Rule 68.Offer of Judgment

Rule 68 gives a defending party a tool to pressure-test a case before trial. At any time more than fifteen days before trial begins, that party may serve on the adverse party an offer to let judgment be taken against it for a specified sum, property, or other stated relief, plus costs accrued to that point. If the adverse party serves written notice of acceptance within ten days, either side can file the offer and the acceptance with proof of service, and the court enters judgment accordingly — no further litigation of that claim required.

An offer that isn't accepted within the ten-day window is deemed withdrawn, and the rule keeps it out of the case going forward: evidence of the offer isn't admissible except in a later proceeding to determine costs. Rejecting one offer doesn't use up the chance to make another — a party can serve a subsequent offer even after an earlier one lapsed. The consequence for rejecting and doing worse than the offer is specific: 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.

Rule 68 also reaches cases that are litigated in stages. When liability has already been determined by verdict, order, or judgment, but the amount or extent of that liability still has to be worked out in further proceedings, the party found liable may make an offer of judgment on that remaining question. It has the same effect as a pretrial offer as long as it's served within a reasonable time — at least ten days — before the hearing to determine the amount or extent of liability.