both before and after the making of the offer.
(D) Judgment to be entered. After a comparison of the offer and the adjusted award, in appropriate cases, the district court must order an amount which either the offeror or the offeree must ultimately pay separate and apart from the amount owed under the verdict. A total judgment must be entered taking into account both the verdict and the involved costs.
(2) Claims for non-monetary relief. In cases involving claims for relief other than monetary damages, any costs under Rule 54(d)(1) must be based on a comparison of the offer and the judgment.
(A) Judgment not more favorable than offer. If the judgment, including attorney fees awardable under Rule 54(e)(1) incurred before service of the offer of judgment, and costs incurred before service of the offer of judgment, finally obtained by the offeree is not more favorable than the offer, the offeree must pay the offeror's costs, as allowed under Rule 54(d)(1), incurred after the making of the offer.
(B) Judgment more favorable than offer. If the judgment including attorney fees and costs is more favorable than the offer, the offeror must pay all costs of the offeree allowable under Rule 54(d)(1) both before and after the making of the offer.
Amendment History
(Adopted March 1, 2016, effective July 1, 2016.)
Plain-English Summary
Rule 68 gives a party defending against a claim a tool to push settlement forward: at least 14 days before trial, that party can serve, but not file, a written offer allowing judgment on specified terms, and the offer is understood to include all accrued costs and fees. If the other side accepts in writing within 14 days, either party can file the offer and acceptance, and the clerk enters judgment on those terms without adding costs. If nobody accepts, the offer is treated as withdrawn, it cannot be used as evidence except in a later dispute over costs, and it does not stop a party from making a new offer later. The rule also lets a party who has already lost on liability make an offer of judgment tied to the amount of damages still to be decided.
The real teeth of Rule 68 come from Rule 68(d), which changes who pays costs, and possibly attorney fees, when an offer is rejected. In cases seeking money damages, the rule compares the offer to an "adjusted award," the verdict plus the offeree's costs and, in contingent fee cases, a prorated share of attorney fees incurred before the offer. If that adjusted award turns out to be less than the offer, the party who turned down the offer must pay the offering party's costs incurred after the offer, while the offeror still covers the offeree's earlier costs. If the offeree ultimately does better than the offer, the offering party pays the offeree's costs both before and after the offer. Cases seeking non-monetary relief follow a similar before-and-after comparison, but measured against the final judgment rather than a jury verdict.
Frequently Asked Questions
What is an offer of judgment under Rule 68?
It is a written offer served, but not filed, by a party defending against a claim, proposing that judgment be entered on specific terms, made at least 14 days before trial.
What happens if the other side does not accept my offer of judgment?
Rule 68(b) treats an unaccepted offer as withdrawn. It cannot be used as evidence except in a proceeding to determine costs, and making it does not stop you from making another offer later.
Can rejecting an offer of judgment cost me money even if I win?
Yes, potentially. Under Rule 68(d), if you reject an offer and your eventual recovery, adjusted for pre-offer costs and fees, ends up less than the offer, you may have to cover the offeror's costs incurred after the offer was made.
Does an offer of judgment include attorney fees automatically?
The offer itself is deemed to include all costs and fees accrued under Rule 68(a). Separately, Rule 68(d) factors attorney fees into the adjusted award comparison for cases where fees are awardable under Rule 54(e)(1).
How is Rule 68 applied differently in cases seeking non-monetary relief?
Rule 68(d)(2) compares the offer to the final judgment obtained, including pre-offer costs and fees, rather than to a jury verdict, to decide who pays post-offer costs.
Source & verification. Rule text
are reproduced verbatim from the Idaho Rules of Civil Procedure, adopted by the
Supreme Court of Idaho. Last verified July 14, 2026. ·
Official source
Also known as: offer of judgmentrule 68 offercost shifting settlement offeroffer to allow judgment